ports

China's Maritime Code Overhaul Reshapes Carrier Liability Framework

China's revised Maritime Code has been in force since 1 May, though its implications are only now becoming clear to carriers and freight forwarders. The first comprehensive update to maritime legislation in over three decades mandates compliance with Chinese legal provisions for all international sea cargo contracts involving Chinese load or discharge ports, overriding foreign governing law clauses. Industry observers expect significant operational upheaval at major carriers and non-vessel operating common carriers. A key provision narrows the traditional fire exemption, restricting carrier protection to incidents occurring solely on vessels. This excludes terminal, container yard, and inland transport facility incidents. Analysts link the narrowing to surging Chinese electric vehicle and lithium battery exports, reflecting heightened fire risk concerns. Additional modifications governing deck cargo carriage present further compliance challenges. FIATA has urged members to review contracts, operational processes, and liability exposure to align with the new regulatory landscape.