Author: Devesh Raj
To the Point
The Carriage of Goods by Sea Act, 2025 represents a watershed moment in India’s maritime legal evolution, replacing the antiquated Indian Carriage of Goods by Sea Act, 1925. This landmark legislation, which received Presidential assent on August 8, 2025, fundamentally transforms India’s approach to maritime commerce by harmonizing domestic law with internationally accepted standards, particularly the Hague-Visby Rules.
The Act’s primary objective centers on modernizing India’s maritime cargo regulations while maintaining alignment with global conventions. The legislation specifically incorporates the International Convention for the Unification of Certain Rules of Law relating to Bills of Lading of August 1924 (Hague Rules) and its subsequent amendments through the Visby Protocols of 1968 and 1979. This integration ensures that Indian maritime law operates within the established international framework, facilitating smoother cross-border transactions and reducing legal uncertainties for international shipping companies.
Key Provisions and Transformative Elements
The 2025 Act introduces several revolutionary changes that distinguish it from its colonial predecessor. Foremost among these is the explicit promotion of electronic bills of lading, positioning India at the forefront of digital maritime documentation. This technological advancement aligns with contemporary shipping practices and significantly reduces paperwork burdens while improving operational efficiency.
The legislation establishes comprehensive liability frameworks that clearly delineate the responsibilities of carriers, shippers, and consignees. Under the new regime, carriers bear enhanced accountability for the safe and timely delivery of cargo, while specific provisions protect shipper interests through defined compensation mechanisms. The Act’s in rem and in personam provisions enable effective dispute resolution, allowing claimants to pursue remedies against both vessels and their owners.
International Harmonization and Compliance
The Act’s alignment with the Hague-Visby Rules represents a strategic move to position India as a globally compliant maritime jurisdiction. Countries including the United Kingdom, Belgium, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Sweden, Japan, and Singapore already operate under these rules. By adopting similar standards, India eliminates legal barriers that previously complicated international shipping arrangements.
Article III of the incorporated rules mandates that carriers maintain vessel seaworthiness, ensure proper cargo handling, and issue accurate bills of lading. These requirements, now embedded in Indian law, provide enhanced protection for cargo owners while establishing clear operational standards for shipping companies. The Act also incorporates Article VI provisions allowing special agreements between carriers and shippers for specific cargo categories, provided such arrangements comply with public policy requirements.
Liability and Rights Framework
The legislation establishes a balanced approach to carrier liability, incorporating internationally recognized limitation principles while ensuring adequate protection for cargo interests. Under the new framework, carriers cannot escape liability through blanket exclusions but may limit damages according to established international formulas. This approach protects both shipping companies from excessive claims and cargo owners from arbitrary liability exclusions.
The Act specifically addressesmmand provides mechanisms for their enforcement through vessel arrest procedures. When combined with the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017, these provisions create a comprehensive framework for securing maritime claims. The legislation empowers High Courts to exercise admiralty jurisdiction over foreign vessels within Indian territorial waters, ensuring effective enforcement of cargo claims.
Digital Transformation and Modernization
A significant innovation within the 2025 Act involves the recognition and promotion of electronic documentation systems. The legislation acknowledges that modern shipping increasingly relies on digital platforms for documentation, tracking, and compliance. By explicitly accommodating electronic bills of lading, the Act reduces administrative burdens and accelerates cargo processing times.
The digital transformation extends beyond mere documentation to encompass comprehensive cargo tracking and monitoring systems. These technological integrations align with international best practices and position Indian ports as technologically advanced hubs capable of handling complex multinational shipping operations.
Regulatory Flexibility and Government Powers
The Act grants the Central Government significant authority to adapt regulations as maritime practices evolve. Section provisions authorize the government to issue directions for Act implementation and amend the Schedule containing rules applicable to bills of lading. This flexibility ensures that Indian maritime law can respond promptly to changing international standards and commercial practices.
The government’s power to modify regulations through notifications, rather than requiring new parliamentary legislation, provides administrative efficiency while maintaining appropriate oversight through parliamentary laying requirements. This approach balances regulatory responsiveness with democratic accountability.
Industry Impact and Commercial Implications
The legislation’s commercial impact extends across multiple industry sectors, from traditional cargo shipping to modern containerized transport. Exporters, importers, shipping companies, and marine insurers all benefit from the enhanced legal clarity and international compatibility. The Act’s provisions facilitate smoother dispute resolution, reducing litigation costs and uncertainties that previously plagued international shipping arrangements.
For India’s ambitious maritime development goals, including the target of handling 230 million metric tonnes of coastal cargo by 2030, the 2025 Act provides essential legal infrastructure. The legislation supports the government’s broader vision of “Viksit Bharat” and “Aatmanirbhar Bharat” by creating a modern, efficient maritime legal framework.
