How to Bring and Defend Collision and Salvage Claims in China Under the Maritime Code 2026

The rules governing collision claims China now operate under a materially revised statutory framework, following the amendment to the Maritime Code adopted by the Standing Committee of the National People’s Congress on 28 October 2025 and taking effect on 1 May 2026. This guide sets out, in practitioner terms, how to bring and defend collision and salvage claims in China under that revised Code, covering eligibility, evidence preservation, ship arrest, limitation funds, salvage remuneration and wreck removal. It is written for shipowners, P&I clubs, insurers, shipmasters, salvors, cargo interests and the maritime litigators who advise them. The 2026 amendments recalibrate liability allocation, refine preservation-related rules, clarify salvage compensation and reshape limitation fund mechanics, so operational readiness matters more than ever.

Throughout, statutory positions should be confirmed against the official NPC text and current Supreme People’s Court practice before any step is taken.

Overview: the legal framework for collision claims China

China operates a specialised maritime court system with dedicated admiralty jurisdiction. Collision claims China are heard by the maritime courts (for example in Shanghai, Guangzhou and Tianjin), applying the Maritime Code as amended in 2025 and effective 1 May 2026, the Special Maritime Procedure Law, and the judicial interpretations and practice directions issued by the Supreme People’s Court. The statutory framework governs the substantive rights, fault-based apportionment of collision liability, salvage entitlement, wreck removal obligations and the right to limit liability, while the procedural rules govern arrest, security and enforcement.

The remedies available in a maritime collision China matter are broad. A claimant may seek ship arrest and property preservation, an order for security, substantive damages for hull, cargo and consequential loss, salvage remuneration or special compensation, and enforcement of judgments and awards. A respondent may resist arrest, challenge jurisdiction, post counter-security to secure release, dispute quantum with expert evidence and, critically, establish a limitation fund to cap exposure.

Legal framework and jurisdiction

Jurisdiction over collision claims China typically vests in the maritime court for the place of collision, the place where the colliding vessel first calls, the port of arrest, or the defendant’s domicile. Because arrest is often the first practical step, the port where the vessel can be intercepted frequently dictates forum. Where an incident occurs on the high seas or in a jurisdictional grey zone, the general principles reflected in UNCLOS may inform the analysis of applicable law and the reach of Chinese admiralty jurisdiction. The Special Maritime Procedure Law and Supreme People’s Court judicial interpretations supply the detailed procedural mechanics for arrest, preservation and the constitution of limitation funds.

What counts as a collision versus a salvage claim

A collision claim concerns liability for physical contact (or, in some cases, wash and interaction damage) between vessels and the resulting loss, hull damage, cargo loss, personal injury, pollution response costs and consequential losses. A salvage claim, by contrast, arises where a salvor renders voluntary and useful services to a vessel or property in danger, giving rise to remuneration or, where the environment is threatened, special compensation. The two frequently overlap: a collision commonly triggers salvage and wreck removal, so a single casualty can generate parallel collision, salvage and limitation proceedings before the same court.

Eligibility: who can bring or defend these claims

Standing in collision claims China extends to registered owners, demise and time charterers with an interest in the vessel or cargo, cargo owners and their subrogated insurers, salvors, and P&I clubs acting for their members. Respondents are typically the owners and charterers of the offending vessel, with salvors and search-and-rescue providers appearing as third parties or claimants in their own right. Confirming the correct legal owner at the outset is essential, because arrest and enforcement must target the right res and the right party.

Time limits and prescription

Time limits are strict and unforgiving. Practitioners should verify the applicable prescription period for collision and salvage actions against the current text of the Maritime Code, as the 2026 amendments should be checked for any change to limitation periods and the events that suspend or interrupt them. As a general matter, the filing of a substantive claim or an application for arrest can interrupt prescription, but the precise effect must be confirmed under the current Code. Missing the applicable deadline is one of the most common ways a meritorious claim is lost, so calendar the limitation date on first instruction and treat it as immovable until confirmed by local counsel.

