Carriage of Goods by Sea Act, 2025 repeals century old law to make India’s shipping sector future- ready

On 8-8-2025, the Ministry of Law and Justice issued the Carriage of Goods by Sea Act, 2025 to provide for the responsibilities, liabilities, rights and immunities attached to carriers with respect to the carriage of goods by sea and for matters relating to it.

The Carriage of Goods by Sea Bill, 2025 was introduced in the Parliament on 9-8-2024 by the Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, passed by Lok Sabha on 28-3-2025 and passed by Rajya Sabha on 6-8-2025. It received President’s assent on 8-8-2025.

Key Points:

1. This Act repeals a century- old colonial-era law, the Carriage of Goods by Sea Act, 1925, with updated legislation designed to promote ease of doing business and make India’s shipping sector future- ready.
2. The Act applies to and in connection with the carriage of goods by sea in ships carrying goods from any port in India to any other port, whether in or outside India.
3. There can be no implied absolute undertaking in any contract to which applicable rules apply for carriage of goods by sea.
4. The Schedule of the Act lays down applicable rules relating to the Bills of Lading.
5. The Schedule outlines a special provision in maritime law regarding the carrier’s liability and responsibility for goods transported by sea under Article VI:

   • Special conditions:

     ✓ Carriers, shipmasters, agents, and shippers can make custom agreements about the carrier’s responsibilities and liabilities for specific goods;

     ✓ This agreement can also define the carrier’s rights and immunities;

   • These agreements will be valid only if:

     ♦ Does not conflict with public policy;

     ♦ Does not compromise the diligence expected by the carrier’s employees;

     ♦ No bill of lading has been issued;

     ♦ Terms are recorded in a non-negotiable receipt.

   • Article VI does not apply to regular commercial shipments.

   • Special cases covered under Article VI:

     ♦ Unique charter agreements;

     ♦ Special conditions of goods;

     ♦ Unusual circumstances surrounding the shipment.

6. Every bill of lading, or similar document of title, issued in India, which contains or is evidence of any contract to which the applicable rules apply, will contain an express statement that it is to have effect subject to the applicable rules laid down in the Schedule, as applied by this Act.
7. The Act promotes the use of electronic bills of lading, aiming to reduce paperwork and improve efficiency in shipping operations.
8. The Central Government will have the power to issue directions for carrying out the provisions of the Act.
9. The Central Government will also have the power to amend the Schedule of this Act.
10. This Act will not affect the provisions laid down in Merchant Shipping Act, 1958 under:
    • Section 331- Carriage of dangerous goods
    • Part X-A- Limitation of Liability