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Cabotage
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Cabotage
Cabotage (/ˈkæbətɪdʒ, -tɑːʒ/) is the transport of goods or passengers between two places in the same country by a carrier registered in a different country. The term originally applied to shipping along coastal routes, port to port, but now applies to aviation, railways, and road transport as well. Most countries do not permit cabotage, and there are strict sanctions against it, for reasons of economic protectionism, national security, or public safety. One notable exception is the European Union, whose member states all grant cabotage rights to each other.
The term "cabotage" is borrowed from French. It is derived from caboter which means "to travel along the coast". The origin of caboter is from Persian language or it may come from cap or cabo "cape", or it may refer to a type of boat. Attempts to link the word to the Italian explorer John Cabot are not supported by evidence.
Cabotage laws apply to merchant ships in most countries that have a coastline so as to protect the domestic shipping industry from foreign competition, preserve domestically owned shipping infrastructure for national security purposes, and ensure safety in congested territorial waters. As of 2025, 105 countries had such laws, representing 85% of the United Nations member states with coastlines. This was an increase from 91 countries in 2018.
For the history of cabotage in UK law, see Navigation Acts.
Indonesia implemented a cabotage policy in 2005 after previously allowing foreign-owned vessels to operate relatively freely within the country.
In the Philippines, the Tariff and Customs Code of the Philippines (Republic Act No. 1937) which is also known as the Cabotage Law restricts coastwise trade or the transport of passengers and goods within the country, to vessels with Philippine registry which has to secure a coastwise licence from the Maritime Industry Authority. After the passage of Foreign Ships Co-Loading Act or the Republic Act No. 10668 in 2015, foreign vessels with cargo intended to be exported out of the country may dock in multiple ports in the country before transiting to a foreign port.
China does not permit foreign flagged vessels to conduct domestic transport or domestic transhipments without the prior approval of the Ministry of Transport. However, this rule does not apply to Hong Kong as it is considered a "foreign" port, which benefits it remaining attractive as a hub.
In the EU, rights to cabotage in newly admitted member states (in particular, Greece, Spain and Portugal) were restricted; but this introductory provision was abandoned after criticism in the light of the Paros ferry disaster.
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Cabotage AI simulator
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Cabotage
Cabotage (/ˈkæbətɪdʒ, -tɑːʒ/) is the transport of goods or passengers between two places in the same country by a carrier registered in a different country. The term originally applied to shipping along coastal routes, port to port, but now applies to aviation, railways, and road transport as well. Most countries do not permit cabotage, and there are strict sanctions against it, for reasons of economic protectionism, national security, or public safety. One notable exception is the European Union, whose member states all grant cabotage rights to each other.
The term "cabotage" is borrowed from French. It is derived from caboter which means "to travel along the coast". The origin of caboter is from Persian language or it may come from cap or cabo "cape", or it may refer to a type of boat. Attempts to link the word to the Italian explorer John Cabot are not supported by evidence.
Cabotage laws apply to merchant ships in most countries that have a coastline so as to protect the domestic shipping industry from foreign competition, preserve domestically owned shipping infrastructure for national security purposes, and ensure safety in congested territorial waters. As of 2025, 105 countries had such laws, representing 85% of the United Nations member states with coastlines. This was an increase from 91 countries in 2018.
For the history of cabotage in UK law, see Navigation Acts.
Indonesia implemented a cabotage policy in 2005 after previously allowing foreign-owned vessels to operate relatively freely within the country.
In the Philippines, the Tariff and Customs Code of the Philippines (Republic Act No. 1937) which is also known as the Cabotage Law restricts coastwise trade or the transport of passengers and goods within the country, to vessels with Philippine registry which has to secure a coastwise licence from the Maritime Industry Authority. After the passage of Foreign Ships Co-Loading Act or the Republic Act No. 10668 in 2015, foreign vessels with cargo intended to be exported out of the country may dock in multiple ports in the country before transiting to a foreign port.
China does not permit foreign flagged vessels to conduct domestic transport or domestic transhipments without the prior approval of the Ministry of Transport. However, this rule does not apply to Hong Kong as it is considered a "foreign" port, which benefits it remaining attractive as a hub.
In the EU, rights to cabotage in newly admitted member states (in particular, Greece, Spain and Portugal) were restricted; but this introductory provision was abandoned after criticism in the light of the Paros ferry disaster.