China Maritime Code 2026: Practical Guide for Carriers, Shippers and Insurers

Last updated: 18 May 2026

What the China Maritime Code 2026 Changes, and Who Must Act Now

The revised China Maritime Code, adopted by the Standing Committee of the National People’s Congress on 29 October 2025 and effective from 1 May 2026, represents the most sweeping overhaul of China’s maritime legislation since the original Code entered into force in 1993. The maritime code amendments restructure carrier liability, extend limitation periods for cargo claims, introduce updated cargo-valuation rules and impose compulsory liability insurance requirements on shipowners. For carriers, shippers, freight forwarders, marine insurers and P&I clubs operating in or through Chinese waters, the compliance window is open now, and the consequences of delayed action are material.

Every stakeholder in the carriage of goods by sea in China should treat the following five actions as immediate priorities:

• Review all bills of lading and contracts of carriage. Existing standard-form B/Ls may contain liability, jurisdiction and limitation clauses that conflict with mandatory provisions of the revised Code.
• Update claims-notice templates. New limitation periods and preservation requirements demand revised notice letters, with tighter internal deadlines for cargo claims in China.
• Verify insurance coverage limits. Compulsory liability insurance thresholds have been introduced; confirm that hull, cargo and P&I cover meets or exceeds the new statutory minimums.
• Re-map claims-handling workflows. Claims teams should recalibrate time-bar diaries, surveyor appointment protocols and subrogation procedures to reflect the new framework.
• Train operational and legal teams. Front-line staff, vessel agents, documentation clerks, claims handlers, need practical briefings on the changes before disputes crystallise under the new regime.

Overview of the Revised China Maritime Code, Scope, Structure and Key Legislative Dates

The revised Maritime Code China practitioners are now working under is the principal statute governing maritime commercial relationships in the People’s Republic of China. It replaces and substantially amends the 1992 Maritime Code, which had remained largely unchanged for over three decades despite significant shifts in global shipping practice, containerisation volumes and international convention frameworks.

Scope and Definitions

The Code applies to all maritime transport activities connected with the PRC, including contracts for the carriage of goods by sea, charter parties, maritime liens, ship collisions, salvage, general average, limitation of liability for maritime claims and marine insurance. Critically, the revised Code expands several key definitions, broadening the scope of “carrier” and “actual carrier” to capture logistics intermediaries and extending the geographic reach of the carriage contract from port-to-port to a “receipt to delivery” model for containerised cargo. This expansion aligns Chinese maritime law more closely with the Rotterdam Rules framework, although China has not formally ratified that convention.

Timeline of Adoption and Entry into Force

The legislative history of the maritime code amendments followed an accelerated timetable. The Ministry of Justice published the initial consultation draft in late 2023, followed by two rounds of public comment. The final text was adopted on 29 October 2025. A six-month transition period allowed industry participants to prepare before the 1 May 2026 effective date. P&I clubs and marine insurers began issuing member circulars from November 2025 onwards, with operational guidance continuing to emerge through mid-2026.

Carrier Obligations and the New Carrier Liability China Regime

The revised Code fundamentally re-draws the boundaries of carrier liability in China, extending the period of responsibility, introducing revised limitation amounts and clarifying the position of contracting carriers versus actual carriers.

When Carrier Responsibility Begins and Ends

Under the 1992 Code, carrier responsibility for containerised cargo ran from the time the goods were loaded onto the vessel to the time they were discharged, a “tackle-to-tackle” approach. The revised Code shifts to a “receipt to delivery” model for container shipments. This means the carrier is now responsible for the goods from the moment they are received at the container yard or terminal through to the point of delivery at the destination, including periods of storage and inland handling that were previously outside the carrier’s statutory duty of care.

For non-containerised cargo, the traditional port-to-port scope is retained, but the Code introduces new provisions addressing the carrier’s obligations during loading and discharge operations. Industry observers expect this to generate a significant increase in cargo claims in China for damage occurring during terminal handling, a category of loss that was frequently contested under the previous regime. Carriers should review their terminal-handling agreements and ensure that indemnity and contribution clauses adequately allocate risk under the new framework.

