The Carriage of Goods by Sea Act, 2025

Summary of Carriage of Goods by Sea Act, 2025
Objective
The main objectives of the Act are:
• To replace the outdated Indian Carriage of Goods by Sea Act, 1925 with a modern legal framework.
• To define the rights, liabilities, responsibilities, and immunities of carriers and cargo owners.
• To align Indian maritime law with internationally accepted rules governing carriage of goods by sea.
• To promote ease of doing business and strengthen India's maritime trade.
• To facilitate efficient, transparent, and legally certain cargo transportation by sea.
Key Provisions
1. Application of the Act
o Applies to the carriage of goods by sea from any port in India to another port in India or to a foreign port under contracts covered by bills of lading or similar documents of title.
2. Carrier's Responsibilities
o Requires carriers to exercise due diligence to ensure that the ship is seaworthy, properly manned, equipped, and supplied, and that cargo is properly loaded, handled, stowed, carried, cared for, and discharged.
3. Bills of Lading
o Prescribes rules governing bills of lading, including their issuance, evidentiary value, and legal effect in contracts for the carriage of goods by sea.
4. Rights and Liabilities
o Clearly defines the rights, duties, liabilities, and immunities of carriers, shippers, and consignees, including circumstances in which a carrier may be exempt from liability.
5. Limitation of Liability
o Prescribes the circumstances under which a carrier's liability for loss or damage to cargo may be limited, subject to the provisions of the Act and the applicable rules.
6. No Absolute Warranty
o Clarifies that there is no implied absolute undertaking by the carrier beyond the obligations imposed under the Act and its Schedule.
7. Applicable Rules
o Incorporates a Schedule containing the applicable rules relating to contracts of carriage, responsibilities of carriers, and rights of cargo owners, largely reflecting internationally accepted maritime standards.
8. Repeal of the 1925 Act
o Repeals the Indian Carriage of Goods by Sea Act, 1925, while preserving the validity of actions and proceedings taken under the repealed law through appropriate saving provisions.

Legislative History:
The Carriage of Goods by Sea Act, 2025

Source: Official Record of Parliament, India Code, and Ministry of Ports, Shipping and Waterways

Act Title - The Carriage of Goods by Sea Act, 2025
Act Number - Act No. 19 of 2025
Act ID (India Code) - 202519
Presidential Assent date - August 08, 2025
Enforcement Date - September 10, 2025
Nodal Ministry - Ministry of Ports, Shipping and Waterways

Precedent & Historical Rationale
● Repeal and Overhaul of Colonial Maritime Framework: Repeals the century-old Indian Carriage of Goods by Sea Act, 1925 (26 of 1925) to replace outdated maritime transport norms with a modern statutory framework tailored for modern global trade.
● Alignment with International Rules & Digital Trade: Harmonizes carrier liabilities, shipper duties, and immunities with updated international standards (Hague–Visby and elements of the Hamburg Rules) while introducing explicit legal recognition for electronic bills of lading and paperless shipping documentation.

Parliamentary Trajectory & Enactment
● Formulation: Introduced as the Carriage of Goods by Sea Bill, 2024 (Bill No. 112C of 2024) by the Union Minister of Ports, Shipping and Waterways, Shri Sarbananda Sonowal, to modernize trade laws and support India's maritime growth strategy.
● Parliamentary Passage: Introduced in the Lok Sabha on August 9, 2024; passed by the Lok Sabha on March 28, 2025; and passed by the Rajya Sabha on August 6, 2025.
● Presidential Assent: Received the assent of the President of India on August 08, 2025.
● Enforcement: Enforced on September 10, 2025.