Cross-trade is a type of international transport in which a carrier transports goods between two countries other than its own country of establishment. Cross-trade operations help reduce empty runs, lower transport costs and make better use of the fleet.
Key takeaways
Looking for information about cross-trade operations? In this article, you will learn:
- What cross-trade is;
- What the benefits of cross-trade are;
- How cross-trade differs from cabotage;
- How to post drivers in cross-trade operations.
What is cross-trade?
Cross-trade is a type of international transport carried out between two countries, neither of which is the transport company's country of establishment. In the simplest terms, the carrier transports goods between countries without carrying them to or from its country of registration. In other words, the company performs international carriage directly between third countries.
What is cross-trade? Definition and example route
Bilateral transport vs. cross-trade
In the industry, cross-trade operations are sometimes informally called "przerzut" in Polish. They most often occur in combination with other types of carriage, especially bilateral transport. A good example of cross-trade is when a driver from Poland delivers a load to Germany, which is a bilateral operation. After unloading and loading new goods, the driver goes from Germany to France. This second leg is a cross-trade operation.
This type of transport supports logistics optimization and lower transport costs, drawing on international trade networks and transport companies' expertise in logistics and customs rules. Cross-trade is possible thanks to the liberalization of the European transport market and EU regulations.
Cross-trade in practice: examples
In road transport, an example of cross-trade is a Polish carrier transporting goods from Germany to France or from the Netherlands to Belgium, without the load ever appearing in Poland. Such operations are common in the transport and logistics sector.
The term "cross trade" is also used in freight forwarding and international trade. There it refers to a transaction or shipment organized by a company from a country the goods never pass through, for example when a Polish company arranges a shipment from China to the USA. This is a different meaning from cross-trade as understood in the Mobility Package.
How are cross-trade operations carried out?
Cross-trade operations follow the rules of the European market. Current rules do not prohibit cross-trade during the four-day cooling-off period after three cabotage operations. A driver of a company registered in Poland can therefore, after three cabotage operations in Germany, carry out further transport between other countries.
For example, the driver can carry goods between Germany and the Netherlands, the Netherlands and Belgium, and Belgium and France as cross-trade operations. In such cases, cross-trade is a legal form of international transport that improves logistics efficiency and fleet utilization.
What are the benefits of cross-trade?
Cross-trade brings transport companies concrete operational and financial benefits that directly affect profitability. This type of international transport is now a significant part of the European haulage market. According to Eurostat, in 2023 cross-trade accounted for 28.3% of international road freight transport in the EU (in tonne-kilometers), and Polish carriers performed 38.4% of all EU cross-trade. The main benefits include lower operating costs, better use of resources and the opportunity to expand into new markets.
Benefits of cross-trade in numbers
Logistics efficiency and transport cost optimization
Reducing empty runs is one of the biggest benefits of cross-trade. According to Eurostat, empty runs account for about 20% of all kilometers driven by trucks in the EU.
Cross-trade makes it possible to use the time between a delivery and the next loading without the vehicle returning to its country of registration. In practice, this means logistics optimization and a clear reduction in empty runs compared with bilateral operations alone.
Cross-trade also reduces storage costs and shortens delivery times by eliminating unnecessary transport stages. As a result, the carrier can improve margins on international operations.
Higher fleet efficiency
Cross-trade directly improves the utilization of vehicles used in international road transport. In many cases, vehicle utilization is much higher than on one-way routes.
As a result, the transport company reduces downtime, handles more orders and lowers its cost per kilometer. Since road transport accounts for more than 70% of freight transport performance in European inland transport, efficient fleet management is key to profitability.
Flexible route planning in cross-trade
Cross-trade makes it possible to pick up loads flexibly in different parts of Europe, depending on current demand. Freight exchanges and other digital tools make it easier to find the next order or return load.
As a result, companies can respond faster to market changes, plan transport more efficiently and manage routes more effectively in real time.
Expanding into new EU markets
Cross-trade gives carriers the opportunity to build a presence in key European logistics markets, such as Benelux, northern Italy, southern Germany and France.
Transport between third countries helps win new customers, develop cooperation in foreign markets and diversify revenue. Access to attractive routes and high freight rates increases the competitiveness of companies carrying out international transport in the EU.
Cross-trade vs. cabotage: the key differences
Understanding the differences between cross-trade and cabotage is key to planning transport operations correctly. Each is subject to different rules that directly affect how drivers' work is organized and how profitable international road transport is.
Cross-trade vs. cabotage and Mobility Package obligations
How does cabotage differ from cross-trade?
The basic difference is where the transport takes place. Cabotage is the carriage of goods within a single foreign country, while cross-trade takes place between two different countries other than the carrier's country of establishment. A Polish driver carrying goods from Berlin to Munich performs cabotage, while a Berlin to Paris route is a classic example of cross-trade.
