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EU Court of Justice Abolishes Truck Return Requirement: What Does It Mean for Carriers?
2024 10 07
The European Union Court of Justice (ECJ) has made a significant decision to abolish the requirement for trucks to return to their country of registration every eight weeks. This decision, made on October 4th, is a major victory for carriers and logistics companies that have long fought against this Mobility Package obligation.
The Mobility Package, which came into effect in 2020, was designed to regulate road transport within the European Union. However, the requirement for trucks to regularly return to their country of registration sparked much debate and opposition. Carriers argued that this requirement increased operational costs, harmed the environment, and discriminated against peripheral EU countries.
The ECJ’s decision was based on the lack of a proper impact assessment. While the court dismissed other claims regarding the free movement of services and distortion of competition, the abolition of the truck return requirement is a significant step.
Povilas Drižas, Secretary General of the International Transport and Logistics Alliance (TTLA), stated that this decision is a major victory. “We are pleased that our arguments regarding the economic and environmental consequences were heard,” he said.
Although the decision on the truck return requirement was favorable to carriers, some Mobility Package provisions remain in force. These include rules on driver posting and the prohibition of taking a weekly rest period of more than 45 hours in the truck cabin.
This decision shows that EU legislation can be reviewed and amended based on real market conditions and stakeholder arguments. Carriers will continue to monitor the situation to ensure that their interests are properly represented.
The Mobility Package is a set of European Union regulations aimed at regulating road transport across the EU. It was adopted in 2020 and includes various rules to improve driver working conditions, ensure fair competition, and increase the efficiency of the transport sector.
The main provisions of the Mobility Package include:
Driver Posting Rules: Establish how and when drivers can be posted to other EU countries.
Rest Time Rules: Prohibit drivers from taking a weekly rest period of more than 45 hours in the truck cabin.
Truck Return Requirement: Required trucks to return to their country of registration every eight weeks (this provision was recently abolished).
Road Transport Market Supervision: Aims to ensure fair competition and combat illegal activities in the transport sector.
Carrier feedback on the Mobility Package is mixed, but most express concerns about increased operational costs and more complex working conditions. Here are some key points of feedback:
Increased Costs: Many carriers state that the new rules, especially regarding driver posting and rest time, have increased their operational costs. This is particularly relevant for smaller companies with fewer resources to adapt to the new requirements.
Fair Competition: Some carriers support the Mobility Package as it helps ensure fairer competition in the transport sector. The new rules help combat “letterbox” companies and illegal activities, which can improve market conditions in the long run.
Improving Working Conditions: Improving driver working conditions is viewed positively, but some carriers believe it may reduce their competitiveness, especially in the international market.
Environmental Aspects: With the abolition of the truck return requirement, carriers hope to reduce unnecessary trips and thus contribute to environmental protection. This was one of the most criticized aspects of the Mobility Package.
Adaptation Challenges: Carriers emphasize that adapting to the new rules requires time and resources. Some companies have already started implementing new operational models to comply with the Mobility Package requirements.