Parliament Passes ‘The Carriage of Goods by Sea Bill, 2025’: A Modern Wave in Maritime Law
India’s Parliament passes ‘The Carriage of Goods by Sea Bill, 2025’ to modernize maritime trade laws, replacing a century-old colonial-era Act.
Introduction: A Legislative Sea Change
In a decisive move aimed at revamping India’s maritime trade framework, Parliament on August 6, 2025, passed ‘The Carriage of Goods by Sea Bill, 2025’, replacing a nearly century-old colonial-era law. The legislation marks a significant stride in aligning India’s maritime legal regime with international standards while enhancing operational clarity for businesses navigating the global seas.
Context & Background: From 1925 to 2025
The now-repealed Indian Carriage of Goods by Sea Act, 1925, was based on the Hague Rules of 1924 and subsequent Visby Amendments of 1968 and 1979. While it served as the cornerstone of India’s maritime law for decades, it was long criticized for its outdated language and limited scope. The law only applied to outward cargo—goods shipped from India to foreign ports—and failed to address the realities of today’s integrated and digitized global shipping industry.
Recognizing the need for modernization, the government introduced The Carriage of Goods by Sea Bill, 2024, in Parliament earlier this year. It was passed by the Lok Sabha on March 28, and cleared by the Rajya Sabha on August 6, making it an Act.
Main Developments: What the New Bill Brings
The Carriage of Goods by Sea Bill, 2025 serves as a modern replacement to the 1925 Act, preserving its core tenets while incorporating contemporary legal and commercial requirements. Key features of the new legislation include:
- Alignment with International Maritime Conventions: The Bill updates Indian law in accordance with global standards such as the Hague-Visby Rules, and positions India to comply with emerging international agreements, including the Comprehensive Economic and Trade Agreement (CETA).
- Expanded Jurisdiction: Unlike its predecessor, which only governed outward shipments, the new law covers all maritime cargo-related contracts where the bill of lading is issued in India—improving legal parity and reducing ambiguity for domestic and international carriers.
- Clear Responsibilities and Liabilities: The Bill defines the rights, responsibilities, immunities, and liabilities of shipping carriers more precisely, ensuring smoother legal compliance and enhanced dispute resolution capabilities.
- Central Government Oversight: It empowers the central government to issue rules and directions for effective implementation—allowing for policy agility in response to evolving maritime practices.
- Simplified Language and Format: The legislation is drafted in a modern, reader-friendly format, eliminating archaic legal jargon that previously burdened stakeholders.
Expert Insight & Reactions
Legal experts and trade analysts have largely welcomed the Bill.
“This move brings India’s maritime trade laws into the 21st century,” said Rajeev Kumar, a maritime law professor at National Law University, Mumbai. “The incorporation of international practices ensures our exporters and shipping companies are better protected and more competitive globally.”
Industry bodies, including the Federation of Indian Export Organisations (FIEO) and ASSOCHAM, have also supported the legislation. In a joint statement, they emphasized that a modernized legal structure would improve investor confidence and simplify contract enforcement in shipping logistics.
During discussions in the Rajya Sabha, some members raised concerns about security risks, especially smuggling through maritime routes. However, the government assured that “robust statutory and operational safeguards” are in place, including coordination with the Indian Navy and Coast Guard.
Impact & Implications: Who Gains, What’s Next?
The immediate beneficiaries of this legislative upgrade are:
- Exporters and Importers: With clearer liabilities and fewer legal gray areas, Indian traders are expected to save time and costs associated with legal disputes.
- Logistics and Shipping Firms: A globally compatible regulatory framework will enable better contractual relations with foreign clients and insurers.
- Legal Ecosystem: Indian courts and legal professionals will now operate under a simplified and internationally coherent legal text, streamlining arbitration and litigation.
- Government Agencies: Empowered to issue implementation guidelines, ministries can now swiftly respond to industry shifts without going back to Parliament for every tweak.
The law also contributes to India’s Ease of Doing Business rankings by reducing bureaucratic red tape and increasing transparency in cross-border trade practices.
Conclusion: Sailing Into a Future-Ready Maritime Era
With the passage of ‘The Carriage of Goods by Sea Bill, 2025’, India has not just repealed a colonial relic but signaled its readiness to lead in the global maritime domain. As trade routes evolve and shipping becomes increasingly tech-driven, the new law ensures that India’s legal anchor is as agile as its economic ambitions.
In a world where efficiency, legal certainty, and global alignment are crucial, this legislative reform may well become a model for other developing economies seeking to modernize their maritime trade infrastructure.
Disclaimer: This article is intended for informational purposes only and does not constitute legal advice.