Published: December 11 2023
The entry of Ukrainian freight carriers into the EU market is posing a significant challenge for Hungarian businesses, with many facing the risk of bankruptcy. The increased presence of Ukrainian hauliers has resulted in a decrease in mileage for Hungarian vehicles and a surge in competition due to the differences in economic and legal environments.
Impact of Ukrainian Freight Carriers
The European Union has allowed Ukrainian freight carriers to enter the common market, primarily for humanitarian deliveries in light of the war situation. This has led to a more than 30 percent increase in the mileage of Ukrainian trucks on Hungarian roads, while the mileage of Hungarian vehicles has decreased by 4 percent. Ukrainian hauliers have a cost advantage and are not subject to EU rules, putting Hungarian businesses at a significant disadvantage.
Hungarian Hauliers' Protest
Hungarian hauliers are planning a demonstration at the border crossing point in Záhony to draw attention to the negative impact of Ukrainian hauliers. The protest will take place from Monday at 10 a.m. until midnight on December 31, allowing only 2 trucks per hour in each direction. Exceptions will be made for trucks transporting essential goods such as live animals, fresh milk, dairy products, and perishable foodstuffs.
Call for EU Action
Hungary has appealed to the European Union to review its agreement with Ukraine and prioritize the interests of EU member states, including Hungary. The plea is for the EU to reconsider the entry of Ukrainian hauliers for primarily commercial purposes, as it is negatively affecting the logistics sector of member states.
Conclusion
The influx of Ukrainian freight carriers into the EU market has significantly impacted Hungarian businesses, pushing many to the brink of bankruptcy. The differences in costs and regulations give Ukrainian hauliers a competitive advantage, posing a threat to the logistics sector of EU member states. Hungary is calling on the European Union to address this issue and take into account the interests of its member states.
Questions & Answers
How are Hungarian businesses being affected by the entry of Ukrainian freight carriers into the EU market? Hundreds of Hungarian businesses are "on the verge of bankruptcy" due to the entry of Ukrainian freight carriers. The mileage of Ukrainian trucks on Hungarian roads has increased by over 30%, while the mileage of Hungarian vehicles has decreased by 4%.
Why have Ukrainian freight carriers been allowed into the EU market? The European Union has allowed Ukrainian freight carriers to enter the common market, mainly for humanitarian deliveries, in view of the war situation. The permit has been extended until June 2024.
How are Ukrainian hauliers affecting the logistics sector in EU member states, including Hungary? Ukrainian hauliers come from a different economic and legal environment and have different costs compared to those in EU member states. This gives them a significant price advantage and is seen as a threat to the logistics sector in member states, including Hungary.
What are Hungarian hauliers doing to protest against the situation with Ukrainian hauliers? Hungarian hauliers are planning to demonstrate at the border crossing point in Záhony. The demonstration is scheduled to take place from Monday at 10 a.m. until midnight on December 31. The blockade plans to allow only 2 trucks per hour in each direction, with exceptions for trucks transporting essential goods and those involved in disaster and humanitarian transport.
What is the Hungarian Road Transport Association asking the European Union to do regarding Ukrainian hauliers? The Hungarian Road Transport Association has asked the European Union to review its agreement with Ukraine and take into account the interests of EU member states, including Hungary. They believe that Ukrainian hauliers should not be allowed to enter the European Union for essentially commercial purposes, long after the initial intentions have been exceeded.
