Coastal Trading (Australian Cabotage)
Coastal trading — Australia's form of cabotage — is the carriage of passengers or cargo between Australian ports. It is regulated to give Australian-flagged and licensed ships preference for domestic voyages. Foreign vessels wishing to carry coastal cargo must obtain a licence (historically a General, Temporary or Emergency Licence) under the coastal trading regime.
The framework balances protecting an Australian coastal shipping industry against the needs of shippers who move goods domestically by sea. It is administered by the Commonwealth department responsible for infrastructure and transport, with vessel safety overseen by the Australian Maritime Safety Authority (AMSA).
Cabotage decides who is allowed to carry cargo between two Australian ports, and on what terms. For shippers moving domestic freight by sea, and for operators positioning tonnage, the coastal-trading licensing regime shapes cost, capacity and route choice — the maritime equivalent of the rules that protect domestic road and rail.
What is cabotage?
The reservation of domestic, port-to-port transport for a country's own carriers. In Australia this is the coastal-trading regime.
Can a foreign ship carry cargo between Australian ports?
Only under a licence granted through the coastal-trading framework; unlicensed foreign coastal carriage is restricted.