Cabotage refers to the transportation of goods or passengers within a country by foreign carriers. The concept of cabotage was originally developed in maritime transport, but has spread to other transport sectors such as road and air.
In road transport, cabotage refers to the transport of goods or passengers within a country by foreign transport companies. Normally, the international movement of goods between countries is regulated, and foreign trucks are only allowed to unload goods in one country and then return to their country of origin. However, cabotage allows foreign carriers to transport goods within a country after they have already completed an international shipment. This allows them to carry additional cargoes on the way back or during their stay in the country.
The exact rules and restrictions on cabotage may vary from country to country. Some countries allow foreign carriers to perform a limited number of cabotage shipments, while other countries have stricter restrictions or prohibit cabotage entirely.
The goal of cabotage is to improve the efficiency of freight transportation by avoiding empty runs and maximizing the utilization of transport vehicles. It can also promote competition among domestic carriers by giving foreign companies access to the domestic market.
It is important to note that cabotage regulations can have both positive and negative effects. While it can promote competition and efficiency, there is also a risk that excessive cabotage will disadvantage domestic companies and lead to unfair competition. For this reason, many countries have introduced restrictions to regulate cabotage and ensure that it is done in accordance with national interests.
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