To familiarize everyone with key socioeconomic terms and concepts, we have this new social media series.

For this week, our buzzword is “cabotage”.

It refers to the transport of goods or passengers within a country by an individual or firm from outside the country.

Some countries have cabotage laws to protect national security and to regulate foreign firms from outperforming domestic service providers that may not be strong enough yet to compete with them.

Sources: Teleroute; Daily Logistics

A PIDS study showed market competition has improved in the Philippine shipping industry for both passenger and cargo. However, there is no significant reduction in the number of maritime accidents despite government efforts to reduce them. The top three causes of accidents are sinking/capsizing, allision/collision, and aground/grounding of ships.

Know more about the domestic shipping industry by reading “Government Interventions in the Domestic Shipping Industry: A Discussion on Market Competition and Maritime Safety” available at

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