EU Mobility Package 2024: What's the impact on fleet management?
Discover what the European Union (EU) Mobility Package is, its application, rules, and implications for fleet management and road freight transport.
What is the EU Mobility Package?
Since February 2023, road freight transport has undergone significant changes by applying new rules introduced by the EU Mobility Package. The package guidelines aim to increase social protection for drivers, reduce CO2 emissions, and improve road safety. The impacts of this package, particularly on international carriers operating light vehicles, are substantial, from new licensing requirements, cabotage rules, mandatory rest periods, and tax obligations.
With the implementation of the Mobility package, the guidelines for cabotage activities and international carriers now extend to all EU member states and the UK. This alignment ensures consistency in wages, rest periods, and the periods during which drivers can be away from their country of residence. The aim is establishing international rules for truck and van drivers, promoting safer and more efficient cross-border freight transport.
Consequences and taxes
One consequence of the Mobility Package is its impact on international carriers, particularly those operating light vehicles up to 3.5 tons. Light goods vehicle (LGV) operators are now required to hold an international operator's license to transport goods internationally or across borders.
Nevertheless, while this package has positive impacts, such as enhanced social and environmental benefits, it also introduces challenges and taxations that notably affect the end customer:
1. Capacity and driver shortages
The requirement for drivers to return home every four weeks and the imposition of mandatory rest periods, previously not applicable to light vehicles, worsen the current shortage of road freight capacity and drivers in the logistics sector.
2. Complicated administration and documentation
Each new regulation requires transport companies to document and report compliance meticulously. Additionally, regular inspections, with substantial fines for non-compliance, further increase the administrative burden.
3. Possible taxes and higher transport prices
Transport companies face higher overhead costs, especially fleets consisting mainly of light vehicles for international road freight and cabotage activities. These include providing suitable accommodation at their own expense and carrying out fewer cabotage activities per trip, leading to more frequent return journeys. These adjustments contribute to higher shipping prices, potentially accompanied by taxes imposed on customers.
Implementing the smart tachograph: Simplified key dates
To comply with the regulations outlined in the Mobility Package, fleet managers must also adhere to the critical deadlines for implementing the new smart tachographs. These deadlines are subject to the entry into force of EU regulations or the duration of the legislative process. We would like to remind you of the key dates for smart tachograph implementation:
- December 31, 2024: Retrofitting to DTCO 4.1 mandated for vehicles (> 3.5 tons) using 1st-gen tachographs for cross-border travel.
- August 20, 2025: Deadline for all vehicles (> 3.5 tons) in cross-border travel to adopt DTCO 4.1, with retrofitting from DTCO 4.0.
- July 1, 2026: Mandatory adoption of DTCO 4.1 for all vehicles (> 2.5 tons) in international freight.
Although the EU Mobility Package introduces positive changes, fleet managers must strategically navigate its challenges and taxations to ensure efficient and compliant fleet operations in this new era of road freight transport.