Limits of Liability and Valuation

The revised Code increases the per-package and per-kilogramme limits of liability for cargo damage and loss. The new limits are expressed in Special Drawing Rights (SDR) and represent a substantial uplift from the 1992 figures, bringing China closer to the thresholds set by the Hague-Visby Rules. Carriers relying on contractual limitation clauses below the statutory minima should note that such clauses are likely to be void under the mandatory provisions of the revised Code. Additionally, the Code introduces a compulsory liability insurance requirement for shipowners, broadly equivalent to the P&I cover mandate found in many European jurisdictions.

Contracting Parties and Privity Questions

The revised Code clarifies the relationship between the “contracting carrier” (the party named on the bill of lading) and the “actual carrier” (the party that physically performs all or part of the carriage). Both are now jointly and severally liable for cargo loss or damage occurring during the actual carrier’s period of performance. This has immediate implications for freight forwarders and NVOCCs operating in China, who may find themselves exposed as contracting carriers even where they do not own or operate vessels. The likely practical effect will be that intermediaries must secure adequate insurance and include clear back-to-back indemnity provisions in their sub-contracts.

A sample protective clause for contracting carriers might read:

“The Carrier’s liability under this Bill of Lading shall not exceed the mandatory limits prescribed by the Maritime Code of the People’s Republic of China as in force at the date of shipment. The Carrier reserves all rights of recourse against the Actual Carrier in accordance with Chapter IV of the Code.”

Limitation Periods and Claims Timing Under Maritime Law China, Practical Workflows

Understanding and complying with the revised limitation periods is arguably the single most urgent task for claims handlers, insurers and legal teams. The revised China Maritime Code adjusts several key deadlines and introduces new rules on the suspension and interruption of limitation.

Statutory Limitation Periods

The revised Code sets out the following principal limitation periods for maritime claims. These supersede the corresponding provisions of the 1992 Code and, for matters within their scope, take precedence over the general limitation rules of the PRC Civil Code.

Critically, the one-year period for cargo claims cannot be contractually shortened. Clauses in bills of lading purporting to impose shorter time bars, a common feature of some standard-form B/Ls, will be treated as void by Chinese maritime courts. The 90-day recourse period is new and creates a tight window for carriers to bring contribution claims after settling cargo losses.

How to Preserve Rights, Sample Notice Timelines and Checklist

The following three-step workflow is designed to ensure that limitation periods under maritime law in China are not inadvertently missed:

1. Step 1, Immediate inspection and notice (within 7 days of delivery). Upon taking delivery, the consignee or their agent must inspect the cargo and provide written notice of any apparent loss or damage to the carrier. For non-apparent damage, written notice must be given within 7 consecutive days of delivery (15 days for containerised cargo). Failure to give timely notice creates a rebuttable presumption that the goods were delivered as described in the transport document.
2. Step 2, Formal claim letter (within 6 months of delivery). A detailed written claim, accompanied by supporting documentation (survey reports, commercial invoices, packing lists), should be submitted to the carrier well within the one-year limitation period. Industry best practice is to file this within six months to allow time for negotiation before the limitation deadline.
3. Step 3, Commence proceedings or secure interruption (before limitation expires). If settlement is not reached, the claimant must file suit at a competent maritime court or commence arbitration (if the contract so provides) before the limitation period expires. Alternatively, the claimant may secure an interruption of limitation by obtaining written acknowledgment from the carrier or by filing a preservation application with the court.

Sample Claim Notice

The following template may be adapted for use in initial cargo claims under the revised Code:

“To: [Carrier / Agent name and address]
Re: Claim for cargo damage, B/L No. [●], Vessel [●], Voyage [●]
We hereby give notice pursuant to the Maritime Code of the People’s Republic of China that the cargo described above was found to be [damaged / short-delivered / lost] upon inspection at [port/location] on [date]. We attach the survey report dated [●] and reserve all rights to claim compensation for the full value of the loss, including consequential damages where applicable. Please acknowledge receipt and confirm your insurer’s details within 14 days.”

Cargo Valuation Under the China Maritime Code, Evidence, Calculation and Examples

When cargo claims in China proceed to quantum assessment, the revised Code establishes a clear hierarchy of valuation methods. Understanding how Chinese maritime courts approach cargo valuation is essential for insurers, adjusters and claimants alike.

