Cabotage
The federal law of cabotage dictates that cargo can only be transported domestically by a company that is based in the United States. This law exists to protect domestic shipping companies and incentivize them to invest in infrastructure within the United States. Cabotage also protects American jobs by ensuring that cargo is transported domestically by American workers.
Generally, cabotage is a term used in logistics and maritime transportation. It refers to the transport of goods or passengers between two points in the same country. Cabotage is often used in shipping, where it allows foreign-flagged ships to carry cargo between two domestic ports. Cabotage also allows for the transport of goods or passengers between two points in a single country by air, land, or sea.
There are a number of benefits to cabotage in logistics. First, it helps to promote trade within a country. This is because it makes it easier for businesses to transport goods and passengers between different parts of the country. Second, cabotage can help to reduce transportation costs. This is because it allows businesses to take advantage of economies of scale, which can lower the cost of transportation. Third, cabotage can help to create jobs within a country. This is because it encourages businesses to transport goods and passengers domestically, rather than importing them from abroad. Finally, cabotage can help to promote national security. This is because it helps to ensure that cargo is transported domestically by American workers.
Related Links
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