EU truck driving law could fuel rise in delivery costs

13 April 2007 15:24  [Source: ICIS news]

LONDON (ICIS news)--New laws brought into force by the EU restricting truck drivers’ working hours may lead to a rise in transportation costs across the petrochemicals sector, industry sources said on Friday.

 

Since 11 April, drivers in all EU member states are no longer allowed to work more than 48 hours a week – down from 74 hours a week – behind the wheel and have to follow strict new regulations on minimum rest periods.

 

Market sources expressed their concern that, with drivers’ road time limited, staff numbers at freight companies would have to be increased, leaving these firms no choice but to raise their delivery prices accordingly.

 

One German producer expected to have to increase his prices for delivered material by 5-10%.

 

“This is something I expect will soon be felt across the European market,” he said.

 

A European phenol and acetone producer said it understood the reasons behind the new law, but agreed it would undoubtedly lead to higher transportation costs.

 

He added that with margins already tight, any added costs would need to be passed on to end users.

 

Others were less worried, either suggesting it was too early to tell whether transport costs were likely to be affected, or, in several cases, claiming that drivers with the relevant qualifications were currently in short supply across the continent and that any change would only appear in the medium term.

 

A European producer of maleic anhydride pointed out that freight costs would only be likely to increase on longer journeys. Those taking just one or two days would, he said, be unaffected.

 

The new law, which allows for a 60-hour week when taking into account loading and unloading, also stipulates a minimum rest time. Drivers must take at least 11 hours’ rest per day, nine of which must be taken consecutively.

 

An EU press release stated the legislation was aimed at “increasing road safety and ensuring adequate social standards in a profession characterised by fierce competition”. It applies to all member states, and includes vehicles registered outside the EU.

 

Heidi Finch, Carl Roache and Shelley Kerr contributed to this article

By: Charles Shaw
+44 20 8652 3214

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