“Cabotage” – What does it mean ?

  

The word “cabotage” is supposed to be evolved from the French word “ Caboter” meaning  ‘sail along a coast’.  As per records the word cabotage has been in use  related to coastal trade from mid-19^th century onwards. In a coastal transport system, the travel of a passenger or cargo begins and ends in the same country.

Few popular definitions of cabotage are as under:

-         the English language dictionary defines cabotage as ‘transport of passengers and goods within the same national territory’.

-       Another definition is that ‘ the right to operate sea, air, or other transport services within a particular territory.

-         Or, ‘restrictions  of the operation of sea air or other transport services within or into a particular country to that country’s own transport services .

In simple words, “Cabotage”  is a principle regulating shipping activities, which takes place within a country's waters, and recognises that a country is entitled to restrict the activities of foreign vessels operating within its waters. This principle has an important bearing on a country’s coastal shipping trade and is expected to protect and promote the domestic shipping sector of the country.

Most of the maritime nations placed restrictions on movement of cargo or passengers along coastal ports of their country by their own flag vessels. Countries like USA practices an absolute cabotage (Jones Act) ,  which requires  all goods shipped among US sea ports be carried by US built, flagged, operated and crewed vessels. Where as many other nations, including India,  relaxed the cabotage principle to promote the EXIM trade.

In India the Cabotage, which is provisioned in section 406 & 407 part XIV of Merchant Shipping Act,1958, is not absolute . According to this law, only Indian flag vessels can carry cargo from one Indian port to another Indian port . However , permission can be granted to foreign flag vessels to carry cargo between Indian ports , in case Indian flag ships are not available. The notification of Govt of India with regard to cabotage relaxation for transhipment port is attached here under: