Philippine Standard time

Reducing Transport Costs from Mindanao to Local and International Markets: Review of Cabotage Law


On July 22, 2013, President Benigno Aquino III called for the review and amendment of the Cabotage Law, following persistent demands of several sectors, including farmers and traders, to open the industry to more players and hoping this will reduce the shipping cost.

President Aquino issued the call during his 2013 State of the Nation Address to emphasize the significant role that domestic shipping should have played in internal trading and encourage a more robust production of goods.

For many years now, the call has been louder on the repeal of the Cabotage Law, and it comes from many Mindanao stakeholders, including various members of the House of Representatives, who are willing to sponsor a bill to revise the Cabotage Law. The proposed amendment to this law is to allow foreign vessels to directly transport domestic cargo between two or more ports within the country.


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