Integration with Broader Maritime Reforms
The Carriage of Goods by Sea Act, 2025, forms part of a comprehensive maritime legal overhaul that includes the Merchant Shipping Bill, 2025, and the Coastal Shipping Act, 2025. Together, these legislations modernize India’s entire maritime regulatory framework, replacing colonial-era laws with contemporary statutes aligned with international standards.
This integrated approach ensures consistency across different aspects of maritime law while eliminating contradictions and gaps that previously existed between various statutory regimes. The coordinated reform process demonstrates the government’s commitment to creating a coherent, modern maritime legal system capable of supporting India’s growing role in global shipping.
Legal Jargon Used in Article
In Rem – Legal proceedings against property (vessel) rather than against a person, allowing courts to exercise jurisdiction over ships within territorial waters
In Personam – Legal proceedings against a specific person or entity, holding them personally liable for maritime obligations
Maritime Liens – Security interests in vessels that provide creditors with preferential claims against ships for services rendered or damages caused
Admiralty Jurisdiction – Legal authority of courts to hear and determine maritime disputes involving vessels, cargo, and navigation matters
Hague-Visby Rules – International convention governing bills of lading and establishing carrier liability standards for sea cargo transportation.
The Proof
The effectiveness and necessity of the Carriage of Goods by Sea Act, 2025, find substantial support in parliamentary proceedings and expert analysis. The legislation’s passage through both houses of Parliament demonstrates broad political consensus on maritime reform urgency. The Lok Sabha approved the Bill on March 28, 2025, followed by Rajya Sabha passage on August 6, 2025, indicating comprehensive legislative scrutiny and support.
Union Minister Sarbananda Sonowal’s parliamentary statements emphasize the Act’s role in promoting “ease of doing business” and eliminating colonial-era legal barriers. The Minister specifically highlighted how the century-old 1925 Act had become inadequate for contemporary maritime commerce, necessitating comprehensive modernization aligned with international conventions.
International maritime law experts recognize the Hague-Visby Rules as the global standard for cargo liability, with over 80 countries implementing similar frameworks. India’s adoption of these rules eliminates legal incompatibilities that previously complicated international shipping arrangements, particularly with major trading partners like the United Kingdom and European Union countries.
The shipping industry’s positive response to the legislation reflects its practical benefits. Maritime lawyers note that the Act’s clarity regarding electronic bills of lading addresses long-standing digitalization challenges in Indian shipping. The legislation’s liability provisions, based on internationally tested frameworks, provide predictable legal outcomes that facilitate commercial planning and risk management.
Statistical evidence from the Ministry of Ports, Shipping and Waterways indicates that modern maritime legislation correlates with increased shipping volumes and port efficiency. Countries with updated maritime laws consistently demonstrate higher shipping industry performance and international trade facilitation metrics.
Abstract
The Carriage of Goods by Sea Act, 2025, represents India’s most significant maritime legal reform in a century, replacing the colonial-era Indian Carriage of Goods by Sea Act, 1925. This comprehensive legislation aligns Indian maritime law with international standards, specifically incorporating the globally recognized Hague-Visby Rules governing bills of lading and carrier liability. The Act addresses contemporary shipping challenges through provisions for electronic documentation, enhanced liability frameworks, and streamlined dispute resolution mechanisms.
Key innovations include explicit recognition of electronic bills of lading, balanced carrier liability provisions, and integration with existing admiralty jurisdiction frameworks. The legislation empowers the Central Government to adapt regulations through notifications while maintaining parliamentary oversight, ensuring responsive governance of evolving maritime practices. The Act’s digital transformation initiatives position India’s shipping sector for technological advancement and operational efficiency improvements.
The legislation forms part of a broader maritime reform initiative alongside the Merchant Shipping Bill, 2025, and Coastal Shipping Act, 2025, creating a comprehensive modern maritime legal framework. This coordinated approach eliminates regulatory fragmentation while establishing India as a globally compliant maritime jurisdiction. The Act specifically targets India’s goal of handling 230 million metric tonnes of coastal cargo by 2030, supporting broader economic development objectives under “Viksit Bharat” and “Aatmanirbhar Bharat” initiatives.
Commercial implications extend across shipping, insurance, and international trade sectors, with enhanced legal clarity facilitating smoother business operations and reduced litigation risks. The Act’s international compatibility eliminates barriers to cross-border shipping arrangements, particularly with countries already operating under Hague-Visby frameworks. Parliamentary passage through both houses demonstrates broad political consensus on the reform’s necessity and effectiveness for India’s maritime sector modernization.
Case Laws
M.V. Elisabeth v. Harwan Investment & Trading Pvt. Ltd. (1993) Supp (2) SCC 433 established fundamental principles of admiralty jurisdiction in India, declaring that “maritime law is as much a part of the general legal system as any other branch of the law”. The Supreme Court’s landmark judgment confirmed that Indian High Courts possess plenary admiralty jurisdiction over foreign vessels within territorial waters, regardless of defendant’s residence or business location. This case provides the jurisdictional foundation for enforcing the 2025 Act’s provisions against international shipping companies.
