Cabotage in Road Haulage and the Single European Market Proposals

When applied to transportation, cabotage refers to the reservation of the carriage of goods between 2 places in one country to companies incorporated in that country. This is the practice in all countries in Europe. The main argument in favor of ending cabotage is that there is a large underutilization of transportation equipment in the international system. In 1985, the European Commission proposed a Council Regulation, which emphasized the necessity of removing all restrictions concerning the nationality of the person providing the service while allowing freedom to provide services. There are 2 types of cabotage possibilities - consecutive cabotage and general cabotage. The immediate concerns generated by the concept of a free market in road haulage services center around companies being able to compete on an equal basis. Cabotage liberalization is coming in 1992, but it is not known what form the liberalization will take. All transporters need to be prepared for the implementation of the changes in cabotage.