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Cabotage and Sulphur Regulation Change: Cost Effects to Northern Europe
Lappeenranta University of Technology, Finland.
Tallinn University of Technology, Estonia.
Jönköping University, School of Engineering, JTH, Industrial Engineering and Management.ORCID iD: 0000-0002-8305-4412
2017 (English)In: International Journal of Business and Systems Research, ISSN 1751-200X, E-ISSN 1751-2018, Vol. 11, no 4, p. 417-428Article in journal (Refereed) Published
Abstract [en]

Change has been persistent in European Union regarding new directive and international agreements concerning logistics sector. Recently cabotage rules were implemented for road transports, and new demanding low sulphur levels applied at English Channel, North Sea and Baltic Sea for sea vessels. Our research concerns the implications to transportation costs of these changes in largest Estonian, Finnish and Swedish companies. Survey shows that cabotage regulation change has resulted in no change within road freight prices (some possibility for decline). In contrary, sulphur regulation has resulted in freight cost increases (up to 6 % higher than before). Interestingly respondents show some movement in the use of different routes to or from Central Europe.Using a longer hinterland transportation route through Baltics has some momentum to grow, while others are under of somewhat pressure. However, this noted change is not significant, and does not concern most the companies.

Place, publisher, year, edition, pages
InderScience Publishers, 2017. Vol. 11, no 4, p. 417-428
Keywords [en]
Cabotage, sulphur, Baltic Sea, Estonia, Finland and Sweden
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-31724DOI: 10.1504/IJBSR.2017.087099Scopus ID: 2-s2.0-85031280321Local ID: JTHIndustriellISOAI: oai:DiVA.org:hj-31724DiVA, id: diva2:967763
Available from: 2016-09-09 Created: 2016-09-09 Last updated: 2018-05-08Bibliographically approved

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Output format
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