What is cabotage?

Cabotage refers to the transportation of goods between two places within the same country, by a company from another country.

Under EU rules, haulier from one member state can make up to three deliveries within a seven day period in another member state, after arriving as part of an international journey.

Although the UK argued for more liberal arrangements in the Trade and Cooperation Agreement, the final deal meant cabotage was more restricted.

UK drivers in the EU and EU drivers in the UK are limited to up to two cabotage trips within seven days.

In mid-October the government launched a consultation on whether it should unilaterally loosen the regulations for the UK market  to allow unlimited journeys within a two week period, before the haulier returns home.

The measures would last for up to six months and are designed to respond supply chain difficulties which the UK has been suffering from in terms of a shortage of HGV drivers and certain goods.

The Road Haulage Association has complained that this would allow EU companies to undercut UK based hauliers who would not enjoy any reciprocal benefits in the EU and runs contrary to the government’s declared objectives of raising wages for HGV drivers.