Cabotage Law Research Articles

The Establishment of Economic Dirigism In Maritime Trade of Turkey, 1923–1950

ABSTRACT In the aftermath of the establishment of the republican regime in Turkey in 1923, the policy of economic dirigisme began to dominate the markets step by step. This article aims to analyse the effects of economic dirigisme on maritime trade for a quarter of a century and furnishes an illustrative case delineating how the government’s favoured economic policy attenuated the developmental prospects of maritime commerce. Throughout this temporal span, endeavours advocating a laissez-faire market policy found themselves systematically marginalized, as the juggernaut of economic dirigisme unfolded. The corollary of this policy was a precipitous decline in the operational efficiency of maritime trade. The proclivity for deploying antiquated ships escalated the inherent risks of maritime accidents. Legislative initiatives, exemplified by the promulgation of cabotage laws and the imposition of onerous taxes, erected formidable impediments that curtailed the operability of foreign-flagged vessels in Turkish ports. Concurrently, the waning trade potential cast a pall over the developmental trajectory of Anatolian cities.

A legal and regulatory compliance framework for maritime operations in Nigerian oil companies

The maritime sector plays a critical role in Nigeria's oil industry, serving as the primary conduit for offshore oil exploration, production, and transportation. As the country remains heavily reliant on its oil revenues, ensuring that maritime operations comply with legal and regulatory standards is crucial for operational safety, environmental sustainability, and economic stability. This review outlines a comprehensive legal and regulatory compliance framework for maritime operations in Nigerian oil companies, focusing on the roles of key regulatory bodies such as the Department of Petroleum Resources (DPR), the Nigerian Maritime Administration and Safety Agency (NIMASA), and the National Environmental Standards and Regulations Enforcement Agency (NESREA). It explores major laws such as the Coastal and Inland Shipping (Cabotage) Act, Petroleum Industry Act (PIA), and Environmental Impact Assessment (EIA) Act, highlighting their implications for offshore drilling, oil transportation, and environmental protection. Additionally, the review discusses the compliance challenges Nigerian oil companies face, including environmental risks, maritime security threats, jurisdictional conflicts, and the technical demands of adhering to safety standards. To address these challenges, the study emphasizes the need for regular audits, technology integration, capacity building, and collaborative engagements between oil companies and regulatory authorities. Through case studies on oil spill response and the enforcement of cabotage laws, the review underscores the importance of robust regulatory enforcement to ensure safety, mitigate environmental damage, and enhance operational efficiency. This framework is essential for the future growth of Nigeria’s oil sector, balancing economic gains with legal compliance and sustainability in maritime operations.

Cabotage Law Coordinately Applied Based on ‘One Country, Two Systems’ in Guangdong-Hong Kong-Macao gba

Abstract In order to promote the internal cooperation and coordinated development of Guangdong-Hong Kong-Macao Greater Bay Area (gba), it is necessary to coordinate and unify the distinct legal systems involved, especially to provide uniform transportation laws and regulations between ports. However, if the gba wants to establish a coordinated and unified shipping legal system, there are challenges due to interregional legal differences. These differences are rooted in legal systems of the three regions under the basic national policy of ‘one country, two systems’ and apply differently, leading the difficulties in balancing different interests. To achieve the strategic position and target of the gba, a key area to improve is freight among the ports in the gba which form an international shipping hub. There are many ports with large throughput in the gba, and they are also big ports for cargos import and export or transit. However, the cargoes are without deregulated movement among them. Therefore, the problems of different cabotage laws in the three places need to be solved to make the positive effects of cargoes’ free movement be realized in the gba. A coordinated and unified special shipping scheme can be established in gba by application of the regional cabotage law. This has the potential to deliver consistency in cabotage law, thereby eliminating restrictions and thresholds, simplifying procedures and reducing costs, so as to enhance the overall strength of the gba and help it to become an international shipping super zone.

