A Complete Guide to The The Carriage of Goods by Sea Act, 2025
Introduction
The Carriage of Goods by Sea Act, 2025 is a foundational piece of legislation designed to govern maritime trade. It establishes a clear and modern legal framework by defining the responsibilities, liabilities, rights, and immunities of carriers involved in the transportation of goods by sea. Based on international conventions, this Act aims to standardize practices and ensure fairness and predictability in contracts of carriage evidenced by bills of lading, thereby supporting India’s role in global commerce.
Complete List of Sections
- Section 1: Short title and commencement.
- Section 2: Definitions.
- Section 3: Application of Schedule.
- Section 4: No implied absolute undertaking in contracts to which applicable rules apply.
- Section 5: Statement as to application of Schedule to be included in bills of lading.
- Section 6: Modification of Article VI of applicable rules in relation to goods carried in sailing ships and by specified routes.
- Section 7: Modification of paragraphs 4 and 5 of Article III in relation to bulk cargoes.
- Section 8: Power of Central Government to issue directions.
- Section 9: Power of Central Government to amend Schedule.
- Section 10: Laying of notification before Parliament.
- Section 11: Power to remove difficulties.
- Section 12: Repeal and savings.
Conclusion
The Carriage of Goods by Sea Act, 2025 is a crucial piece of legislation that modernizes India’s maritime law. By clearly defining the rights and responsibilities of carriers and shippers, it provides a stable legal framework that supports international trade and commerce, ensuring clarity and fairness in the transport of goods by sea.
Frequently Asked Questions
What is the main purpose of this Act?
The primary purpose of this Act is to establish a clear and uniform set of rules governing the responsibilities, liabilities, rights, and immunities of sea carriers when transporting goods. It aims to align Indian maritime law with international standards, particularly the Hague-Visby Rules.
To which shipments does this Act apply?
This Act applies to the carriage of goods by sea in ships departing from any port in India to any other port, whether inside or outside India, under a bill of lading or a similar document of title.
What is a carrier’s duty regarding the ship’s condition?
The Act requires a carrier to exercise ‘due diligence’ before and at the start of a voyage to ensure the ship is seaworthy, properly manned and equipped, and that all cargo-carrying parts are fit and safe for the goods. This replaces any older notion of an absolute, unconditional guarantee of seaworthiness.
Is there a limit on the carrier’s liability for lost or damaged goods?
Yes, the Act sets a financial limit on the carrier’s liability based on a value per package or per kilogram of the goods lost or damaged. However, this limit does not apply if the shipper declared a higher value for the goods before shipment and this value was included in the bill of lading.