A New Era in Maritime: The 100th Anniversary of the Cabotage Law and Regulations Awaiting Turkish-Flagged Ships in 2026

July 1, 2026, is not merely a symbolic anniversary in terms of Turkish maritime law. The 100th anniversary of the entry into force of Law No. 815 on Maritime Transport in Turkish Coasts (Cabotage) and the Execution of Arts and Commerce within Ports and Territorial Waters also coincides with a new era that requires the joint evaluation of registry, tax incentives, environmental compliance, digital reporting, and safety obligations for Turkish-flagged ships. This article discusses the scope of the right of cabotage, the financial framework to be applied in the Turkish International Ship Registry (TUGS) regime as of 2026, the incentives granted to ships that do not use fossil fuels, the EU ETS and FuelEU Maritime obligations, and the SOLAS/MARPOL container loss reporting rules that came into force on January 1, 2026.

The Reflection of Sovereignty in the Seas on Trade: Cabotage

The right of cabotage, in its simplest form, is a state’s allocation of maritime transport and certain maritime services between its own coasts, ports, inland waters, and territorial waters to its own citizens and to ships flying its own flag. For Türkiye, this right holds special importance in terms of the liquidation of the post-Lausanne capitulations regime and the institutionalization of economic sovereignty in the field of maritime trade.

Law No. 815 restricts the transport of passengers and cargo from one point of the Turkish coasts to another, and the execution of towing, pilotage, and port services on the coasts and within or between ports to ships flying the Turkish flag. The law also restricts the operation of commercial maritime vessels and the execution of certain maritime professions in rivers, lakes, the Marmara basin, the Straits, and the gulfs, ports, and bays within territorial waters to Turkish citizens. However, the cabotage regime does not prevent foreign-flagged ships from carrying out international transport between Türkiye and foreign country ports. The limitation is essentially in terms of domestic transport between Turkish ports and coasts and the port/maritime services listed in the law. This distinction is of practical importance, especially for shipowners, charterers, agents, and port service providers operating mixed lines.

Applicable Taxes and Fees in 2026 in terms of the TUGS Regime

The Turkish International Ship Registry is regulated by Law No. 4490 in order to increase the competitiveness of the Turkish maritime merchant fleet and to encourage operation under the Turkish flag. The earnings obtained from the operation and transfer of ships and yachts registered in TUGS are exempt from income and corporate taxes and funds. In addition, stamp tax, fee, bank and insurance transactions tax, and fund exemptions are stipulated in terms of purchase, sale, mortgage, registration, credit, bareboat charter, time charter, and freight contracts regarding ships and yachts to be registered in TUGS.

The basic fee regime to be applied as of 2026 is based on Article 12 of Law No. 4490. Accordingly, the registration fee for ships registered in TUGS is 1 US Dollar per net ton in addition to the Turkish Lira equivalent of 10,000 US Dollars; and the annual tonnage fee is 1 US Dollar per net ton for each calendar year. The annual tonnage fee is collected in two equal installments in January and July. The fixed registration fee for yachts registered in TUGS is the Turkish Lira equivalent of 5,000 US Dollars. If a ship or yacht registered in TUGS is registered directly or dual-classed with Türk Loydu, a 50 percent discount is applied in terms of the registration fee and the annual tonnage fee. When calculating the Turkish Lira equivalent of the fees, the foreign exchange selling rate of the Central Bank of the Republic of Türkiye on the date of registration or payment is taken as the basis.

Green Shipping and the Disadvantage of Fossil Fuels

One of the most important national changes regarding the green transformation in shipping is the incentive provision added to Law No. 4490 by Law No. 7519. Accordingly, no registration fee is collected from ships and yachts registered or to be registered in the Turkish International Ship Registry whose main propulsion system does not use fossil fuels, excluding liquefied natural gas; and only 50 percent of the annual tonnage fee is collected.

The point to be noted here is that the incentive is linked to the main propulsion system criterion defined in the law, not to a general “zero emission” declaration. Therefore, in terms of ships operating with alternative energy sources such as electricity, hydrogen, ammonia, or similar, or undergoing a transformation in this direction, class certificates, technical files, registry records, and supporting documents to be submitted to the administration must be evaluated together. Furthermore, the greenhouse gas emission fee mechanism added to the Ports Law No. 618 creates a separate monitoring area for commercial ships arriving at or departing from Turkish ports. The law stipulates that the fees to be collected are determined based on verified greenhouse gas emissions and the current EU ETS carbon price. Since the scope, tonnage, voyage area, rates, and monitoring-reporting-verification procedures are expected to be clarified with secondary legislation, shipowners and operators need to closely follow the regulations in this area.