An Analysis of Investment Trends, Innovation and its Impact on Cabotage and Local Content Regime: Nigerian Experience from Businesses in Oil and Gas and Maritime Industries

This study looks into how Nigeria's oil and gas and maritime industries are affected by laws against cabotage and local content, with particular attention to employment rates, investment trends, technological developments, and communication. The study adopts the quantitative survey methodology. The target population comprises 358 oil and gas and maritime industries’ employees. Stratified random sampling was adopted to size the population into strata. Data was collected through a closed-ended structured questionnaire. The study used the primary and secondary data sources. The study examines the effects of local content and cabotage regulations in the two sectors, evaluating theories about employment rates, innovation, and investment trends. The result showed that there was a positive and significant effect of investment trend and innovation on cabotage law in the oil and gas industry in Nigeria (t-statistics (43.312) > critical value (0.000). Also, the study revealed that there was a positive and significant effect of investment trends and innovation on local content law in the oil and gas and maritime industry in Nigeria (t-statistics (48.491) > critical value (0.000). The findings show a strong positive correlation between compliance with these regulations and investment patterns. Turning barriers/obstacles into opportunities has proven to need effective innovation. The study recommends that policy improvement, improved innovative capacity, industry cooperation, monitoring, and enforcement will help improve compliance with the regulations and enhance investment patterns/innovation.

The opening of cabotage: China’s trials and challenges

Cabotage law has long been adopted in many countries, including China. However, in November 2021, China announced a reform on trial basis allowing eligible foreign container liner companies to use foreign-flagged ships for coastal piggybacking business between specific Chinese ports and Shanghai Yangshan Port with foreign trade containers, which resulted in a partial relaxation of Chinese cabotage law. This new policy is based on the prior coastal piggybacking business applied for ships owned or controlled by Chinese entities but flying foreign flags. Although restricted in a quite narrow application, the new policy is supposed to help increase the port throughput and benefit foreign container liner companies, but might threaten the interests of domestic shipping industry. There will be challenges in enforcing the policy reciprocally since no agreement on the opening of the cabotage has been concluded by China in any existing bilateral or multilateral agreement before. The future of the policy depends on its effect on driving the reform of domestic shipping management and its impact on the domestic shipping market.

Cabotage and Deregulatory Anomalies

The strangest airline route in America is between Pago Pago and the Manu’a Islands in American Samoa. It is the only regularly scheduled service by a non-U.S.-flagged airline between two points in the United States (or its territories) due to the lack of a U.S. carrier offering service to the territory’s domestic route. Under existing U.S. cabotage policies, states and U.S. territories are divested of all power to manage interstate air transportation to and from other U.S. airports as a matter of law. Specifically, federal law permits only U.S. carriers operating U.S.-registered aircraft to fly between U.S. states and territories. Consequently, governments like that of American Samoa have no authority to allow non-U.S. carriers to fly in and out of American Samoa to key connection points to the United States, such as Honolulu or Los Angeles. Standing alone, the absence of foreign carriers in any particular aviation market is unproblematic and even expected where purely “domestic” travel is involved. But, in American Samoa, the absence of foreign carriers means that competition and consumer choice are nonexistent. Meanwhile, presently, just one U.S.-flagged carrier—Hawaiian Airlines—connects American Samoa with any other part of the United States. In this monopolistic framework, few if any incentives exist for Hawaiian Airlines to provide more than the mini- mum acceptable level of service. And, in fact, in 2020, the Governor of American Samoa signed an Executive Order seemingly evicting Hawaiian Airlines from the territory while calling for permanent waiver of federal cabotage law—an action that the U.S. Department of Transportation (DOT) rejected as an authority not countenanced under the Airline Deregulation Act of 1978. This Article argues for a change or exemption in the current law. In so doing, this Article features the body of national aviation law as an unexpectedly useful area in which to gain insight into the flaws of imperial rule. With respect to American Samoa specifically, federal cabotage rules and laws deregulating the commercial airline industry displace territorial efforts to achieve autonomy and self-governance over matters of local concern and constitutional dimension, including jurisdiction (i.e., navigation), commerce and trade, and travel. Worse, national laws strip territorial leaders of the ability to better the welfare of their community without also meaningfully advancing U.S. objectives. Therefore, this Article argues that Congress should exempt American Samoa permanently from application of cabotage and deregulation laws and policies, a seemingly local issue that genuinely portends wholesale changes to longstanding international aviation law.

Cabotage sabotage? The curious case of the Jones Act

This paper examines the economic implications of the Jones Act, which restricts domestic waterborne shipments to American vessels. Since the passage of this cabotage law a century ago, a plausibly exogenous rise in foreign competition has contributed to the closure of most American shipyards and to a decline in American-built ships. Thus, the Jones Act requirements have become more onerous over time. The results show that domestic shipments are less likely to be transported via water than imports of the same good into the same state. Exploiting the decline in Jones-Act-eligible vessels over time, additional results show that this cabotage law has disproportionately decreased domestic water trade especially in coastal states. These findings support common, but to date unverified, claims that the Jones Act impedes domestic trade.

