Revised Maritime Code of the People's Republic of China

Following several rounds of public consultation and review, the Maritime Code of the People’s Republic of China (CMC) has now been updated. The revised CMC represents the first comprehensive revision of the Code since its enactment in 1993 and entered into force on 1 May 2026.

The revision aims to unify domestic and international maritime rules, strengthen the protection of marine ecology and the legitimate rights and interests of parties involved in maritime transport, improve legal certainty and judicial efficiency, and align Chinese maritime law more closely with international conventions and modern shipping practices.

Thanks to the assistance of Jasmine Liu at Wintell & Co, the Club has produced a summary of the key amendments from a P&I perspective that may be relevant to Members.

Contract of Carriage of Goods by Sea (Chapter IV)

• The chapter applies compulsorily to a contract for international carriage of goods by sea where either the port of loading or the port of discharge is located within the territory of China.
• Its scope has been extended to cover coastal voyages, notwithstanding the stricter liability relating to seaworthiness obligations, delay in delivery and the availability of defences.
• The carrier’s period of responsibility is extended to cover the entire duration from receipt of the goods until their delivery.
• The shipper is subject to a statutory warranty that the goods are fit for the intended carriage.
• Responsibility for costs and risks arising from a failure to take delivery at the port of discharge is transferred from the consignee to the shipper.
• It adopts a different approach for calculating cargo value by referring to the market price at the place and time of delivery. Where this cannot be determined, the value shall be assessed based on the shipment value together with insurance and freight.

Contract of Carriage of Passengers by Sea (Chapter V)

• The limitation of liability of the carrier under each carriage of passengers by sea has been increased to align with the levels set out in the Athens Convention 1990 Protocol, as follows:
   

Type of Loss	Limit
Passenger Injury / Death	SDR 175,000 per passenger
Loss or damage to Cabin Luggage	SDR 1,800 per passenger
Loss or Damage to Vehicle and Luggage therein	SDR 10,000 per vehicle
Loss or Damage to Other Luggage	SDR 2,700 per passenger

 

In addition:

• A regime of compulsory insurance has been introduced.
• Passengers are afforded rights of direct action against the insurer or guarantor

Limitation of Liability for Maritime Claims (Chapter XI)

• The limits of liability have been substantially increased to align with the LLMC 1996 regime.

GT	Claims for Personal injury or death	Claims other than that for personal injury or death
300-500	500,000 SDR	250,000 SDR
501-2,000	add SDR 1,000 per GT	add SDR 500 per GT
2,001-30,000	add SDR 800 per GT	add SDR 400 per GT
30,001-70,000	add SDR 600 per GT	add SDR 300 per GT
>70,000	add SDR 400 per GT	add SDR 200 per GT

 

• Separate provisions in respect of vessels under 300 GT and those engaged in coastal trade are to be determined by the Transport Department of the State Council.
• The new CMC clearly stipulates that same limits shall apply to any other ship or craft not for military purposes or performing official government duties that is involved in a collision with a ship.

Liability for Ship-induced Oil Pollution Damage (Chapter XII)

This new Chapter, without significant revision, was introduced to consolidate principles derived from the Civil Liability Convention (CLC) 1992, the Bunker Convention, and established Chinese judicial practice.

Key provisions include:

• The imposition of strict liability on the owners of a polluting vessel;
• The introduction of compulsory insurance requirements.
• The establishment of claimants’ rights of direct action against insurers or guarantors.
• The setting of liability limits for pollution damage caused by the oil as cargo carried on vessels based on vessel gross tonnage, with a maximum cap of SDR 89,770,000:
   

GT	Compensation limits
≤5,000	4,510,000 SDR
5,001-140,118	4,510,000 SDR plus 631 SDR for each additional unit of tonnage
140,118<	89,770,00 SDR

 

• The liability limits for pollution damage caused by a vessel’s bunker shall be governed by the provisions of Chapter XI.

Conclusion

The New CMC introduces significant changes that may increase exposure for shipowners, particularly in relation to cargo liabilities, passenger claims, and pollution risks.

We hope Members find this circular to be of some assistance, but should you have any further queries please do not hesitate to contact your Club representative.