Under the CMR Convention, the carrier pays at most 8.33 SDR (Special Drawing Rights) per kilogram of gross weight for lost or damaged cargo. At the exchange rate of 9 October 2026, this is approximately USD 11.27 per kilogram. If a value has been declared, the limit is higher; if the damage was caused by wilful misconduct or by default equivalent to wilful misconduct, the limit does not apply at all.
What does the 8.33 SDR limit mean?
Article 23 of the CMR Convention determines the compensation payable by the carrier for total or partial loss of the goods in two stages. First, the loss is calculated on the basis of the value of the goods at the place and time at which they were accepted for carriage: the commodity exchange price if there is one, otherwise the current market price. This amount is then compared with 8.33 units of account per kilogram of gross weight short, and the lower figure is paid. The unit of account is the SDR, introduced by the 1978 Protocol. Turkey acceded to the CMR and to this protocol by Law No. 3939. For domestic road transport, Article 882 of the Turkish Commercial Code (Türk Ticaret Kanunu, TTK) applies the same 8.33 SDR limit.
The limit depends on the weight of the goods, not their value. For heavy, low-value cargo (rebar, plastic granules), compensation often covers the actual loss; for light, high-value cargo (electronics, pharmaceuticals, spare parts), a large gap remains.
What is the SDR, and where is the rate taken from?
The SDR (Special Drawing Rights) is not a currency but a reserve asset created by the IMF. Its value is calculated every business day on the basis of a basket made up of the US dollar, euro, Chinese yuan, Japanese yen and pound sterling, and published by the IMF. Under Article 23(7) of the CMR, conversion is made into the currency of the country of the court seised of the case, at the rate on the date of judgment or on a date agreed by the parties. For domestic transport, the TTK uses the Central Bank of the Republic of Turkey (TCMB) value on the day the goods were handed over to the carrier.
Example calculation at the current rate
According to IMF data, on 9 October 2026 1 SDR was worth approximately USD 1.353. At this rate, the limit per kilogram is 8.33 × 1.353 ≈ USD 11.27. In the event of total loss, the outcome for three different cargoes is as follows:
| Cargo | Gross weight | Invoice value | CMR limit | Amount payable |
|---|---|---|---|---|
| Steel profiles | 20,000 kg | USD 18,000 | ≈ USD 225,400 | USD 18,000 (actual loss) |
| Ready-made garments | 8,000 kg | USD 160,000 | ≈ USD 90,200 | ≈ USD 90,200 |
| Electronic circuit boards | 2,000 kg | USD 400,000 | ≈ USD 22,500 | ≈ USD 22,500 |
In the event of loss, carriage charges, customs duties and other charges incurred in respect of the carriage are refunded in addition, in proportion to the loss (Art. 23(4)). In the event of damage, the carrier pays the amount by which the goods have diminished in value; this payment may not exceed the amount that would have been payable had the damaged part been lost entirely (Art. 25).
When is the limit raised or removed?
- Declaration of value (Art. 24): If the sender pays an agreed surcharge and has a value exceeding the limit entered in the CMR consignment note, the ceiling rises to the declared value. Practical details are explained in the entry raising the limit with a declaration of value.
- Special interest in delivery (Art. 26): Additional loss can be claimed up to the amount of special interest stated in the consignment note.
- Wilful misconduct or equivalent default (Art. 29): If the damage was caused by wilful misconduct of the carrier or the persons it employs, or by default that, under the law of the court seised, is considered equivalent to wilful misconduct, the limitation cannot be invoked. Article 886 of the TTK likewise includes conduct committed recklessly and with knowledge that damage would probably result.
The ceiling is different for delay
When the delivery period is exceeded, the CMR provides for compensation of at most the carriage charges for loss arising from delay (Art. 23(5)). Domestically, the TTK sets this ceiling at three times the freight. Calculation examples are in the entry CMR delay compensation. Claims are generally subject to a limitation period of one year, or three years in the case of wilful misconduct.
Common mistakes
- Believing the carrier's CMR insurance policy covers the full value of the goods. This policy covers the carrier's legal liability, i.e. as a rule 8.33 SDR/kg.
- Calculating with net instead of gross weight. Both the CMR and the TTK use gross weight including packaging.
- For high-value cargo, neither declaring a value nor taking out separate cargo transit insurance.