| The rights of consumers in the retail sector are very | | | | liability of the carrier to pay compensation to the |
| well known, but when it comes to buying | | | | goods owner. There are different conventions |
| International freight and shipping services for your | | | | relating to different modes of transport such as air, |
| business the laws and international conventions are | | | | sea and road, but they all have one thing in common; |
| very different. | | | | the compensation which the carrier (or their insurer) |
| This article tells you what to expect if you are using | | | | is obliged to pay out, is based on the WEIGHT ONLY |
| freight forwarding services and something goes | | | | of the lost or damaged goods. |
| wrong with the shipment and it is either lost or | | | | For example cargo carried by road between |
| damaged. | | | | countries that are signatories to the CMR Convention |
| One mistake that a lot of people make is to assume | | | | on the Contract for the International Carriage of |
| that the international carrier, shipping company or | | | | Goods by Road (Convention Marchandises Routiers in |
| freight forwarder or Airline is simply obliged to refund | | | | the original French) will be subject to specified limits |
| them the full value of whatever goods may be lost | | | | of liability for compensation where the carrier is |
| or pay for the damage to be repaired. After all, if | | | | proved to be at fault. |
| your shoes fall apart the day after you buy them, | | | | The CMR Convention will in fact apply even if a road |
| you would expect to take them back to the shop | | | | freight movement takes place between two |
| and get a replacement pair, or a full refund! | | | | countries and only one country is a signatory. In the |
| This simple 'like for like' relationship does not work in | | | | United Kingdom it is incorporated into national law by |
| the area of international transport and forwarding. If | | | | The Carriage of Goods by Road Act 1968. |
| every freight forwarder had to pay out in | | | | This is expressed in SDRs per kilo. A Special Drawing |
| compensation the full value of the goods they | | | | Right is an International currency unit created by the |
| transported, most of them would go out of business | | | | International Monetary Fund and conversion rates are |
| in a very short space of time. That's because you - | | | | published regularly in the financial press or alternatively |
| as a customer - are usually paying only a very small | | | | can be found on the Financial Times website. The |
| proportion of the value of the goods for their | | | | conversion rate on the 31st December 2008 was |
| forwarding services. | | | | .9368 of an SDR equals one GBP |
| Freight charges are based on the greater of the | | | | Some customers express outrage at this - but the |
| weight or volume of the goods which is known as | | | | truth is that this limitation of liability applies in some |
| the chargeable weight. The Freight cost is not usually | | | | way to all international transport provision; it is not |
| related in any way to the actual value of the | | | | imposed randomly by rogue freight forwarders who |
| consignment being carried. | | | | are just trying to be awkward. |
| As international trade has developed, so have a | | | | There will be further articles about liability and |
| number of statutes and conventions which LIMIT the | | | | insurance to follow. |