The newly revised Maritime Code will take effect on May 1 next year, authoritative interpretation—

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The Maritime Code, as an important civil and commercial law and foreign-related law that regulates and standardizes maritime transport relations and ship relations, plays a significant role in promoting the development of maritime transport and economic trade.

On October 28, 2025, the 18th session of the Standing Committee of the 14th National People’s Congress voted to adopt the newly revised Maritime Code, which will take effect on May 1, 2026.

The newly revised Maritime Code consists of 16 chapters and 310 articles. It actively adapts to the latest development trends of shipping and trade, reasonably draws on the achievements of the latest international maritime conventions, and effectively balances the interest demands of relevant parties. It is of great significance for promoting the high-quality development of China’s shipping and trade, strengthening marine ecological environment protection, better promoting high-level opening up, and building China into a strong maritime and shipping nation.

So, what are the main contents of this revision of the Maritime Code? What revisions have been made regarding the improvement of rules for the carriage of goods by sea? What are the highlights in strengthening the construction of foreign-related rule of law? Shi Hong, Director of the Civil Law Office of the Legislative Affairs Commission, answered questions from our reporter.

Reporter: What are the main contents of this revision of the Maritime Code?

Shi Hong: The revised Maritime Code consists of 16 chapters and 310 articles. The main revisions include:

Appropriately unifying the maritime rules for both domestic and international markets.

First, unifying the legal application for domestic and international carriage of goods by sea. The provision in the current Maritime Code stating that the chapter on “Contract of Carriage of Goods by Sea” does not apply to the carriage of goods by sea between ports of the People’s Republic of China is deleted. The carriage of goods by sea between ports of the People’s Republic of China is incorporated into the scope of application of the Maritime Code, to better coordinate domestic and international markets and further promote the high-quality development of shipping and trade.

Second, unifying the limits of liability for carriers in domestic and international carriage of passengers by sea, effectively resolving the issue of “different values for the same life” arising from the application of different liability limits in judicial practice.

Third, unifying the limits of liability for maritime claims between seagoing ships and inland watercraft, clarifying that other watercraft not used for military or governmental purposes that collide with a ship shall apply the same limits of liability for maritime claims.

Appropriately adjusting the rights and obligations of parties involved in maritime activities.

First, clarifying that the carrier has the obligation to “receive” and “deliver” the goods, and correspondingly adjusting the definition of the actual carrier, clarifying that it is a person who, entrusted or sub-entrusted by the carrier, actually performs all or part of the carrier’s obligations. This allows entities such as terminal operators to have the status of an actual carrier when specific conditions are met, thereby enabling them to enjoy the carrier’s exemptions and limits of liability; simultaneously, the carrier’s exemptions are extended to apply to situations where the carrier delays delivery.

Second, clarifying that the shipper shall deliver the goods to the carrier for carriage according to the contract of carriage of goods by sea and ensure that the goods are suitable for the agreed carriage.

Third, clarifying that in cases where no bill of lading is issued, the relationship of rights and obligations between the carrier and the consignee shall be governed by the relevant provisions of Chapter IV “Contract of Carriage of Goods by Sea” of the Maritime Code.

Fourth, changing the bearer of costs and risks arising from failure to take delivery of goods at the port of discharge from the consignee to the shipper, and clarifying that the shipper shall be promptly notified.

Fifth, adding provisions on the shipper’s right to modify the contract and the exceptions where the carrier may refuse its exercise.

Sixth, strengthening the protection of passengers’ rights and interests, and appropriately increasing the limits of liability for the carrier in the carriage of passengers by sea for death or personal injury of passengers and loss of or damage to their luggage.

Seventh, adding provisions on compulsory insurance or financial security for the carrier or actual carrier in the carriage of passengers by sea, and clarifying that claims for compensation for death or personal injury of passengers may be brought directly against the liability insurer or the person providing financial security.

Eighth, appropriately increasing the limits of liability for maritime claims for subjects such as shipowners and salvage operators.

