Merchant Shipping Act, 2025 Enacted to Modernize Maritime Law and Enhance Seafarer Welfare

Parliament has enacted The Merchant Shipping Act, 2025, an Act designed to consolidate and amend the existing legal framework governing merchant shipping in India. The legislation received the President's assent on August 18, 2025, and was subsequently published for general information. The Act will come into force on such date or dates as the Central Government may appoint by notification in the Official Gazette, allowing for different provisions to be implemented at varying times. This comprehensive statute aims to ensure India's compliance with its obligations under various maritime treaties and international instruments, while simultaneously fostering the development of Indian shipping and the efficient maintenance of the Indian mercantile marine in a manner best suited to serve national interests. It replaces the Merchant Shipping Act, 1958, and the Coasting Vessels Act, 1838, which have been repealed, though their rules, regulations, and existing appointments will remain in effect until revoked or superseded.

The new Act introduces significant provisions across several key areas of maritime activity. It mandates the registration of Indian vessels, including those chartered from foreign entities and temporary registrations for vessels undergoing recycling. The legislation establishes a National Shipping Board to advise the Central Government on shipping development and a Seafarer's Welfare Board to promote the well-being of seafarers, addressing issues such as hostels, medical treatment, and support for distressed or abandoned seafarers. A robust maritime administration is outlined, featuring a Director-General, various surveyors, shipping masters, and a dedicated body for the security of vessels and port facilities. In maritime education and training, the Act details requirements for certificates of competency and proficiency, approval of training institutes, and examination procedures, aligning with international standards. Crucially, it sets out comprehensive maritime labour standards, covering seafarer employment agreements, wages, hours of rest, repatriation, medical care, and social security, with specific duties assigned to shipping masters and directors of recruitment and placement services. The Act also includes stringent measures for safety and security, requiring compliance with international conventions, incident reporting, search and rescue services, and compulsory insurance. Furthermore, it addresses the prevention and containment of pollution from vessels, establishing civil liability regimes for oil and bunker oil pollution damage, and outlining mechanisms for marine incident and emergency response, including the appointment of nodal authorities and primary response parties. Provisions for the investigation of marine casualties and the removal of wrecks are also detailed, alongside a revised penalty structure for contraventions, with penalties ranging from fines to imprisonment, and mechanisms for appeal and recovery of dues. The legislation provided: “An Act to consolidate and amend the law relating to merchant shipping to ensure compliance with India's obligation under the maritime treaties and international instruments to which India is a party and also to ensure the development of Indian shipping and efficient maintenance of Indian mercantile marine in a manner best suited to serve the national interest and for matters connected therewith or incidental thereto.”

The legislative intent behind the Merchant Shipping Act, 2025, is to modernize India's maritime law, which had largely been governed by the nearly seven-decade-old Merchant Shipping Act, 1958. The earlier statutory framework, while foundational, had become outdated in light of evolving international maritime conventions and the dynamic nature of global shipping. The new Act addresses critical statutory gaps and limitations by incorporating provisions from numerous international instruments, such as the Maritime Labour Convention, Civil Liability Convention for Oil Pollution Damage, Bunker Convention, Salvage Convention, and the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW). This integration aims to bring Indian law into full conformity with global best practices, thereby enhancing the safety, security, and environmental protection aspects of shipping, and significantly improving seafarer welfare. The Act introduces new rights and obligations, such as compulsory insurance for maritime claims, direct action against insurers in pollution cases, and specific liabilities for abandoned seafarers and wrecks. It also establishes a clear framework for dispute resolution, including the constitution of a Tribunal for seafarer-employer disputes, and outlines robust enforcement mechanisms through the Director-General of Maritime Administration and various appointed officers, who possess powers of inspection, detention, and penalty imposition. The emphasis on electronic forms for filings and documentation reflects a move towards greater efficiency and transparency in maritime administration.

Keywords: Merchant Shipping Act 2025, Indian maritime law, seafarer welfare, vessel registration, marine pollution, ship safety, maritime liability, international conventions, Director-General Maritime Administration, shipping industry Geo Tags: India, New Delhi