Term of the Day: Cabotage
Cabotage is a water transportation term applicable to shipments between nation’s ports; commonly refering to coastwise or intercoastal navigation or trade.
The term cabotage was originally a shipping term, but now it also covers aviation, railways, and road transport. The word is often used to refer to the transport of goods or passengers between two points in the same country by a vessel or an aircraft registered in another country.
The term is used in the context of “cabotage rights”, the right of a company from one country to trade in another country.
For example, in the U.S., the Merchant Marine Act of 1920, also known as the Jones Act, requires that all goods transported by water between U.S. ports be carried on U.S.-flagged ships, constructed in the U.S., owned by U.S. citizens, and crewed by U.S. citizens and U.S. permanent residents.
World Maritime News Staff