Rss Feed Facebook button
Get Adobe Flash player

Possible changes to cabotage reservation.

The Chilean Government has recently announced possible changes to the cabotage reservation currently in force under Decree Law 3059 of 1979. Cabotage (defined according to Article 3 of DL 3059 as “the carriage of cargo and/or passengers by sea between points within the national territory, and between the latter and naval artifacts installed in territorial waters or within the exclusive economic zone”) is reserved to Chilean vessels (according to article 1 of DL 3059 “Chilean Shipowner” or “Chilean Shipping Company” are understood to mean “the individual or body corporate complying with the requisites stated in Article 11 of the Law Navigation; who exercises sea carriage, and is the owner or lessee of one or more merchant vessels under Chilean Registry and flag”. In addition, Decree Law 3059 also considers a “Chilean Shipowner” or “Chilean Shipping Company” to be “the individuals or body corporate which, complying with the mentioned requisites, repute foreign vessels as of Chilean nationality according to subparagraph 4 and 5 of Article 6”.

In addition, it is also well known that foreign vessels may perform cabotage in certain circumstances (in the event of cargo with a volume equals or less than 900 tons, if there are no available vessels flying the Chilean flag, and subject to authorization of the Chilean Maritime Authority, and in the event of cargo with a volume over 900 tons, provided that the user has opened a public bid that must be called within the necessary anticipation, and in the case of partial shipments, each of these may not be lower than 900 tons).

Recently, the Chilean Government has announced possible changes to Article 3 of Decree Law 3059. These changes would unilaterally open the cabotage to foreign vessels. Apparently, this change is aimed toward foreign merchant shipping vessels under regular service transporting containerized cargo and sailing between two or more Chilean ports with such port registered as the vessel’s regular calls.

Comments are closed.