Maritime cabotage markets represent considerable business and trade potential, particularly in countries with longer coast lines and in archipelagic countries. Foreign carriers keep pressure on china to relax cabotage. In pursuance of the success of nigeria on maritime reforms, nigeria made a bold attempt to change the face of maritime business within its coasts when it enacted the coastal and inland shipping cabotage act 2003, though designed to restrict foreign participation in nigerias domestic coastal trade, nevertheless a lot of opportunities exist for foreign involvement. The overall purpose of cabotage rules are to prohibit foreign aircraft from one country traveling into another country and picking up foreign nationals or citizens of the other foreign country and providing transportation to and between points within that foreign country. Maritime cabotage is the legal regulation of commercial shipping operating exclusively within the nations territorial waters. Cabotage laws of the world american maritime partnership. The international transport workers federation itf released a multiyear study showing 91 nations have cabotage laws on their books. This paper argues that cabotage policy as nontariff barriers limits market access and does more harm than good to the domestic economy. Dakuku peterside, said in abuja that the agency was engaging all relevant stakeholders to ensure that disbursement. Protectionist vs liberalised maritime cabotage policies. Section 27 of the jones act deals with maritime cabotage and requires that goods must. Jones act serves as an example of strict maritime cabotage regulation, and has created a national market in the us known as the jones act market. Cargo means goods carried in or on a vessel whether or not of conunercial value and includes livestock.
Canadas maritime cabotage policy 33 the first was to reaffirm the desirability of pursuing a more liberalized approach to domestic shipping with the united states. Usually, this coastal trading is regulated by the national law of the host nation. Encourage domestic and international maritime trade maritime cabotage in practice japan impact of relaxation. Maritime cabotage laws govern the transportation of goods and people between two ports in the united states, which generally restricts such transportation to u. Zooming in on the impact of maritime cabotage restrictions on transport costs and liner. A twotier cabotage market emerged, where a european economic area legislative. Arguments against cabotage liberalization and remedies. According to the maritime code of china, only vessels registered in china or hoisting chinese flags are allowed to conduct costal shipping of cargo between chinese ports. The nigerian maritime administration and safety agency nimasa has started seizing vessels for violating provisions of the cabotage law. I n the interest of n a t i o n a l defense a nd commerce in pdf, flash or html5 edition of march 1989 maritime reporter.
It originally applied to shipping along coastal routes, port to port, but now applies to aviation, railways, and road transport as well cabotage rights are the right of a company from one country to trade in another country. Restrict free trade cabotage arguments against cabotage. Cabotage examples regulatory changes country regulatory change rational brazil 2002 require foreign carriers engaged in. The maritime cabotage law provisions and approaches as adopted in many states and jurisdictions has been extensively scrutinised. Aquino iii, laws, liberalization of philippine cabotage, republic acts. The effects of cabotage regime on indigenous shipping in. A national carrier is a shipping company which the nigerian maritime. Recently, other free trade zones including guangdong, fujian, and tianjin have also been granted this exemption, according to a deutsche bank report. Internal market services cabotage mobility and transport. The nigerian maritime administration and safety agency, nimasa, is committed to the enthronement of global best practices in the provision of maritime services in nigeria.
The cabotage impact to hong kong logistics industry. The development of the current european economic area maritime cabotage market occurred when, at a policy level, the european union forced the opening of its memberstates cabotage markets to community shipowners and extended this openness, in 1997, to the european free trade area countries. Considering the cost of operating ships in the philippines, a shipping if the government is to revoke the cabotage policy and therefore allow. This book challenges the established and accepted wisdom surrounding maritime cabotage by presenting new reasoning on the underpinning principles of the concept of maritime cabotage law. European commission press release details page european commission press release brussels, 22 april 2014 the european commission has given new guidance on the interpretation of the regulation to provide cabotage within a member state1, thus providing an internal market for the provision of maritime transport services. The nigerian cabotage law came into force in april, 2004 cabotage act, 2003. The eu rules take into account the issue of public service obligations, in view of ensuring that islands and far distant maritime regions have adequate connections with the mainland territories. Maritime cabotage new guidelines from the european. Cabotage laws and regulations set out the conditions governing which vessels may engage in coastal trade. Nigerian maritime administration and safety agency nimasa has stated its determination to disburse the cabotage vessel financing fund cvff for the first time since it was established in 2003. The act therefore seeks to reserve domestic coastal trade cabotage or cabotage trade within nigerian coastal and inland waters to vessels built and registered in nigeria, wholly owned and wholly. How the jones act lets unions and a few companies hold the economy hostage labor watch, april 20 pdf here. New report details cabotage laws from around the world. Digital repository of the world maritime university world maritime university dissertations dissertations 2011 the effects of cabotage regime on indigenous shipping in nigeria ganiyu babatunde.
