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Legal Insights | China’s New Maritime Code: Key Changes to Maritime Cargo Transportation Rules and Their Practical Implications

By Dolly (Xinyu) Hu
Director, International Trade & Logistics Practice
Beijing Dongwei (Shenzhen) Law Firm

China’s revised Maritime Code, effective May 1, 2026, modernizes cargo transportation rules, carrier liability, electronic transport records, and maritime dispute resolution. This article highlights the reforms that matter most for international traders, carriers, freight forwarders, insurers, and logistics businesses working with China.

From an international perspective, amendments to maritime legislation rarely affect only one jurisdiction. Changes to shipping rules often have broader implications for cross-border trade, supply chain finance, marine insurance, and international dispute resolution. As China's role in global commerce continues to expand, developments in Chinese maritime legislation are gradually becoming an important point of reference within the international maritime legal community.

At the same time, the maritime industry is undergoing profound transformation. Digital technologies are reshaping shipping operations, sustainable development has become a strategic priority, and international maritime conventions continue to evolve. Against this background, several provisions of China's current Maritime Code have become increasingly inadequate in addressing emerging commercial practices, aligning with international standards, and providing sufficient legal certainty for market participants.

On October 28, 2025, the Standing Committee of the 14th National People's Congress officially adopted the revised Maritime Code of the People's Republic of China (the "New Maritime Code"), which entered into force on May 1, 2026. Through a comprehensive modernization of the legal framework, the New Maritime Code responds to the practical needs of the shipping industry's high-quality development while strengthening China's ability to participate in the evolution of international maritime governance.

The revised legislation introduces significant developments in several key areas, including:

  • Greater harmonization between domestic and international maritime cargo transportation rules;
  • Enhanced carrier liability and cargo compensation mechanisms;
  • A modernized jurisdictional framework for maritime disputes;
  • Formal recognition of Electronic Transport Records (ETRs);
  • A clearer legal framework supporting the digital transformation of international shipping.

For international traders, freight forwarders, logistics companies, carriers, insurers, and legal practitioners, understanding these reforms will be critical to managing legal risks, structuring transportation agreements, and navigating cross-border maritime disputes under China's evolving legal framework.

This article examines the most significant changes introduced by the New Maritime Code, with particular focus on maritime cargo transportation, electronic transport records, liability allocation, and the practical implications for international trade and logistics.

I. Harmonizing Domestic and International Maritime Cargo Transportation Rules

1. Expanded Scope of Application and a Unified Carrier Liability Framework

One of the most significant reforms introduced by the New Maritime Code is the expansion of the scope of application for contracts of carriage by sea. Article 43 reflects the legislature's intention to gradually harmonize the legal framework governing domestic maritime transportation with that applicable to international carriage, reducing the historical distinction between the two systems.

This legislative approach promotes greater consistency in the application of maritime law and enhances legal certainty for businesses engaged in both domestic and cross-border shipping operations.

With respect to carrier liability, Chapter IV of the New Maritime Code retains the long-established fault-based liability regime founded upon the principle of presumed fault. Where cargo is lost or damaged during the carrier's period of responsibility, the carrier is presumed to be liable unless it can demonstrate that it exercised due diligence and took all reasonable measures required under the circumstances.

Although this is not an entirely new liability standard, the revised legislation further consolidates and systematizes the existing framework. The practical significance of this reform lies in two principal aspects:

  • promoting consistency between China's domestic maritime rules and internationally accepted carriage regimes;
  • reducing legal uncertainty arising from inconsistent liability standards, thereby creating a more balanced allocation of risks between carriers and cargo interests.

For multinational logistics providers and international traders, greater consistency in liability rules will facilitate contract drafting, claims management, and dispute resolution involving shipments connected with China.

2. Revised Cargo Valuation and Compensation Rules

(1) A More Commercially Oriented Approach to Damage Assessment

Article 56 of the New Maritime Code substantially revises the method for calculating compensation for cargo loss or damage.

