Cabotage rules relaxed

Q.  Cabotage means
- Published on 21 Mar 16

a. Transport of goods
b. Taxes for goods at customs
c. Maintenance of airports
d. None of the above

ANSWER: Transport of goods
 
  • Cabotage refers to transportation of goods or passengers between two places, usually along the coast.
  • The Union government announced that it has eased cabotage rules in a bid to encourage transhipment of goods at Indian ports.
  • Transhipment is the movement of goods when a container arrives at an intermediate point and re-loaded into another ship to be taken to some destination domestically or abroad.
  • The rule change will also allow foreign vessels to bring goods at any of the Indian ports meant to be shipped to other destinations.
  • At present, foreign vessels are restricted from transporting containers between domestic gateway ports.
  • The spare capacity of the foreign flag ships which could not be utilized earlier due to cabotage restrictions will now be gainfully utilized enabling them to offer competitive container slot rates to exporters and importers leading to competition led efficiency in container transportation and lower logistic costs for the shippers.

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