Payment of freight costs when cargo is destroyed or damaged in an accident caused by a third party

A legal guide for carriers who need to recover freight charges owed by shippers

Road freight transport involves certain risks, including damage or even destruction of the transported goods in the event of road accidents. When such a road accident occurs, main focus of the carrier and shipper is to determine who is responsible for the accident and, implicitly, who bears the cost of the destroyed or damaged shipment and the cost of repairs to the vehicles involved.

A sometimes overlooked cargo claim - claim for payment of freight costs to the carrier

However, beyond obtaining compensation for the value of the cargo and for damage to vehicles, which are the usual freight claims, another problem arises in practice, this time in the relationship between the carrier and its customer—the shipper.

Given that in such a situation the cargo become unusable and is no longer delivered to the recipient, tension can arise in the relationship between the carrier and the shipper, and even lead to legal disputes. The shipper may consider it unfair to pay the price of such transport and thus refuse or delay payment. In this case, the carrier must take steps to protect its interests and collect payment for the transport.

The answer can be found in the legislation applicable to the transport contract and in the case law of the courts. The international contract for the carriage of cargo by road is governed by the CMR Convention of May 19, 1956, and courts have ruled on situations similar to the one we refer to here. 

If the carrier performs its obligations, it is entitled to receive the freight charges stipulated in the contract of carriage

From a legal point of view, the shipper's obligation to pay for the transport is assumed in exchange for the carrier's provision of the transport service. For this reason, the shipper cannot refuse payment if the carrier fulfills its obligations. 

Carrier's liability is not absolute, if the damage caused occured due to a road accident caused by a third party

The fact that the cargo are destroyed or damaged due to the fault of a person other than the carrier does not mean that the carrier has not performed the contract, as the carrier does not guarantee the integrity of the cargo absolutely and in all circumstances. Thus, a road accident caused solely by the fault of a third party is a cause for the carrier to be exonerated from liability.

This solution was confirmed in a case analyzed by the Timișoara Court of First Instance, through Civil Judgment No. 10872/16.04.2025. The Romanian court upheld the carrier's claim and ordered the beneficiary to pay the price of the transport. In essence, the court held that: "In the event of a cause for exemption from liability in favor of the claimant, the defendant cannot invoke a failure by the claimant to perform its contractual obligations regarding the delivery of the cargo in order to paralyze the claimant's claims." 

Carrier's obligations can be fulfilled even in such a case, if the shipment can be continued

When the cargo is partially destroyed or damaged in an accident caused by a third party, the carrier can, in principle, continue to perform its obligations. The remaining cargo or all damaged cargo must be transported to its destination. If the consignee refuses to accept the damaged cargo, the shipper has the right to indicate to the carrier another location where it can be unloaded. Even if the means of transport is damaged and cannot continue the journey, there are situations in which the cargo is transshipped to another vehicle of the carrier. Thus, if the carrier transports the damaged cargo to its destination or to the location indicated by the shipper, they continue to provide the transport service and fulfill their contractual obligations. 

In such situations, the carrier does not lose the right to payment of the carriage charge, as it has fulfilled its obligation. Correspondingly, the consignor must fulfill its own contractual obligation: payment of the charge.

Possible exception: the case when the cargo is completely destroyed and impossible to transport

However, it is necessary to make a note: The legal argument presented above is valid in the context where the cargo was just damaged and transported in this condition to its destination or to another location indicated by the shipper. There may be situations—at least in theory—where the cargo is completely destroyed (burned, vaporized, spilled on the road, etc.) and there is nothing left to transport after the accident. In such a situation, it can be considered from a legal point of view that the carrier's obligation is extinguished due to the objective impossibility of performance, and the contract of carriage is terminated. The risk of impossibility of performance is borne by the carrier, who thus loses the right to the price of carriage. However, such situations are rather rare, and in most cases, the cargo is only damaged and the transport continues.

What must the carrier do to recover its freight claim?

When a freight accident caused by a third party gives rise to a payment dispute, carriers should act methodically and without delay. The following steps are essential.

1. Continue performing the contract as far as possible

Once the immediate aftermath of the accident is managed, the carrier should make every reasonable effort to complete the transport. They should deliver the damaged freight to its destination or, where the consignee refuses to accept damaged goods, they should request instructions from the shipper and deliver to whatever alternative location is indicated. If the carrier’s vehicle is out of action, they should arrange for transshipment to another vehicle. The carrier’s right to payment depends in large part on having performed its obligations, so this step should not be neglected.

2. Document the third party’s fault clearly and immediately

It is essential to establish with certainty that the road accident is not attributable to the carrier. Therefore, the first step the carrier must take is to collect all evidence proving that the road accident was caused by a third party. This evidence may include the amicable accident report or the report of the third party's administrative offense, drawn up by the police. If the police wrongly penalize the carrier or its employees, it is necessary to file an administrative complaint within the legal deadline. If the third party challenges the fine, the carrier can get involved in the process to try to stop the fine from being canceled and keep the finding that the third party is at fault.  If the accident resulted in casualties, the person responsible will be determined in the course of a criminal investigation.

3. Formal notice of payment to the shipper

After gathering this evidence, the carrier must communicate it to the shipper-debtor, together with a demand for payment of the carriage charge. The shipper should also be made aware that it may be more advantageous for them to pay the freight charges, as in this case these costs can be added to an eventual insurance claim which will be filed for reimbursement of all damage caused by the road accident.

4. Continue the claim process in court, if claim is denied by the shipper

If the shipper refuses to pay, the carrier may apply to the court for a judgment, which will constitute an enforceable title. One of the possible legal procedures is the small claims procedure, which offers a simplified, fast, and less costly mechanism for recovering debts of up to 50,000 lei. Alternatively, the carrier may use the ordinary procedure, which is not limited in value but takes longer to resolve and involves higher costs. 

The claim is filed with the competent court – usually the court at the debtor's place of business. In some cases, the claim may also be filed with another court, which may be closer to the creditor carrier in terms of location. For example, there may be a jurisdiction clause in the contract of carriage, in which case the competent court will be the one determined by the parties. The CMR Convention also provides that the competent court may be the court at the place of collection or delivery of the cargo. In any case, the claim may be filed either by the carrier on its own behalf (through its administrator or other legal representative) or by a lawyer specially appointed for this purpose, who can provide legal assistance throughout the proceedings. 

Key takeaway

The destruction or damage of cargo in a road accident caused by a third party does not automatically lead to the loss of the carrier's right to collect the price of transport. As long as it fulfills its contractual obligations and the accident is a cause for exemption from liability, the shipper remains bound by the corresponding obligation to pay. Only in the rare case of a total objective impossibility of performance could the termination of the contract and the loss of the right to payment be discussed. In practice, however, through proper management of the claim process — clearly establishing the fault of the third party, continuing the transport as far as possible, and using legal means to recover the debt—the carrier can effectively protect its interests and ensure the recovery of the amounts owed.

Authors: Simona Oniu, David Talpeș

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