Cabotage is a term used in maritime, aviation and ground transportation law. In most countries, it dictates how carriers are allowed to transport people and goods from a point of origin to destination, and promotes domestic trade.

Definition

The word "cabotage" comes from the French word "caboter." According to Dictionary.com, that roughly translates to "... navigation or trade along a coast ...or headland." The term has evolved to encompass specific laws dealing with the way international carriers are allowed to do business.

Law

In the United States, U.S. Code incorporates law dealing with all aspects of transportation and trade. For instance, the Jones Act, Section 27, Merchant Marine Act, 1920, clearly spells out U.S. policy and cites U.S. regulations dealing with legal foreign and domestic movement and shipping within our borders.

Security

Perhaps most important in this day and age, cabotage laws help to protect national airspace. Threats to airspace equate to threats to national security. As a result, cabotage laws ensure controls to better protect a nation. Security measures also extend to ports and over-border land transport.

Domestic Trade

Most countries with cabotage laws, including the United States, give preference to domestic carriers. As an example, while foreign carriers can fly goods and passengers into American airports, all domestic flights are carried out by American airlines. This helps to bolster the American economy.

Example--Foreign Flights

An Iberia flight takes off from Madrid, and flies to the U.S. It lands in Hartsfield-Jackson Atlanta International Airport, then continues on to Chicago O'Hare International Airport. Passengers can debark either in Atlanta or in Chicago. However, the plane can't take on new passengers in Atlanta for transport to Chicago. That right is reserved for American carriers.

Source:

Jones Act

U.S. Department of Transportation: Office of the General Counsel

Worldwide Travel & Cruise Associates, Inc.

Resource:

Maritime Cabotage Task Force