The development of a sound risk management strategy primarily calls for the identification of the risks that already exist in the circumstances at hand. Identification of the needs prevailing in the transport sector is a prerequisite for drafting good contracts. The risk scenario in the transport and logistic sector is very specific and not comparable to risk scenarios found in other sectors of international trade.

The liability of road carriers for damage and delay differs in many respects from that applicable in general contract or tort law. The purpose of this article is to illustrate the distinctive features of transport liability law, with the main focus on cross-border transport.

While the liability of the freight carrier for damage and loss in transit is usually calculable by reference to the existing maximum amounts and the corresponding insurance policies, particular care should be taken in delivering the goods. Omissions and mistakes in this connection will often trigger unlimited liability for the carrier.

Finland is in a key position as a transit country for the transportation of goods originating from outside the European Union, in particular from Eastern Europe and Asia. The logistical tasks involved in such transportation are often performed by Finland-based businesses or branches that also take care of customs formalities. The transit procedures available in the EU provide possibilities for simpler customs clearance, but also come with a risk for the transport business.

The services of transport and logistics operators are often carried out across international borders. Typically, they will have to make use of personal and material resources at international traffic hubs. At a certain level of intensity, this use of resources leads to foreign tax liability for VAT or corporate income tax. In many cases, this may come as a surprise to the operator.

Since the transport sector is very international, transport companies often assign their employees abroad. This can easily lead to a situation where the employment law provisions of several different countries have to be observed at the same time.

Cabotage is national road transport by non-resident hauliers. It is evident that the ability to compete essentially depends on the rate of capacity utilisation. In international transportation, the moving of transport resources without cargo can be avoided by cabotage transports only.

During recent years, the building and the logistics sectors have grown faster on average than the domestic economy in general. Enterprises involved in the leasing of transport and building equipment have performed even better. With regard to the leasing of motor vehicles for transport services heavier than 3.5 tonnes, as well as the leasing of other transport or building equipment, there is no legislation in Finland which could be considered a significant hindrance to entry into the Finnish market.

Public procurements offer significant economic opportunities for logistics and transportation businesses in Finland. The logistics and infrastructure services within traffic hubs are of particular interest. The contracting authorities regularly put these services out to tender and the procedure is regulated by the strict rules of the Public Procurement Act.