New Act Modernizes India's Maritime Goods Carriage Regulations

Parliament has enacted The Carriage of Goods by Sea Act, 2025, an Act designed to establish a comprehensive legal framework governing the responsibilities, liabilities, rights, and immunities of carriers involved in the transportation of goods by sea. The legislation, which received the assent of the President on August 8, 2025, and was published for general information on the same date, will come into force on a date to be appointed by the Central Government through a notification in the Official Gazette. This new Act repeals the Indian Carriage of Goods by Sea Act, 1925, and incorporates updated international standards. It applies to the carriage of goods by sea in ships transporting cargo from any port in India to any other port, whether within or outside India. A key provision mandates that every bill of lading, or similar document of title, issued in India for contracts covered by these rules, must explicitly state its adherence to the "applicable rules" laid down in the Schedule to the Act. The legislation also clarifies that there shall be no implied absolute undertaking by a carrier to provide a seaworthy ship in contracts to which these rules apply. Specific modifications are introduced for the carriage of goods by sea in sailing ships and for goods transported on specified routes, such as from a notified Indian port to a port in Sri Lanka. Furthermore, for bulk cargoes, the Act modifies the prima facie evidence rule concerning the weight inserted in a bill of lading if ascertained or accepted by a third party, ensuring the bill of lading is not automatically considered evidence against the carrier in such cases. The Central Government is empowered to issue directions for the Act's implementation, amend the Schedule through notification, and address any difficulties arising in its application.

The legislative intent behind the Carriage of Goods by Sea Act, 2025, is rooted in the need to unify and update certain rules relating to bills of lading, reflecting international developments in maritime law. The Preamble to the Act notes that delegates at the International Conference on Maritime Law held at Brussels in October 1922 agreed to recommend a draft Convention for the unification of rules, which was subsequently amended in October 1923, and further by Protocols signed at Brussels on February 23, 1968, and December 21, 1979. The earlier legal position was governed by the Indian Carriage of Goods by Sea Act, 1925, which was based on the original Hague Rules. The new Act addresses statutory gaps by adopting the amended rules, commonly known as the Hague-Visby Rules, thereby aligning India's maritime law with contemporary international standards for carrier responsibilities and liabilities. The Act defines "applicable rules" as those provided in its Schedule, which detail the responsibilities and liabilities of carriers, including their obligation to exercise due diligence to make the ship seaworthy and properly man, equip, and supply it before and at the beginning of a voyage. It also outlines the carrier's rights and immunities, such as exemptions from liability for loss or damage arising from specific causes like acts of God, acts of war, or perils of the sea. The legislation provided: “Any clause, covenant or agreement in a contract of carriage relieving the carrier or the ship from liability for loss or damage to or in connection with goods arising from negligence, fault or failure in the duties and obligations provided in this Article or lessening such liability otherwise than as provided in these applicable rules, shall be null and void and of no effect.” This provision underscores the non-derogable nature of the carrier's core duties. The Act also sets limits on the carrier's liability for loss or damage, typically not exceeding 666.67 Special Drawing Rights (SDRs), an international reserve asset used by the International Monetary Fund (IMF) to supplement its member countries' official reserves, per package or unit, or two SDRs per kilogram of gross weight, whichever is higher, unless a higher value is declared. Enforcement mechanisms include a one-year limitation period for bringing suit for loss or damage, extendable by court order for up to three months. The Act explicitly saves the previous operation of the repealed 1925 Act, and any rights, privileges, or obligations acquired under it, ensuring continuity. It also clarifies that its provisions do not affect Section 331 and Part XA of the Merchant Shipping Act, 1958, or other enactments limiting the liability of owners of sea-going vessels.

Keywords: Carriage of Goods by Sea Act 2025, maritime law, bills of lading, carrier liability, Hague-Visby Rules, India, shipping, international trade, Central Government Geo Tags: India District: Not Applicable