Pendulum Services and Cabotage

Pendulum services must be specifically structured in order not to infringe national cabotage laws (such as the Jones Act) that prevents a foreign maritime company to carry freight between domestic ports. For instance, for a pendulum service D-A-B-C-D, a maritime company registered in country 2 has the right to unload or load freight at ports A, B or C in country 1 as long as this freight is coming from or bound to a foreign port (port D in this case). Moving freight from port A to port B or C would not be permitted since it would be considered cabotage. That same maritime company would however be able to carry freight between ports D, E and F (cabotage) since it is registered in country 2.