When it comes to logistics within the European Union, cabotage transport is a topic that can't be overlooked. Behind this perhaps unfamiliar term lies the right of EU-based carriers to carry out logistics operations within other EU countries without having to return to their home country after each trip. For carriers, this means more efficient use of transport capacity, and for customers, it often results in lower shipping costs. But do you know what rules apply to cabotage operations—and more importantly, what penalties may be imposed for breaking them?
Cabotage transport refers to the situation when a foreign carrier transports goods between two locations within a different EU country than the one in which the carrier is registered. In practice, this means logistics companies can better utilize the capacity of their vehicles located in other countries. Instead of returning empty to their home country, trucks are used for another shipment, reducing overall fuel costs, time, and operations.
Cabotage differs from cross-trade (international transport), which involves the transport of goods between two countries where the carrier is not registered in either, but in a third country.
The European Union defines specific conditions for cabotage through Regulation (EC) No. 1072/2009. Recently, it was supplemented by a package of regulations that further tightened the rules.
Regulation (EC) No. 1072/2009 stipulates that carriers from other EU Member States have the right to perform cabotage (i.e., the transport of goods within an EU country they choose). It also sets clear conditions that must be met to prevent abuse or unfair advantage.
In 2020, cabotage rules were tightened through the Mobility Package. Its aim was to improve drivers’ working conditions and enhance competitiveness in the European transport sector. The changes mainly concern driving and rest times, as well as the duration foreign carriers may operate in other countries.
The following section looks more closely at the rules established by Regulation (EC) No. 1072/2009 and the Mobility Package for cabotage.
To carry out cabotage, a carrier must hold a valid Community license, meaning they are officially registered as an EU transporter. In addition, a driver certificate is required to confirm the driver has completed special training for this type of transport.
The regulations also define how often and for how long a carrier may carry out logistics contracts in a foreign country. This is to ensure fair conditions for local carriers. A carrier may perform up to three cabotage operations in one EU country within 7 days, after which they must leave the country for at least four days.
To ensure cabotage remains fair to domestic carriers and to prevent abuse, the EU has set clear rules and restrictions. Violations may result in heavy penalties.
One of the key changes introduced by the Mobility Package is the so-called cooling-off period. This means a mandatory four-day pause after reaching the maximum number or duration of operations in a foreign country.
Carriers who violate the rules face penalties in the form of high fines. These vary by country, but fines for unauthorized cabotage usually range from several thousand to tens of thousands of euros. In the Czech Republic, for instance, the fine can be up to CZK 350,000.
Cabotage offers many benefits but also involves risks that carriers must consider.
Cabotage is economically beneficial as it allows carriers to optimize their routes and use the empty space in vehicles for additional shipments, instead of returning home empty.
However, certain risks come with cabotage, especially non-compliance with regulations, which can lead to high penalties. Cabotage may also reduce the competitiveness of local carriers, which is why the Mobility Package was introduced to mitigate this risk.
As a logistics leader in Central and Eastern Europe, we fully utilize opportunities that lead to more efficient transport and lower costs for our clients, including cabotage transport.
Thanks to our extensive network of distribution centers, cross-docks, and modern logistics solutions, we can optimize transport routes and minimize empty mileage, reducing costs and environmental impact. Our vehicles are equipped with advanced tracking systems including GPS and telematics, allowing us not only to monitor shipments but also ensure that all cabotage operations comply with EU regulations and that our drivers have sufficient rest periods.
In the field of international transport, including cabotage, we have many years of experience that we use to benefit our clients. We respond quickly to demand, ensuring transport in the shortest possible time, at the lowest cost to the customer, and always in compliance with EU legislation.
Like all logistics fields, cabotage transport is evolving. Significant changes are expected in the future that carriers will need to adapt to.
With growing globalization and the rise of e-commerce, demand for cabotage is unlikely to decrease. Therefore, the EU will likely continue tightening conditions in an effort to balance open markets and protect domestic carriers.
The focus of EU lawmakers will likely be on drivers’ working conditions, to prevent companies from gaining unfair advantage by offering the worst conditions.
Technology is playing an increasingly important role in logistics, making processes easier, more efficient, and less error-prone. In cabotage, we expect to see more modern technology for trip monitoring, automated fleet management, a focus on sustainability, and eventually autonomous vehicles.