Under the previous Maritime Code, compensation primarily focused on the value of the cargo at the time of loading. The revised legislation adopts a broader and more commercially realistic approach by taking into account not only the cargo's value but also other relevant transactional elements, including freight charges and insurance costs.

Rather than representing a simple technical adjustment, this amendment reflects a fundamental shift from a rigid valuation model toward one that more accurately compensates for the actual commercial loss suffered by the claimant.

From a practical perspective, this reform provides courts with greater flexibility when determining damages. Instead of relying exclusively on the pricing reflected in trade terms such as CIF or FOB, judges may now consider a wider range of commercial evidence in assessing the true economic value of the cargo.

This development is particularly significant in modern supply chains involving cross-border ecommerce, multitier distribution structures, and complex international transactions, where a single contractual price may no longer accurately represent the cargo's actual commercial value.

(2) Greater Flexibility in Cargo Valuation and Recoverable Losses

The New Maritime Code also introduces greater flexibility in determining cargo value by allowing courts to consider the commercial context of the transaction and market conditions at the destination, rather than relying solely upon the cargo's value at the time of loading.

While Article 56 does not expressly include lost profits as an automatically recoverable head of damages, the revised valuation methodology leaves greater room for claims involving reasonably foreseeable economic losses where such recovery is supported by contractual provisions and sufficient evidence.

This approach aligns more closely with the general principles governing contractual damages under the Civil Code of the People's Republic of China, particularly the doctrines of foreseeability and reasonableness.

Accordingly, claims for anticipated profits or other consequential losses are likely to depend upon:

  • the parties' contractual arrangements;
  • whether the losses were reasonably foreseeable at the time of contracting; and
  • the availability of persuasive documentary evidence demonstrating both causation and quantum.

As a result, parties engaged in international trade should place greater emphasis on drafting clear contractual provisions concerning damage calculations and maintaining comprehensive transactional records capable of substantiating future claims.

(3) Limitation of Liability

The New Maritime Code continues to adopt the internationally recognized limitation of liability regime based on the Special Drawing Right (SDR).

Unless a higher liability limit has been expressly agreed in writing, the carrier's liability remains limited to:

  • 666.67 SDR per package or shipping unit, or
  • 2 SDR per kilogram of the gross weight of the goods lost or damaged,

whichever amount is higher.

By maintaining consistency with internationally accepted limitation standards, the revised legislation enhances predictability for cross-border transportation and strengthens China's compatibility with the broader international maritime legal framework.

3. Jurisdiction and Dispute Resolution

The New Maritime Code further modernizes the jurisdictional framework governing maritime cargo disputes.

First, it expressly confirms the parties' autonomy to resolve disputes through either litigation or arbitration. At the same time, the legislation clarifies jurisdictional connecting factors, including the defendant's domicile and the destination of carriage, thereby reducing jurisdictional uncertainty and improving procedural efficiency.

Second, Article 44 formally recognizes the liability of the actual carrier. Cargo interests are therefore entitled to pursue claims directly against the actual carrier responsible for performing the transportation, rather than being limited to contractual claims against the contracting carrier.

From a procedural standpoint, where the actual carrier is named as a defendant, jurisdiction may be established based upon the ordinary jurisdictional rules applicable to that defendant. This expansion of available defendants broadens the avenues for legal relief while reducing enforcement risks for cargo owners and shippers.

In international shipping practice, jurisdiction clauses are frequently negotiated alongside governing law provisions. Together, these clauses often determine litigation costs, procedural efficiency, and ultimately the commercial outcome of a dispute.

By providing greater certainty regarding jurisdiction while preserving contractual autonomy, the New Maritime Code offers parties increased flexibility to design dispute resolution mechanisms that better reflect the commercial realities of international maritime transportation.

II. Electronic Transport Records: Advancing the Digital Transformation of Maritime Trade

One of the most significant innovations introduced by the New Maritime Code is the formal recognition of Electronic Transport Records (ETRs). As international trade increasingly embraces digital documentation, the establishment of a comprehensive legal framework for electronic transport records represents a major step toward the modernization of China's maritime legal system.

