Freight transport is a cornerstone of global trade. However, incidents such as damages, losses, or delays in delivery are common issues that can affect business relationships, creating uncertainty and even conflicts. In the last few months, I have been involved in negotiations where a consignee company withheld payment of an invoice to a carrier, claiming non-delivery of part of the goods. It is necessary to know how to act to avoid these situations because information is power. Below, we will analyze international and national regulations regarding road freight delivery to determine which is the proper way to proceed.
The 1956 Geneva Convention: european goods transport
In Europe, the contract of carriage of goods by land between the Member States of the European Union is governed by the 1956 Geneva Convention (CMR). The first key idea is that the contract of carriage is documented in the consignment note, although its absence, irregularity, or loss does not affect the existence or validity of the contract, according to Article 4 of the CMR.
Entering into the matter, it is important to retain that the carrier is obliged to check the accuracy of the details in the consignment note, such as the number of packages, marks, and numbers, as well as the apparent condition of the goods and their packaging at the time of acceptance. But what happens if the loaded goods do not match the details in the consignment note?
The Convention specifies that if the carrier has no reasonable means to verify the accuracy of the information, they may record their reservations. That is to say, if the carrier cannot confirm the condition of the goods —such as when they are not responsible for loading or unloading— it is prudent to include a reservation in the consignment note, justifying the inability to inspect the goods.
However, reservations do not bind the shipper unless expressly accepted. Therefore, I advise shippers not to sign any consignment note containing reservations without carefully reviewing the type and content of the reservation in advance.
As the recipient, reservations regarding losses or damages to the goods must be made at the time of delivery, if the damages are apparent, or within seven days (excluding Sundays and holidays), for hidden damages. It is essential to make reservations within the legal timeframe; otherwise, the goods will be deemed delivered as described in the consignment note.
Failure to make reservations within the stipulated time will result in the loss of the right to take legal action to claim damages. If reservations are made in accordance with the law, the statute of limitations for legal claims is very short: one year, unless there is intent or gross negligence, in which case the limitation period extends to three years, per Article 32 of the CMR.
As an advisor to a transport company, I encountered a situation where my client did not handle the loading or unloading of trucks and failed to record any reservations in the consignment note regarding the lack of means to inspect the goods. On the other hand, the consignee made specific and justified reservations at the time of delivery, stating that five pallets of products were missing, and they signed these reservations. This put my client in the worst possible position: 1) The carrier did not note the inability to inspect the goods in the consignment note; 2) The consignee made detailed reservations about missing goods at delivery; and 3) The carrier signed these reservations, implicitly accepting them.
This case highlights the importance of understanding freight transport regulations, as it can be the determining factor in liability under the law. In this instance, our client learned a valuable lesson and received a crash course in the practical application of international freight regulations from GRÀCIACALBET.
National Regulations: spanish law on freight contracts
In Spain, Law 15/2009, of November 11, 2009, governs freight transport and serves as the legal foundation for addressing damages or losses during transport in national operations or when international regulations are not applicable.
In the preamble of the Law, it is already specified that it follows very closely the CMR Convention (1956 Geneva Convention) and the CIM Convention (1970 Bern Convention for rail transport), making the regulations quite similar.
The first noteworthy point is that the carrier is "responsible to the shipper for the complete performance of the transport" (Article 6, Law 15/2009), regardless of whether the transport is carried out directly or by a third party. This creates a quasi-objective liability regime, which many carriers are unaware of.
As with international regulations, a consignment note must detail essential information, such as the contract’s terms, the place and date of issuance, the names of the shipper and consignee, the carrier, the date and place of receipt, etc. However, as in international law, the absence or irregularity of the consignment note does not invalidate the contract (Article 13, Law 15/2009).
If the carrier cannot inspect the goods due to the lack of means —such as in the case of not handling loading or unloading the contents— they must record this in the consignment note. Given the quasi-objective liability under Spanish law, such reservations are essential to avoid being held responsible for damages or defects unrelated to the carrier’s actions.
The deadlines under Spanish law mirror those of European regulations:
- Reservations for apparent damages or defects must be made at the time of delivery.
- For hidden damages or defects, reservations must be made within seven days (Article 60).
Reservations must always be written and justified. General complaints are not valid; the specific goods affected and the nature of the damage, loss, or delay must be identified. If reservations are not made within the deadline, the goods will be presumed delivered in good condition, and the right to claim damages will be lost.
From carrier's perspective, the most important thing is to indicate on the Bill of Lading that they do not have the means to verify the condition of the goods and, in any case, not to sign any reservations made on the consignment note by the sender or recipient without first verifying their accuracy.
As in international regulations, if reservations are made correctly, the statute of limitations for actions arising from the contract is 1 year, except in cases of willful misconduct or gross negligence, where the period is extended to 2 years (Article 79). This is where we see one of the main differences from international regulations, as in Spain, in cases of willful misconduct or gross negligence, the period can be extended to 2 years, whereas under the Geneva Convention, it can be extended to 3 years.
As the recipient, it is essential to submit written reservations to the carrier, describing the loss or defect at the time of delivery on the consignment note or, if the defects are hidden, within 7 days.
Therefore, from the carrier's perspective, the most important thing is to state that they do not have the means to verify the condition of the goods at the start of transport and, in any case, not to sign any reservations made by the sender or recipient. According to Article 48, the carrier will not be held liable for the total or partial loss of the goods if it is proven that the loss, damage, or delay was caused by the fault of the sender or recipient.
As the recipient, it is essential to submit written reservations to the carrier, describing the loss or damage at the time of delivery or, if applicable, within 7 days. Otherwise, it will be presumed that the goods were delivered in the condition described in the consignment note.
Conclusions: Knowledge is Power
Every day, tons of products are delivered via road transportation. Our economy relies so heavily on the transportation of goods that it often happens automatically. However, understanding the four basic keys to road freight regulations, whether national or international, can make a significant difference. It can be as simple as making a brief but precise note on the consignment note or, in cases where it includes reservations, not signing it or signing it with a "not in agreement" remark.
If, as a carrier, you lack the means to verify the condition of the goods before the start of transportation, this must be noted on the consignment note. If, as a recipient, the goods received do not match the order—or show any apparent defect—this must be recorded on the Bill of Lading at the time of delivery. For hidden defects, they must be noted within 7 days. If reservations are not made, any right to file a claim will be lost. Additionally, as a carrier, it is generally advised not to sign reservations made by the recipient, as doing so implies acceptance.
Having this basic knowledge and sharing it with drivers and carriers involved in deliveries is essential for reducing and preventing future conflicts.
At GRÀCIACALBET, we can help you. Don’t hesitate to seek advice on how to file claims and protect your rights.
By Paula Gómez, ICAB 48120
