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Coaster trade

C1. Commercial shipping, chartering, economics and finance

Definition

Domestic short-sea liner or tramp shipping.

Coaster trade is short-sea carriage along a single coastline or within a region, served by small general-cargo, bulk, or tanker vessels called coasters, typically under 5,000 dwt. It overlaps with cabotage where the trade is reserved to domestic-flag ships, as under the US Jones Act or EU cabotage rules. Coaster operations run on short voyages with frequent port calls, so port time and disbursements weigh heavily on the economics relative to deep-sea trades. The sector feeds and distributes cargo around larger hub ports and competes directly with road and rail haulage.

Source: EU Regulation 3577/92 (maritime cabotage); US Jones Act (Merchant Marine Act 1920)