Barker Gotelee

Foreign Goods Operators: an increasing threat?

Just as road transport operators are fire-fighting the crisis caused by escalating fuel prices EU Council of Ministers have now agreed new proposals concerning cabotage.  The effect of this could be an escalation in non-UK hauliers carrying out haulage work within the UK, at the expense of domestic operators at a time when many are living on the edge of survival. What is cabotage?  This is the rule which permits transport operations by an operator based in one EU member state inside another EU member state. It permits that operator to enter the UK with on an international journey, deliver goods and pick up further goods for a journey within the UK, before departure from the UK. However, such journeys must be temporary, non-permanent and irregular; the visiting foreign haulier cannot do this on any regular basis.  If the operations are not irregular they will currently be regarded as unlawful, requiring a UK operator’s licence; unlawful use of vehicles and trailers can and does to lead their impounding by VOSA or police.  Cabotage has just featured in a high profile High Court case called Romantiek and others v  VOSA where a large number of Suffok vehicles and trailers were seized by Vehicle and Operator Services Agency.  The operators argued that they were carrying out lawful cabotage from their base in Belgium but the Court upheld an earlier Transport Tribunal decision that in reality this was a front for failed UK operators disqualified from holding licences; moreover, there was nothing temporary about the work undertaken. The EU Council of Ministers have agreed proposals to be put before the European Parliament in the Autumn which would allow foreign operators to carry out up to three domestic journeys following entry into the UK within a 7 day period before departure.  The European Parliament’s ultimate aim is total liberalisation. Cabotage is already regarded as an existing threat to the UK road haulage sector which is already operating at a commercial disadvantage; non UK operators can enter the UK having fuelled abroad at a considerably lower cost, making non UK hauliers able to carry goods at a considerably lower price to the customer.  The concern of the sector is also that such foreign operators pay no road tax and do not contribute in any way to road usage: in short there is no level playing field, it is argued. Of course, cabotage can be used by UK-based  operators wishing to carry out journeys outside the UK but the most recently published statistics show a further increase in non UK operators carrying out journeys within the UK, rather than vice versa. Tim Ridyard is a partner and road transport solicitor at Martlesham Heath-based Barker Gotelee Solicitors 01473 611211 or This e-mail address is being protected from spam bots, you need JavaScript enabled to view it   Tim Ridyard  © Barker Gotelee