New Chinese Maritime Code Set to Transform Shipping Regulations
The upcoming 2025 Chinese Maritime Code, effective May 1, 2026, introduces significant changes that will reshape the landscape for shipowners, charterers, and cargo interests involved in international trade at Chinese ports. Key amendments include updated limitation periods for claims, new definitions for cargo liability, and enhanced protections for cargo interests. Stakeholders are urged to review their contracts and practices to ensure compliance with the new regulations.
Key Changes in the Maritime Code
The 2025 Chinese Maritime Code brings forth several pivotal amendments that will impact various aspects of maritime operations. One of the most notable changes is the alteration of limitation periods for claims. Claimants can now interrupt the limitation period not only by initiating legal proceedings or arbitration but also by simply making a demand for performance, such as sending a letter of claim. This adjustment allows claimants to better safeguard their rights. For recourse claims related to cargo disputes, if more than 90 days remain in the original one-year limitation period after settlement, that period continues to apply. However, if fewer than 90 days are left, a new 90-day period is granted. Additionally, general average claims will now have a six-year long-stop limitation period, starting from the end of the common maritime adventure, regardless of when the adjustment is finalized.
Another significant change involves the transfer of mortgaged ships. Under the new code, mortgaged vessels can be transferred without the mortgagee’s consent unless otherwise stipulated. The mortgage will remain attached to the ship post-transfer. Furthermore, the Code mandates that for international contracts involving the carriage of goods by sea at Chinese ports, the cargo liability provisions must be applied, preventing parties from opting out of these minimum standards. The definition of “actual carrier” has also been expanded to include those entrusted by the carrier who perform cargo-handling duties, potentially increasing liability for terminal operators and others involved in the process.
Implications for Stakeholders
The implications of these changes are substantial for all parties engaged in maritime trade involving Chinese ports. The Code clarifies the responsibilities regarding compensation for cargo loss or damage, which will now be based on the market price at the time and place of delivery, with the CIF value serving as a fallback option. Additionally, the responsibility for storage costs at the discharge port will generally shift to the shipper unless the consignee has exercised contractual rights but fails to take delivery. The carrier’s right of lien has also been clarified, allowing carriers to exercise a lien over cargo even if it is not owned by the debtor, provided certain conditions are met.
Moreover, the Code adopts higher liability limits in line with the 1996 Protocol to the LLMC 1976, significantly increasing the potential financial obligations for shipowners and other parties involved in qualifying claims. It also extends the right to limit liability to ship managers and voyage charterers, including slot charterers. The Code explicitly addresses oil pollution liability, detailing compensation for property damage, loss of income due to pollution, and costs incurred for preventive measures. In cases of oil leaks following a collision, the leaking vessel will bear the compensation liability but may seek recourse against the other vessel involved.
As the implementation date approaches, stakeholders are encouraged to review their contracts and operational practices to ensure compliance with the new regulations. The Supreme People’s Court of China has also issued guidance on the application of the Code during the transition period, emphasizing that the Code will apply to matters continuing beyond or arising after May 1, 2026. Given the complexity of these changes, seeking legal advice is advisable to navigate the evolving maritime legal landscape.
