What is cabotage?
Cabotage is the transportation of goods between locations within one country by a transportation operator or carrier from a different country.
Is cabotage illegal?
Cabotage is illegal in the United States. While carriers can legally enter the United States to complete authorized cross-border hauls, it is considered a cabotage violation when they proceed to transport loads domestically after their international delivery.
Why is cabotage dangerous?
Cabotage can be dangerous because carriers operating illegally may not follow the safety regulations and requirements established for authorized operations in the U.S. When cabotage goes unregulated, it can make it harder to ensure that carriers and drivers are following the proper safety requirements. This can create additional safety risks on the road.
How does cabotage impact motor carriers?
Cabotage can cause serious economic damage by creating a labor-cost gap. Foreign carriers may have lower operating costs than U.S. carriers, allowing them to offer lower rates when hauling domestic loads. This creates additional competition for U.S. carriers in the domestic freight market. It can also put pressure on freight rates and make it more difficult for U.S. motor carriers to compete for available loads.
How does cabotage impact drivers?
Cabotage can have a significant impact on U.S. drivers and carriers as well. When foreign drivers take on domestic loads, they can reduce work opportunities for domestic drivers and carriers. Additionally, while foreign carriers may offer lower rates, this can put downward pressure on freight rates and, in turn, impact the wages of domestic drivers.
What is being done to limit cabotage?
Cabotage is currently illegal in the United States, except for specific authorized operations such as movement directly connected to an international shipment. Federal agencies are increasing enforcement efforts to identify and address violations. The crackdown on cabotage stems from a coordinated effort between the Federal Motor Carrier Safety Administration (FMCSA) and U.S. Customs and Border Protection (CBP) to identify and address cabotage violations. This includes sharing information between the agencies about potential cabotage violations. Information from the FMCSA about past warnings and potential cabotage violations can be used by CBP to identify drivers who have previously been flagged, which can result in the revocation of their visas. In addition, there is legislation currently being proposed that would take further actions.
What is the SAFER Transport Act?
In February 2026, a new piece of legislation called the Securing American Freight, Enforcement, and Reliability in Transport Act (SAFER Transport Act) was introduced to strengthen the motor carrier industry by preventing fraud, limiting theft, and strengthening regulatory supervision to stop unlawful haulage and practices. This piece of legislation proposes that the FMCSA and the CBP establish a formal agreement to work together to identify and prevent illegal actions, including cabotage. The collaboration between FMCSA and CBP through this legislation would establish a more formal process for the agencies to share information about potential violations, helping identify and address cabotage violations more effectively. It remains in the early stages of the legislative process and is awaiting committee action.