P&I and insurer subrogation rights

P&I claims China frequently proceed by way of subrogation. Once a hull or cargo underwriter, or a P&I club, has indemnified its assured, it may seek recovery in accordance with the applicable law of subrogation, supported by a subrogation receipt or assignment. Chinese maritime courts will require documentary proof of the payment and the subrogation right, and a letter of authority where the club instructs local counsel directly. Early coordination between the club, the assured and local counsel avoids gaps in standing that a respondent will otherwise exploit.

Step-by-step procedure: bringing a collision claim

The following sequence reflects the practical order in which collision claims China are advanced through the maritime courts. Each numbered step should be read with the timeline table below, which sets out who typically leads and how long each stage takes.

1. Immediate preservation and evidence collection. Salvage of life and property takes priority, but evidence must be preserved in parallel. Secure the bridge audio and VDR data before it is overwritten, retain the deck and engine logs, photograph damage, download AIS tracks and take contemporaneous crew statements. VDR data in particular is time-sensitive and can be lost quickly.
2. Notify P&I and insurers; appoint local counsel. Notify the P&I club and hull underwriters immediately and instruct Chinese maritime counsel at the likely port of arrest. Prompt notification protects cover and allows the club to appoint surveyors and correspondents before the vessel sails.
3. Decide the forum. Identify the competent maritime court by reference to the place of collision, the port of arrest, the vessel’s first port of call or the defendant’s domicile. Forum choice affects local procedural practice, translation requirements and the speed of arrest decisions.
4. Apply for ship arrest or preservation. File the arrest application with the vessel particulars, evidence of the claim and the required security. Courts can decide an arrest application quickly, so the application must be filing-ready when the vessel is in port.
5. File the substantive claim and serve the defendant. Lodge the statement of claim with supporting documents, effect service, and apply for any interlocutory preservation of evidence or assets. Filing consolidates the claim.
6. Consider provisional measures. Either party may apply to establish a limitation fund or to arrange provisional security. For a respondent, constituting a limitation fund early can help channel claims into a single forum.
7. Evidence phase, hearings and expert opinion. Collision liability usually turns on expert evidence, naval architecture, collision reconstruction and quantum assessment. Appoint qualified experts early and ensure their methodology withstands scrutiny.
8. Judgment, enforcement and appeals. Following first-instance judgment, the successful party enforces against the res, the limitation fund or the security posted. Appeals to the higher people’s court can extend the overall timeline considerably.

Local practice at major ports

Practice varies between the maritime courts. The Shanghai, Guangzhou and Tianjin courts each handle high volumes of casualty work and have well-developed arrest procedures, but they may differ in translation and notarisation expectations, the speed of arrest decisions, and their approach to counter-security. Instructing counsel who regularly appears before the court seised of the matter is not a luxury; it materially affects the outcome of time-critical arrest applications.

Arrest, counter-security and tactical considerations

Ship arrest is among the most powerful tools in collision claims China. It secures the claim against a mobile asset and creates commercial pressure to provide security and negotiate. The Maritime Code and the Special Maritime Procedure Law set out the grounds for arrest and the security a claimant may be required to provide to obtain it; the 2026 amendments and current judicial practice should be checked for the applicable standard on counter-security and the release of arrested vessels.

How to apply for arrest, sample checklist

• Vessel identification. IMO number, registry extract and current ownership details to ensure the correct res is arrested.
• Evidence of the claim. Incident report, VDR extract, AIS data and a supporting statement establishing a prima facie collision claim.
• Claimant identity and authority. Corporate documents, power of attorney and, for P&I clubs, a letter of authority and subrogation proof.
• Claimant security. The court may require the claimant to provide security against wrongful arrest before the order issues.

Counter-security: what courts accept and timing

To release an arrested vessel, a respondent must provide security acceptable to the court. In practice this typically means a cash deposit, a bank guarantee, or a club letter of undertaking where the court and claimant accept it. The quantum is assessed case by case and generally reflects the reasonably arguable claim plus interest and costs. Arranging a bank guarantee can take between two and fourteen days, so a respondent facing arrest should engage its bank and club immediately to minimise the vessel’s detention.

