Road Transport Law: Freight Carriage Contracts and Carrier's Liabilities
Road transport, the lifeblood of global trade and local economies, plays a key role in ensuring products and goods reach their recipients safely and on time. The legal basis for this complex process is formed by freight carriage contracts and the carrier’s liabilities arising from these contracts. In both domestic and international transport, relevant legislation and agreements clearly define the rights and obligations of the parties.
In this article, we will generally discuss the fundamental elements of road freight carriage contracts, the carrier’s liabilities, and important legal regulations in this field.
What is a Road Freight Carriage Contract?
A freight carriage contract is a type of agreement where one party (the carrier) undertakes to transport goods from a specific location to another, and the other party (the consignor or the consignee) agrees to pay a fee in return. The Turkish Commercial Code (TTK) and international agreements regulate the validity of these contracts and the responsibilities of the parties.
The main elements of the contract include:
- Parties: The consignor (the one arranging the transport), the carrier (the one transporting the goods), and sometimes the consignee (the recipient of the goods).
- Goods to be Transported: The type, quantity, weight, and characteristics of the goods.
- Carriage Fee (Freight): The amount to be paid for the transport service.
- Transport Route and Duration: Where the goods will be transported from and to, by which route, and the estimated duration.
These contracts are typically documented by a consignment note or, in international transport, a CMR document (Convention on the Contract for the International Carriage of Goods by Road).
What Are the Carrier’s Main Liabilities?
In road transport, the carrier’s liabilities are determined by both our national legislation (Turkish Commercial Code) and internationally by the CMR Convention. The carrier’s primary responsibilities are:
- Liability for Carrying and Delivering Goods: The carrier is obliged to deliver the goods to the consignee specified in the consignment note or CMR document, on time, completely, and without damage. This liability generally covers the period from the moment the goods are taken over for carriage until they are delivered to the consignee.
- Liability for Loss or Damage: The carrier is liable for loss, damage, or delay incurred by the goods during transport.
- Liability for Delay: The carrier is liable for damages arising from the non-delivery of goods within the contractually agreed or reasonable time.
- Principle of Strict Liability (in some cases): The carrier’s liability may arise independently of fault, with certain exceptions. For example, in cases where the damage results from the inherent nature of the goods or the fault of the consignor, the carrier’s liability may be mitigated or extinguished.
- Principle of Limited Liability: The carrier’s liability for loss or damage is generally limited to a certain value per kilogram. This limitation is defined in the CMR Convention based on a specific SDR (Special Drawing Rights) value per kilogram. Parties can increase this limit with additional insurance.
Circumstances Relieving or Reducing Carrier’s Liability
The carrier is not absolutely liable in all circumstances. In some exceptional cases, the carrier’s liability may be eliminated or reduced:
- Consignor’s Fault: Situations such as inadequate packaging of goods, incorrect labeling, or non-compliance with loading instructions.
- Inherent Vice of the Goods: Goods naturally prone to spoilage, breakage, or leakage.
- Force Majeure: Unforeseeable and unavoidable natural disasters such as earthquakes, floods, storms, or events like war or riots.
- Consignee’s Fault: Failure to take delivery of the goods on time or to comply with inspection obligations.
In such cases, the burden of proof generally lies with the carrier.
Freight Insurance and Its Importance
Due to the carrier’s limited liability, freight insurance is of great importance for both consignors and carriers. These insurances provide additional security against risks that may arise during the transport process and help cover potential damages. CMR insurance specifically covers the carrier’s liabilities under the CMR Convention.
Conclusion
Road transport is an indispensable part of modern commercial life. Preventing potential legal problems in this process is possible by knowing the rights and obligations of the parties correctly and carefully reviewing freight carriage contracts. The carrier’s liabilities are defined within certain limits by both national and international regulations.
Given the dynamic nature of legislation in this field and the potential for each specific case to differ, it is advisable to seek legal support from a professional specialized in transport law to prevent potential loss of rights and to manage legal processes correctly.