Ninth, appropriately adjusting the rights and obligations of parties to a contract of marine insurance, clarifying the rules regarding the refund of insurance premiums when the insurer rescinds the insurance contract, the insurer’s obligation to explain and highlight standard clauses in the insurance contract, and the obligation of the insured under an open policy to truthfully declare relevant matters to the insurer, etc.

Providing institutional guarantees for the digital development of shipping.

To meet the practical needs of the growing development of electronic shipping documents, and drawing reference from the UNCITRAL Model Law on Electronic Transferable Records and relevant international conventions, the revised Maritime Code includes a dedicated section on electronic transport records in Chapter IV “Contract of Carriage of Goods by Sea”, clarifying the legal status of electronic transport records and stipulating that electronic transport records meeting statutory conditions have the same effect as transport documents; clarifying that the carrier and the shipper may agree to issue and use electronic transport records; electronic transport records must meet conditions such as complete and accurate content, being retrievable and accessible, the issuer being identifiable, and the holder being able to prove their identity; electronic transport records and transport documents can be converted into each other.

Improving systems related to marine ecological environment protection.

First, adding the content of “strengthening marine ecological environment protection” to the legislative purpose.

Second, adding provisions on the master’s duties in preventing and controlling ship pollution of the marine ecological environment, and clarifying that the salvor and the salved party in maritime salvage shall not exempt their obligation to prevent or minimize environmental damage through contract.

Third, based on relevant international conventions to which China is a party, dedicating a chapter to regulating liability for oil pollution damage from ships, clarifying the scope of compensation and the liable parties for oil pollution damage from ships; clarifying that the state establishes a compulsory insurance system for liability for oil pollution damage from ships, and improves and implements the fund system for compensation for oil pollution damage from ships according to law; specific provisions are made in separate sections for matters related to liability for pollution damage from ships carrying oil and liability for pollution damage from ship fuel oil.

Improving the rules on the application of law for foreign-related relations in the maritime field.

First, adding a mandatory application clause, clarifying that international contracts of carriage of goods by sea where the port of loading or the port of discharge is located within the territory of the People’s Republic of China shall be governed by the provisions of Chapter IV “Contract of Carriage of Goods by Sea” of the Maritime Code.

Second, enriching and improving the rules on the application of law for foreign-related relations, clarifying that the ownership and mortgage of a ship under construction, if registered, shall be governed by the law of the state of registration; if not registered, they shall be governed by the law of the place where the ship is built; a ship lien shall be governed by the law of the place where the ship is under lien; the order of priority among maritime liens, ship liens, and ship mortgages shall be governed by the law of the forum; liability for oil pollution damage from ships shall be governed by the law of the place where the oil pollution damage consequence occurred.

In addition, some other important revisions have been made to the current Maritime Code: First, to promote the development of China’s ship financing and leasing business, provisions on matters related to ship financing lease registration are added, clarifying the security function of the leased ship for the realization of the lessor’s claims. Second, clarifying the ownership of a ship under construction; if the parties have an agreement, it shall be in accordance with the agreement; if there is no agreement or the agreement is unclear, it shall belong to the shipbuilder. Third, strengthening the protection of seafarers’ rights and interests, clarifying that the employer shall conclude a labor contract with the seafarer in accordance with relevant laws, administrative regulations, and international treaties concerning seafarers’ labor and social security concluded or acceded to by the People’s Republic of China. Fourth, revising the calculation standard for the actual value of the goods, clarifying that the actual value of the goods shall be calculated based on the market price at the place of delivery at the time of delivery; if the market price at the place of delivery at the time of delivery cannot be determined, it shall be calculated based on the value of the goods at the time of shipment plus insurance and freight. Fifth, moving the provisions on voyage charter parties from the chapter on “Contract of Carriage of Goods by Sea” to the chapter on “Charter Parties”, while clarifying that when the voyage charter party has no stipulations or unclear stipulations regarding the rights and obligations between the shipowner and the charterer, in addition to applying the provisions of the section on voyage charter parties, the provisions of Chapter IV of the Maritime Code regarding the rights and obligations between the parties shall also apply. Sixth, improving the general average rules, clarifying that losses or expenses arising from the discharge or escape of pollutants from the ship, cargo, or other property during the same maritime adventure shall not be allowed in general average. Seventh, to enhance the underwriting capacity and global service level of China’s shipping insurance, incorporating contracts of insurance for ships under construction into the scope of application of the chapter on “Contract of Marine Insurance”. Eighth, further refining the provisions on the time limit for maritime claims, ensuring coherence with the provisions of the Civil Code, to better protect the legitimate rights and interests of the parties. Ninth, adding provisions on countermeasures in response to discriminatory or restrictive measures taken by certain countries or regions against China’s maritime transport and shipbuilding related sectors. Tenth, clarifying the nature and legal status of mutual insurance associations (P&I Clubs), stipulating that shipowners, ship operators, ship managers, or charterers, etc., as members, voluntarily form mutual insurance associations, collect contributions according to the articles of association, and bear liability for losses incurred, liabilities arising, or expenses paid by members in the operation of ships.

