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Cabotage transport - what is it, advantages and disadvantages

Cabotage transport - what is it, advantages and disadvantages

Cabotage transport is a form of transport of goods that takes place within one country from point A to point B, while the vehicle is registered in another country. Currently, the term is mainly used in the context of road transport.

What is cabotage transport - advantages and disadvantages of this type of goods transport.

The word cabotage comes from maritime transport and was used to describe ships of one country that sailed and provided services in the territory of another country. Currently, cabotage in shipping has lost its importance because shipowners, not states, have gained importance. However, the term has been borrowed for other forms of transport. In the European Union, regulations allow the free provision of cabotage services within the territory of the Member States.

This solution has several advantages, but certain risks should be taken into account. Cabotage transport contributes to better vehicle utilization and, consequently, to the reduction of the so-called empty runs. This solution provides not only economic and ecological benefits due to short routes within the country. All these factors also have a positive impact on the company's competitiveness. At the same time, cabotage is treated as competition for local carriers and causes controversy. It may pose a threat to the local economy and enterprises.

However, European Union regulations regulate cabotage, as it should be carried out within a maximum of 7 days from the unloading of the previous order. By law, this cannot be a service provided for a longer period. By law, this cannot be a service provided for a longer period. The currently applicable regulations allow the carrier to perform three cabotages. After the last order, the vehicle must leave the territory of the given country. However, to start further cabotage transport, the vehicle must wait at least 4 days from crossing the border. Failure to comply with the regulations is associated with severe penalties, such as a fine or suspension, or even withdrawal of the license to perform international transport.

It is therefore worth carefully familiarizing yourself with the regulations in force in individual countries, as they may differ between countries. When planning cabotage transport, it is also worth using the Smartload application, thanks to which you can easily and quickly arrange goods on the trailer thanks to 3D visualization.

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