Key amendments¹

1. Unification of legal application for domestic and international market

Carriage of goods by sea: Previously, the Maritime Law provided that Chapter IV, “Contract of Carriage of Goods by Sea”, did not apply to domestic carriage of goods by sea (i.e., between PRC ports). The Maritime Law 2025 removes such exclusion (Article 2) and effectively ends the long-standing inconsistency in standards.

Carriage of passengers by sea: The Maritime Law 2025 unifies the monetary limits of a carrier’s liability in international and domestic carriage of passengers by sea (Articles 115 and 220).

Seagoing vessels and inland waterway vessels: Under the previous Maritime Law, inland waterway vessels were not subject to the limitation of liability regime in Chapter XI, “Limitation of Maritime Liability”. The Maritime Law 2025 clarifies that inland waterway vessels are subject to the same regime as seagoing vessels (Article 219).

2. Clarification of rights and obligations of parties involved in maritime activities

Definition of carrier: The Maritime Law 2025 defines the “actual carrier” (实际承运人) as a person who, having accepted the carrier’s entrustment or sub-entrustment, actually performs all or part of the carrier’s obligations (Article 44). This allows entities such as port operators to qualify as an actual carrier if certain conditions are met, such that they may benefit from the exemptions and limitation of liability available to a carrier.

Carriage of goods – carrier and consignor: The Maritime Law 2025 specifies that the consignor must deliver the goods to a carrier for carriage pursuant to the relevant contract of carriage of goods by sea and must ensure that such goods are fit for the agreed carriage (Article 67). The consignor has the right to vary or terminate a contract of carriage of goods by sea, subject to compensating the carrier for any resulting losses and the carrier’s limited rights to refuse (Article 96). In the case of uncollected cargo in the port of discharge, the associated costs and risks will be borne by the consignor, provided that they are promptly notified of the uncollected goods. However, if the consignee has exercised their rights under the contract, the associated costs and risks will remain with the consignee if they refuse to take or delay taking delivery (Article 93).

Carriage of goods – carrier and consignee: Where no bill of lading has been issued, the Maritime Law 2025 clarifies that the rights and obligations of the carrier and consignee will be governed by the relevant provisions in Chapter IV (Article 79).

Injury, property damage, and other maritime claims: The Maritime Law 2025 raises the monetary limits of a carrier’s liability for death, personal injury, and property damage sustained by passengers (Article 115), and also those applicable to shipowners, salvors, and other parties for maritime claims set out in Chapter XI (Article 219). The increases align with international conventions and enhance protection for affected parties.

Maritime insurance contracts: To further enhance passenger protection, the Maritime Law 2025 introduces rules that require carriers or actual carriers to take out liability insurance or obtain financial guarantees covering claims that arise from the death or bodily injury of passengers. Such claims may be brought directly against the insurer or financial guarantor (Articles 125 and 126). New provisions have also been added governing the rights and obligations of parties to maritime insurance contracts, including the insurer’s duty to draw the insured’s attention to key terms in an insurance contract, the insured’s duty of accurate declaration under an open contract, and the return of premium in the event of rescission (Articles 248 and 249).

3. Provisions in support of digitalisation in shipping industry

A new section dedicated to electronic transportation records has been introduced to Chapter IV as Part V.

The Maritime Law 2025 confirms the legal status of electronic transportation records. These must meet statutory requirements, including being (i) complete and accurate; (ii) readily retrievable for inspection; (iii) capable of identifying the issuer; and (iv) verifiable as to the holder’s identity. Electronic transportation records that meet these statutory requirements have the same legal effect as transport documents. By agreement, parties may issue and use such electronic records, and conversion between electronic and paper transportation records is permitted (Articles 82-86).

This is an important step in promoting digitalisation in the shipping industry, which fosters sustainable and efficient maritime operations.

4. Provisions for the protection of the marine environment

It is clear that strengthening the protection of the marine environment is one of the legislative intents behind the Maritime Law 2025 (Article 1).

A new Chapter XII, Liability for Oil Pollution Damage from Vessels, has been added, clarifying the scope of compensation and the responsible parties. It also establishes a mandatory liability insurance regime and improves the compensation fund regime in relation to oil pollution damage from vessels. Additional provisions specify the duties of a master to prevent and control pollution damage from vessels, and in the case of salvage operations, the duties of the salved party and the salvor to exercise due care to prevent and minimise marine pollution from vessels (Articles 37, 186, and 187).

5. Rules on the application of law in foreign related relationships

The 2025 Maritime Law brings greater certainty to the parties involved by clarifying the governing law in key foreign-related relationships, as detailed in Articles 295-304.

Where the port of loading or port of discharge under an international contract of carriage of goods by sea is within China, Chapter IV will apply.

Ownership and mortgage rights of vessels under contract will be governed by the law of the state of registration if registered or by the law of the place of construction if unregistered. Possessory liens will be governed by the law of the place where the vessel is possessed. Priority among maritime liens, possessory liens, and ship mortgages will be governed by the law of the forum (i.e., the jurisdiction where the case is heard).

In cases of ship collision, the governing law will be that agreed by the parties after the event. In the absence of agreement, the governing law will be (i) the law of the place of the tortious act; (ii) if the collision occurs on the high seas, the law of the forum; or (iii) if the vessels are of the same nationality, the law of the flag state. For general average, the governing law will be that agreed by the parties or, failing that, the law of the place where the voyage ends.

In cases of oil pollution damage, such damage will be governed by the law of the place where it occurs.

6. Provisions relating to financing leases

The Maritime Law 2025 introduces the registration of financing leases, providing that, upon registration, the lessor’s title to a vessel under such lease is effective against bona fide third parties. The lessee must make payments in accordance with the agreement. If payment is not made within a reasonable period after demand, the lessor may require payment in full or terminate the agreement and repossess the leased vessel (Article 8). These provisions align with the Civil Code’s provisions on financial leasing contracts.

7. Countermeasures against discriminatory and restrictive measures

The Maritime Law 2025 also expressly provides that, if discriminatory or restrictive measures are imposed against China’s maritime transport and shipbuilding sector, China may adopt corresponding countermeasures (Article 308).

Summary

The Maritime Law 2025 provides long-awaited updates on the rules governing the carriage of goods and passengers by sea, vessel relations, and related civil and commercial matters. It is expected to inject strong momentum into China’s shipping, finance, insurance, and related sectors, significantly boosting international trade and the country’s marine economy. It will also bring more certainty and clarity to China’s shipping law, thereby enhancing China’s attractiveness as a global maritime centre.

Client Alert 2025-279

1. Reference: Mr. Shi Hong of the Legislative Affairs Commission of the Standing Committee of the NPC