Cabotage transport - what is it?

Cabotage is a term used in road transport and logistics, which is related to the transport of goods within a given country by a carrier that is not registered in that country. Cabotage plays a significant role in international trade. It allows for the efficient distribution of goods within the borders of a given country. Do you want to know more about cabotage and what benefits it brings to entrepreneurs and consumers? We encourage you to read the article.

What is cabotage - definition

Cabotage is the transport of goods carried out within one country, using a vehicle registered in another country. An example of cabotage is the transport of goods from Hamburg to Berlin by a Polish transport company. Cabotage is usually used to optimize transport costs and leads to minimizing so-called empty runs - i.e. the journey of a vehicle without cargo. Usually, carriers undertake such transport on the return journey after performing an international transport service. 

Cabotage transport in Europe is regulated by European Union legal regulations at the community level (Regulation (EC) No. 1072/2009 of the European Parliament and of the Council of 21 October 2009). These regulations allow carriers from Member States to provide cabotage services in other EU countries. It is worth noting that under these regulations, a carrier can perform a maximum of three cabotage transports within seven days of arrival in a given country. Moreover, the last delivery of cargo under cabotage must be completed within 7 days of the completion of unloading of international transport. It should also be remembered that carriers are obliged to comply with local transport regulations, such as standards regarding drivers' working hours or maximum dimensions and weights of cargo.

It is also worth mentioning that cabotage can also be performed outside the country where the goods were unloaded as part of international transport. However, such services in a third country are limited in time (loading up to 3 days from crossing the border of the second country and completion of the service up to 7 days from unloading as part of international transport) and quantity (transport of 1 load within a third country). 

The regulations also allow road cabotage within a country other than the one in which the first unloading took place. However, it should be remembered that such cabotage should be carried out within three days of crossing the border of the other country. It is important that the vehicle enters the territory of the other country without the transported cabotage load. In this case, the cabotage service should also be completed within 7 days of the date of unloading in the receiving country. After the company vehicle enters the territory of the country in which cabotage is to be carried out, only one transport is possible within its borders.

What are the benefits of cabotage transport?

Cabotage provides many benefits for both carriers and customers. Cabotage transport allows for flexible adjustment of transport routes, which significantly increases the operational efficiency of carriers. Thanks to the possibility of carrying out internal transport, time can be saved and transport costs reduced. Moreover, the financial balance of transport significantly increases - vehicles are not forced to empty runs, but can only carry out additional, smaller orders within the route. 

This solution also has advantages for customers. Cabotage transport introduces greater competition in local transport markets, which can lead to lower prices for consumers. Moreover, the number of available transports increases, which affects not only the price of transport, but also its time. As a result, thanks to cabotage transport, goods can be delivered faster and in a more flexible way, which improves the availability of products on the market.

It is also worth mentioning the ecological aspect of cabotage. Thanks to the fact that transport vehicles are used more efficiently, the amount of pollutants emitted into the atmosphere as a result of burning fossil fuels is reduced.