Regulation of the BR Law of the Sea generates uncertainty and worries the cabotage sector

The executive director of the Brazilian Association of Cabotage Shipowners (ABAC), Luís Fernando Resano, stated in an exclusive interview with Jornal Portuário that, despite the advances brought by the BR do Mar Law and its regulation, there are still uncertainties in the cabotage sector. The decrees and ordinances ended up generating attempts to change some concepts that guided the legislation.

The BR do Mar Law establishes the Cabotage Transport Incentive Program in Brazil with the aim of expanding the supply and improving the quality of cabotage transport. The program aims to encourage competition and competitiveness in the provision of this service.

Resano says that, when the law was enacted, there was a rapid expansion of the Brazilian fleet to serve cabotage, with bareboat charters, a modality in which the vessel flies the Brazilian flag and is crewed by Brazilians, generating taxes and jobs in Brazil.

However, according to him, a decree called “sustainable ship” tries to create restrictions on this model, the ordinance seeks to innovate with links to the shipping industry, disregarding that cabotage is a much more sustainable mode than the road mode.

The executive director points out that regulation should focus on time chartering (another modality created by the BR do Mar program), because as it is voluntary, the company decides whether to join or not.

Still according to Resano, cabotage is competitive, as it offers lower costs than road transport, a lower rate of damage to cargo and a practically zero rate of theft. However, users still need to know the modal better and eliminate pre-conceived and erroneous ideas.

“We have much more cases of companies that came to cabotage and do not want to leave than of companies that stop using cabotage. The numbers show this: 2025 showed a 23% growth in the use of cabotage.” states.