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Cabotage drives down UK rates
Page 7
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THE UK IS the third most `cabotaged' country in the EU. According to the EU's statistics office. Eurostat, cabotage where foreign operators take domestic loads amounted to 10 billion tonne/km during 2001 and 13% of that figure 1.3bn t/lcm took place in the UK.
Only France and Germany are more popular countries in which to undertake cabotage: each accounted for some 25% of the total. The geographically peripheral countries of the EU including Ireland, Finland and Portugal all had a share below 1%.
Eurostat says the UK is growing as a popular destination for foreign hauliers because its location makes journeys more expensive (ferry/tunnel costs) and hauliers optimise efficiency by obtaining haulage jobs within the UK.
Although the numbers are relatively small the impact of cabotage is felt by UK operators as rates are driven down. Simon Chapman, chief economist with the Freight Transport Association, says: "Although market penetration is not that huge in overall terms it still serves to distort the marketplace."