Valuation Methods Accepted in Chinese Practice

The Code provides that the value of lost or damaged goods is to be determined by reference to: (a) the commercial invoice value at the time and place of shipment, plus freight and insurance; (b) the market price of goods of the same kind and quality at the time and place of delivery; or (c) such other evidence as the court considers reliable. Chinese maritime courts have historically given primacy to the CIF invoice value, treating it as the starting point for assessment. Where the goods are damaged rather than lost, the measure of loss is typically the diminution in value, the difference between the sound and damaged market values at the destination.

Documentary Evidence and Contested Valuations

To establish quantum, claimants should prepare a complete documentary evidence package. At a minimum, this includes the commercial invoice, the bill of lading, the insurance policy or certificate, the survey report (ideally from a joint survey), photographs, and any expert valuation report. Where the carrier contests the declared value, for example, alleging over-valuation or pre-shipment damage, Chinese courts will typically appoint a judicial appraiser. Early disclosure of supporting documents and proactive engagement with the carrier’s surveyor can significantly reduce the scope of disputed quantum.

Sample Calculation

Claims Handling in China, P&I Clubs, Insurers and Dispute Resolution

For P&I clubs and marine insurers, the revised China Maritime Code introduces both new obligations and new procedural opportunities. Early engagement with the revised framework is essential to protect members’ interests and manage claims costs.

Practical Steps for P&I Clubs and Insurers

P&I clubs operating in China should prioritise the following actions in response to the maritime code amendments:

• Issue a member circular. Notify all members trading to or from Chinese ports of the key changes, particularly the extended carrier responsibility period, the revised limitation amounts and the new compulsory insurance requirements.
• Review indemnity and subrogation clauses. Confirm that club rules and policy wordings are consistent with the revised Code’s provisions on insurer subrogation and direct action rights against insurers.
• Adjust survey protocols. The shift to a receipt-to-delivery model means that surveys at container yards and inland terminals, not just at the ship’s rail, are now critical to defending claims.
• Confirm coverage limits. The revised Code’s compulsory insurance thresholds must be met. Clubs should verify that their certificates of entry satisfy the new statutory requirements.
• Engage local correspondents early. Chinese maritime litigation moves quickly. Appointing local correspondents and Chinese-qualified maritime counsel before a dispute escalates is significantly more cost-effective than reactive engagement.

The Code’s provisions on direct action against insurers, allowing cargo claimants to proceed directly against the carrier’s liability insurer in certain circumstances, represent a notable shift. Early indications suggest that Chinese maritime courts may interpret these provisions broadly, and P&I clubs should prepare for an increase in direct claims.

China Ship Arrest, Security and Interim Measures

The revised Code retains and refines the ship arrest regime. A claimant may apply to a competent maritime court for the arrest of a vessel as security for a maritime claim. Applications for arrest are typically heard ex parte and can be processed within 48 hours. The Code permits arrest of the vessel involved in the dispute or, in certain circumstances, a sister ship owned by the same party. Claimants seeking a China ship arrest should be prepared to provide a counter-security undertaking and to file the substantive claim within 30 days of the arrest order, failing which the arrest will be lifted.

Litigation vs Arbitration Considerations

Chinese maritime disputes are heard by specialised maritime courts established in major port cities including Shanghai, Guangzhou, Qingdao, Tianjin, Wuhan, Dalian, Ningbo, Xiamen, Beihai and Haikou. These courts have dedicated maritime judges and well-established procedural frameworks. Where a valid arbitration clause exists, typically designating the China Maritime Arbitration Commission (CMAC) or a foreign arbitral institution, parties may instead resolve disputes by arbitration. Industry observers expect the revised Code to increase the caseload of both maritime courts and CMAC, as the expanded scope of carrier liability generates new categories of dispute.

Contracts of Carriage and Bills of Lading, Drafting to Manage New Risks

The revised China Maritime Code renders certain standard-form contract provisions ineffective. Carriers, freight forwarders and shippers must review and, where necessary, redraft their contractual documentation to ensure compliance.

