In 2017, the rules changed for foreign vessels providing feeder services in Canada under the Coasting Trade Act (CTA). This happened when the Canada-European Union (EU) Comprehensive Economic and Trade Agreement (CETA) entered into force. On April 1, 2021, Canada’s transitional agreement with the United Kingdom (UK), known as the Canada-UK Trade Continuity Agreement (Canada-UK TCA), came into force. It replicates the same trade preferences the UK and Canada had under the CETA.
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New sections in the Coasting Trade Act
Feeder services between the Port of Halifax, Nova Scotia and the Port of Montreal, Québec
Feeder services – continual or single trip
Subsection 3 (2.3) of the CTA excludes a qualifying vessel and owner from the requirement to obtain a coasting trade licence when undertaking feeder services, as described below:
(a) the carriage of goods by a ship that is on the first (domestic) registry of the EU or the UK, from the Port of Halifax — where the goods are loaded — to the Port of Montreal, or vice versa, if that carriage is one leg of the importation of the goods into Canada, or
(b) the carriage of goods by the ship from the Port of Montreal — where the goods are loaded — to the Port of Halifax, or vice versa, if that carriage is one leg of the exportation of the goods from Canada
Feeder services – single trip
Subsection 3 (2.4) of the CTA, and subject to subsection (2.5), excludes a qualifying vessel and owner from the requirement to obtain a coasting trade licence when undertaking feeder services by a ship that is on the second (international) register of an EU Member State, the second (international) register of the UK, or the Gibraltar register, and carrying goods in a container, from the Port of Montreal to the Port of Halifax, or vice versa, if:
(a) that carriage is one leg of the importation of the goods into or exportation from Canada, and
(b) the container is at least 6.1 metres in length and has an internal volume of at least 14 cubic metres, is designed for carrying goods more than once and by one or more modes of transportation, and does not have wheels or is not otherwise built for being driven or drawn
Subsequent services in Canadian waters
Subsection 3 (2.5) specifies that once a vessel undertakes an activity described in subsection 2 (2.4), the vessel must obtain a coasting trade licence to undertake any subsequent commercial marine activities in Canada's territorial or inland waters.
Amendments explained
Under subsections 3 (2.3) and 3 (2.4), continual and single trip feeder services between the Port of Halifax and the Port of Montreal will be permitted without the requirement to obtain a coasting trade licence for qualifying entities and vessel registries.
Feeder services are defined in CETA under International Marine Transportation Services, Chapter 14, as:
- The pre- and onward transportation by sea of international cargo, including containerized, break bulk and dry or liquid bulk cargo, between ports located in the territory of a party
- For greater certainty, in respect of Canada, feeder services may include transportation between sea and inland waters, where inland waters mean those defined in the Customs Act, R.S.C. 1985, c.1
Under CETA, for vessels registered on an EU Member State first registry, the provisions allow for (subsection 3(2.3)):
- A continuous or single voyage service between the Port of Halifax and the Port of Montreal. The service must be part of an international transportation movement related to the importation of inbound goods into Canada or one transportation movement related to the exportation of outbound goods from Canada
- For example, a first registry EU vessel could provide a weekly scheduled service between the Port of Halifax and the Port of Montreal. There is no limit on the type of cargo transported by first registry EU vessels
For vessels registered on an EU Member State second registry, the provisions allow for (subsection 3(2.4)):
- A single service voyage between the Port of Halifax and the Port of Montreal. The single service voyage must be part of an international transportation movement related to the importation of inbound goods into Canada or one transportation movement related to the exportation of outbound goods from Canada
- For example, a second registry EU vessel conducting an international trip could pick up loaded containers in Montreal and drop them off in Halifax on its way overseas, or pick up loaded containers in Halifax and drop them off in Montreal as part of its international journey. After a single trip is complete, a second registry vessel must leave Canada's exclusive economic zone or inland waters, or obtain a licence to undertake subsequent coasting trade activities in Canadian waters. Second registry EU vessels are limited to the transportation of containerized cargo only.
Under the Canada-UK TCA, feeder services are defined by reference to the CETA and are defined as:
- The pre- and onward transportation by sea of international cargo, including containerized, break bulk and dry or liquid bulk cargo, between ports located in the territory of a party
- For greater certainty, in respect of Canada, feeder services may include transportation between sea and inland waters, where inland waters mean those defined in the Customs Act, R.S.C. 1985, c.1
For vessels registered on the UK first register, the provisions allow for (subsection 3(2.3)):
- A continuous or single voyage service between the Port of Halifax and the Port of Montreal. The service must be part of an international transportation movement related to the importation of inbound goods into Canada or one transportation movement related to the exportation of outbound goods from Canada
- For example, a first register UK vessel could provide a weekly scheduled service between the Port of Halifax and the Port of Montreal. There is no limit on the type of cargo transported by first registry UK vessels
For vessels registered on the UK second register or the Gibraltar register, the provisions allow for (subsection 3(2.4)):
- A single service voyage between the Port of Halifax and the Port of Montreal. The single service voyage must be part of an international transportation movement related to the importation of inbound goods into Canada or one transportation movement related to the exportation of outbound goods from Canada
- For example, a vessel on the UK second register or the Gibraltar register conducting an international trip could pick up loaded containers in Montreal and drop them off in Halifax on its way overseas, or pick up loaded containers in Halifax and drop them off in Montreal as part of its international journey. After a single trip is complete, the vessel must leave Canada's exclusive economic zone or inland waters, or obtain a licence to undertake subsequent coasting trade activities in Canadian waters. These vessels are limited to the transportation of containerized cargo only
New provisions related to feeder services do not affect existing regulatory requirements on foreign vessels operating in Canadian waters, such as applicable non-discriminatory safety and pollution prevention requirements.
Read our list of coasting trade terminology and definitions.
Advance notification
Canadian, British, EU and third-party entities are required to give notice before providing feeder services in Canada without a licence.
How to give advance notification of coasting trade for foreign vessels
Contact us
Domestic Marine Policy Group
Transport Canada
Email: tc.coastingtrade-cabotage.tc@tc.gc.ca