The Indian Parliament recently passed the Carriage of Goods by Sea Bill, 2025, enacting a significant reform in the country’s maritime legal landscape. This new legislation replaces the century-old Indian Carriage of Goods by Sea Act, 1925, a colonial-era law deemed outdated and incompatible with modern global maritime trade practices.
Overview of the Carriage of Goods by Sea Bill, 2025
The Carriage of Goods by Sea Bill, 2025 – Maritime Legal Reform marks a significant turning point for India’s shipping and logistics sector. Designed to replace the nearly century-old Carriage of Goods by Sea Act, 1925, this bill modernises the legal framework that governs how goods are transported by sea, the rights and liabilities of carriers and shippers, and the handling of disputes. With India’s maritime trade volume steadily increasing, this bill ensures our laws align with global standards and meet the needs of a modern economy.
Maritime transport is the backbone of international trade, and outdated laws can hinder efficiency, competitiveness, and compliance. The Carriage of Goods by Sea Bill, 2025 – Maritime Legal Reform is crucial because it:
Currently, India’s sea trade is regulated under the Carriage of Goods by Sea Act, 1925, based largely on the Hague Rules of 1924. While functional for its time, the act has not kept pace with changes in shipping technology, logistics operations, and international conventions.
Some of the major shortcomings include:
The rise of containerisation, digital documentation, and complex supply chains has pushed nations to adopt newer legal frameworks like the Hague-Visby Rules, Hamburg Rules, and Rotterdam Rules. India’s Carriage of Goods by Sea Bill, 2025 is a response to these trends, ensuring our maritime trade remains competitive and globally aligned.
The bill applies to contracts for the carriage of goods by sea where:
It also covers both liner and tramp shipping services, expanding applicability beyond the 1925 Act.
The bill recognises electronic bills of lading as legally valid documents, in line with global digitalisation trends. It also updates provisions on negotiability, transfer, and evidence of cargo receipt.
Carrier liability for cargo loss or damage is increased to match international norms—calculated either per package/unit or per kilogram of cargo weight, whichever is higher.
Clearer timelines are set for delivery and for lodging claims in case of loss or damage, reducing uncertainty for all parties involved.
The Carriage of Goods by Sea Bill, 2025 borrows key principles from:
By aligning with these conventions, the bill makes Indian shipping contracts more predictable and acceptable in global trade, encouraging foreign carriers and investors to operate in India.
The bill clearly defines jurisdiction for disputes and allows for arbitration, both domestic and international, in line with global shipping practices.
The claim filing period is extended in certain cases, ensuring shippers have reasonable time to detect and report cargo damage or loss.
By modernising legal processes and aligning with global norms, India positions itself as a competitive player in international shipping, attracting more business to Indian ports.
While higher liability limits may slightly increase freight insurance costs, the overall efficiency gains and reduced disputes are expected to lower total trade costs in the long run.
| Feature | Carriage of Goods by Sea Act, 1925 | Carriage of Goods by Sea Bill, 2025 |
|---|---|---|
| International Alignment | Hague Rules 1924 | Hague-Visby, Hamburg, Rotterdam |
| Liability Limits | Outdated | Updated to global standards |
| Bill of Lading | Paper only | Paper & electronic recognised |
| Multimodal Transport | Not covered | Explicitly recognised |
| Dispute Resolution | Limited | Clear arbitration & jurisdiction rules |
Legal experts view the Carriage of Goods by Sea Bill, 2025 – Maritime Legal Reform as essential for removing outdated legal bottlenecks and making India’s maritime trade ecosystem more competitive.
The bill is a proactive step towards building a more transparent, efficient, and globally integrated maritime legal system.
When will the Carriage of Goods by Sea Bill, 2025 come into effect?
The government is expected to notify the commencement date after passing in Parliament, likely in late 2025.
Does the Bill apply to domestic coastal shipping?
Yes, where the contract specifies that the bill applies to domestic sea carriage.
What are the new liability limits for carriers?
They are aligned with the Hague-Visby Rules—calculated per package or per kilogram of cargo weight.
How does the Bill impact small exporters?
Small exporters benefit from clearer rules, stronger cargo protection, and faster dispute resolution, making international trade easier.
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