The Emergence of Nigerian Maritime Cabotage Laws and the Future of Its Maritime Commerce

Nigerian maritime cabotage laws evolved to add efficiency to the country’s maritime industry, especially in the area of indigenous fleet expansion, ship building and human capacity development. The aim was to curtail foreign dominance and unequal competition by non-Nigerian operators. Since the enactment of the Cabotage Act, attempt at successful and beneficial implementation could not be achieved due to regulatory inadequacies. What is obtainable now includes foreign dominance, unfair competition, policy failure, institutional ineffectiveness, absent of stable local capacity, regulatory problems, fiscal deficiencies, lack of political will by the government. In view of these inadequacies, appropriate remedial regulatory measures need be considered. These include regulatory overhaul or ample review of all extant maritime laws which are no more relevant in a cabotage regime. There is need for institutional reforms which will engender adequate and effective monitoring and enforcement. Fiscal and financial legal framework needs to be put in place to strengthen this inadequate and weak policy. This article submits that, cabotage laws which are supposed to be the framework of transformation from foreign to indigenous dominance of coastal shipping, have fallen short of the intended objectives. It therefore requires proper and adequate review to cure the obvious defects.

A Chilean Maritime Highway

Coastal shipping in Chile has a long tradition, and national cabotage laws continue to protect the domestic shipping market. The country's extensive coastline, the population concentration along the coast, and a lack of connecting rail networks might make coastal (short sea) shipping seem to be a viable option as part of an efficient and sustainable freight mobility strategy for Chile. This paper examines the potential for coastal shipping in Chile. It evaluates freight structure, demand and modal split, and the supply of shipping services over the past decade. Three markets are presented—a northern corridor, a southern corridor, and a combination of the two—and evaluated for adequate demand for coastal shipping. Six conclusions are drawn about the promise of short sea shipping developments in Chile, including identifying a future research agenda and filling missing data gaps.

Puerto Rico y Estados Unidos bajo las leyes de cabotaje: ¿Una violación del acuerdo de miembro de la Organización Mundial del Comercio?

El objetivo de este ensayo es evaluar el poder gubernamental y auto regulatorio de Puerto Rico, en relación con las leyes de cabotaje y su relación con Estados Unidos. Se estudia la historia de Puerto Rico con Estados Unidos, ciertas leyes y jurisprudencia, así como la responsabilidad de Estados Unidos y la Organización Mundial del Comercio. Se concluye que, aunque Puerto Rico goza de ciertos atributos de soberanía, sigue siendo un territorio bajo el control del Congreso de Estados Unidos.

The role of Chinese cabotage in Northeast-Asian hub-port development and container shipbuilding

China’s economic boom in the 1990s and 2000s created an unprecedented level of seaborne trade in Northeast Asia, which was regulated by various maritime policies. The most notable were cabotage laws, which restricted the free movement of foreign vessels in Chinese waters. These restrictions created a demand for international container transhipment; a call answered by different countries to different degrees, largely based on their historic economic links with China. In this article, we review the rise of transhipment hubs in Northeast Asia, while also examining the synergistic relationship between hub ports and container shipbuilding. We demonstrate that it is not a coincidence that over 80 per cent of all new container ships are produced in Northeast Asia, linking the transhipment boom to the phenomenon of container ship overcapacity observed in 2016. We also offer a five-stage visual summary depicting how a country can respond to an export boom by adjusting cabotage policies: first to facilitate export, then to protect domestic shipping. This concept offers specific predictions for two hubs actively involved in transhipment with China: Hong Kong and Busan.

A strategic reposition of the maritime industry for economic recovery and sustainability: The Cabotage Act

The Cabotage Law came into force in April, 2004 (Cabotage Act, 2003) aimed at reserving the costal shipping for Nigeria nationals. In essence, the system of maintaining domestic shipping industry is being regulated by the Cabotage Law. This involves the merchant fleet, and the protection of the environment and bio-diversity. The study is of the view that if the Cabotage Law is properly implemented; Nigeria will be able to maintain jobs and skills in an industry that is vital to its future. Lack of knowledge about the maritime sector could be the basis for the very poor response that it has generated from investing public. The oceans are as old as the maritime trade and dates back to the beginning of recorded time. Nigeria can only negate the development of its maritime potentials at its own peril especially taken into consideration here expensive maritime resource. Key words: Cabotage, economy, maritime, transportation and shipping.

