An Interpretation of the New Maritime Code Revisions: Five Core Changes and Impact Analysis

October 28, 2025​ – The Standing Committee of the National People's Congress voted to adopt the newly revised Maritime Code of the People's Republic of China. This foundational shipping law, in effect for nearly 30 years, has undergone its first major overhaul. The revised Code, comprising 16 chapters and 310 articles, will take effect officially on May 1, 2026. For China's shipping industry, which accounts for about 12% of global sea transport volume, these revisions not only resolve long-standing legal dilemmas like the "dual-track system" but also contribute China's approach to global shipping rules through innovative provisions such as the legalization of electronic bills of lading.

1.Unifying Maritime Rules for Domestic and International Markets

For a long time, two different sets of rules applied to China's coastal and international maritime transport: coastal transport was governed by the Contract Law, while international shipping fell under the Maritime Code. This "dual-track system" led to disputes over "different rights on the same ship," as the liability limit for carriers transporting goods between domestic ports was only one-third of that for international routes.

The newly revised Maritime Code explicitly brings the carriage of goods by sea between domestic ports under its scope, achieving the goal of "one law governing all routes." It also unifies the compensation standards for the carriage of passengers by sea, raising the personal injury or death compensation limit per passenger to RMB 400,000, regardless of whether the route is domestic or international, thereby resolving the judicial dilemma of "differing values for the same life."

A significant change concerns the legal status of river vessels. Previously, due to their smaller tonnage, the liability limits for river vessels were only 50% of those for seagoing ships. The new law stipulates that river vessels used for non-military or non-governmental purposes now apply the same liability limit standards​ as seagoing vessels. This adjustment will significantly enhance the legal protection level for inland river shipping hubs like the Yangtze River Economic Belt and the Pearl River Delta.

2.Adjusting the Rights and Obligations of Parties in Maritime Activities

In shipping practice, broken chains of liability due to multi-layer subcontracting have been a persistent industry pain point. The new Maritime Code explicitly defines port operators as "actual carriers" under specific conditions. When goods are damaged during port handling operations, the port operator can invoke the carrier's defenses and enjoy the liability limit.

Shippers' rights​ have been substantially expanded. The law introduces a new clause on the right to modify the contract, allowing the shipper to change the consignee or destination before the goods are loaded, provided they bear the resulting costs and risks. "In the past, amending a contract required re-signing; now, a written notice to the carrier suffices, potentially increasing operational efficiency by 40%," commented the Legal Director of a cross-border e-commerce logistics company.

In the realm of marine insurance, the insurer's duty of explanation​ has been strengthened. For exemption clauses in insurance contracts, the insurer must highlight them using bold font or provide a separate written explanation; otherwise, such clauses are void. This provision directly addresses long-standing issues with "adhesion clauses" in the shipping insurance market.

3.Improving Rules Concerning the Application of Law in Foreign-Related Matters

The general average system sees a major adjustment. The new Maritime Code clearly states that losses or expenses arising from pollution caused by the escape of substances from the ship or cargo cannot be included in general average. This means that in incidents like oil spills, pollution cleanup costs will be borne solely by the responsible party, not proportionally shared by all cargo interests.

To address the chaos of "forum shopping" in foreign-related transport contracts, the law introduces a mandatory application clause: international contracts for the carriage of goods by sea must apply the provisions of Chapter IV of China's Maritime Code​ if the port of loading or discharge is within China. "This will effectively curb improper jurisdiction by foreign courts over our shipping disputes," noted a judge from the Shanghai Maritime Court, adding, "Last year, we handled 37 cases where parties attempted to designate foreign court jurisdiction through bill of lading clauses."

The introduction of a reciprocal measures clause​ demonstrates legislative wisdom. When foreign countries adopt discriminatory measures against Chinese shipping enterprises, China can implement reciprocal restrictions. This provision offers a legal shield for Chinese companies amid intensifying international shipping competition.

4.Modifying the Calculation Standard for the Actual Value of Goods

The determination of cargo value has long been a focal point of maritime compensation disputes. The original Maritime Code used the calculation method of "value at shipment + freight + insurance," which often led to insufficient compensation due to market fluctuations. The new law establishes the principle of prioritizing the market price at the place of delivery: if the market price at the place of delivery can be determined, it shall be used; otherwise, the value at shipment plus additions applies.

A claims manager from a container liner company illustrated: "A batch of electronics shipped from Shanghai to Rotterdam had a value of 1millionatshipment,butthemarketpriceroseto1.2 million by the time of delivery three months later. Under the new law, compensation would be based on $1.2 million, which better aligns with the principle of fairness." It is estimated that the new rule could reduce similar disputes by 30% after implementation.

5.Electronic Bills of Lading Gain Legal Status

In the wave of digital transformation, the "cargo waiting for documents" problem caused by paper bills of lading has cost Chinese foreign trade enterprises billions of RMB annually. The new Maritime Code dedicates a section to establishing that electronic transport records have the same legal effect​ as paper bills of lading, allowing the issuance of electronic bills of lading provided the carrier and shipper agree.

Electronic bills of lading must meet four core conditions: complete and accurate content, retrievability and accessibility, identifiable issuer, and the holder's ability to prove identity. A blockchain-based bill of lading platform piloted in Qianhai, Shenzhen, which has achieved these functions, reports an average circulation time of 4 hours for e-BLs compared to 3-5 days for traditional paper bills.

The law also permits two-way conversion between electronic records and paper documents, providing flexibility during the transition period. China COSCO Shipping Group plans to achieve a 60% usage rate for electronic bills of lading on international routes by the first half of 2026, potentially saving over RMB 200 million in document costs annually.

This revision of the Maritime Code is the result of a decade of research and accumulated input, incorporating over 12,000 opinions from shipping enterprises. The final 310 articles address both longstanding issues like "different rights on the same ship" and pollution cost allocation, as well as new challenges posed by technologies like electronic bills of lading and blockchain. As the Director of the Economic Law Office of the Legislative Affairs Commission of the NPC Standing Committee stated, "This revision marks China's transition from a major shipping nation to a shaper of shipping rules."

For foreign trade enterprises and logistics practitioners, key preparations before May 1, 2026, include reviewing existing contract clauses for alignment with the new law, upgrading electronic document management systems, and conducting employee legal training. Understanding and effectively applying this new law will be crucial for enhancing international competitiveness, especially when China's ports are connected to 12% of global maritime trade.

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Disclaimer:​ This article is for informational purposes only. Specific implementation shall be subject to the relevant regulations and determinations by the competent authorities. Content is based on announcements from the NPC Standing Committee, Presidential Order No. 58, and the National People's Congress website. Images are from the internet. For copyright or infringement concerns, please contact admin@mbs-gz.com.