The new regime not only facilitates paperless trade but also aligns China's maritime legislation with the broader global trend toward digitalization in shipping and international commerce.

1. Legal Definition of Electronic Transport Records

Article 82 of the New Maritime Code formally defines an Electronic Transport Record as an electronic record issued by the carrier through electronic communication pursuant to a contract of carriage by sea. Such a record serves as evidence of both the existence of the contract of carriage and the carrier's receipt or loading of the goods.

From a functional perspective, Electronic Transport Records are intended to perform the same commercial functions traditionally fulfilled by paper bills of lading and other transport documents. Their formal recognition reflects the shipping industry's ongoing transition from paper-based documentation to digital trade documentation.

2. Legal Effect and Validity Requirements

The New Maritime Code adopts the principle of functional equivalence between electronic and paper transport documents.

Articles 82 and 84 expressly provide that an Electronic Transport Record meeting the statutory requirements shall have the same legal effect as its paper counterpart.

To obtain legal validity, an Electronic Transport Record must generally satisfy several key requirements.

Integrity of Information

The electronic record must contain all mandatory information required under the Maritime Code, including the description of the cargo, shipping marks, quantity, weight, and other essential transport particulars. The information must remain complete, reliable, and accessible throughout its lifecycle.

Identifiable Issuer

The issuing carrier must be capable of reliable identification. In practice, technologies such as digital signatures, electronic authentication mechanisms, and trusted timestamps may be used to verify the identity of the issuer and preserve the authenticity of the record.

Exclusive Control by the Holder

Perhaps the most important requirement is that the lawful holder must maintain exclusive control over the Electronic Transport Record.

Unlike paper bills of lading, whose possession is evidenced by physical delivery, electronic records require a reliable technological mechanism capable of identifying the person who exclusively controls the document at any given time.

For transferable Electronic Transport Records, Article 85 further requires that the electronic system ensure:

  • the uniqueness of the record;
  • the integrity of the electronic information;
  • the continuity of transfers; and
  • uninterrupted exclusive control by the lawful holder throughout the transfer process.

Accordingly, the legal validity of an Electronic Transport Record does not derive merely from its electronic form. Rather, its enforceability depends upon the reliability, security, authenticity, and controllability of the underlying electronic system.

3. Issuance, Transfer, and Conversion of Electronic Transport Records

The New Maritime Code adopts a party-autonomy approach toward the use of Electronic Transport Records.

Article 83 provides that Electronic Transport Records may be issued and used only where the parties have mutually agreed to adopt electronic documentation.

Where the Electronic Transport Record is transferable, any transfer of rights must be completed through a reliable electronic system capable of preserving both the continuity and uniqueness of the record throughout the transaction.

In addition, Article 86 permits the conversion between Electronic Transport Records and traditional paper transport documents, provided that all parties consent to the conversion and that the consistency, authenticity, and traceability of the underlying information are fully maintained.

This flexibility provides commercial parties with greater freedom to accommodate differing business practices while facilitating the gradual transition from paper documentation to digital trade.

4. Practical Significance for International Shipping

The formal recognition of Electronic Transport Records establishes the legal foundation for the broader adoption of electronic bills of lading (eBLs) in China.

For shipping companies, freight forwarders, banks, cargo interests, and international traders, the increasing use of electronic transport documents has the potential to:

  • significantly reduce document processing time;
  • lower administrative and courier costs;
  • minimize the risks of document loss, fraud, or forgery;
  • accelerate financing and documentary trade transactions; and
  • improve the overall efficiency of global supply chains.

Nevertheless, the widespread implementation of Electronic Transport Records will continue to depend upon further development of industry standards, trusted electronic platforms, technological interoperability, and market acceptance.

As international shipping increasingly embraces digital trade documentation, the New Maritime Code provides a modern legal framework capable of supporting China's continued participation in the global digital transformation of maritime commerce.

