International trade: the CMR Convention
In international trade, it is very important that transport is also well regulated. After all, at least as important as the quality or “conformity” of the goods is that these goods arrive at their destination correctly and on time.
When transport crosses borders, the question may arise as to which law applies to the transport contract. To avoid ambiguity in this regard, several international conventions have been created over the years in the field of transport. One such convention is the CMR Convention: “Convention on the Contract for the International Carriage of Goods by Road” (“the Convention”).
What does the CMR Convention regulate?
The Convention aims to protect the best interests of all parties involved in the carriage. The Convention provides that the contract of carriage is recorded in a consignment bill and also regulates the requirements that the contract of carriage (i.e., the consignment bill) must meet. Furthermore, the Convention regulates the rights and obligations of the carrier, but also of the other parties involved, such as the sender and the consignee.
When does the CMR Convention apply?
The Convention automatically applies to agreements for the cross-border carriage of goods by road. Cross-border in this case has nothing to do with the identity of the contracting parties, but with the transport itself. If the place of taking delivery of the goods and the place of delivery of the goods are in different countries, there is cross-border transport. If at least one of those countries is a member of the Convention, it applies to the contract of carriage. Therefore, the applicability of the CMR Convention cannot be excluded.
The CMR Convention applies to transport by road. Other regulations exist for transport by sea or air. The CMR Convention does make an exception for the so-called “stack transport”: part of the journey is not by road, but the goods remain in the vehicle during that part. In that case, the CMR Convention also continues to apply to the transport.
Obligations and liability under the CMR Convention
The Convention regulates the obligations and therefore the liability of the parties involved in the transport. Among other things, the Convention states that the sender of the goods is responsible for the correct preparation of the consignment bill, the correct designation of the goods (and quantity thereof), as well as proper packaging. Should the consignor of the goods not have done this correctly, he is liable for any damage suffered by the carrier as a result.
On the other hand, the carrier has a duty to examine the goods upon taking delivery and must also include the findings of the examination in the consignment bill. In addition, the carrier – of course – has an obligation to perform the carriage properly. Therefore, with some exceptions, the carrier is liable for damage to the goods to the extent that such damage occurred during carriage.
Finally, the consignee must, in the presence of the carrier, ascertain the condition of the goods. If he fails to do so, or without timely reporting any loss or damage to the carrier, he is deemed to have received the goods in the condition as shipped. This makes it difficult for the consignee to complain afterwards about the condition of the goods or to bring an action against the carrier on that account.
Advice?
Would you like to receive advice on a (international) contract of carriage, the applicability or interpretation of the CMR Convention? Then please contact us. Jacolien Leuvenink will be happy to assist you.
