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Encyclopedia > Cabotage

Cabotage is the transport of goods or passengers between two points in the same country. Originally starting with shipping, cabotage now also covers aviation, railways and road transport. Cabotage is "trade or navigation in coastal waters, or, the exclusive right of a country to operate the air traffic within its territory."[1] Damaged package The Panama canal. ... Aviation refers to flying using aircraft, machines designed by humans for atmospheric flight. ... Disruptions in organized traffic flow can create delays lasting hours. ...


Cabotage is commonly used as part of the term "cabotage rights", the right of a company from one country to trade in another country. In aviation terms, it is the right to operate within the domestic borders of another country. Most countries do not permit cabotage by foreigners, although this is changing within Europe for member states of the European Union.[2] Politically, cabotage regulations restricting trade to domestic carriers are a form of protectionism. Justifications for cabotage regulations include national security and the need to regulate public safety. Protectionism is the economic policy of restraining trade between nations, through methods such as high tariffs on imported goods, restrictive quotas, a variety of restrictive government regulations designed to discourage imports, and anti-dumping laws in an attempt to protect domestic industries in a particular nation from foreign take-over... Security measures taken to protect the Houses of Parliament in London, England. ... This is an article about the modern meaning of the term public safety. ...

Contents

Examples

If British Airways has a flight from London Heathrow that stops at New York JFK and continues on to Chicago O'Hare, it would not allow passengers to board in New York and fly to Chicago if that violated US cabotage regulations. Only passengers who boarded in London could be carried on to Chicago. For the 1930s airline of similar name, see British Airways Ltd. ... London Heathrow Airport (IATA airport code: LHR, ICAO airport code: EGLL, and often simply Heathrow) is the United Kingdoms busiest and best-connected airport. ... John F. Kennedy International Airport (IATA: JFK, ICAO: KJFK), originally known as Idlewild Airport, is an international airport located in Jamaica, Queens, in southeastern New York City about 12 miles (19 km) from Lower Manhattan. ... OHare International Airport (IATA:ORD, ICAO:KORD) is an airport located in Chicago, Illinois, 17 miles (27 km) northwest of the Chicago Loop. ...


As another example, a passenger would not be able to buy a ticket on Air Canada for a flight from Boston to Toronto, connecting in Toronto to another flight to Seattle. Even though each of the legs would be legal individually, together they effectively offer a domestic service in the US, which is not allowed to foreign carriers. Air Canada is Canadas largest airline and flag carrier. ...


Cabotage Trade

Cabotage trade is a political term describing the "coastwise trade of a nation to vessels flying its national flag". Usually, industrial countries have special laws pertaining to trade and travel of goods and persons in its own waters when the ship carrying them is registered domestically. These laws, commonly called "cabotage laws (acts)", give concessions to local vessels by restricting port and waterway usage by vessels with foreign registrations "to promote the development of indigenous tonnage..."[3] Vessels are a post-rock band from Leeds, UK. Vessels were born from the ashes of A Day Left in September 2005. ...


Initially, laws like these will protect domestic businesses by giving them an advantage over exportation. Later, this will increase the country's income via taxes and fees collected from foreign businesses. The country will receive more income, when foreign businesses decide to register their vessels domestically. For other uses, see Export (disambiguation). ...


To circumvent such laws and taxes, global businesses register their vessels with small island nations, which have less transport restrictions and are taxed at a lower rate than their home nation.


Each country has its own laws and regulations regarding cabotage trade.


References

  1. ^ The American Heritage Dictionary of the English Language, Fourth Edition
  2. ^ "European transport policy for 2010 : time to decide" EU Commission White paper
  3. ^ Nigerian Bar Association, August 2004 "Practical Implementation of the Cabotage Law". Retrieved June 14, 2006.

See also

For the 1916 law the concerned the Philippines, see Jones Act (Philippine Islands) The Merchant Marine Act of 1920 (commonly known as the Jones Act) is a United States Federal statute that requires U.S.-flagged vessels to be built in the United States, owned by U.S. citizens, and... The Freedoms of the air are a set of commercial aviation rights granting a countrys airline(s) the privilege to enter and land in another countrys airspace. ... The Passenger Services Act is a piece of United States legislation which came into force in 1886 relating to cabotage. ... The Open Skies system is an integrated web-enabled reservation and inventory system suite that includes Internet, call center, airport departure control functionality and more. ... Protectionism is the economic policy of restraining trade between nations, through methods such as high tariffs on imported goods, restrictive quotas, a variety of restrictive government regulations designed to discourage imports, and anti-dumping laws in an attempt to protect domestic industries in a particular nation from foreign take-over...

External links


  Results from FactBites:
 
Cabotage relaxation move -- Foreign ships to ply the coast (889 words)
In fact, the NSICT example has emboldened the advocates of the Cabotage relaxation who are convinced of the development of hub operations and the consequent benefits accruing to the Indian operators.
However, the anti-relaxation group is of the opinion that the Cabotage provisions must to be strictly enforced to ensure that foreign flag vessels do not operate in Indian coastal waters for transporting cargoes between Indian ports.
It may be recalled that the Union Government had relaxed the Cabotage Law partially from 1992 to 1997 in respect of transshipment of containers by foreign flag vessels or feeder lines from one Indian port to another.
  More results at FactBites »


 

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