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.

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.

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.

In Finland, the Limited Company (osakeyhtiö, “Oy”) is the only economically relevant form of company. The Oy is the form of choice for big quoted enterprises as well as for small and medium-sized undertakings.