Release and wrongful-arrest challenges

Once adequate security is in place, the court will normally order release. A respondent who considers the arrest wrongful, for example, arrest of the wrong vessel, an excessive security demand, or a claim that is time-barred, may challenge it and, in appropriate cases, seek damages for wrongful arrest. Speed matters on both sides: a claimant wants security locked in before the vessel sails, while a respondent wants release before demurrage and off-hire mount.

Required documents for collision claims China

The documentary requirements in collision and salvage matters are demanding. Foreign-language documents must generally be translated into Chinese, and many require notarisation and, depending on origin, authentication or apostille (China acceded to the Apostille Convention, with effect from November 2023). Assemble the file early: courts move quickly on arrest but will not compromise on documentary completeness for the substantive claim.

A short practical note on authentication: because notarisation and authentication of foreign documents can take longer than the arrest window itself, prepare powers of attorney and corporate authority documents in advance where a casualty is anticipated or ongoing. A collision claim evidence checklist and drafting templates can be assembled ahead of time so that the file is ready the moment a vessel is in port.

Limitation fund: establishment, administration and contesting

The right to limit liability is a cornerstone of maritime law, and the limitation fund China regime is central to defending collision claims China. By constituting a fund, a shipowner or other person entitled to limit seeks to cap its aggregate exposure and channel claims arising from the incident into a court-supervised process. The 2026 amendments revise aspects of establishment, notice and administration, so the current statutory provisions must be checked before constitution.

Calculation of the limitation sum

The limitation sum is calculated by reference to the vessel’s tonnage and the statutory units of account applicable to the claim category, with distinct treatment for property claims and claims for loss of life or personal injury. The 2026 revision should be reviewed for any change to the applicable figures and the categories of claim caught by, or excluded from, limitation. The precise calculation is a matter for the competent maritime court on the evidence, but an early indicative calculation allows a respondent and its club to budget the deposit.

Procedure to lodge claims against the fund

Once a fund is constituted, the court issues notice to known and potential claimants, who must register their claims within the period fixed by the court. Claims are then verified and ranked, and distributions are made from the fund. A claimant who fails to register within the notice period risks exclusion from the distribution, so P&I clubs and cargo interests must monitor for the constitution of a fund and diarise the claims deadline immediately.

Practical timeline and best practice for P&I clubs

For a respondent club, early constitution of a limitation fund can be an effective defensive move: it may help channel multiple claims into a single forum, provide certainty on maximum exposure and shift the litigation onto more favourable procedural ground. For a claimant, the key is vigilance, respond to fund notices promptly, scrutinise the tonnage calculation, and contest the right to limit where the conduct barring limitation may be arguable.

Salvage, wreck removal and remuneration: how to claim and defend

Salvage claims China arise where services are rendered voluntarily to a vessel or property in danger with a useful result. The 2026 amendments are reported to strengthen the treatment of environmental salvage and clarify special compensation, reflecting the increasing policy weight given to pollution prevention. Salvors, owners and their insurers all need to understand how remuneration is proved and assessed under the revised Code.

Claiming salvage remuneration, proof and assessment

To recover salvage remuneration, a salvor must establish a maritime property in danger, voluntary services and a useful result, supported by the salvage agreement (frequently an LOF), salvage reports, evidence of the services rendered and the resulting value salved, and invoices. Where quantum is disputed, expert evidence on the value salved and the degree of danger will drive the assessment. Special compensation may be available where the salvor prevented or minimised environmental damage, and the 2026 amendments should be checked for the treatment now afforded to environmental salvage.

Wreck removal: state powers, owner obligations and enforcement

The revised Code addresses wreck removal China obligations, including the owner’s duty to remove or mark a wreck, the powers of the maritime authorities where the owner defaults, and the mechanism for recovering the cost of removal. Owners and their clubs should engage with the China Maritime Safety Administration early, because the authorities may act to remove a wreck that obstructs navigation or threatens the environment and then pursue the owner for the cost. Clear allocation of responsibility at the outset, and prompt engagement with the MSA, are the best protection against escalating, unrecoverable removal costs.

