China’s revised Maritime Code came into effect on 1 May 2026, marking the first major overhaul of Chinese shipping law since 1993..
The revised Code has 16 chapters and 310 articles covering ships, crew, carriage of goods, passenger carriage, charterparties, towage, collision, salvage, general average, limitation of liability, marine insurance, oil pollution, and foreign-related maritime law..
This article is about the changes that matter most to international trade, especially cargo moving to or from Chinese ports, and on the key provision for cargo interests – Article 295..
Article 295 states*:
“The parties to a contract may choose the law applicable to the contract, except where the law provides otherwise. Where the parties to the contract have not made a choice, the law of the country with the closest connection to the contract shall apply.
For an international contract of carriage of goods by sea where the port of loading or the port of discharge is located within the territory of the People’s Republic of China, the provisions of Chapter IV of this Law shall apply.”
Chapter IV deals with carriage of goods by sea.. For traders, carriers, banks, insurers, freight forwarders, and cargo interests, Article 295 matters because it connects China’s cargo carriage rules to international shipments where the port of loading or discharge is in China..
Key changes and trade impact
Time limits
Under English law and the Hague or Hague-Visby framework, cargo claims are generally subject to a one-year time bar from delivery, or from the date when delivery should have taken place..
A letter of claim, negotiation, or survey report will not usually stop time by itself.. The claimant normally has to commence proceedings or obtain a valid time extension..
Under the revised Chinese Maritime Code, the one-year period remains, but the limitation period may be interrupted by a demand for performance, such as a letter of claim.. Once interrupted, the period may run afresh..
For example, if a receiver sends a claim letter on day 300, the time could reset from that point..
This may provide more time for cargo interests to assess surveys, discharge records, loss calculations, and supporting evidence.. For carriers, it may extend claims uncertainty if the demand is valid under Chinese law..
Carrier obligations, receipt, and delivery
The revised Code adds “receipt” and “delivery” to the carrier’s cargo care obligations.. The previous wording focused mainly on loading, shifting, stowing, carrying, keeping, caring for, and discharging the goods..
This makes the handover records, like gate-in records, seal numbers, container condition reports, terminal records, delivery instructions, release records, and discharge documents, more relevant in disputes involving loss, damage, or delivery..
The definition of actual carrier has also been expanded to include persons entrusted, or sub-entrusted, by the carrier to perform all or part of the cargo-handling obligations.. This may include terminal operators or other cargo-handling parties, depending on the facts..
Valuation of cargo loss and damage
The revised Article 56 changes how lost or damaged cargo is valued under Chinese law.. Under the revised Code, the starting point is now the market value at the place and time of delivery.. CIF value is used only if the market value cannot be determined..
For commodities, this matters.. Manganese, chrome, coal, iron ore, grain, chemicals, and similar cargoes can rise or fall in value during the voyage..
Shipowner limitation
Cargo package limitation and shipowner limitation should not be confused.. Cargo limitation deals with carrier liability for cargo loss or damage, while shipowner limitation deals with broader maritime claims under limitation regimes such as LLMC..
The revised Chinese Code raises shipowner limitation amounts to levels equivalent to the 1996 LLMC Protocol, even though China is not a party to the LLMC Convention..
This affects the wider exposure of shipowners and other qualifying parties for limitation claims..
The Code also extends the parties entitled to limit liability to ship managers and voyage charterers, including slot charterers..
What this means for cargo claims
Cargo claims are rarely decided by one document.. A shortage claim may involve draft surveys, shore scale figures, bill of lading quantities, discharge records, moisture allowances, sampling reports, and tally records..
A damage claim may involve packing, stowage, ventilation, container condition, weather exposure, discharge reports, photographs, and survey evidence..
A delivery dispute may involve who held the bill of lading, who demanded delivery, whether the original bill was produced, who released the cargo, and when the claim was made..
The revised Code makes these records even more important because several changes focus on evidence, timing, handover, delivery, and valuation..
Where the change may help cargo interests
| Area | Why it may help cargo interests |
|---|---|
| Demand may interrupt the time limitation | Cargo interests may have more time to preserve their position if a valid demand interrupts the limitation period. |
| Receipt and delivery are expressly included | Claims involving loss, damage, or delivery issues before loading or after discharge may have a clearer statutory basis. |
| Wider actual carrier definition | Cargo interests may have more room to examine the role of terminals or handling parties involved in the cargo movement. |
| Market value at delivery | Where commodity prices rise before delivery, the destination market value may support a higher claim value, subject to proof and limitation. |
Where the change may increase risk
| Area | Risk for trade parties |
|---|---|
| Article 295 | Parties relying only on foreign law clauses in bills of lading may need to reassess how disputes involving Chinese ports could be handled. |
| Limitation interruption | Carriers may face longer claims uncertainty if limitation is validly interrupted by a demand. |
| Delivery market value | Commodity cargo claims may become more dependent on evidence of market price, date, grade, quality, and condition at the delivery point. |
| Receipt and delivery evidence | Weak handover records may create problems for carriers, terminals, forwarders, and cargo interests. |
| Uncollected cargo | Shippers may still face costs if the consignee does not collect the cargo, depending on the facts and whether proper notice is given. |
Commercial takeaway
Carriers should review their bill of lading terms, booking conditions, claims procedures, limitation tracking, and evidence captured at receipt and delivery..
Cargo interests should review their sale contracts, Incoterms, payment terms, insurance cover, documentary instructions, consignee reliability, cargo valuation evidence, and dispute clauses..
For financial institutions and insurers, the focus should be on the quality of the documents supporting the financed or insured shipment..
Main exposures include cargo value disputes, delayed or disputed delivery, uncollected cargo, limitation issues, and uncertainty around how a claim may be handled in China..
The revised Chinese Maritime Code is not only a legal update.. It changes how China-linked cargo should be reviewed, documented, insured, financed, and claimed..
