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Cabotage is the transportation of cargo or containers between two points or places in airspace or coastal waters within the same country or a specific territory.
The term cabotage is common in maritime shipping, but it is also used to refer to rail, air, and road transport within a nation or territory. In maritime cabotage, foreign vessels are barred from shipping cargo between two points or ports in a country’s water to preserve and protect these operations for local or domestic transport operators. The main reason for cabotage is to promote the domestic shipping industry by limiting or prohibiting foreign involvement with a nation or a country’s territorial waters.
