Inter-Range Services and Cabotage

Inter-Range Services and Cabotage

Inter-range services must be specifically structured in order not to infringe national cabotage laws (such as the Jones Act in the United States) preventing a foreign maritime company from carrying freight between domestic ports. For instance, for an inter-range service D-A-B-C-D, a maritime shipping company registered in country 2 has the right to unload or load freight at ports A, B, or C in country 1 as long as this freight is coming from or bound to a foreign port (port D in this case). Moving freight from port A to port B or C would not be permitted since it would be considered cabotage. However, that same maritime shipping company would be able to carry freight between ports D, E, and F (cabotage) since it is registered in country 2.