Cabotage refers to the transportation of goods or passengers between two points within the same country, typically carried out by a foreign carrier or vehicle. While the term originally emerged in the maritime domain, it has broadened to encompass road and air transportation. In road freight logistics, cabotage is associated with a foreign trucking company or driver delivering domestic transportation services within a country other than their own. The regulations surrounding cabotage aim to strike a balance between protecting domestic carriers and fostering fair competition within the transportation industry. These regulations are country-specific or set by regions like the EU, and their details can significantly vary.
— sennder Team
Example or usage in road freight logistics:
A trucking company from Country A transports goods to Country B. Upon delivery in Country B, the company is offered a domestic transportation job within Country B. However, due to cabotage regulations, the foreign trucking company is unable to undertake the domestic job and must return to Country A without additional cargo, unless it complies with the cabotage regulations of Country B, which might allow a limited number of domestic transports.