The passenger vessel services act and America's cruise tourism industry

The Passenger Vessel Services Act (PVSA) of 1886, a cabotage law, attempts to shield U.S. maritime shipping from foreign competition. It also applies to the U.S. cruise ship industry. The PVSA requires foreign cruise ships that carry passengers between U.S. ports to also stop at foreign ports. Norwegian Cruise Line America (NCLA), which operates one U.S. flagged cruise ship in Hawaii, wants the U.S. Customs and Border Protection to require foreign cruise ships offering Hawaii itineraries from the U.S. west coast to spend more time in foreign ports. We analyze the merits of NCLA's proposal. We argue that rather than making the PVSA even more protectionist, the law should be repealed.

CMR as National Law and Cabotage Law in Austria

CMR as National Law and Cabotage Law in Austria

OIL SPILL PROBLEMS AND MANAGEMENT IN THE NIGER DELTA

ABSTRACT The coastal area of the Niger Delta is the home to oil explorations and exploitations in Nigeria. Oil spill incidents are common along the Nigeria. The main sources of oil spill on the Niger Delta are: vandalisation of the oil pipelines by the local inhabitants; ageing of the pipelines; oil blow outs from the flow stations; cleaning of oil tankers on the high sea and disposal of used oil into the drains by the road side mechanics. By far the most serious source of oil spill is through the vandalisation of pipelines either as a result of civil disaffection with the political process or as a criminal activity. To reduce the rate of oil incidents along the Nigerian Coast particularly as a result of vandalisation, the Federal Government through an act of the National Assembly created the Niger Delta Development Commission (NDDC). Part of the responsibilities of the commission is to develop a master plan for the development of the Niger Delta, provide infrastructure and create an enabling environment for industrialisation and employment. There are also several other laws dealing with issues related to oil pollution in the environment. Also, standards for the development of the environmental sensitivity index maps for the coast of Nigeria have been developed by the Environmental Systems Research institute (ESRI). These standards are to be used by all the oil companies to prepare ESI maps for their areas of operations in Nigeria. Furthermore, apart from the mechanical and chemical oil spill cleaning methods that have been used in managing oil spill problems, oil spill models have on several occasions being used to manage oil spills on the Nigerian Coast. A number of Federal and state agencies deal with the problems of oil spill in Nigeria. The agencies include: the Department of Petroleum Resources (DPR), the Federal Ministry of Environment, the State Ministries of Environment and the National Maritime Authority. There is also the “Clean Nigeria Associates” which is an umbrella through which the Oil companies tackle major oil spills. There is a need to create serious awareness among the populace on the implications of oil spill incidents on the environment. Governments must assist the rural communities in claiming their rights on oil spills and ensure that digital ESI maps are readily available for managing oil spill maps. Government should have strict rules for local oil tankers that would ply our coastal and inland waters as a result of the new cabotage law that is just being passed into law in the country.

Coastal shipping policy in New Zealand: the case for an empirical cost benefit analysis

Government recently introduced the Transport Law Reform Bill, which if passed by Parliament, will allow foreign vessels to uplift and discharge cargoes and passengers along the coast of New Zealand. Coastal shipping is part of the domestic transport industry, which has benefitted from deregulation and considerable restructuring over the last decade. This paper provides a brief review of the coastal shipping industry in New Zealand and an overview of international cabotage laws. An alternative open coast shipping policy proposed by the New Zealand Shipping Federation, which is based on ‘level playing fields’ principles, is presented. The scope of cost benefit analysis is outlined and the potential costs and the potential costs and benefits of the Government's open coast shipping policy are summarized. Despite the potential costs to New Zealand of an open coast policy appearing to be considerably greater than the potential benefits. Government officials have not undertaken an empirical cost benefit analysis...

American cabotage law and outer continental shelf operations

THE OCS AS A COASTAL POINT AND POSSIBLE USE OF FOREIGN SHIPS FOR SUPPORT FUNCTIONS IN OCS OPERATIONS