Following our previous Japan P&I News No.1334, dated 12 November 2025, concerning the China’s Maritime Code Revised, we have obtained information from Huatai Insurance Agency & Consultant Service Ltd. regarding the introduction of key revisions to the Maritime Code of the People's Republic of China, including a comparison table between the old and new provisions.

The amended Maritime Code of the People's Republic of China will come into effect on 1 May 2026. This marks the first comprehensive overhaul since the Code's enactment in 1993. The primary objectives of the amendments are to adapt to the digitalisation of the shipping industry and environmental regulations, as well as to resolve challenges encountered in judicial practice. In this article, Mr. Minghan Jiang, a Chinese lawyer from Okabe & Yamaguchi, explains key changes as they relate to Contracts of Carriage, Limits of Liability, and Time Limitation as these are of particular relevance to our Members.

Amendments Related to Carriage of Goods

1. Extension of the Carrier's Obligations in respect of Care of Cargo

Under the current Code, the scope of the carrier’s obligations to care for cargo are defined as to "load, shift, stow, carry, keep, take care and discharge" the goods. The amended Code adds two new items: "receipt” and “delivery" (Amended Maritime Code, Article 49).

To avoid liability, the carrier is required to prove that it has exercised due diligence to make the vessel seaworthy and has properly fulfilled its obligations to care for the cargo. This extension suggests that carriers may bear a broader burden of proof. Especially in the case of containerised cargo, it is strongly recommended that detailed records be created and maintained at both the time of receipt and time of delivery of the cargo, so that the carrier does not lose the opportunity to assert its defenses.

2. Extension of the Scope of Application

Under the current Code, port-to-port transportation along the coast or at sea within China (such as feeder services) was outside the scope of the Maritime Code. Under the amended Code, limits of liability and exclusion will be available for domestic coastal and maritime carriage (Amended Maritime Code, Article 43). However, it should be noted that exemptions for fire and error in navigation (neglect in the navigation or management of the vessel), which are recognised in international carriage, remain inapplicable to domestic coastal and maritime carriage even after the amendment (Amended Maritime Code, Article 52). Even after the amendments, the provisions of the Code remain inapplicable to transport in rivers, lakes, and other similar inland waters.

3. Revised Criteria for Calculating Damages in Cases of Cargo Total Loss

While the current Code stipulates that the indemnity for lost cargo is calculated based on CIF value, the amended Code aligns with the Civil Code, basing it in principle on the "market value at the place and time of delivery." The CIF value at the time of shipment will only be used if the market value cannot be determined (Amended Maritime Code, Article 56).

4. Clarification of liabilities in the event of non-collection or delayed collection of cargo by receivers

If no one takes delivery of the cargo at the discharge port, the Master may discharge the goods into a warehouse or other appropriate place. The amended Code stipulates that the resulting costs and risks shall be borne by the shipper, provided the carrier promptly notifies the shipper. If a consignee has already exercised its rights under the contract of carriage (e.g., accepting cargo or filing a claim) but subsequently delays or refuses to take delivery, such costs and risks shall be borne by the consignee (Amended Maritime Code, Article 93).

Amendments Related to Oil Pollution

1. New Chapter on Liability for Oil Pollution Damage

China is a state party to the 1992 Protocol to the International Convention on Civil Liability for Oil Pollution Damage (CLC 92) and the International Convention on Civil Liability for Bunker Oil Pollution Damage (Bunker Convention). However, as these conventions have not been formally incorporated into domestic legislation, their implementation is reliant solely on judicial interpretations. The amendment establishes a new chapter dedicated to liability for oil pollution damage, formally incorporating these two international conventions into domestic law (Amended Maritime Code, Chapter XII).

Amendments Related to Limits of Liability

1. Increase in Limits of Liability

While China is not a party to the Convention on Limits of Liability for Maritime Claims (LLMC Convention), the current Code sets limits equivalent to 76LLMC. This amendment raises the limits to the same level as 96LLMC, significantly increasing the shipowner's limitation amount (Amended Maritime Code, Article 219).

Amendments Related to Time Limitation

1. Time Limitation for Non-Contact Damage

The time limitation for claims arising from vessel collisions is two years from the date of the incident. In both-to-blame cases involving third-party personal injury, both vessels are jointly and severally liable. A vessel that pays compensation exceeding its proportion of fault has a right of recourse against the other vessel, subject to a one-year time limitation from the date of payment.

With this amendment, the rules regarding the statute of limitations equivalent to those for ship collisions will also apply to so-called non-contact damage caused to another ship, even where no physical contact between the ships has occurred (Amended Maritime Code, Article 288).

2. Amendment to the Grounds for Tolling the Limitation Period

A "demand for payment by the claimant" has been added to the grounds for interrupting the time limitation, joining the existing grounds of "filing a lawsuit," "commencing arbitration," and "agreement to perform by the respondent." Based on Civil Code judicial interruption, a demand for payment via written letter or email may now suffice to interrupt the time limitation under the Maritime Code. Consequently, relying on a time limitation defense is expected to become more difficult than before.

Amendments Related to Governing Law

1. Mandatory Application of the Maritime Code
The amended Code mandates that Chapter IV (Contracts of Carriage of Goods by Sea) shall apply to any international contract of carriage where the port of loading or discharge is in China (Amended Maritime Code, Article 295). Consequently, even if a Bill of Lading contains a clause designating the law of another country as the governing law, Chinese courts will prioritise the Maritime Code. Any contractual agreement in violation of the Code will be deemed null and void.

For details, please find attached the circular from our China correspondent, Huatai Insurance Agency & Consultant Service Ltd.

For inquiries regarding the details of this amendment or operational procedures, please contact the Association.