A call to curb cabotage in Australia

News

In the Australian coastal shipping reform efforts, the discussion has come down to whether or not cabotage (the practice of using foreign companies for domestic shipping) should be promoted or limited.

In The Maritime Executive, Dermot Loughane says that yes, national-flag shipping tends to cost more, but a healthy industry gets crewmembers buying houses and goods with dollars that would otherwise be going overseas. Mr. Loughane points to Canada, where “It is a rare thing now … to find an experienced Master or Chief Engineer administering the shipping system.”

He agrees with Desautels Professor Henry Mintzberg that, for becoming an effective manager, a couple of years’ worth of classwork is no substitute for practical experience.

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