What is Cabotage?

Cabotage refers to transporting goods or passengers within the territory of a single country by a foreign carrier.

Cabotage regulations are put in place to protect domestic carriers from foreign competition and to ensure that domestic carriers provide transport services within a country. The regulations can apply to sea, air, or land transport and may restrict the routes, types of cargo, and frequency of transport services that foreign carriers can offer within the country. Cabotage regulations can also apply to foreign carriers transporting goods or passengers within a country as part of a larger international journey. Compliance with cabotage regulations is important for carriers to avoid penalties and legal issues related to violating these regulations.