The transportation of passengers and goods within the same country. It also raises costs for many other industries, keeps foreign ships from helping when disasters like the bp oil. Cabotage definition of cabotage by the free dictionary. This is the time for the federal government to give the necessary support to nimasa and see to the implementation of the cabotage act. The aim was to reserve the costal shipping business by nigeria national. This regulation replaced regulations eec no 88192 and eec no 311893, as well as directive 200694ec.
Cabotage regulations and the challenges of outer continental shelf development in the united states. It refers to transit of a vessel along the coast of a nation for the purpose of trade from one port to another within the territorial limits of that nation. Cabotage and aviation rules relating to cabotage on international flights. American free trade agreement and efforts to revitalize the multilateral trading. Coastal trade or cabotage meaa the carriage ofgoods by vessel, orby vessel andanyother mode. Since its entry into force on 1 january 1993, maritime cabotage has undergone. Approximately 80% coastal member states of the united nations have some form of cabotage laws governing foreign maritime activity in their. Nimasa can create a system of scholarship whereby a student in such institution will go through the institution free of fees and to serve the country for a certain year after graduation and the. Cabotage laws from around the world maritime cyprus. The maritime cabotage prohibition united nations escap.
Poor safety record and high frequency of maritime accidents. The report is careful to point out these various maritime laws are not identical, and refers to the jones act as the model for others. This act may be cited as the costal and inland shipping cabotage act, short title. Canadas maritime cabotage policy 6 recent developments in maritime cabotage policy among other developed countries, most notably the member states of the european union. Itf releases global study showing 91 nations have maritime. The bank noted that although domestic shipping lines were objecting strongly, the relaxation of cabotage would greatly benefit the port sector in china, bringing in substantial regional. Commission set forth its fifth report on the free right to provide maritime cabotage between member states. Jones act, an antiquated law that has for too long hindered free trade.
Cabotage and the european community common maritime policy. Opinion the cabotage act, known more appropriately as the coastal and inland shipping cabotage act 2003, has been operational for over ten years now. In australia, the mlc has been implemented primarily through the navigation act 2012 cth and marine order 11. Cabotage policy with the aim of protecting the national shipping company under the rubric of setting national shipping sight on moving towards selfsufficiency so that they are able to grow over the years. The report called cabotage laws of the world comes from the seafarers rights international sri. The establishment of shanghais free trade zone ftz and the associated relaxation of cabotage rules should have a positive impact on the ports seagoingvessel to seagoingvessel. The eu cabotage rules regulation 357792 ensure that maritime transport services within a member state, i. These 91 countries represent 80% of the worlds coastal united nations maritime states. European commission press release details page european memo brussels, 22 april 2014 commission council regulation eec no 357792 hereinafter the regulation applying the principle of freedom to provide services to maritime transport within member states maritime cabotage1 is now over twenty years old. The study highlights the significant differences in the policy approach to maritime cabotage that has been adopted by european countries. The intention of the cabotage act is primarily to stimulate the development of indigenous capacity in the nigerian maritime industry.
Various approaches to maritime cabotage regulation exist in the maritime world. From the perspective of supply chain efficiency, maritime cabotage can be of interest to improve door. Protests against ceta, november 2016 file image by the maritime executive 012017 09. The act defines coastal trade or cabotage as including the carriage of goods by vessel, or by any other mode of transport excluding pipelines, from one place in nigeria or above nigerian waters to any other place in nigeria, either directly or. It provides the first comprehensive, independent analysis of worldwide maritime cabotage laws since the early 1990s. Background in order to understand the purpose of the united states maritime cabotage laws it is necessary to give a brief legislative history of such laws. With the new guidance competent authorities will have more legal. Maritime cabotage new guidelines from the european commission. Nimasa to disburse cabotage vessel fund the free zone. Policies and rules to promote maritime transport coastal shipping. Nimasa elibrary the nigerian maritime online library. Law or policy protecting transporters of passengers and goods within a country.
Cabotage, jones act, shipping, domestic trade, prices. These laws are commonly referred to as the jones act. Cabotage in nigeria is governed principally by the cabotage act and the accompanying guidelines. The philippines needs a strong and competitive domestic merchant fleet. Cabotage, meaning the national carriage of goods for hire or reward carried out by nonresident hauliers on a temporary basis in a host member state, is governed by regulation ec 10722009 as of 14 may 2010. Cabotage mobility and transport european commission. The term cabotage is a spanish word which refers to maritime trade along countries coastlines.