Contract Clause Checklist

At a minimum, contracts of carriage and bills of lading should now include or be checked against the following requirements:

• Liability cap clause, must not set limits below the statutory minimum SDR thresholds prescribed by the revised Code.
• Period of responsibility clause, must reflect the “receipt to delivery” model for containerised cargo; any attempt to narrow the period to “tackle-to-tackle” will be void.
• Notice of claim provisions, should align with the Code’s 7-day (or 15-day for containers) notice requirements; do not impose shorter notice periods.
• Jurisdiction / arbitration clause, specify the competent maritime court or arbitral institution clearly; include a governing-law clause designating PRC law for voyages involving Chinese ports.
• Himalaya clause, extend the carrier’s defences and limitations to servants, agents and sub-contractors to manage the new joint and several liability exposure.
• Compulsory insurance warranty, confirm that the carrier maintains compulsory liability insurance as required by the Code.

Sample B/L Clause Redlines

The following clause adjustments reflect common redlines that industry observers expect to see in standard-form bills of lading issued after 1 May 2026:

Old clause: “The Carrier’s responsibility for the goods shall commence when the goods are loaded on board the vessel and shall cease when they are discharged from the vessel.”

Revised clause: “For containerised cargo, the Carrier’s responsibility shall commence at the time the Carrier receives the goods at the port of loading and shall cease at the time the goods are delivered at the port of discharge, in accordance with the Maritime Code of the People’s Republic of China. For non-containerised cargo, responsibility shall be as prescribed by applicable law.”

Old clause: “Any claim must be notified within 3 days of delivery.”

Revised clause: “Written notice of loss or damage must be given in accordance with the Maritime Code of the People’s Republic of China. For non-apparent loss or damage, notice must be given within 7 days of delivery (15 days for containerised cargo). No shorter notice period shall apply.”

Practical Checklist for Shippers, Carriers and Insurers, Immediate Next Steps

The following checklist consolidates the key compliance actions required under the revised China Maritime Code. Each item should be completed or initiated as soon as practicable:

• Audit all current bills of lading and contracts of carriage against the revised Code’s mandatory provisions.
• Update standard-form B/Ls to reflect the receipt-to-delivery responsibility period and revised notice requirements.
• Recalibrate limitation-period diaries and claims-management systems to reflect new deadlines (one-year cargo claims, 90-day recourse).
• Issue revised claims-notice templates to all offices, agents and correspondents.
• Verify that hull, cargo and P&I insurance coverage meets or exceeds the new compulsory liability insurance thresholds.
• Brief all operational staff, vessel agents, documentation clerks, terminal handlers, on the key changes.
• Appoint or confirm local maritime counsel in key Chinese port cities for rapid-response dispute management.
• Review terminal-handling agreements and inland-transport sub-contracts for adequate indemnity and risk-allocation clauses.
• Establish a joint-survey protocol for cargo received at container yards (not just at vessel discharge).
• Update subrogation and direct-action procedures in insurer and P&I club claim manuals.
• Monitor Supreme People’s Court guidance and judicial interpretations issued during the early enforcement period (May–August 2026).
• Schedule a compliance review with qualified Chinese maritime counsel within 90 days of the effective date.

Conclusion, Navigating the China Maritime Code 2026

The revised China Maritime Code represents a generational shift in the legal framework governing maritime commerce in the world’s largest trading nation. The transition from tackle-to-tackle to receipt-to-delivery responsibility, the uplift in limitation amounts, the tighter recourse deadlines and the introduction of compulsory liability insurance collectively demand proactive, systematic responses from every participant in the maritime supply chain. Carriers that delay updating their bills of lading risk exposure to liabilities they cannot contractually cap. Insurers and P&I clubs that do not adjust survey protocols and subrogation procedures face increased claims costs. Shippers that fail to understand the new notice requirements may lose the ability to recover cargo losses altogether. The compliance window is open, and it will not wait.

For a tailored review of your organisation’s exposure under the revised Code, contact Global Law Experts to connect with qualified maritime counsel in China.

Sources

1. Ministry of Justice, English notice of passage
2. English.gov.cn, Maritime Code text / summary
3. FAOLEX, Full Maritime Code PDF
4. Supreme People’s Court (English)
5. Japan P&I Club, Summary PDF on revised Code
6. Steamship Mutual, FAQs on the revised Code
7. Chambers Practice Guides, Shipping 2026 (China)
8. ICLG, Shipping Laws and Regulations (China)
9. Penningtons Manches Cooper, China’s Maritime Code 2026
10. Hellenic Shipping News, Key amendments to China’s new Maritime Code