III. Practical Implications: Compliance, Risk Management, and Contract Strategy

The implementation of the New Maritime Code extends beyond legislative reform. It requires businesses involved in international shipping, logistics, and cross-border trade to reassess their contractual arrangements, internal compliance procedures, and documentary practices. As digital transportation systems continue to develop, legal risk management will increasingly depend on both sound contractual drafting and effective operational controls.

1. Compliance Considerations for Electronic Transport Records

Although Electronic Transport Records provide substantial commercial benefits, their adoption also introduces new legal and technological risks.

Businesses utilizing electronic transport documentation should pay particular attention to three core elements.

Technical Reliability

The electronic platform should maintain robust safeguards against unauthorized alteration while ensuring data integrity, traceability, and longterm accessibility. Reliable technological infrastructure is essential to preserving the evidentiary value of electronic records.

Legal Accountability

Parties should clearly identify the legal responsibilities of each participant involved in issuing, transferring, and managing Electronic Transport Records. Contractual arrangements should specify which party bears responsibility for system failures, unauthorized access, data integrity issues, or operational errors.

Proof of Legal Control

Because legal rights associated with Electronic Transport Records depend upon exclusive control rather than physical possession, businesses must ensure that their electronic systems can reliably demonstrate lawful control over the records throughout their lifecycle. In the event of a dispute, the ability to establish uninterrupted control may become critical evidence before a court or arbitral tribunal.

To mitigate these risks, commercial parties are advised to incorporate detailed provisions concerning technical standards, allocation of responsibilities, cybersecurity measures, and dispute resolution mechanisms into their transportation agreements.

2. Interaction Between the New Maritime Code and the Civil Code

From the perspective of Chinese law, the New Maritime Code functions as a special law (lex specialis) governing maritime transportation relationships.

Accordingly, where the Maritime Code contains specific provisions applicable to maritime cargo transportation, those provisions prevail over the more general rules contained in the Civil Code of the People's Republic of China.

However, where the Maritime Code remains silent on a particular issue—such as precontractual liability, the validity of standard contract terms, or certain general contractual principles—the Civil Code may apply on a supplementary basis.

For example, where disputes involve inspection expenses, disposal costs, or other consequential losses that are not expressly regulated by the Maritime Code, parties may seek recovery under the general contractual damages provisions of the Civil Code, subject to the applicable requirements concerning causation, foreseeability, and reasonableness.

In judicial practice, Chinese courts are expected to continue applying the Maritime Code as the primary legal framework for issues such as carrier liability, cargo claims, and Electronic Transport Records, while relying upon the Civil Code only to address matters not specifically governed by maritime legislation.

For international businesses, understanding the relationship between these two legal regimes will be essential when drafting contracts and developing dispute resolution strategies involving China-related maritime transportation.

3. Contract Drafting and Documentary Best Practices

The revised cargo compensation rules introduced by the New Maritime Code also require businesses to adopt more sophisticated contractual and documentary practices.

Transportation Contracts

Parties should consider expressly defining the method for determining cargo value in the event of loss or damage. Rather than relying exclusively upon default statutory rules, contracts may specify commercially appropriate valuation methods based on transaction prices or other objectively verifiable benchmarks.

Freight Forwarding Agreements

Freight forwarders should clearly distinguish whether they act solely as agents or assume the legal status of carriers.

Where the freight forwarder performs only intermediary services, the agreement should expressly state that carrier liability is not assumed. Conversely, where transport documents are issued in the freight forwarder's own name, contractual arrangements should accurately identify the actual carrier and clearly allocate responsibilities among all parties involved.

Agreements should also clarify whether service fees include ancillary expenses such as cargo inspections, storage costs, or claims handling expenses.

Documentary Evidence Management

Because the New Maritime Code adopts a more flexible approach to cargo valuation, documentary evidence will play an increasingly important role in future cargo claims.

Businesses should consider preserving comprehensive evidence supporting the commercial value of the cargo, including:

  • independent valuation reports;
  • contemporaneous market prices at the destination port;
  • transaction records involving comparable goods;
  • sales records from ecommerce platforms;
  • written confirmations of agreed pricing between commercial parties;
  • contracts, invoices, payment records, and related supporting documentation.

