ABSTRACT

The countries that adopt a flexible approach are normally those that traditionally have had a protectionist maritime cabotage regime. The general understanding is that for a sovereign state the choice of maritime cabotage approach is limited to either a protectionist or a liberal approach. However, the distinct feature with this approach is the built-in legal mechanism that allows the sovereign state to alternate to a liberal policy when required without the need to go through the typically slow parliamentary process. Since its independence from Britain, India's maritime policy has sought to reserve all its maritime cabotage services for national flag vessels. The policy also aims to reduce Indian shippers' dependence on nearby foreign hub ports and in turn attract cargo destined for Indian ports that are transhipped in Colombo and other foreign ports. If so, foreign vessels will be allowed to carry export containers from an Indian port to the Indian port of aggregation.