In short: Cabotage is domestic freight transport carried out for hire or reward and on a temporary basis by a haulier registered in another EU member state, within the host country. European rules allow a maximum of 3 cabotage operations within no more than 7 days of completing the last international delivery, and the haulier must hold supporting documents: the trip sheet for the cabotage operation and the CMRfor the international transport. Violations are punishable by fines ranging from EUR 135 to EUR 150,000, depending on the country and the case.
Domestic freight transport carried out by a haulier registered in one European Union member state within the territory of another member state is called cabotage. To qualify as cabotage, these transport operations must be carried out for hire or reward and on a temporary basis.
Cabotage can be very cost-effective for companies registered in a country where transport services are expensive. For example, two companies in France could use hauliers from Bulgaria or Romania, which charge much more competitive rates. This is precisely why cabotage is regulated in detail at EU level.
Below, we'll explain in detail what cabotage is, how it is restricted, and what you need to make sure you can carry it out legally. You'll also find out what fines European legislation imposes when its rules are not followed.
Cabotage – What Does It Mean and What Rules Apply in the EU?
By definition, road cabotage is a range of transport services that hauliers not resident in a European Union member state provide within that country. The EEC Regulation adds to this definition the requirement that cabotage transport be carried out only by hauliers authorized for Community transport operations.
EU regulations also state that such transport operations are carried out so that a vehicle does not return empty on its way back to the border. In practice, the goal is to make freight transport more efficient. This is possible because, after delivering a load, the vehicle is loaded again and carries out a new freight transfer along its route.
To prevent negative effects such as unfair competition, there is an important set of rules that hauliers performing cabotage must follow. A first essential rule is that such operations are limited by number and by the period in which they take place. A haulier may carry out at most three cabotage operations within a maximum of seven days of completing the last international delivery to another country. Transporting goods from one country to another is not considered cabotage.
In addition, even though cabotage is permitted in any European Union member state, a haulier may carry out only one operation in a given country, within no more than three days after the unloaded vehicle has entered that country.
Conditions and Documents – Why Do You Need Legal Assistance?
The conditions for road cabotage are strict when it comes to the required documentation. Hauliers must present clear evidence of the international transport they carried out before each cabotage operation. The EU regulation also requires them to present evidence of the operations carried out in the country where they perform cabotage, if they were there four days before the international transport.
The information that hauliers must hold and present is contained in the following documents:
- the trip sheet for the operation of cabotage;
- The CMR for international transport.
The data contained in these documents are the name, address, and signature of the consignor, of the road haulage operator, and of the consignee; the consignee's signature and the delivery date; the place and date of pickup of the goods; the place of delivery; general information about the goods (packaging method, nature of the goods, description of dangerous goods, number of specific markings, and number of packages); the weight of the goods; and the registration numbers of the vehicle and trailer.
If you are a haulier, you also need to know the legislation of each country where you carry out road cabotage operations very well. You need to know the restrictions on perishable products, animals, or dangerous goods. The rules on driving time, vehicle dimensions, and the VAT rate on transport are also important.
Each European Union member state has specific legislation on cabotage-type transport. It is essential to know and follow these rules, and the best way to avoid fines is to use the legal assistance services offered by CargoTrack. With their help, you can avoid fines ranging from EUR 135 to EUR 150,000, depending on the country and the case.
We also offer GPS monitoring packages, as well as Products hardware, software, and other accessories that keep you constantly informed about how the transport operations performed by the vehicles in your fleet are going. Choose the safety offered by CargoTrack!
Questions and Answers
What is road cabotage?
Cabotage means the transport of goods within a country by a foreign transport company after it has carried out an international transport into that country. In practice, a foreign truck that unloads goods in a country can carry out domestic transport — between two points in the same country — before leaving that territory.
When is cabotage permitted?
Cabotage is permitted only after the vehicle has carried out an international transport into that country — meaning the company must bring goods from outside the country, unload them, and only after that can it take on a domestic load.
What restrictions apply to these transport operations?
The rules state that, after a completed international transport, a maximum of 3 operations may be carried out within a period of 7 days in the host country.
Are there time limits on returning with the same vehicle to a country where you carried out domestic transport?
Yes — after the 3 permitted operations, if you want to return with the same vehicle for another domestic transport, you must leave the host country and not return with the same vehicle combination before a “cooling-off” period has expired.
Why are there strict rules on cabotage?
To prevent unfair competition with local hauliers, to protect the domestic market of each member state, and to prevent abuse (continuous domestic transport by foreign companies).
What documents or authorizations must a company have to carry out this type of domestic transport?
The company must hold a Community license for international freight transport and, if the driver is from outside the EU, a valid driver attestation — so that it can carry out this type of domestic transport legally in the EU.
What happens if you carry out this operation illegally (without following the rules)?
The authorities may impose fines, refuse the transport, or withdraw operating rights, leading to losses and potentially serious penalties.
Cabotage brings advantages for hauliers — what are they?
It helps avoid “empty runs” on the way back to the home country — the vehicle is used efficiently, reducing costs (fuel, time) and increasing the profitability of transport operations.
Is cabotage permitted everywhere in the EU?
Yes — cabotage is legally recognized in the European Union, but the common rules set out in Regulation (EC) No. 1072/2009 and any national regulations of the host country must be followed.
When is it no longer domestic transport but international or another type of transport?
If the transport carries goods from one member state to another rather than between two domestic points in the same host country — that is, if the departure point or final destination is in another country — it is not cabotage but international transport.
