Latvia, Strike, Transport

If trucking companies do not receive a state support by the end of March, they will possibly organize a protest.

Road carriers in their letter draw attention to the fact that the international freights haulage sector, represented by over 3,000 companies, which operate nearly 12,000 trucks and employ around 20,000 workers, is facing difficult times; the crisis has had an impact also on foreign markets, the demand for the trucking companies' services is decreasing and so are these companies' incomes; contractors delay payments, there is a catastrophic lack of current assets.

Road carriers struggle to timely settle their payments with banks, leasing companies, fuel and services providers, many are close to going bankrupt. According to the truckers, the freight turnover volume in January decreased at least by 50%. Freight carriers are forced to limit their activities, to make drivers redundant or to ask them to take unpaid vacations for indeterminate period of time.

The situation is the worst in the Latgale province, where freight haulage services are virtually the sole source of income for many people and families, reads the letter.

According to the Road Transport Board data, around a half of all 12,000 trucks, operated by international trucking companies, have been bought on lease. The total commercial transport leasing portfolio has amounted to LVL 354 million.

Road carriers ask for state support that would allow the companies to postpone their loan and leasing payments for a period of up to one year.

Road carriers also demand a moratorium for the period of two to three years on any new taxes or duties and a postponement of the road tax.

They also suggest introducing a professional fuel excise tax, which would be significantly lower than the current minimum excise tax rate and apply to commercial transport of goods or of passengers.

In the name of over 600 international road carriers, the Board of the Latvian Road Carriers Association asks to put the above-mentioned suggestions into effect immediately, if not, the association will decide on organizing protests at the end of March.