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Article 23 of the CMR Convention caps carrier liability at 8.33 SDR per kilogram of gross weight lost. (source: unece.org) The SDR is the accounting unit of the International Monetary Fund, converted into currencies at the current rate. The consequence: compensation is calculated from weight, not from the value of the goods, so for light, expensive cargo it may cover only a fraction of the loss. That gap is what cargo insurance closes.
Where does the limit come from?
The CMR Convention applies to international road carriage by force of law and frames carrier liability: what the carrier answers for, when he is relieved, and up to what amount he pays. The Article 23 ceiling is weight-based and identical for every kind of goods. The Convention does not ask whether the pallet carried steel forgings or electronics.
The mechanics: weight decides, not value
Compare two pallets of equal weight. One: heavy steel components, moderate value. The other: light consumer electronics, worth many times more. If both are destroyed, the CMR ceiling is identical, because it is kilograms multiplied by 8.33 SDR. For the steel that ceiling may sit close to the value of the goods. For electronics, pharmaceuticals, cosmetics or prototypes it can be a fraction of the invoice, and nobody owes you the difference by force of law.
Carrier liability insurance: what it actually covers
A carrier liability policy insures the carrier's civil liability, that is, what the carrier is obliged to pay within the CMR framework. It does not raise the weight limit and does not respond to events the carrier is not liable for, force majeure among them. On top of that, such policies carry their own exclusions and insured sums. The full comparison of the two constructions is in our article cargo insurance versus carrier liability.
When cargo insurance is the answer
Cargo insurance works from the value of the goods, regardless of whether the carrier is liable and up to what amount. It makes sense whenever the value of a kilogram of your goods clearly exceeds the Convention ceiling: the lighter and more expensive the load, the wider the gap to close. The Convention does allow a declared value in the consignment note against a surcharge, but in market practice the standard tool is cargo insurance. If the damage has already happened, the order of actions is in our guide to reporting damage in transit.
When does the 8.33 SDR per kilogram limit fail to apply in haulage operations?
In daily haulage operations, the gross mass entered on the CMR consignment note determines the absolute upper liability threshold. For a consignment weighing 1000 kg, the liability cap is fixed at 8,330 SDR. If only part of the cargo is damaged, the compensation calculation applies strictly to the gross weight of the damaged items, not the entire trailer load containing 33 pallets. You must ensure that the recorded mass includes packaging, dunnage, and wooden pallets. Excluding the 25 kg tare weight of a pallet directly reduces the maximum allowable payout.
The standard liability cap of 8.33 SDR/kg DOES NOT APPLY if the loss results from wilful misconduct or gross negligence by the haulier, or if a special interest in delivery was declared on the note. Under proven gross negligence, the haulier's financial liability shifts to 100% of the actual invoice value of the goods, bypassing weight limits entirely.
To protect your claim rights during UK and European transit, strict operational deadlines must be met:
- Visible damage must be recorded on the delivery note alongside the driver and confirmed within 24 hours.
- Hidden loss or damage must be notified in writing to the haulier within 7 days of delivery.
- Exceeding the 7 days window creates a legal presumption that the consignment was delivered in sound condition.
Step by step
- Assess the value. Check the real value of your shipment and calculate its gross weight.
- Calculate the limit. Multiply the total weight by the liability ceiling per kilogram.
- Identify the gap. Compare the liability limit with the real value to discover uncovered loss risks.
- Arrange cargo insurance. Secure optional cargo insurance to cover the full value of the goods.
- Submit details. Provide transport instructions to ensure correct risk management during transit.
Definitions
- SDR (Special Drawing Rights): An international reserve asset created by the IMF used to standardise liability ceilings in transport.
- CMR Convention: An international treaty governing the carriage of goods by road and liability boundaries.
- Carrier Liability (OCP): An insurance policy covering the legal responsibility of the haulier for damage caused during transport.
- Cargo Insurance: An insurance policy covering the full value of goods against transit damage or loss regardless of weight limits.
The OTSL role
OTSL assists in assessing shipment risks and identifying proper protection for every journey. By choosing our road transport services, you receive professional guidance on liability limits as explained in our guide on declared value in CMR. See also: How many tonnes fit on a semi-trailer: payload, the 40-tonne limit and the “24 tonnes” myth.
