Coastal Shipping Law

Coastal Trade Law is a fundamental legal framework that establishes Türkiye’s will to regulate maritime activities within its territorial waters and reserve these activities exclusively for its own citizens, based on the principle of national sovereignty. The term “kabotaj”, derived from the French word “cabotage”, is defined by the Turkish Language Association as “the operation of vessels between a country’s ports or harbors”; the right of coastal trade is described as “the right to own, operate, and conduct transport via vessels within Türkiye’s territorial waters, rivers, and lakes”.

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The emergence of the Coastal Trade Law must be understood as a consequence of the capitulations granted by the Ottoman Empire to foreign states, which resulted in the loss of national maritime trade to foreign entities. Alongside the Duyun-u Umumiye arrangements, the Ottoman State was compelled to cede control of many maritime services, especially coastal transport, to foreign powers. This situation led to the weakening of Turkish maritime activities both technically and economically.

Following the victory of the National Struggle, the Turkish delegation at the Lausanne Peace Conference viewed the right of coastal trade as an extension of national sovereignty and waged intense diplomatic efforts to secure its recognition. Foreign states defended the validity of treaties inherited from the Ottoman era, arguing that Türkiye should not exercise this right. However, Articles 9, 10, and 11 of the second section of the Treaty of Lausanne, signed on 24 July 1923, granted Türkiye’s right of coastal trade international legal validity.

The Coastal Trade Law, officially titled Law on Maritime Transport Along the Coasts of Türkiye (Coastal Trade) and on the Operation of Ports and Territorial Waters for Art and Trade, was adopted on 19 April 1926, published in the Official Gazette on 29 April 1926, and came into effect on 1 July 1926 (Law No. 815).

According to Article 1 of the law, the transportation of goods and passengers between ports along Türkiye’s coasts, as well as all port services, are reserved exclusively for vessels flying the Turkish flag. Foreign vessels are permitted only to transport cargo or passengers between Turkish ports and foreign ports. Article 2 grants the right of navigation in all territorial waters, including rivers, lakes, the Sea of Marmara, and the straits, exclusively to Turkish citizens. Article 3 reserves numerous professional activities—from fishing and diving to wreck removal and pilotage—for Turkish citizens only. Article 4 outlines certain temporary exceptions, while Article 5 prescribes fines and imprisonment for violations of the law.

The enforcement of the Coastal Trade Law signified the effective and legal consolidation of Türkiye’s sovereignty over its seas. The law implemented the national economic principles established at the 1923 İzmir Economic Congress within the maritime sector.

Through this law, the development of the Turkish merchant fleet and the exclusion of foreign competition on coastal routes were prioritized, thereby encouraging the Turkish private sector and enabling state-supported investments in ports and shipyards. In this context, public institutions such as the Directorate of Turkish Maritime Transport and the General Directorate of State Sea Routes and Ports were established, and strategic investments were made, including connecting ports to inland regions via railways.

The date of the law’s enforcement, 1 July, has been celebrated as Coastal Trade Day since 1935; since 2007, it has been renamed Maritime and Coastal Trade Day. The holiday is regarded as a symbol of Türkiye’s independence at sea and is commemorated annually with various maritime-related events.