Cabotage Law News

The U.S. maritime industry takes great pride in our motto: “In Peace and War.” It sums what we’re all about. From colonial times, through the Revolution, the Civil War, two World Wars, several regional conflicts, and many natural and humanitarian disasters, we got the cargo delivered because our economic security and our national security depend on it.Today, we confront a new kind of enemy: an invisible, debilitating, and too often deadly disease. Yet, just as the courageous merchant…

The House Transportation and Infrastructure Subcommittee on Coast Guard and Maritime Transportation held a hearing Wednesday on “The State of the U.S. Flag Maritime Industry” during which congressional and maritime leaders stressed the importance of the Jones Act. RADM Mark H. Mr. Mr. The Committee and those testifying expressed bipartisan support for the Jones Act and enforcement of the law. “In order for us to maintain the way of life as we know it as a nation that is secure and is able to project power, be it Navy power or commercial power, the Jones Act is intrinsic to that. Congressman Weber likewise noted the need to maintain a strong domestic maritime industry and the importance of the Jones Act.

Sima Marine, a subsidiary of Dubai-based Simatech Shipping, one of the largest container feeder servicing companies in the world operating 54 ships, has launched coastal container shipping services in India. The coastal container shipping service will operate from Kochi connecting Mangalore in Karnataka, Goa and Mundra in Gujarat. Simatech Shipping is one of the largest container feeder servicing companies in the world operating 54 ships with partners, including 15 of its own. For the exclusive coastal service operations in the country, the Indian subsidiary has also acquired two 1,500-TEU container vessels, Sima Godavari and Sima Narmada, which have already started their operations now. These ships are now sailing with Indian flag to work within the cabotage law.

Vessel operators can now be allowed to bring foreign flagged vessels on the coastal routes as the Indian Government has decided to relax cabotage for special vessels. Special vessels like Roll-On Roll-Off (Ro-Ro), Hybrid Roll-On Roll-Off (Hybrid Ro-Ro), Roll-On Roll-Off cum Passenger (Ro-Pax), Pure Car Carriers, Pure Car and Truck Carriers, LNG vessels and Over-Dimensional cargo or Project Cargo Carriers have been relaxed cabotage for a period of five years, a Ministry statement said. The development comes in the wake of long standing demand of the shipping industry for relaxation of the cabotage law. Cabotage is transport of goods between two points in the same country.

Philippine President Benigno S. C. Aquino III has signed off on legislation to open up the shipping sector and encourage more competition in the cloistered industry, report AFP. He also signed into law a measure that aims to level the country’s playing field. The twin steps forward is government’s bid to further improve the country’s business climate. “Today, we signed into law two measures that will help ensure our economy’s continued progress. With these two laws... A new statute will provide greater access for international firms to the Philippines' shipping routes, replacing a 79-year-old law put in place to protect local firms.

India awaits with heightened expectations for the Union Budget to be announced on 10th July, 2014  by the New government headed by Narendra Modi who is considered to have a very progressive outlook and set on bringing in rapid development in the country. K Ravichandran, Sr. Private sector players operating in Major Ports under PPP regime, are functioning under multiple tariff regimes, of which the older set of players operating under 2005 tariff guidelines of TAMP have seen material fall in profits and return on the capital employed, on account of sharp tariff cut. Moreover, many of the tariff orders have been litigated upon resulting in a stalemate in the industry.

In the three years since its launch GOL Salvage Services Ltd., having forayed into a domain traditionally commanded by global players has today become a force to reckon with. GOL Salvage’s Executive Director,Capt. Sandeep Kalia, gives a rare insight into the Indian salvaging scenario. ‘Fools rush in where angels fear to tread’ had been the deciding factor for most salvors in India, holding them back from entering the salvage business in earnest. But when GOL Salvage Services Ltd. entered the field in 2011, it became a game changer as it was the first fully indigenous salvage company making an entry into the field that was traditionally dominated by overseas salvaging giants.

ASL Marine Holdings Ltd., an integrated marine company offering comprehensive services in shipbuilding, shiprepair and conversion, shipchartering and dredging engineering, reported revenue of S$465.4 million and net profit attributable to shareholders of S$45.3 million for the full year ended 30 June 2013 (FY2013). "Sustained oil prices and an increasing focus on deepwater oil fields have supported the growth in global oil and gas exploration and production expenditures. This development is expected to be positive for the Group’s shipbuilding and shipchartering segment, as it supports newbuild demand for offshore support vessels and healthy charter rates.

Alexandria, VA:The Board of Directors of the Passenger Vessel Association (PVA) yesterday unanimously voted to oppose enactment of a bill in the U.S. House of Representatives that would allow foreign-flagged passenger vessels to directly compete with their American-flagged counterparts. The PVA Board action reaffirmed support of the Passenger Vessel Services Act (PVSA) which reserves the commercial carriage of passengers between U.S. ports for vessels that are U.S.-flagged, U.S.-owned, U.S.-built, and U.S.-crewed. The legislation (H.R. 2460) was introduced by Congressman Blake Farenthold of Texas on July 7, 2011. The proposed Farenthold…

Offshore Marine Service Association (OMSA) President/CEO Ken Wells testified before the Subcommittee on Coast Guard and Maritime Transportation of the House Transportation and Infrastructure Committee on June 17, with regard to foreign vessels operating in the economic zone exclusive to American vessels. Testifying on the activities of  foreign vessels that carry cargo and do construction work at offshore energy projects in the Gulf of Mexico, “our government enforcement agencies lack the tools to adequately track them or even hold them to compliance,” Wells said. OMSA members operate U.S. flag vessels and have made a commitment to comply with the laws of the United States on safety, environmental protection and security, and to pay American-level wages and American taxes.