“EU ETS” and “FuelEU Maritime” Emission Measures That Will Affect Turkish-Flagged Ships Calling at European Ports

The European Union’s inclusion of maritime transport in carbon pricing and fuel intensity standards also yields direct consequences for Turkish-flagged ships. The EU ETS covers the CO₂ emissions of large ships of 5,000 GT and above calling at European Economic Area ports regardless of their flag, starting from January 2024. The system takes into account 100 percent of emissions occurring on intra-EU voyages and at EU ports; and 50 percent of emissions on voyages made with non-EU ports. Methane (CH₄) and nitrous oxide (N₂O) emissions are also included in the scope of the ETS as of 2026.

EU ETS obligations are being gradually increased: an allowance surrender obligation is applied at a rate of 40 percent in 2025 for 2024 emissions, and 70 percent in 2026 for 2025 emissions; full obligation in terms of emissions regarding the 2026 reporting year comes into play in 2027 and beyond. For this reason, 2026 is a critical threshold for Turkish shipowners and ship operators not only in terms of reporting, but also in terms of contractual cost sharing, data verification, and financial planning.

FuelEU Maritime, on the other hand, is being applied as of January 1, 2025. The regulation introduces gradual reduction targets for the annual average greenhouse gas intensity of the energy used on ships over 5,000 GT calling at European ports. The initial target is a 2 percent reduction for 2025 compared to the 2020 reference value. Since the first FuelEU report must be submitted to the verifier by January 31, 2026, fuel procurement, data recording, verification, and charter contracts in Turkish-flagged ships operating on the European route must be handled within the same compliance plan.

SOLAS 2026 Amendments

As of January 1, 2026, the SOLAS and MARPOL amendments adopted by the IMO have entered into force. These amendments make the mandatory reporting of freight containers lost at sea a clear obligation at the international level. Container loss is not just a matter of cargo damage or insurance; it also yields significant consequences in terms of navigational safety, protection of the marine environment, search and rescue, and liability towards third parties.

Under the new regime, the master of the ship involved in the loss of a container must report the details of the incident to nearby ships, the nearest coastal state, and the flag state without delay. A reporting obligation is also in question for ships that see containers drifting at sea. The flag state, in turn, is obliged to transmit the relevant information via the IMO’s GISIS system.

For Turkish-flagged ships, this amendment requires a review of the company safety management system (SMS), emergency instructions, master reporting procedures, loading and stowage plans, P&I reporting chain, and charter party clauses. Especially in container ships, ro-ro operations, and ships carrying mixed cargo, incident reporting, preservation of evidence, and distribution of liability must be designed in advance.

2026 Ship Sanitary Dues and Operational Costs

For the year 2026, ship sanitary dues must also be taken into consideration in operational cost planning. According to the tariff announced by the Ministry of Health, Directorate General of Health for Border and Coastal Areas of Türkiye, the 2026 free ship sanitary due has been determined as 21.67 TRY per net ton; and the discounted ship sanitary due for ships conducting scientific research and marine tourism vessels as 7.59 TRY. The annual ship sanitary due for Turkish-flagged ships is applied as 17.23 TRY per net ton for ships over 50 net tons and not exceeding 250 net tons; and 38.90 TRY per net ton for ships over 250 net tons.

Although these items alone may not create high legal risk, when evaluated together with port call costs, agency expenses, emission fees, anchorage, and pilotage/towage fees, they may necessitate the updating of cost-sharing provisions in freight and charter contracts.

Compliance Agenda for Shipowners and Operators

As we approach the 100th anniversary of the Cabotage Law, the compliance agenda for Turkish-flagged ships does not consist solely of flag and registry procedures. Handling the following topics together is of importance in terms of operational continuity and legal risk management in 2026 and beyond.

Priority Compliance Control Topics for 2026

• Flag and Registry: Turkish flag and cabotage right conditions should be checked within the scope of TCC Art. 940 and Law No. 4490.
• Contracts: Charter party, freight, port expense, emission cost, and insurance clauses should be reviewed in a way to meet the new obligations.
• EU Voyages: EU ETS, MRV, and FuelEU Maritime schedules should be monitored in terms of reporting, verification, and contractual cost sharing.
• SOLAS/MARPOL: SMS, emergency procedures, and master instructions should be updated for the reporting of containers lost or drifting at sea.
• TUGS Financial Regime: Registration fee, annual tonnage fee, Türk Loydu discount, and the incentive for main propulsion systems not using fossil fuels should be evaluated separately.

The Balance of Protection, Competition, and Compliance on the 100th Anniversary of Cabotage

The Cabotage Law continues to be one of the fundamental regulations symbolizing the economic independence of Turkish maritime. However, by 2026, operating under the Turkish flag does not mean merely benefiting from the protection provided by national legislation; it also requires managing international safety, environmental, reporting, and contractual compliance obligations in a holistic manner.

As Esenyel & Partners, we offer strategic legal consultancy to shipowners, ship operators, agents, and maritime sector stakeholders in the fields of maritime trade law, TUGS procedures, charter and freight contracts, environmental compliance obligations, ship finance, insurance, and dispute management. In the preparation process for the 2026 regulations, the right registry structure, the right contract formulation, and the right compliance schedule are an integral part of risk management on land as much as operations at sea.