Electronic Consignment Note (e-CMR)
In September 2019, Poland joined the Protocol updating the Convention on the Contract for the International Carriage of Goods by Road (CMR). The huge advantages for the logistics industry resulting from the implementation of the electronic version of the CMR have already prompted 31 countries to sign the protocol.
e-CMR – what is it?
e-CMR is an electronic version of the international consignment note (CMR) prepared by the shipper and the carrier, specifying the conditions of a single transport contract. Just like the traditional paper version, the electronic version of the CMR includes, among others: information about the place and time of loading, unloading, and data of a vehicle carrying the cargo.
The electronic consignment note is issued via electronic communication, and an electronic signature is required for its approval.
The benefits of using e-CMR
One of the indisputable and most important advantages of the electronic consignment note is the shortened waiting time for payment. In the case of the paper version of a CMR, the freight payment process begins only when transport documents are physically delivered to the principal. If a given driver returns to the base only once every few weeks, it may result in extending the payment deadline by that time. This may result in loss of financial liquidity of the company – to which small companies are particularly exposed. Digital e-CMR gives one the option of delivering the documents immediately after unloading the goods. Another benefit for the carrier, related to the implementation of e-CMR, is the facilitation of archiving logistic information and the resulting savings of: space, time to find a given order, ink or paper.
The electronic version of the CMR also means convenience and a better flow of information for all parties, because they have access to data related to the transport process in real time. For the same reason, e-CMR shortens the possible complaint process. The use of e-CMR enables the option of issuing Proof of Delivery electronically or invoicing the service. In addition, e-CMR offers many functionalities and improves the work of control services, e.g. Road Transport Inspection. However, in order to fully benefit from all the advantages of electronic consignment notes, first of all, national regulations on transport documentation should be unified.
In which countries can e-CMR be used?
The protocol updating the CMR Convention has so far been signed by the following countries: Belarus, Belgium, Bulgaria, Denmark, Czech Republic, Estonia, Finland, France, Germany, Iran, Latvia, Lithuania, Luxemburg, Netherlands, Norway, Oman, Moldova, Poland, Portugal, Russia, Romania , Slovakia, Slovenia, Spain, Switzerland, Turkey, Tajikistan, Ukraine, Great Britain, Northern Ireland, Uzbekistan. Due to the expected benefits and savings, this number will continue to grow.
Savings related to the choice of e-CMR.
Based on accurate calculations, it can be unequivocally stated that using the digital form of CMR is a more economical option for the entrepreneur. According to the Rzeczpospolita portal (https://www.rp.pl/), the e-CMR administration process is 14 minutes shorter, which leads to a reduction in documentation handling costs from 15.61 PLN (paper CMR) to 6.11 PLN.
Environmental benefits.
Using the electronic version of the CMR, one can significantly reduce the number of postmen’s trips to the addresses of the principals, moreover, the European Commission estimates that the complete elimination of paper consignment notes will generate savings of 2-8 billion sheets of paper annually in the EU.
Why is e-CMR rarely used by carriers?
In Poland, there is still a lack of coherent regulations regulating these issues. On the one hand, Poland has adopted the provisions of the Additional Protocol, and on the other hand, in accordance with the Road Transport Act, transport documentation must exist in paper form for the purposes of roadside inspection. The lack of a paper CMR is punishable by a fine which makes using only the electronic version risky. However, within the next two years, each of the countries that have adopted the updated Protocol is required to introduce amendments enabling the use of this form of consignment note. This is due to the EU e-FTI regulation (Electronic Freight Transport Information).
In order to find appropriate solutions to problems related to the implementation of e-CMR, numerous national and international initiatives are created. In Poland, for example, a working group was established at the organization of GS1 Poland, in which work is continuing, e.g. on the amendment of the law, enabling the free use of e-CMR. There are also new technological solutions that enable the use of e-CMR, but the key barrier is the lack of their widespread use.