Introduction
A significant piece of legislation, the Carriage of Goods by Sea Act, 2025, aims to modernize and improve the legal framework for the transportation of goods by sea. From ancient shipping practices to international conventions like the “Hague-Visby Rules” and “Hamburg Rules,” the Act builds on centuries of maritime law. The rapid advancements in global shipping, including containerization and digital technology, necessitated an updated approach, but these conventions established the fundamental principles for regulating sea freight. The Carriage of Goods by Sea Act, 2025 was passed by the Parliament on August 6th, 2025 and received the President’s assent on August 8th, 2025. In order to guarantee the continued expansion and effectiveness of international trade through Indian ports, this Act aims to address contemporary issues in maritime trade, including enhancing legal clarity regarding liability, damage, and loss of goods during transit.
Purpose of the Act
The Indian Carriage of Goods by Sea Act, 1925, which governed the responsibilities, liabilities, and rights of carriers in maritime trade, was modernized and streamlined as the primary objective of the Carriage of Goods by Sea Act, 2025. Outward cargo shipments from Indian ports continued to be governed by the 1925 Act, which was based on the Hague Rules of 1924 and was later amended by the Visby Rules in 1968 and 1979. However, because the Act was enacted prior to independence, it was necessary to align it with current legal standards and practices to guarantee clarity, simplicity, and ease of comprehension for contemporary maritime trade.
The updated provisions of Carriage of Goods by Sea Act, 2025 retain the core principles of the original legislation while incorporating necessary modifications to address contemporary challenges in international shipping. This legislation strengthens India’s position in the global shipping industry, enhances legal certainty for all stakeholders, and facilitates smoother maritime operations.
Key Features of the Act
- The Act aligns with international standards, particularly the Hague-Visby Rules, ensuring compliance with the International Convention for the Unification of Certain Rules of Law relating to Bills of Lading (Hague Rules) and its amendments.
- It empowers the Union government with the authority to issue directions and amend schedules concerning Bills of Lading, thereby streamlining maritime regulations to enhance business efficiency and trade-related matters.
- The Act simplifies legal language, improving accessibility and understanding for stakeholders involved in maritime trade.
- By specifying details in Bills of Lading and setting limitations on carrier liability, including exemptions and indemnities, the Act provides enhanced protection for shippers and consignees while ensuring clarity in responsibilities, rights, and liabilities for carriers.
key differences between the Carriage of Goods by Sea Act, 2025 and the Carriage of Goods by Sea Act, 1925 in India:
| Aspect | Carriage of Goods by Sea Act, 1925 | Carriage of Goods by Sea Act, 2025 |
|---|---|---|
| Purpose | To regulate the carriage of goods by sea, including liabilities and responsibilities of carriers, shippers, and consignees. | To modernize and update the legal framework for the carriage of goods by sea, aligning it with global best practices and new technological developments. |
| Scope | Applies to the carriage of goods by sea between Indian ports and foreign ports, and also between Indian ports. | Expands the scope to also cover multimodal transport and digital/electronic bills while still covering goods transported by sea. |
| Modernization | Limited updates since its enactment in 1925. | Designed to address current technological advancements, changes in global trade practices, and global shipping regulations. |
| Modernization and Alignment with International Conventions | This Act was primarily based on the Hague Rules of 1924. While it incorporated important principles, it did not fully align with subsequent amendments like the Visby Protocol. | The new Act aims to modernize India’s maritime law and align it with current international conventions and practices in the shipping industry.It reflects a more comprehensive understanding of the responsibilities, liabilities, rights, and immunities of carriers in sea transport, potentially encompassing later amendments to the Hague Rules. |
Conclusion
In conclusion, India’s maritime legal framework is significantly updated by the Carriage of Goods by Sea Act, 2025, which reflects the shifting landscape of global trade and shipping practices. The Act ensures that India’s shipping industry remains competitive and in line with international standards by addressing contemporary issues like digitalization, clearer liability standards, and the recognition of electronic Bills of lading. The provisions of the Act are intended to promote efficiency in maritime commerce by enhancing transparency, safeguarding the interests of shippers and carriers, and streamlining procedures for resolving disputes. As a whole, this law is a step toward strengthening India’s position as a major player in the global maritime sector and promoting trust and legal clarity in the sea freight industry.
Disclaimer
The information provided in this article is intended for general informational purposes only and should not be construed as legal advice. The content of this article is not intended to create and receipt of it does not constitute any relationship. Readers should not act upon this information without seeking professional legal counsel.