Wellorganized documentary evidence will significantly strengthen a party's position in future negotiations, insurance claims, litigation, or arbitration.

4. Looking Ahead

The implementation of the New Maritime Code represents more than a legislative amendment—it reflects the continued modernization of China's maritime legal system.

Shipping companies and international traders will likely need to establish more comprehensive compliance programs addressing:

  • transportation documentation management;
  • digital evidence preservation;
  • electronic transport record governance;
  • contractual risk allocation;
  • dispute preparedness; and
  • cross-border regulatory compliance.

As international commerce becomes increasingly digital, businesses must also recognize that jurisdictions differ considerably in their treatment of electronic transport documentation. Crossborder transactions involving multiple legal systems therefore require careful consideration of governing law, enforceability, and recognition of electronic records.

At the same time, the revised legislation is expected to influence Chinese judicial practice. Courts will increasingly face disputes involving digital transport documentation, requiring judges to interpret traditional maritime principles alongside emerging technologies. As judicial precedents continue to develop, clearer standards concerning Electronic Transport Records, cargo valuation, and recoverable damages are expected to emerge, providing greater certainty for international maritime commerce.

Conclusion

The adoption of the New Maritime Code marks a significant milestone in the modernization of China's maritime legal framework. More than a legislative revision, it reflects China's ongoing efforts to align its maritime law with evolving commercial practices, international legal standards, and the accelerating digital transformation of global shipping.

By strengthening the consistency between domestic and international carriage rules, refining carrier liability and cargo compensation mechanisms, and formally recognizing Electronic Transport Records, the New Maritime Code provides a more predictable and commercially practical legal environment for participants in the global maritime industry.

For international traders, shipping companies, freight forwarders, insurers, financial institutions, and logistics service providers, the revised legislation presents both new opportunities and new compliance obligations. Businesses engaged in China-related maritime transportation should proactively review their transportation agreements, freight forwarding arrangements, electronic documentation systems, cargo valuation methodologies, and dispute resolution clauses to ensure continued compliance under the new legal framework.

The increasing digitalization of international trade also requires companies to rethink traditional documentary practices. As Electronic Transport Records become more widely adopted, legal risk management will depend not only on contractual protections but also on the reliability of technological systems, cybersecurity safeguards, documentary evidence preservation, and effective internal compliance procedures.

Looking ahead, the practical application of the New Maritime Code will continue to evolve through judicial interpretation, commercial practice, and technological innovation. As courts develop jurisprudence concerning Electronic Transport Records, cargo valuation, and carrier liability, greater legal certainty is expected to emerge for cross-border maritime transactions involving China.

For multinational businesses operating within global supply chains, the New Maritime Code should not be viewed merely as a domestic legislative reform. Rather, it represents another step in China's broader integration into the international maritime legal order and underscores the growing importance of understanding Chinese maritime law in cross-border trade and dispute resolution.

Key Takeaways

  • China's New Maritime Code entered into force on May 1, 2026, introducing comprehensive reforms to maritime cargo transportation law.
  • The revised legislation further harmonizes domestic and international carriage rules, providing greater legal certainty for cross-border shipping.
  • The formal recognition of Electronic Transport Records (ETRs) establishes an important legal foundation for paperless trade and the future adoption of electronic bills of lading (eBLs).
  • Businesses should review transportation contracts, freight forwarding agreements, liability allocation clauses, governing law provisions, and documentary evidence management practices to reflect the revised legal framework.
  • International companies engaged in China-related maritime transportation should strengthen compliance procedures and digital documentation systems to mitigate legal and operational risks.

Author

Dolly (Xinyu) Hu
Director, International Trade & Logistics Practice
Beijing Dongwei (Shenzhen) Law Firm

Dolly Hu focuses on international trade law, cross-border logistics, maritime transportation, customs compliance, and global supply chain risk management. Her practice advises multinational corporations, logistics providers, freight forwarders, and manufacturing enterprises on cross-border commercial transactions, international transportation disputes, and overseas compliance strategies.