Many shippers assume a carrier pays the full value of goods damaged on the road. It does not. Liability is limited by law, and the limit is lower than most people expect. Here is how it works and what you can do about it.
The basic rule: 8.33 SDR per kilogram
For international road transport the CMR convention applies. Within Germany it is the German Commercial Code (HGB). Both use the same standard limit for loss or damage: 8.33 special drawing rights (SDR) per kilogram of gross weight.
An SDR is a unit of account of the International Monetary Fund. Its value in euros changes daily and the IMF publishes it.
Example: a pallet of machine parts weighs 500 kg and is worth EUR 40,000. It is destroyed in transport. The carrier’s liability is capped at 500 × 8.33 = 4,165 SDR. Depending on the exchange rate that is a few thousand euros, a fraction of the value.
Under forwarding terms
German forwarders usually work under ADSp 2017. For road transport the 8.33 SDR per kilogram still apply, with an additional cap per claim and per event. Your forwarder must refer to these terms on its quotes, so read that line.
When liability is unlimited
The limits fall away if the damage was caused intentionally or recklessly with the knowledge that damage would probably result. This is the exception, and proving it is hard. Do not plan on it.
Delay
If goods arrive late and you can show a loss from the delay, compensation under CMR is capped at the freight charge. Under German law the cap is three times the freight.
Deadlines for reporting damage
The limits only help you if you report damage in time:
- Visible damage or shortage: note it on the CMR or delivery note at delivery, in front of the driver, and keep a copy.
- Hidden damage: report it in writing within seven days of delivery (under CMR, Sundays and public holidays are not counted).
- Delay: report it in writing within 21 days.
- Claims expire after one year as a rule, three years in cases of intent.
Take photos of the packaging and the goods before you unpack further, and keep the packaging.
When goods insurance makes sense
If your goods are worth more per kilogram than the liability limit, the gap is your risk. Electronics, spare parts and machinery often fall into this group. Goods insurance covers the actual value regardless of who is liable. Ask for it before the transport, not after the damage.
What we do
We tell you on every quote which terms apply, and we ask about the value of your goods when it matters. If the limit does not cover your risk, we say so before the truck moves.