Category Archives: Logistics

Cabotage laws cover 85% of world’s coastlines

Cabotage refers to laws or regulations that insist that national carriers transport freight or passengers within a country. A new publication indicates it is becoming more prevalent.

Cabotage in the US has been a feature of air travel for many years; it’s why we don’t see foreign airlines flying US domestic routes. But it’s perhaps more important in the case of ocean freight. For instance, Hawaii needs to have US ships transport goods. Same with Puerto Rico.

The principal argument for cabotage is to protect a nation’s logistics capacity when there’s an outside threat. That includes having trained seafarers, and a supply of vehicles or ships under control of a nation’s firms.

Cabotage has been around for centuries. Great Britain in the 1700s and 1800s had strict cabotage laws as did most other European powers of the day; France, Spain, Portugal. The laws varied, but violations of them were considered piracy. It’s hard to enforce such laws everywhere on a coastline. During the 1700s and 1800s Ireland and France did a brisk trade under the radar; recall that the Irish were not happy about British supremacy there.

In the US cabotage requires building of ships in the US, so it supports the US shipbuilding industry. It also ensures that military cargoes have US ships to carry them in case of war, as well as some trained hands for the ships.

How effective it is for these purposes is not clear, as the number of US citizen mariners has been declining for years now. It’s not that attractive a profession for many; a hard life, and constantly traveling. As a veteran of a maritime academy faculty, I am well aware of the difficulty of getting students to choose this kind of education.

It seems that most nations have cabotage laws now. The report mentioned in the story indicates a large percentage of coastlines are affected by cabotage restrictions of various kinds, with over 105 nations reporting cabotage restrictions.

The new publication is the second edition of Cabotage Laws of the World, by Hilton Staniland and Deirdre Fitzpatrick. The latter is the CEO of Seafarers Rights International (SRI), an important organization in the maritime community.

Sam Chambers October 1, 2025

https://splash247.com/cabotage-laws-now-cover-85-of-worlds-coastlines/

Beijing sets port fees and restrictive policies

Retribution for the US port fees for Chinese-owned and Chinese-built ships is already here, even before the fees come into effect. The main effect seems to be a restructuring of shipping services, rather than any actual fees being collected. Operators of liner routes are simply taking the Chinese-related ships off their US runs. Several liner carriers have announced that they propose no surcharges.

I think the most important effect of the Chinese declaration is going to be the loss of data and information about Chinese ports. Most large carriers call at Chinese ports on their loops. No data means a loss of accuracy on arrival times and dwell times at the ports. This will affect all shippers and supply chain partners, making predictions more difficult.

I’m afraid geopolitics will make ocean shipping, and perhaps all kinds of carriage, into a game in which advance knowledge is impossible. We already see some effects in the loss of information from AIS due to spoofing and turning off transmission because of sanctions.


Stuart Chirls
Tuesday, September 30, 2025

https://www.freightwaves.com/news/china-could-bar-u-s-service-ships-in-new-maritime-dispute-volley

China prepares retaliation playbook

China is taking preemptive action against the US’s plans to hike port fees for China-linked tonnage.  The port fees are scheduled to come into effect on October 14, but there haven’t been any administrative rules set yet.

So we don’t know how, or if, they will be collected.

Quite a few experts believe that there won’t ever be any. The box-booking platform Freightos is one source mentioned in the article. Trump has a history of putting penalties out there and giving way in negotiations just before they will go into effect. It’s known as the Trump Always Chickens Out (TACO) effect.

I agree that we may never see any container ship fees. But I am also wary of what Trump may be giving away in the negotiations with China.

And I think history tells us that we will see severe blowback in terms of various trade restraints placed by foreign nations. These will hurt American businesses.

 Sam Chambers September 30, 2025

https://splash247.com/china-prepares-retaliation-playbook-ahead-of-us-port-fee-deadline/