What the two have in common is that both are carried out outside the carrier's country of registration. The differences come from different transport rules, which affect how operations are organized and what obligations companies have.
When can a carrier perform cross-trade after cabotage?
EU rules precisely define how cabotage may be carried out. A maximum of three cabotage operations can be carried out within seven calendar days. After these operations, the vehicle must wait four days before carrying out cabotage in the same country again.
No such limits apply to cross-trade. Cross-trade operations can take place between different countries according to current market demand, which increases operational flexibility. The carrier must, however, keep other Mobility Package rules in mind: the vehicle must return to one of the operating centres in the country of establishment at least once every 8 weeks, and the driver must be able to return home every 3 or 4 weeks.
Cross-trade, cabotage and the required documents
Cabotage comes with additional documentation requirements. CMR consignment notes confirming the preceding international carriage are needed, as well as transport documents for each cabotage operation.
Cross-trade has no such preconditions. As a regular type of international carriage of goods, it reduces administrative formalities and speeds up the organization of further orders.
See also: Essential transport documents a driver should carry
Cross-trade, drivers and the Mobility Package: key obligations
Both cabotage and cross-trade operations are subject to the Mobility Package rules, which cover the posting of drivers, IMI declarations and the application of the minimum wage of the country where the transport is carried out. Applying minimum rates from several countries at once easily leads to errors, which is why at Evotax we run a foreign payroll service for drivers with a breakdown by country.
Note that current rules do not prohibit cross-trade during the four-day cooling-off period after three cabotage operations. This makes cross-trade an attractive option for international transport companies that want to improve logistics efficiency and make better use of their fleet.
Posting of drivers in cross-trade operations
Since February 2022, cross-trade operations have been subject to the Mobility Package rules on the posting of drivers and the pay of workers carrying out international road transport. Under Polish law, these operations are no longer treated as standard business trips. The new rules impose additional obligations on carriers concerning pay, administrative declarations and documentation.
Minimum pay for drivers in cross-trade
Under current rules, the employer must pay the driver at least the minimum rates applicable in the countries where the goods are transported. In practice, a driver carrying out cross-trade between Rome and Vienna should be paid in line with Italian and Austrian rules.
The new rules rule out paying drivers only through tax-free per diems and overnight lump sums. Pay must follow the rules of the countries in which the international transport is carried out.
The IMI system and carrier obligations
A carrier carrying out cross-trade must submit posting declarations for its drivers in the IMI system (Internal Market Information System), stating the countries where transport operations will take place. The declaration requires information on the countries of loading and unloading and can cover a period of up to 6 months.
During a roadside check, a driver carrying out international transport of goods should have:
- The IMI posting declaration with a QR code.
Documents required for cross-trade
Cross-trade requires proper documentation confirming that the transport service is legal. Depending on the order, the documents include:
- A transport order setting out the terms of the carriage;
- A CMR consignment note confirming the transport;
- Customs documents, where required by law.
In addition, drivers carrying out transport between countries must record border crossings in the tachograph. G2V2 tachographs do this automatically, while in older devices the driver enters the country code manually at the first possible stopping place after crossing the border. Keeping documentation correctly is one of the basic obligations of companies carrying out international transport and cross-trade in the EU.
Cross-trade in the European Union: summary
Cross-trade is an important part of international road freight transport in the EU. It allows carriers to plan routes flexibly, optimize costs and expand into foreign markets while complying with the Mobility Package.
Need help with drivers' working time settlements for cross-trade and other operations? We're here to help! Contact us and our specialists will take care of the rest.
International cross-trade operations - Frequently asked questions
Below, we've gathered the most frequently asked questions about cross-trade operations, together with our answers. If your question isn't here, contact us and our specialists will be happy to help!
Cross-trade is a type of international transport in which goods are carried between two countries, neither of which is the carrier's country of establishment. It is a popular form of international carriage. For example, a Polish transport company carrying goods from Germany to France performs a cross-trade operation.
Cross-trade helps significantly reduce empty runs, make better use of the fleet and improve the profitability of international operations. It also supports logistics efficiency and transport cost optimization and allows flexible route planning and expansion into new European markets.
Cabotage is the carriage of goods within a single foreign country, for example from Berlin to Munich, while cross-trade is carriage between countries, for example from Berlin to Paris. Cabotage is limited to three operations within seven days, while cross-trade is not subject to such limits.
The Mobility Package introduced additional obligations for companies carrying out cross-trade. Since February 2022, carriers must pay drivers in line with the minimum rates of the countries of loading and unloading. They must also submit IMI posting declarations for their drivers and have the required documentation, including the A1 certificate and the IMI declaration with a QR code.
Yes. EU rules do not prohibit cross-trade during the four-day cooling-off period after three cabotage operations. During that time, the driver can continue to carry goods between different countries as cross-trade.
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