M/s MV Nordlake GmbH v. Union of India (Comm. Admiralty Suit No.14 of 2014) demonstrated the Bombay High Court’s application of international maritime conventions in limiting shipowner liability under Part XA of the Merchant Shipping Act, 1958. The court’s decision to grant limitation rights to foreign vessel owners illustrates how Indian courts integrate international maritime law principles with domestic legislation, providing precedent for implementing the 2025 Act’s Hague-Visby Rules provisions.
Oil & Natural Gas Corporation Ltd. v. SAIBOS Offshore Ltd. (2005) 6 SCC 454 reinforced the principle that vessel presence within territorial waters suffices for admiralty jurisdiction exercise. This Supreme Court ruling supports the 2025 Act’s enforcement mechanisms by confirming courts’ authority to adjudicate maritime claims against vessels within Indian waters, regardless of cargo origin or destination.
Videsh Sanchar Nigam Ltd. v. MV Kapitan Kud (1996) 7 SCC 127 clarified that vessel arrest requires physical presence within territorial waters at the time of legal proceedings. This case law supports the 2025 Act’s in rem provisions by establishing clear jurisdictional requirements for vessel detention in cargo liability disputes.
Conclusion
The Carriage of Goods by Sea Act, 2025, represents a transformative achievement in Indian maritime legislation, successfully bridging the gap between domestic law and international shipping norms. By incorporating the globally recognized Hague-Visby Rules framework, the legislation positions India as a modern, compliant maritime jurisdiction capable of facilitating seamless international trade operations. The Act’s comprehensive approach to carrier liability, shipper protection, and digital transformation addresses contemporary shipping industry challenges while maintaining compatibility with international legal standards.
The legislation’s emphasis on electronic bills of lading and streamlined procedures demonstrates India’s commitment to technological advancement in maritime commerce. These innovations, combined with enhanced dispute resolution mechanisms and clear liability frameworks, create an environment conducive to business growth and international shipping expansion. The Act’s integration with broader maritime reforms, including the Merchant Shipping Bill, 2025, and Coastal Shipping Act, 2025, establishes a cohesive legal framework supporting India’s maritime sector modernization goals.
From a legal perspective, the 2025 Act eliminates decades of uncertainty surrounding cargo liability and international shipping arrangements. The incorporation of established international principles provides predictable legal outcomes that facilitate commercial planning and risk management. The legislation’s flexible governance provisions ensure that Indian maritime law can adapt to evolving global practices while maintaining democratic oversight and accountability.
The Act’s successful parliamentary passage reflects broad consensus on the necessity of maritime legal reform and confidence in the legislation’s ability to serve India’s growing role in global shipping. As India pursues its vision of becoming a leading maritime nation, the Carriage of Goods by Sea Act, 2025, provides the essential legal infrastructure necessary to achieve these ambitious objectives while maintaining international compatibility and commercial effectiveness.
FAQs
Q1: What is the main purpose of the Carriage of Goods by Sea Act, 2025?
The Act modernizes India’s maritime cargo laws by replacing the century-old 1925 legislation with contemporary provisions aligned with international Hague-Visby Rules. It establishes clear liability frameworks for carriers and shippers while promoting digital documentation and enhancing dispute resolution mechanisms for international shipping transactions.
Q2: How does the 2025 Act differ from international maritime law standards?
The Act specifically incorporates the Hague-Visby Rules, making Indian law compatible with international standards followed by over 80 countries. This alignment eliminates legal barriers in cross-border shipping arrangements and provides predictable liability outcomes consistent with global maritime practices, particularly benefiting trade with Europe and other major shipping nations.
Q3: What are the implications for electronic bills of lading under the new Act?
The 2025 Act explicitly recognizes and promotes electronic bills of lading, representing a significant technological advancement over the previous paper-based system. This provision reduces administrative burdens, accelerates cargo processing times, and aligns Indian shipping practices with contemporary digital commerce requirements used by major international ports.
Q4: How does the Act affect carrier liability and shipper protection?
The legislation establishes balanced liability frameworks that protect cargo owners while providing reasonable limitation provisions for carriers. Carriers must maintain vessel seaworthiness and proper cargo handling standards, while shippers receive enhanced protection through defined compensation mechanisms and clear recourse procedures for cargo damage or loss claims.
Q5: What enforcement mechanisms does the Act provide for maritime claims?
The Act integrates with admiralty jurisdiction frameworks to enable vessel arrest procedures and in rem actions against ships within Indian territorial waters. These enforcement mechanisms, supported by established case law including M.V. Elisabeth v. Harwan Investment, ensure effective recovery of maritime claims regardless of vessel ownership nationality or registration status.
