Cabotage refers to the transportation of goods between two points within the same country by a foreign-owned or foreign-flagged carrier. This can apply to various modes of transport, including but not limited to:
- Coastal routes (shipments between domestic ports)
- Port-to-port transport
- Air freight
- Rail transport
- Ground transport
Cabotage regulations vary by country and often include restrictions to protect domestic transportation industries. In the United States, maritime cabotage is governed almost entirely by the Jones Act (Section 27 of the Merchant Marine Act of 1920).
The Jones Act strictly requires that any cargo moved between two points in the U.S. (e.g., Seattle to Anchorage, or San Juan to Miami) must be carried on vessels that are:
- U.S.-built.
- U.S.-owned.
- U.S.-crewed.
- U.S.-flagged.
This heavily restricts foreign carriers from participating in U.S. domestic waterborne trade, which protects the domestic maritime industry and is considered a matter of national security.