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Parliament Passes New Sea Cargo Law, 2025

Why in the News?

The Carriage of Goods by Sea Bill, 2025 has been passed by both Houses of Parliament, replacing the Indian Carriage of Goods by Sea Act, 1925. This new legislation modernizes India’s maritime legal framework to enhance ease of doing business and boost port efficiency. The bill aligns India’s maritime transport laws with international conventions and standards set by the International Maritime Organization (IMO).

Key Features of the New Sea Cargo Legislation:

  • Replaces the century-old 1925 Act, bringing India’s shipping laws in line with global standards and international conventions.
  • Defines the rights, liabilities, and responsibilities in sea transport of goods, including provisions for maritime dangerous goods and cargo incident notification.
  • Empowers the Central Government to issue rules and amend the schedule related to bills of lading and cargo transport units.
  • Introduces updated regulations for bills of lading, which are legal documents issued by carriers to shippers, detailing type, quantity, and destination of goods. These must comply with IMDG code requirements for dangerous goods classification.
  • Aims to simplify regulations, improve transparency, and support the shipping industry’s growth while addressing ship energy efficiency and maritime transport costs.

Maritime Sector’s Growth and Economic Impact

  • Minister Shantanu Thakur stated the bill promotes ease of doing business through rationalized maritime laws and adherence to international conventions.
  • BJP MP Sanjay Seth highlighted that cargo handling capacity doubled from 819 MT (2014-15) to 1600 MT (2024), showcasing significant improvements in port efficiency.
  • The shipping sector is positioned as a pillar in India’s journey to becoming the third-largest global economy, with the new law supporting the maritime legal framework.
  • G.K. Vasan (TMC-M) emphasized the bill’s role in fostering India’s economic prosperity through port development and optimized maritime transport costs.
  • India boasts 12 major ports and over 100 smaller ports, which are key to its Blue Economy strategy and the establishment of emission control areas.
About Carriage of Goods by Sea
– The 1925 Act was based on the Hague Rules, now outdated in global maritime trade.
– The 2025 Bill aims to align with modern conventions and International Maritime Organization standards, possibly the Rotterdam Rules in the future.
Bills of lading are crucial for marine cargo claims, insurance, and contract enforcement, including cargo incident notification procedures.
– The reform supports India’s maritime vision under initiatives like Sagarmala and Maritime India Vision 2030, addressing ship energy efficiency and cargo transport units.
– Ports play a vital role in India’s logistics competitiveness and foreign trade policy, with the new law enhancing the maritime legal framework.