24 September 2021

EUROPEAN DRIVERS’ CRISIS SET TO DEEPEN NEXT YEAR

The Financial Times reported on 21 September that the crisis affecting European road haulage market is set to deepen next year as wages rise and driver shortages worsen. According to Luis Gomez, president of Europe at XPO Logistics, shortages could disrupt Christmas this year and new EU regulations would put further strains on retailers and producers next year.

Europe has an estimated 400,000 shortage of lorry drivers, according to research group Transport Intelligence, with the workforce stretched by the pandemic-induced boom in online shopping. But the deficit would likely deepen, and wages would rise sharply because of new rules on posting of drivers layered on top of persistently strong demand. From February 2022, the provisions agreed as part of the Mobility Package I on the return of the regular return of the vehicle/driver every eight weeks, in addition to new cabotage and posting of drivers’ rules will be applicable throughout the EU. Gomez said drivers’ salaries on the continent would rise by “high single to low double-digit” percentages. This is likely to add to transport costs, which would be another blow for retailers, wholesalers and manufacturers that have endured a year of elevated shipping and logistics costs already.

CLECAT shares the concern that with the European economy picking up strongly, freight forwarders and transport operators increasingly facing issues stemming from driver shortages, such as increasing costs and operational difficulties and dissatisfied customers. The driver situation worsened this year, with more drivers leaving the profession and training centres being closed because of the pandemic. Increased efforts are needed to attract young people to the profession and enhance skill sets.

CLECAT has equally urged the European Commission to publish the implementation guidelines on the cabotage and posting of drivers’ rules as soon as possible. There is a growing concern from freight forwarders on the lack of clarity on the interpretation of the new rules. As the entry into force of the new rules is approaching rapidly, CLECAT is concerned that Member States may interpret and enforce the provisions in different manners. The upcoming implementation guidelines will be crucial to ensure both the legal certainty for the sector and full compliance by shippers, freight forwarders and road hauliers.