Timeline and deadlines in collision claims China

The Step / Who / Duration table above sets out the practical rhythm of a claim. The critical time-sensitive points are worth restating:

• Evidence preservation. Immediate, VDR and bridge data may be lost quickly if not secured.
• Arrest application. Must be filing-ready while the vessel is in port; courts often decide within a few days.
• Counter-security. Two to fourteen days to arrange a bank guarantee, begin at once to limit detention.
• Limitation fund claims. Register within the notice period fixed by the court or risk exclusion.
• Prescription. Verify the applicable limitation period against the current Maritime Code and treat it as immovable.

From arrest to first-instance judgment, a contested matter typically runs to several months; enforcement and appeals can extend the process to one or two years depending on complexity and whether a limitation fund is constituted.

Costs, fees and security

Cost budgeting is essential, particularly for P&I clubs sharing costs across members. Court acceptance fees for civil claims are set on a progressive scale by reference to the amount claimed under the applicable Measures on Litigation Costs; counsel and expert fees are matters of private agreement and vary widely. The items below are indicative categories rather than fixed figures, confirm current court fees and any locally applicable charges with the competent maritime court and local counsel.

What changed in 2026: practical effects of the Maritime Code revision

The amendment adopted on 28 October 2025 and effective 1 May 2026 is the first comprehensive revision of the Maritime Code since it entered into force in 1993, and it reshapes several areas that directly affect how collision claims China are brought and defended. Among the reported changes are those concerning liability allocation, preservation-related rules, salvage remuneration, wreck removal and limitation fund mechanics. The comparison below summarises the direction of travel at a high level; the operative text of each amended article should be confirmed against the NPC source before reliance.

The likely practical effect, in the assessment of industry commentators, is a more predictable arrest and security environment, stronger incentives for environmentally responsible salvage, and firmer state tools for wreck removal cost recovery. Clubs and owners who update their casualty response playbooks to reflect the revised limitation and wreck removal provisions will be best placed to control exposure.

Common pitfalls and defensive tactics

Most failures in collision claims China are avoidable and stem from delay or documentary gaps rather than the merits.

• Poor evidence preservation. Losing VDR or bridge data undermines causation before the claim even begins, secure it early.
• Delayed P&I notification. Late notice can prejudice cover and delay the appointment of surveyors and counsel while the vessel sails out of reach.
• Incomplete authority documents. Missing or un-notarised powers of attorney stall time-critical arrest applications.
• Insufficient or excessive counter-security. A respondent that under-secures risks continued arrest; a claimant that over-demands risks a wrongful-arrest challenge.
• Missing the limitation fund claims deadline. Failing to register within the court’s notice period can exclude a claimant from any distribution.

Defensive tactics for respondents are equally clear: challenge jurisdiction early where it is arguable, arrange counter-security quickly to secure release, negotiate a proportionate release, constitute a limitation fund to cap exposure, and contest quantum with credible expert evidence. For guidance tailored to respondents, an arrest defence and wrongful arrest resource sets out the tactical detail.

Conclusion

Bringing and defending collision claims China under the Maritime Code 2026 rewards speed, documentary discipline and forum awareness. The revised Code, effective 1 May 2026, is reported to strengthen preservation-related rules, clarify salvage remuneration and wreck removal, and revise limitation fund mechanics, so casualty response playbooks should be updated now. Preserve evidence early, notify your P&I club and instruct local counsel immediately, prepare arrest and authority documents in advance, and treat prescription and fund-claim deadlines as immovable. For case-specific advice, a China, Shipping & Maritime practice area team can assist. Because the legislation is time-sensitive and practice varies between maritime courts, confirm every statutory position against the official NPC text and current court practice before acting.

Sources

1. National People’s Congress (NPC), legislative texts
2. Ministry of Transport of the PRC (MOT)
3. China Maritime Safety Administration (MSA)
4. Supreme People’s Court of the PRC
5. China Judgments Online
6. International Maritime Organization (IMO)
7. United Nations, Division for Ocean Affairs and the Law of the Sea