In a letter to clients Jordon MD Roddy Forster outlined the key elements of the EU Mobility Package (phase 2) which has recently been introduced. We reproduce the letter here whilst we work hard to incorporate the legislation as well and retain continued flexibility of services as trade volumes increase.
Phase 2 of the EU mobility package comes into force this month bringing with it a swathe of new regulations that will have a major impact on the European Road Transport sector. Designed to create a common set of rules around social fairness, competition & environmental performance it comes laden with good intentions but is not so easy to implement. Therefore an unavoidable impact on freight prices will result which will create capacity volatility in the markets.
Some key elements of phase 2 include:
1. Trucks must return to the country of origin of the haulier every eight weeks without exception.
2. All trucks drivers must be paid at least the minimum wage of the EU member state where they are working including cross-trade, cabotage & combined.
3. Tax on drivers wages are expected to rise significantly in some Eastern European countries, currently PL, RO & BG, with more expected to follow.
4. Cabotage restrictions will be further regulated include the introduction of cooling off periods after three trips within seven days.
5. Administration will increase as all regulatory matters will need to be reported through information gathered from the drivers, who will record the data, much of it manually.
All changes will be introduced by 01.03.22 when we will begin the introduction of a basic levy to cover the rise in per km prices. This will be communicated in due course.
Because we still do not know all the implications of the new rules it is probable that costs will increase further during the year. The EU mobility package comes at a time when capacity in Europe is already under pressure. For UK businesses this is compounded further with the already difficult trading conditions due to Brexit of which we expect further pressure on road capacity.
In light of the above, we have undertaken strategies for the last few years to minimise disruption to our client’s supply chains, and strongly believe with our extensive expertise in European markets we are best placed to manage the issues ahead. Therefore, we welcome the chance to discuss with you what plans we have in place to continue to provide a first class and trouble-free service.