China’s New Maritime Code: Key Changes Ahead
Starting May 1, 2026, the 2025 Chinese Maritime Code will bring significant changes affecting shipowners, charterers, and cargo interests involved in international trade at Chinese ports. This new legislation introduces updates to limitation periods, liability provisions, and cargo handling responsibilities, aiming to modernize China’s maritime legal framework. Stakeholders are urged to review their contracts and operational practices in light of these upcoming changes.
Major Amendments and Their Implications
The 2025 Chinese Maritime Code introduces several crucial amendments that will reshape maritime operations. One of the most notable changes is the interruption of limitation periods for claims. Claimants can now interrupt the limitation period not only by initiating legal proceedings or arbitration but also by submitting a simple demand for performance, such as a letter of claim. This adjustment allows claimants to better preserve their rights. Additionally, 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. Furthermore, 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 completed.
Another significant amendment pertains to the transfer of mortgaged ships. Under the new Code, mortgaged ships can be transferred without the mortgagee’s consent unless otherwise specified. The mortgage will remain attached to the ship even after the transfer. The Code also mandates the application of cargo liability provisions for international contracts involving loading or discharge at Chinese ports. This means parties cannot opt out of these minimum standards, even if they choose a different governing law. The definition of “actual carrier” has been expanded to include individuals entrusted by the carrier who perform cargo-handling obligations, potentially increasing liability for terminal operators and others involved in cargo management.
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Enhanced Liability and Pollution Compensation
The Code also adopts higher liability limits in line with the 1996 Protocol to the LLMC 1976, significantly increasing the potential financial responsibility for shipowners and other parties in qualifying claims. Notably, ship managers and voyage charterers, including slot charterers, are now entitled to limit liability similar to shipowners. Additionally, the Code clarifies the scope of compensation for oil pollution, explicitly covering property damage (excluding damage to the polluting vessel), loss of income due to oil pollution, and costs incurred for preventive measures. In cases of oil leakage following a collision, the Code stipulates that the leaking vessel bears the compensation liability but may seek recourse against the other vessel involved.
These changes aim to strengthen protections for cargo interests and clarify the rights and obligations of all parties involved in maritime operations. As the implementation date approaches, stakeholders are encouraged to reassess their contracts and operational practices to ensure compliance with the new regulations. Legal advice is also recommended, especially as the PRC Supreme People’s Court has issued guidance on the application of the Code during the transition period, indicating that the Code will apply to matters continuing beyond or arising after May 1, 2026
