Ukraine and the European Union have decided to renew their Road Transport Agreement which will remain in effect until the end of 2025. This arrangement was first put in place in response to the disruption of usual transport links caused by the situation in Ukraine, and it aims to ensure the ongoing movement of freight between both parties.
Permit-Free Access for Cross-Border Freight
The agreement eliminates the requirement for EU and Ukrainian carriers to obtain permits from each country involved. Thus, they no longer need to submit detailed applications which typically include information such as vehicle registration data, the type and volume of goods transported, the planned route, proof of insurance, and compliance with technical and safety standards. Carriers also avoid delays caused by limited permit quotas which are usually imposed to control the number of foreign vehicles allowed to operate within a country’s territory in a given period. These quotas can lead to bottlenecks when demand exceeds available permits, so their removal enables uninterrupted execution of shipping operations. This gives forwarders greater certainty when coordinating transport, as they can book carriers without the risk of permit-related restrictions or last-minute cancellations.
Growth in Freight Volume Following Implementation
The European Commission reports that the agreement has led to a significant rise in road freight trade since it came into effect. More than 200,000 extra tonnes of cargo travel between Ukraine and the EU every month. The volume of goods entering the EU from Ukraine has gone up by 42 percent while their total value has risen by 28 percent, with key exports such as steel, ores, and grain continuing to flow. At the same time, exports from the EU to Ukraine have grown by 37 percent in quantity and by half in overall worth, including key supplies such as emergency aid and fuel.
This overall increase in freight movement expands the pool of available shipments for freight forwarders, offers more consistent volume flow, and reduces the risk of underutilized capacity.
Grounds for Halting Automatic Renewal and Impact on Forwarders
Formalized on 20 June 2024, the renewal contains a clause allowing it to be extended every six months by default. This extension can be blocked if one of the parties notifies the other no less than three months ahead and presents proof that its domestic transport sector has been seriously affected. This could involve a significant loss of transport volume and income instability for national carriers or a decline in competitiveness directly linked to the presence of foreign hauliers.
To substantiate such claims, the party seeking to block the extension must provide verifiable data such as national statistics, industry assessments, or financial records that clearly link the negative trends to the operation of the agreement. Moreover, this party must demonstrate that the outcomes are not short-term fluctuations or the result of unrelated factors such as economic downturns, fuel price volatility, or seasonal demand shifts.
Any suspension under this clause would also affect forwarders throughout Europe, as it could limit access to foreign carriers and thus reduce the pool of available hauliers which would make it harder to secure timely and cost-efficient transport.