PUBLIC INTERNATIONAL LAW

CABOTAGE IN INTERNATIONAL LAW

Submitted by

HARSHVARDHAN JHA

Class 2018-23, Division: D, PRN 18010223023

Of

Symbiosis Law School, NOIDA

Symbiosis International (Deemed University), PUNE

In August, 2021

Under the guidance of

Mr. Sudhir Verma

Designation and official address of Research Guide

Assistant professor
 C E R T I F I C AT E
                   

The project entitled “Cabotage in International Law” submitted to the Symbiosis Law School, NOIDA
for Public International Law as part of internal assessment is my original work carried out under the
guidance of Mr. Sudhir Verma from July to October. The research work has not been submitted
elsewhere for award of any publication or degree.

The material borrowed from other sources and incorporated in the work has been duly acknowledged. I
understand that I myself could be held responsible and accountable for plagiarism, if any detected later
on.

Signature of the candidate

Date: 16th August, 2021

Introduction
The term cabotage can be described as commercial transportations by commercial
transportation companies between two points of the same country and Cabotage laws are
restrictions on foreign competitors to safeguard the domestic shipping infrastructure of a
country for economic protection and national security purposes. Historically the cabotage laws
were only there in countries with coastline but with the invention and success of other
transportation modes like aviation, the scope of cabotage law has expanded 1.
The origin of cabotage is from the French word “caboter” that literally means to sail along the
coastline and the origin of cabotage laws can also back to France, which in the 16 Th century had
restricted the navigation between the ports on the French coasts only to French vessels. The
principle of cabotage laws was eventually adopted across the globe and placed restrictions on
navigations within a metropolitan country and its overseas territories 2. But the United States of
America’s Jones act (American Merchant Marine Act of 1920) was one of the first enactments of
cabotage law jurisprudence. Section 27 of the act mandates that all the transportation between
the US ports has be carried by USA flag ships and the Ships shall be manned only by US citizens
and US permanent residents. The Jones Act is lauded as an act that promoted the national
interests of a country (economic and security) and paved way for future cabotage laws. 3
As the technology progressed and Air transportation also became a popular mode of
transportation there were major developments in the Air cabotage laws but the principle at
heart was same i.e. protecting domestic shipping infrastructure from foreign competitors.
Article 16 of the Convention Relating to the Regulation of Aerial Navigation popularly known as
Paris Convention of 19194, states that each of the signatory state shall have the right to place
restriction in its air space in favour of its national aircrafts for transportation of people and
goods for hire within its territory. Further the Article 7 of the Convention of International Civil
Aviation also known as Chicago convention 1944 5, states that each signatory state shall have the
right to refuse access to the aircraft of other signatory states in its territory. It also restricts the
signatory states to neither grant nor receive any special privilege to any signatory state or
airlines. The provisions of Paris convention and Chicago conventions are very restrictive as they
were formulated in the war years and all the Western countries were severely hit by war
economically and wanted to gain some economic momentum and protect domestic players from
foreign players.
1
W. M. Sheehan, “Air Cabotage and the Chicago Convention” 63 Harv. L. Rev. 1157 (1950)
2
History of ships, available at: https://www.britannica.com/technology/ship/Shipping-in-the-19th-century
(Last visited August 9, 2021)
3
Merits of American Merchant Marine Act of 1920, Available at: https://www.lexingtoninstitute.org (Last visited
August 9,2021)
4
Paris convention 1919 at: http://library.arcticportal.org/1580/1/1919_Paris_conevention.pdf (Last visited
August 10,2021)
5
Chicago convention 1944 Available at: https://www.icao.int/publications/pages/doc7300.aspx (Last visited
August 11,2021)
As the world progressed and the European Union was formed the principle of cabotage became
important for road transportation as well. But as one of the main objectives behind the
European Union was economic cooperation and ease of business for the member states, thus the
road transportation cabotage of European Union 6 comes under Liberal/relaxed cabotage
regime. The benefit of Liberal cabotage regime is that it gives equal chance to market players
and a choice to consumers, liberal cabotage regime is consumer friendly and helps keep a check
on the price of services in the transportation industries. In the contemporary times majority of
Asians countries have adopted liberal cabotage regimes.7
After Independence India was also hit severely economically due to the colonial exploitation of
the British. In all fronts India adopted a socialistic approach and The Merchant Shipping Act,
1958, governed the cabotage laws of India. India had adopted strict cabotage regime, as per the
provisions of the act the foreign vessels were allowed to operate between Indian ports only when
Indian vessels were not available. This lead to huge queues and long waiting hours on the ports
and this gave rise to other Asian ports becoming the hub of shipping and loss of business to
Indian companies. The impact of strict cabotage regime on economy is quite bad, strict cabotage
regime leads to monopoly and elimination of competition in the market as it bars foreign
players. Strict cabotage regime is also not consumer friendly as once the competition is
eliminated the major players set high prices for the services. After the monopoly and losing
business to other Asian ports, Indian government scrapped the cabotage regime for the ease of
business as Indian has seen the ills of protectionist approach. But the major challenge to India
adopting liberal cabotage regime is threat of terrorism and in this light the Indian government is
reconsidering to bring the cabotage restrictions8.
Conclusion
The cabotage in International law has developed over the years, starting from ships, to aircrafts
to roads. The type of cabotage regime a country chooses depends on the approach of the market,
economy and the state of market in the country. The cabotage restrictions and business also
depends on the International relations between the countries and is centered on the protection
of national security and economic interests of the country.

Bibliography
* W. M. Sheehan, “Air Cabotage and the Chicago Convention” 63 Harv. L. Rev. 1157 (1950)

6
EEC No 1072/2009 available at: https://www.legislation.gov.uk/eur/2009/1072/chapter/III (Last visited
August 12, 2021)
7
Ferdinand O. Agama and Henry C. Alisigwe, “Cabotage, State Security, State Economy, Foreign Vessels, Cabotage
Regimes” 9 NAUJILJ 1 (2008)

8
What is cabotage law & why India plans to restore the sea transport rules it scrapped in 2018 Available at:
https://theprint.in/theprint-essential/what-is-cabotage-law-why-india-plans-to-restore-the-sea-transport-
rules-it-scrapped-in-2018/674680/ (Last visited August 12, 2021)
* Paris convention 1919 at: http://library.arcticportal.org/1580/1/1919_Paris_conevention.pdf (Last visited
August 10,2021)
* Ferdinand O. Agama and Henry C. Alisigwe, “Cabotage, State Security, State Economy, Foreign Vessels, Cabotage
Regimes” 9 NAUJILJ 1 (2008)

* Chicago convention 1944 Available at: https://www.icao.int/publications/pages/doc7300.aspx (Last visited

August 11,2021)

* What is cabotage law & why India plans to restore the sea transport rules it scrapped in 2018 Available at:
https://theprint.in/theprint-essential/what-is-cabotage-law-why-india-plans-to-restore-the-sea-transport-
rules-it-scrapped-in-2018/674680/ (Last visited August 12, 2021)