CMR Convention

CMR Convention

Introduction

Convention on the Contract for the International Carriage of Goods by Road (CMR) is a convention serving the international transportation industry. The convention came into occurrence after a popular case in the supply chain industry. This case occurred between the two corporate entities Quantum Corporation Limited and Air France. The transportation of goods was further outsourced to a subcontractor, and as a result, this road transportation created a huge loss for Quantum Corporation Limited. This case gave birth to the CMR Convention among European countries and others, which was originally extracted from a French Convention.

The CMR convention has been revised through various articles since the formation, and there have been various improvements in the convention. It has positively supported the transport industry as many cases have occurred after it, but still the convention needs to be refined. The report discusses the related elements of the CMR convention in relation with the transport industry.

Quantum Corporation

Quantum Corporation is an organization serving the data storage industry with its headquarters in California, United States of America. The company is a producer of data storage products like tape drives, data reduplication products, tape automation, and other scalable data storage products. Over the past few years, Quantum Corporation Limited has gained significance and a good reputation in the domain of data protection and comprehensive data management solutions. The company offers a variety of specialized storage solutions.

Air France

Air France is a French Airlines company with its headquarters located in Paris, France. The company was formed after a merger of five companies. Air France is a subsidiary of Air France KLM Group. The company deals with a mixed fleet of Airbus and jets.

Case

Air France and Quantum Corporation limited had a contract, according to which Air France was the responsible carrier to deliver the hard disk drives from Singapore to Dublin. In the first phase on September 1998, Air France carried the goods towards Paris by plane, and then for the extra movement used a subcontractor, Plane Trucking Limited. The responsibility of Plane Trucking Limited was to move the goods to Dublin by road. The consignment was of 11,250 hard disk drives. The goods were loaded on three airline pallets. From Paris, the goods were loaded on the trailer vehicles of Plane Trucking Limited to further move them to Dublin. While being carried towards Dublin on the roads of England thee goods were stolen. The goods were stolen in the custody of Plane Trucking Limited. The trailers on which the good were loaded were being driven by the employee of Plane Trucking, and the company admitted the liability for the theft incident occurred.

At that time was while the proceeding Plane Trucking Limited was in a state of liquidation. Since, Plane Trucking Limited was a subcontractor of Air France, so it also had to accept the liability. The claimed value of the case was US $1.5 million. The judicial factor was that either the contract specified a relevant location for moving the goods, or the CMR was applicable ...