China's new maritime code is changing the legal landscape for international shipping

China's most significant revision of its Maritime Code in more than 30 years is beginning to reshape the way international sea freight is managed. Although the new legislation came into force on 1 May, its practical implications are only now becoming clear as carriers, NVOCCs and legal teams assess how the changes affect contracts, liability and day-to-day operations.

The revised code introduces mandatory legal provisions for international sea freight contracts involving a Chinese port of loading or discharge. Crucially, these provisions apply regardless of whether a contract specifies another country's law, meaning businesses cannot simply rely on existing contractual arrangements to avoid the new requirements.

For carriers moving cargo through China, the changes represent a fundamental shift in how risk and responsibility are allocated.

The changes have also prompted wider discussion about future trading practices. Some industry specialists believe the revised liability framework could encourage more exporters to favour Cost, Insurance and Freight (CIF) terms over Free on Board (FOB), allowing Chinese sellers to retain greater control over freight procurement, insurance and, where disputes arise, legal proceedings within China.

However, any move from FOB to CIF would be driven by commercial negotiation rather than the legislation itself. Incoterms remain internationally recognised standards, and the revised Maritime Code does not prevent UK importers from continuing to purchase on FOB terms where they wish to control the main carriage, select their own carrier and negotiate freight rates directly.

In practice, FOB remains a perfectly valid option for China–UK trade, provided the sales contract and the conduct of both parties clearly reflect that allocation of responsibilities.

Existing contracts may need reviewing

Many international shipping contracts have traditionally relied on governing law clauses that specify another legal jurisdiction. Under the revised Maritime Code, however, certain provisions now apply automatically whenever cargo moves through a Chinese port.

This means carriers and NVOCCs may need to review standard trading conditions, bills of lading and contractual documentation to ensure they remain compliant and that liability is appropriately managed.

For multinational operators, the exercise extends beyond legal wording. Internal processes, documentation systems and operational procedures may also require revision to reflect the new legal framework.

One of the most significant changes concerns the long-established fire defence available to carriers. Previously, the exemption could apply more broadly in certain circumstances. Under the revised code, however, carriers can only rely on that defence where a fire occurs on board the vessel itself. Incidents occurring within terminals, container yards or during inland transport may no longer benefit from the same legal protection.

The change reflects growing concern over cargoes that present a higher fire risk, including electric vehicles and lithium batteries, which now account for an increasing proportion of China's export trade.

For carriers and NVOCCs, the result is potentially greater liability exposure across the wider transport chain.

Bills of lading become even more important

The legislation also introduces new requirements covering cargo carried on deck. Where containers are stowed above deck rather than within the vessel's holds, this must now be identified on the bill of lading. Failure to do so could result in carriers losing important legal protections if claims arise.

While the requirement appears straightforward, implementing it may prove considerably more challenging.

Container stowage is often confirmed after shipping documentation has been prepared, meaning carriers and NVOCCs may need to redesign documentation processes and improve the flow of operational information between terminals, stevedores and documentation teams.

Greater responsibilities for NVOCCs

The revised code also has important implications for NVOCCs issuing their own multimodal bills of lading.

Depending on the contractual role they assume, they may be treated as the shipper or as the multimodal transport operator, bringing additional responsibilities for cargo claims, unclaimed goods and liens.

The changes reinforce the importance of clearly defining contractual roles and maintaining accurate records throughout the transport journey. Preserving evidence of where any loss or damage occurs will become increasingly important when liability needs to be determined.

A broader change in international shipping

Not every aspect of the revised legislation increases exposure. The period before unclaimed cargo may be auctioned has been extended to 60 days after vessel arrival, providing cargo interests with additional time to resolve documentation or commercial issues before goods can be sold.

Taken together, however, the reforms represent one of the most significant legal developments affecting international shipping through China in decades.

Rather than simply updating legislation, the revised Maritime Code is likely to influence how contracts are written, how shipping documentation is prepared and how operational risk is managed across global container supply chains for years to come.

International shipping regulations continue to evolve, making accurate documentation and proactive compliance more important than ever. Logicall helps businesses manage international freight with expert logistics support, reliable shipment visibility and close coordination across the supply chain, helping minimise risk while keeping cargo moving efficiently.