In short, cabotage transport is carried out in a country other than the one in which the transport company is registered. If a carrier from Poland, Romania or Bulgaria transports a load to France, after completing one order, it can still undertake 3 new transports within France. Therefore, cabotage makes it possible to take on additional orders, which increases the company’s profitability.
Additional loads
In recent years, the recession on the European continent has also led to a drastic reduction in transport orders. Today, it is not the carrier that dictates the terms in the supply chain, but its customer, either a manufacturing or trading company. Carriers and forwarders are looking for additional loads on their international routes. Cabotage fits perfectly into this need, as it reduces the number of so-called empty runs, which still account for more than 20% of all road transport in the European Union.
Cabotage also allows the company to better manage the working hours of its drivers. This is a very important argument when all of Europe is suffering from a chronic shortage of truck drivers. Cabotage thus allows the company to make more economical use of the drivers it has. As a result, operating costs are lower and allow for greater competitiveness in a difficult market.
Benefits to the entire market
Although more and more carriers are entering the cabotage market with fewer transport orders, it is still a very attractive market. Cabotage not only increases the profitability of a transport company and improves financial liquidity, but also makes the carrier more flexible. Cabotage benefits not only the carrier, but also the customer, who receives an attractive price offer and improves their economic situation.
Cabotage enriches the transport offer throughout the European Union. Importantly for the EU climate policy, it contributes to lower carbon emissions. This is made possible by a more rational use of the truck fleet and the aforementioned reduction of empty runs.
What are the advantages of cabotage?
- ✅ Increased profitability of the transport company and improved liquidity.
- ✅ Better utilization of cargo space and reduction of empty runs.
- ✅ Greater competitiveness of the carrier in a difficult market by not having to pass on higher costs to the customer.
- ✅ More efficient use of drivers’ working time. This is all the more important as the transport sector is suffering from a shortage of truck drivers.
- ✅ Better route optimization, which also reduces carbon dioxide emissions. This argument is gaining ground in the face of increasingly stringent EU requirements.
- ✅ Building confidence in the European market, which helps to expand the customer portfolio. A customer who is well served in cabotage will return to the carrier.
Trans.eu is one of the largest platforms in the European TSL market with a large number of cabotage offers. Recently, it has seen a significant increase in accepted transports, with as many as 9.5 million orders appearing there every month. With the help of the Platform, you can quickly and safely accept a cabotage order.
