China’s revised Maritime Code (Code), which came into force on 1 May 2026, materially changes the legal framework for parties involved in trade to, from, or within China. It represents the most substantial revision of the Code since its introduction in 1993.
The amendments are extensive. Among other things, they mandate the application of Chinese law in certain circumstances, alter the preservation and defence of claims by introducing a more flexible time bar, broaden the definition of “actual carrier”, extend rights and responsibilities, and change the treatment of delivery and unclaimed cargo.
This article places a particular emphasis on changes that reshape the jurisdictional dynamics of cargo carriage involving China, and the practical implications of those changes for parties involved in trade.
Mandatory Application of Chinese Law
In principle, under article 295, parties are entitled to stipulate what law applies to a contract of carriage. However, article 295 states that chapter IV of the Code will mandatorily apply to contracts of carriage where the port of loading or discharge is in China. In chapter IV, article 45 of the Code nullifies provisions that derogate from the Code.
It appears that a Chinese Court may assume jurisdiction, notwithstanding a jurisdiction to the contrary, when chapter IV of the Code will not be applied. This is potentially a significant benefit to cargo interests, as claims may be made under the Code which is roughly similar to the Hague Visby Rules.
Carriers and freight forwarders should undertake careful due diligence to determine whether existing governing law, jurisdiction, and standard form wording remain effective for trade arrangements where the relevant port is in China.
Easier to Interrupt Time Bar
Previously, under the Code, the one year time bar period for cargo claims, arguably, could not be extended by agreement. Although the one year limitation period remains in place, article 294 now makes interruption easier by allowing it to occur through a request for performance as well as through formal proceedings.
Freight forwarders and carriers should review how demands are recorded and escalated, particularly because this increased ease of interruption may mean more smaller claims can now be pursued and preserved by cargo interests. Communications that may previously have been treated as routine exchanges may now carry greater limitation significance.
Extended Rights and Responsibilities
Previously, the Code defined the scope of carriers’ obligations as including loading, shifting, stowing, carrying, keeping, taking care of and discharging the goods. Under article 49, a carrier’s obligation has been extended to include receiving and delivering goods that the carrier is responsible for. This extension might result in carriers facing claims before loading, after discharging and with respect to through carriage under the Code.
Article 96 works to extend shippers’ right to control carriage. It states that during the carrier’s responsibility period, the shipper has the right to suspend the carriage, return the goods, change the port of discharge, or change the consignee. However, if any losses result from these changes, the shipper must compensate the carrier. The carrier is entitled to refuse the modifications under certain circumstances.
Role Allocation
A central issue under the revised Code is that liability exposure will depend on the role a party is taken to have assumed in the particular transaction.
For freight forwarders, this might mean exposure shifts depending on whether they act as agent or, instead, contract in their own name and issue transport documents accordingly.
For carriers, the revised definition of “actual carrier” in article 44 widens the range of entities brought within the carriage framework. This potentially extends carrier related protections and liabilities to parties performing all or part of the carrier’s obligations, including in some cases port operators or subcontractors.
Unclaimed Cargo
The revised Code places a renewed emphasis on who bears the resulting costs and risks of unclaimed cargo. If goods are not collected at the discharge port, and provided notice is given without delay, the shipper will be liable for the associated risks and costs (according to article 93). Whereas, if a consignee has already exercised its rights under the contract and then causes the resulting delay or refuses delivery, the consignee may bear the resulting loss.
It is important for freight forwarders to take note of this change as depending on how carriage documents are used, the freight forwarder might be considered a “shipper” for these purposes. This is because under article 44, the term “consignor” encompasses not just the cargo owner but anyone who, either themselves or on behalf of someone else, enters into a contract of carriage with the carrier. It is equally as important for carriers to be aware of this change because the operational steps they take at discharge and notice timing may affect recovery positions.
Considering cost allocation could turn on whether notice was given promptly, carriers and freight forwarders should review all associated booking notes, service agreements, and bills of lading to ensure party descriptions, principal identification, and notice procedures are aligned.
Preparing for the New Regime
In general, the amendments introduced by the Code make Chinese maritime law consistent with many jurisdictions internationally.
Parties involved in carriage to, from, or within China should now review their contracts, bills of lading, booking terms, claims procedures, and operating protocols in light of the revised Code.
In doing so, parties involved should place a particular emphasis on whether their current contract of carriage caters for the mandatory application of Chinese maritime law under article 295, and the potential for the Chinese Court to assume jurisdiction.
We expect that the changes to the Code will make China a more popular jurisdiction for cargo interests to bring claims in.
If you have any questions about the legal implications of this change on your transaction or business, please get in touch with our Transport and Logistics Team or your usual contact at Hesketh Henry.
