Due to new European conditions, the costs for Latvian road hauliers will increase significantly. The industry acknowledges that much can no longer be done, but solutions are still being sought to address the crisis.
The development of the Mobility Package for road freight transport took more than three years. This time has been spent in intense discussions, but, according to the industry, the Eastern countries of the European Union have lost in this fight.
The head of the Road Transport Directorate explains that the changes will be related both to the organization of working and rest time and the provision of a minimum wage in the European Union for drivers, and to the conditions that must be met for a haulier to work in the field. Basically, these conditions will increase costs for Latvian road hauliers.
“It is still in this situation, when we cannot yet leave the losses caused by Covid-19.” It is difficult to say how many players will remain in this industry after all this, “says Kristiāns Godiņš, Chairman of the Board of the Road Transport Directorate.
Market protectionism has long prevailed in this sector, with Western European countries trying to protect their companies from the cheapest carriers from countries such as Poland, Romania, Bulgaria, as well as Lithuania and Latvia.
The new, more stringent requirements are expected to be introduced gradually in the coming years. As of today, there is a rule that makes work more difficult. The carrier must ensure that drivers return home or in the country of establishment every four weeks. This is disadvantageous for the outermost countries of the European Union, given the remoteness of the transport center. The conditions also stipulate that the driver may not spend regular rest in the car. There are likely to be countries that will continue to raise objections.
Higher costs for road hauliers, but in the end everything is paid for by the end consumer. Accordingly, goods in stores could become more expensive. Latvia’s future actions are not yet clear.
“In a situation when transportation by rail is falling, every effort must be made to maintain the volume of freight transportation by road,” emphasizes Allans Aukštikalns, a member of the board of the company “Dinotrans”.
Latvia could be among the countries that are directly involved in going to court, or a country that at least supports other countries’ claims in court, but decisions have not yet been made.
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