Reporter: The carriage of goods by sea is a key area regulated by the Maritime Code. In this revision of the Maritime Code, what revisions have been made regarding the improvement of rules for the carriage of goods by sea?

Shi Hong: The carriage of goods by sea is the most important mode of transport in international trade and has always been a key content regulated by the Maritime Code. To adapt to the latest development trends of shipping and trade and properly balance the interests of relevant parties in the carriage of goods by sea, such as the carrier, shipper, and consignee, this revision of the Maritime Code, based on absorbing and drawing on relevant international conventions, and grounded in national conditions and a problem-oriented approach, has mainly made revisions in the following aspects:

First, to maintain coherence with the adjusted scope of application of the revised Maritime Code, it is clarified that a contract of carriage of goods by sea includes both international contracts of carriage of goods by sea and domestic contracts of carriage of goods by sea between ports of the People’s Republic of China. At the same time, the differences in rules between the two regarding the stage of the carrier’s seaworthiness obligation, the determination of delay in delivery, and the exemptions enjoyed are clarified.

Third, to maintain alignment with the provisions on mortgage rights in the Civil Code’s Property Rights Section, the relevant provisions on ship mortgages are improved. Firstly, a distinction is made between ownership by shares and joint ownership, respectively stipulating the handling methods for establishing a mortgage on a co-owned ship. Secondly, it is clarified that after the establishment of a ship mortgage, the mortgagor may transfer the mortgaged ship. If the parties have agreed otherwise, such agreement shall prevail. The transfer of a mortgaged ship does not affect the ship mortgage. Thirdly, the rules for the order of mortgage repayment are modified, clarifying that if a ship mortgage has been registered, repayment shall be made in the order of the time of registration; the provision in the current Maritime Code stating “mortgages registered on the same day shall be repaid in the same order” is deleted.

Fourth, to maintain alignment with the provisions on lien rights in the Civil Code’s Property Rights Section, provisions on the methods for realizing a ship lien are added. That is, unless otherwise agreed, if the debtor still fails to perform the obligation sixty days after the shipbuilder or ship repairer has retained the ship, they may either agree with the debtor to offset the value of the retained ship against the debt, or have priority in receiving compensation from the proceeds obtained from the auction or sale of the retained ship.

Fifth, to maintain alignment with the provisions on contracts of carriage in the Civil Code’s Contract Section, the method for calculating the actual value of goods is modified. It is clarified that the actual value of the goods shall be calculated based on the market price at the place of delivery when delivery should have been made; if the market price at the place of delivery when delivery should have been made cannot be determined, it shall be calculated based on the value of the goods at the time of shipment plus insurance and freight.

Sixth, to maintain alignment with the provisions on limitation of actions in the Civil Code’s General Principles Section, the provisions on suspension and interruption of the limitation period are improved. Firstly, it is clarified that the limitation period expires six months after the cause for suspension of the limitation period ceases to exist. Secondly, it is clarified that the limitation period is interrupted by the obligee’s demand for performance, initiation of litigation, application for arbitration, or the obligor’s agreement to perform the obligation.