Abstract
On 18 June 2012, the Federal Labour Government passed the "Stronger Shipping for a Stronger Economy" legislative package with the aim of revitalising Australia's ailing shipping industry. The legislative package overhauled the regulation of coastal shipping in Australia, changing vessel registration arrangements, introducing a licensing regime to regulate vessels engaged in domestic shipping trade and strengthening cabotage provisions. In April 2014, the Australian Government released an Options Paper seeking stakeholder input regarding the impact of the current regulatory regime on the shipping industry. The legal, economic and practical implications of the 2012 regulatory changes are reviewed, and a high level review of the industry's response to the Options Paper informs an analysis of the key issues affecting the coastal shipping industry, and identifies matters to be considered and resolved in any future legislative reform. The current regulatory regime has significantly increased administrative burdens for shipowners, and increased costs for end users and shippers, without showing any signs of the 'revitalisation' it was intended to bring about. Policy and economic decisions need to address whether the Australian Government should persist with attempts to reinvigorate the ailing Australian coastal trading fleet through cabotage, or whether the reform ought to focus on increasing competition and encouraging foreign vessels to operate in Australia in support of Australian manufacturing, mining and exports.