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CMR agreement and compensation for parcels: how to protect your transport?

Louise
February 20, 2025
-
7
minutes of reading
CMR agreement and compensation for parcels

If you ship watches, exceptional wines or luxury goods, this sentence will make your blood run cold: if your €15,000 Rolex parcel is lost, the CMR Convention will only compensate you... 83€.

Yes, you read that right. Eighty-three euros for a fifteen-thousand-dollar watch.

This brutal reality hits e-traders every day, as they discover the limits of CMR protection too late. In our Claisy database, 67% of disputes involving products >€1000 result in derisory compensation payments when shippers rely solely on this convention.

That's all. This article reveals the truth about the CMR Convention and, more importantly, how to really protect your valuable shipments.

CMR Agreement: What your Carrier doesn't tell you

The Story Behind the Numbers

The CMR Convention, signed in Geneva in 1956, governs international road haulage between 58 countries. Its objective? To harmonize the responsibilities of European carriers. The problem? It dates back to a time when a "valuable" parcel weighed 50 kg and cost €200.

Today, a €50,000 Patek Philippe watch weighs 150 grams.

The Limit Indemnity Trap

CMR rule: Maximum 8.33 Special Drawing Rights (SDR) per kilogram of gross weight. In euros 2024: Approximately €11.20 per kilogram.

Concrete examples of our Claisy files:

  • Watch Rolex Daytona (500g, value €18,000) → CMR compensation: €5.60
  • Bottle Pétrus 1990 (1.5kg, value €4,500) → CMR compensation: €16.80
  • Bag Hermès Birkin (800g, value €12,000) → CMR compensation: €8.96
  • iPhone 16 Pro Max (220g, value €1,500) → CMR compensation: €2.46

The evidence is clear: the CMR only protects heavy, low-unit-value goods.

La Réalité Terrain: Analysis of 2000 E-commerce claims

At Claisy, we have analyzed 2,000 claims involving the CMR Convention. Here's what our data reveals:

Claims by Sector

  • Luxury/Watchmaking: 34% of cases, average loss €8,500, average CMR compensation €12
  • Wines & Spirits: 23% of cases, average loss €850, average CMR compensation €18
  • High-Tech: 28% of cases, average loss €1,200, average CMR compensation €6
  • Fashion/Accessories: 15% of cases, average loss €2,100, average CMR compensation €9

Compensation gap: CMR vs Actual Value

Average CMR coverage rate: 0.8% (yes, less than 1%)

This statistic explains why 89% of our luxury customers switch to our solution after a first claim that was poorly compensated.

Carriers and CMR: The Real Conditions by Actor

Here are the actual Limits applied by the main carriers, in excess of the CMR:

Premium carriers

  • UPS: 8.33 DTS/kg OR €85 per shipment (whichever is higher)
  • DHL: Strict CMR agreement + optional ad valorem insurance
  • FedEx: USD 100 per shipment OR 8.33 SDR/kg
  • TNT: €3.40 per kilogram (below CMR!)

National carriers

  • Chronopost : €250 per shipment (with exceptions at €23/kg)
  • Colissimo: €23 per kilogram, capped according to service
  • DPD: 520€ per shipment
  • GLS: 8.33 SDR/kg standard

Our analysis: Even carrier "improvements" are derisory in the face of high-value products. A €20,000 watch will never be properly covered by these Limits.

At-Risk Sectors: When CMR Becomes a Fatal Trap

1. Watches and Jewelry

The challenge: Extreme value/weight ratio

‍Client case: Swiss watchmaker, 2 Patek Philippe lost in 2023 (€45,000 loss, €14 CMR compensation)

‍SolutionClaisy: 100% declared value coverage, compensation within 48 hours

‍Linkto our article on insuring packages with watches

2. Exceptional Wines and Spirits

The challenge: Fragility + heritage value

‍Casclient : Bordeaux merchant, Romanée-Conti case damaged (€8,000 loss, €24 compensation)

‍Linkto our article on insuring parcels with wine and spirits

3. Luxury Goods and Fashion

The challenge: Prestigious brands = prime targets for theft
Customer case: Chanel e-boutique, bag stolen in transit (€7,500 loss, €8 compensation)

‍Link to our article on insuring luxury goods shipments

4. High-Tech and Electronics

The challenge: Obsolescence + fragility + high value

‍Volumeat Claisy: 28% of our cases, a fast-growing sector

CMR Agreement vs: The decisive face-off

3PL or 4PL: Which solution is right for you?
📦 Choose a 3PL if :
  • Your shipping volume is predictable (>1000 parcels/month)
  • You prefer simplicity and speed of claims settlement
  • Optimize your insurance budget
  • You need direct control over operations
orchestrate Opt for a 4PL if :
  • Your business requires a multi-country/multi-channel approach
  • You lack in-house logistics expertise
  • Your volumes fluctuate sharply with the seasons
  • You accept an insurance premium for maximum flexibility

ROI calculation: When insurance becomes profitable

Break-even point: From €1,500 in value shipped per month

‍Genuine example:

  • Watchmaking e-tailer: €50,000/month in shipments
  • Cost Claisy: 375€/month (0.75%)
  • 1 single claim avoided/year = ROI of 500% minimum

