The Merchant Navy Law (Decree-Law 3059/79) includes a cabotage reservation system. The law implies that only Chilean vessels are permitted to provide maritime or fluvial transport services (of cargo or passengers) within Chile or its exclusive economic zone.
However, Law 21,138 came into force on 26 February 2019 allowing passenger cabotage on foreign cruise vessels provided that certain conditions are met.(1)
Cabotage exception for merchant vessels
Foreign vessels can participate in cargo cabotage when:
- the volume of cargo exceeds 900 tonnes and the vessel owner has made a public bid in advance; or
- the volume of cargo is equal to or less than 900 tonnes and no Chilean-flagged vessels are available (provided that authorisation has been obtained from the Maritime Authority).
New cabotage exception for cruise vessels
Following the introduction of Law 21,138, passenger cabotage on foreign cruise vessels is now allowed provided that the vessel:
- has a transport capacity equal to or greater than 400 passengers;
- has overnight stay facilities aboard; and
- transports passengers for tourism purposes.(2)
Endnotes
(1) Law 21,138 was published in the Official Gazette on 26 February 2019 and modified the Merchant Navy Law to allow passenger cabotage on foreign cruise vessels.
(2) The requirement that passenger cabotage by foreign vessels must be performed between Chilean ports does not apply for stops at the Juan Fernandez Archipelago or Easter Island.
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