What is the Cabotage Monopoly?

Cabotage Rights

What is the Cabotage Monopoly? Legal Basis, Importance and Application Areas in Türkiye

1. What is the Cabotage Monopoly?

Cabotage, as a maritime term, means that a country grants the right to transport cargo and passengers between its own ports exclusively to ships flying that country's flag . A cabotage monopoly means that this right belongs exclusively to domestic ships , and foreign ships are prohibited from providing the same service.

In Turkey, the cabotage monopoly is regulated by Law No. 815 on Navigation within Turkish Ports (Cabotage Law), which came into force on July 1, 1926

2. Legal Basis

2.1. Cabotage Law (Law No. 815)

foreigners cargo, passenger, and mail transportation activities .
These activities are only to ships flying the Turkish flag and to Turkish citizens .

2.2. Constitutional Basis

Article 168 of the Constitution , seas and ports are under the sovereignty and control of the state.
The cabotage monopoly is, in accordance with this article, a part of national sovereignty

3. Scope of the Cabotage Monopoly

The main activities covered by the cabotage monopoly are as follows:

Freight Transportation
- Transportation of all types of commercial cargo between Turkish ports.
Passenger Transportation
- Services such as sea buses, ferries, and passenger ships.
Postal and Cargo Services
Pilotage and Towage
- Port services include the docking/departure of ships.
Coastal Fishing
- Commercial fishing activities carried out in territorial waters.
Diving and Rescue Services

4. The Purpose of the Cabotage Monopoly

National Sovereignty: The achievement of complete sovereignty over the seas.
Economic Protection: Ensuring that maritime trade revenues remain within domestic businesses.
Security: To prevent the strategic risks of foreign vessels being present in domestic maritime traffic.
Employment: To provide job opportunities for Turkish seafarers.
Maritime Sector Development: Strengthening the domestic ship fleet.

5. Exceptions and Limited Circumstances

There are some exceptions to the cabotage monopoly:

Vessels flying foreign flagsmay provide temporary cabotage services within the framework of emergency humanitarian aid, international organizations, or special intergovernmental agreements.
Joint Voyages: Bilateral/multilateral maritime agreements to which Turkey is a party.
Special Permits: Special permits issued by the Ministry of Transport and Infrastructure.

6. The Relationship Between the Cabotage Monopoly and the Right to Fly the Turkish Flag

To benefit from the cabotage monopoly, the vessel have the right to fly the Turkish flag .
This right:

The ship owner must be a Turkish citizen
For legal entities, the company must be established in accordance with Turkish law
being registered in the ship registry
.

7. Economic and Legal Significance of the Cabotage Monopoly

7.1. Economic Importance

Revenues from maritime trade remain within the country.
Local shipping companies and port operators are supported.
The domestic shipbuilding industry is encouraged.

7.2. Legal Significance

It strengthens the state's authority to regulate and supervise maritime areas .
This is the application of the "flag state jurisdiction" principle, recognized in international law, in inland waters.

8. Violation of the Cabotage Monopoly and Sanctions

The cabotage monopoly is guaranteed by Law No. 815 on Navigation within Turkish Ports (Cabotage Law), which stipulates that maritime transport, port services, and coastal trade within Turkey's territorial waters and ports can only be carried out by vessels flying the Turkish flag . This right is a reflection of national sovereignty at sea . Therefore, the violation of this monopoly is considered not only an economic loss but also a violation of sovereign rights .

8.1. Activities Deemed as Violations

Situations that violate the cabotage monopoly are clearly defined in the legislation. The following activities carried out by foreign-flagged vessels or unauthorized persons/companies fall within the scope of the violation:

Freight or Passenger Transportation Between Turkish Ports
- For example, a foreign-flagged ship carrying commercial cargo from Istanbul to Izmir.
Coastal Fishing and Aquaculture
- Commercial fishing activities carried out by foreign vessels in territorial waters.
Port Services
- Providing services such as pilotage, tugboat services, and docking/departure assistance without authorization.
Marine Tourism and Passenger Cruises
- Short-distance tourist trips conducted by foreign vessels in the coastal shipping zone.
Underwater and Rescue Operations
- Unauthorized diving, salvage, or underwater construction services by foreign companies.

8.2. Applicable Sanctions

The sanctions that can be applied in case of violation of the cabotage monopoly vary depending on the nature and frequency of the violation:

1. Administrative Fines

This is determined according to the type of activity, the tonnage of the vessel, and the scope of the violation.
The Ministry of Transport and Infrastructure, Port Authorities, and the Coast Guard Command are authorized to act on this matter.
For initial violations, a warning and a fine may be imposed.

2. Port Entry-Exit Ban

The vessel committing the violation may be banned from entering or leaving Turkish ports.
The duration of the ban is determined by the severity of the violation.

3. Immediate Cessation of Operations

The Port Authority or Coast Guard will halt the operation as soon as they detect the violation.
The vessel can only continue its operations after obtaining the necessary permits.

4. Detention of the Ship

In cases of repeated or serious violations, the vessel may be temporarily detained.
During this process, legal action is taken and legal proceedings can be initiated regarding the vessel.

8.3. Legal Basis

The legal basis for these sanctions rests on the following legislative provisions:

Cabotage Law No. 815 – Basic regulation.
Turkish Commercial Code (TTK) – Ship nationality and principles of commercial activity.
Ports Regulations – Port administration and inspection powers.
Coast Guard Law – Security and surveillance duties in maritime areas.

8.4. Audit and Implementation Process

In order to protect the cabotage monopoly, inspections are generally carried out by the following institutions:

Port Authorities – Administrative permits and operational control.
Coast Guard Command – Physical inspection in territorial waters.
Customs and Trade Inspection Units – Cargo and document control.
Ministry of Transport and Infrastructure – Implementation of general cabotage policies.

Inspections typically involve reviewing ship documents, cargo manifests, passenger lists, and operating permits.

8.5. Importance in Practice

Violation of the cabotage monopoly does not only create economic damage; it also leads to the following consequences:

The competitiveness of the domestic maritime sector weakens.
National security is at risk.
Türkiye's sovereign rights in the seas would be violated.

Therefore, sanctions not only serve as a deterrent but also aim to protect national sovereignty

9. Cabotage Day and its Historical Significance

Every year, July 1st is celebrated as "Cabotage Day." This date marks the day Turkey implemented the principle of complete independence in maritime trade and ports. Considering that before 1926, during the Ottoman period, foreign states conducted inland sea transportation through "capitulation" rights, the importance of the Cabotage Law in terms of economic independence is better understood.

10. Conclusion

The cabotage monopoly is a reflection of national sovereignty at sea, protecting Turkey's maritime sector both economically and strategically.
Ships flying the Turkish flag full privilege .
This is not merely a commercial arrangement, but also a declaration of the Republic of Turkey's independence at sea.

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