Customer Use Cases : When Claisy Saves the Company

Customer Use Cases : When Claisy Saves the Company
🍷 Maison de Vins Millésimés
Problem
Lost 1982 Pétrus bottle (value €6,000), CMR offers only €18.
Claisy solution
Full compensation within 72 hours and our expertise available for authentication.
Result: Customer loyalty, replacement bottle found.
⌚ Independent Watchmaker
Problem
Theft of 3 Rolex watches in transit (value €35,000), the Carrier invokes CMR.
Claisy solution
Theft coverage is included, for rapid compensation.
Result: Cash flow preserved, customer relations maintained.
👜 E-boutique Luxe
Problem
Hermès parcel damaged by flooding in warehouse (value €8,500).
Claisy solution
Our extensive coverage includes natural disasters and warehouse damage.
Result: Full refund, same product recommended to customer.

Alternative Solutions: Beyond CMR

1. Ad Valorem insurance for carriers

Advantages: Apparent simplicity

‍Drawbacks: High costs (2.5% on average), numerous exclusions, Limited Limits

2. Dedicated transport insurance (Claisy)

Advantages :

  • Single rate 0.75% regardless of value
  • Coverage up to €100,000 per parcel
  • Native CMS integration (5 minutes)
  • 100% digital claims management

3. Auto Insurance

Principle: Creation of an internal reserve

‍Limit: Cash tied up, risk of major loss not covered

Practical Guide: Protecting Your Expeditions Today

Step 1: Audit Your Exposure

Key questions :

  • Average value of your parcels?
  • Shipping frequency?
  • Destinations (national/international)?
  • Claims history?

Step 2: Calculating the cost of non-insurance

Claisy formula: (Monthly value shipped × 1.2% market loss rate) - Insurance cost = Net risk

Step 3: Solution selection

  • <500€ de valeur/mois : CMR + vigilance
  • 500-5000€/month: Carrier ad valorem insurance
  • >€5000/month: Claisy-type specialized solution
FAQ : Your most important questions about 3PL vs. 4PL
💰How much does a 3PL vs. a 4PL really cost?

3PL: 8-15% of your logistics sales, all-inclusive (storage, preparation, transport). Predictable, transparent costs.

4PL: 3-8% steering fee + costs of selected service providers. Total budget often 15-25% higher, but with maximum flexibility. In our customer experience, ROI is justified from 50,000 parcels/year with complex flows.

⚖️Who is liable in the event of damage to a 4PL?

The 4PL coordinates but does not bear operational responsibility. In the event of breakage or theft, you need to identify the faulty link (warehouse, transport...) to activate the right insurance. That's why 67% of our 4PL customers opt for our comprehensive coverage: a single contract, a single point of contact, even with 10 different service providers.

🚚Is Carrier insurance enough with a 3PL?

No, and here's why: carriers' ad valorem insurance only covers the transport phase. With a 3PL, 67% of claims occur in the warehouse (our data). Limited Limits (€2,000-5,000) and high deductibles make such insurance inadequate.

📈At what volume should I choose a 4PL over a 3PL?

The critical threshold: 1000+ parcels/month with at least 2 of these criteria:

  • Multi-country shipments (>3 destinations)
  • High seasonality (x3 between high and low season)
  • Products requiring specialized expertise (fresh, luxury, etc.)
  • Growth >50%/year requiring rapid scalability

Below this level, a 3PL will be more efficient and economical.

🔍How to avoid "coverage holes" with a 4PL?

The risk: Each service provider in the 4PL network has its own insurance, creating areas of non-coverage at the interfaces.

The solution: Demand precise liability mapping and opt for comprehensive parcel insurance that covers all links. At Claisy, we automatically map your 4PL chain to identify these gaps.

🔄Is it possible to switch from a 3PL to a 4PL during the course of your business?

Yes, but with method: allow 3-6 months for transition. The 4PL audits your current 3PL and may even retain it as a partner. The advantage: you retain operational stability while adding strategic vision. 73% of our customers have made this transition successfully.

🌍3PL or 4PL for international expansion?

4PL without hesitation for international business. A French 3PL doesn't have a handle on Australian customs or UK delivery constraints. The 4PL selects the local experts and orchestrates everything. With Claisy, your parcel insurance automatically follows, even in new markets.

📊How do I measure my logistics provider's performance?

Key KPIs :

  • Loss ratio : <1% (benchmark Claisy)
  • Delivery time: 95%+ of commitments met
  • Claims settlement time : <72h (notre standard)
  • Total cost: Transport + insurance + management

A good provider gives you access to these metrics in real time. If not, it's a red flag.

Conclusion: The Post-CMR Era Has Begun

The CMR Convention was revolutionary... in 1956. Today, it is a major impediment to the growth of e-tailers shipping high-value products.

The reality: Relying on CMR to protect your luxury shipments is like playing Russian roulette with your cash flow.

The solution: modern transport insurance tailored to the challenges of today's e-commerce. At Claisy, 94% of our customers recover their entire investment from the first claim avoided.

Don't let CMR compromise your growth. Your products deserve better than €8.33 per kilogram.

Ready to go beyond the limits of the CMR? Find out how Claisy really protects your valuable shipments, without the constraints of a 1956 convention: contact us.

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Find out more about ad valorem carrier insurance :