European Union Mobility Package new rules , will it effect transportation ?
The new mobility package from the European Union will dramatically change the transportation of freight on the road. As a result, the new rules also affect container logistics, as we know it.
In July, the long-awaited mobility package was adopted by the European Parliament. This means that new rules and regulations will be part of the lives of everyone in the transportation sector, especially truck drivers. Anything that can affect the turnaround time of important tracks.
But like many others, making changes in one place starts a spillover effect. Cause change somewhere else.
Now let’s take a look at the new rules and regulations included in the mobility package and how they affect container logistics.
Are you already a mobility package expert? Then jump to the section on how the new rule will affect container logistics.
Here’s an overview of the new rules we’re about to implement:
- Minimum wage
- Letterbox company
- Cabotage and cooling
- Driving and rest
All EU member states have their own national minimum wages. Minimum wages that vary widely across the continent.
Prior to the Mobility Package, internationally driven truck drivers and cabotage transport were paid at least the minimum wage set in the country where the company was employed and the vehicle was registered.
Take, for example, a Polish truck driver who works for a Polish company. He is assigned a job at a German company. Despite taking over the duties of the German company, he will be paid a lower minimum wage set in Poland than in Germany.
German truck drivers, on the other hand, are paid the German minimum wage and do the same job as Polish drivers.
what will happen
Use a mobility package that no longer works. Instead, the truck driver must pay at least the minimum wage set by the country in which the transportation service is provided.
In other words, a Polish truck driver from above must be paid at least the German minimum wage when he runs his transportation service in Germany.
However, this rule does not apply to transportation operations where the vehicle is registered in either the country of origin or the final destination. Transport in transit is also excluded from the rules.
This rule will come into effect in March 2022.
Currently, some road transport companies are always operating outside their home country. These companies are often referred to as “letterbox companies.” They will often live in the country they get. As you read above, you can pay tax incentives and low minimum wages to truck drivers 👆
To minimize fraud in the transportation sector, the mobility package requires all transportation companies to prove that they operate in the registered member countries.
This rule also affects his daily life when a Polish truck driver embarks on yet another trip around Europe.
This rule, among other things, requires you to return to the country where the truck is registered every eight weeks.
On the other hand, Polish truck drivers need to return to Poland every 3-4 weeks. This is to avoid companies always doing business outside their country of origin.
This rule will come into effect in March 2022.
Cabotage and cooling
Under the current rules, the laws regarding cabotage are as follows: Polish truck drivers are allowed to perform three operations in seven days.
With the mobility package, the cabotage limits remain the same. However, Polish truck drivers must have a cooling-off period before they can drive the cabotage again. This cooling-off period is 4 days. The driver can then perform the cabotage operation again in the same country on the same truck.
If the truck driver is transporting internationally on a vehicle with a maximum allowable mass of 2.5 to 3.5 tons, the vehicle must have a tachograph. In this way, you can monitor the movement of the vehicle.
The rules for the cooling-off period will come into effect in March 2022. The tachograph must be installed by June 2022.
Driving time and break time
The truck driver’s weekly holidays are also changed by the mobility package. The new rules will relax the current regulations.
As before the mobility package, Polish truck drivers had to take 45 hours of breaks each week. It will change.
Instead, a new rule will allow him to reduce this to 24 hours every other week. However, if a Polish friend decides to do so, he will need at least four breaks a week. Two of them should have a normal length of 11 hours.
This rule will come into effect in September 2020.
What is the impact on container logistics?
It cannot be avoided that road transport and container logistics are inextricably linked. Therefore, changes made in one area will affect the other area. This also applies to new mobility packages.
Many of the EU’s larger import and export markets make up Northern and Western Europe. These are also countries with higher minimum wages on average compared to Southern and Eastern Europe.
The new minimum wage law will allow more truck drivers to be paid higher. As a result, the price for transporting cargo by road increases. This price increase will be sent to the logistics chain to change the current price level. It’s not yet known exactly who will pay the price increase, but the end consumer is a good guess.
Another place where new regulations stand to make changes is relationships with partners in the supply chain. Take a Polish truck driver on your last trip. As he has to return to his country of origin more often, he will not be available to transport cargo where he normally goes. The same applies to his colleagues. For the shipping industry, that means you may need to find a new partner to transport your cargo in time.
Many of the new regulations will come into effect within 1.5 years, so it’s still unclear how much impact the package will have. But it certainly feels in the industry