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India overhauls maritime laws with New Merchant Shipping & Carriage of Goods by Sea Acts In the biggest overhaul of India's maritime legal framework in a century, President Droupadi Murmu has signed into law two landmark legislations, the Carriage of Goods by Sea Act, 2025 and the Coastal Shipping Act, 2025. The two legislations are aimed at modernising sea trade regulations, strengthening domestic shipping capacity and enhancing India's strategic maritime security. The Acts, cleared by Parliament earlier this month and notified in the Official Gazette on August 8 and 9, respectively, replace outdated provisions dating back to the Indian Carriage of Goods by Sea Act, 1925 and Part XIV of the Merchant Shipping Act, 1958. Together, they align India's maritime framework with global conventions, streamline coastal trade and prioritise Indian-owned vessels in domestic waters. Modernising for Global Trade The Carriage of Goods by Sea Act, 2025 draws from the Hague-Visby Rules, standardising rights, liabilities and immunities of carriers to reduce legal disputes and improve India's standing in global logistics. It mandates due diligence in ship seaworthiness, detailed bills of lading and caps carrier liability to provide predictability for shippers and insurers. Exemptions cover force majeure events like war and natural disasters, while allowing negotiated terms for special cargo. Experts say the Act will lower insurance costs, boost exporter confidence and make India a more reliable trading partner. Securing Coastal Trade The Coastal Shipping Act, 2025 consolidates rules for coasting trade, defined as cargo or passenger movement between Indian ports or related offshore activities, requiring foreign vessels to obtain licenses from the Director-General of Shipping. Indian vessels, while exempt from licensing, must meet reporting norms. The law mandates a National Coastal and Inland Shipping Strategic Plan, updated every two years, to map routes, forecast traffic and integrate coastal shipping with inland waterways. Strict penalties target unlicensed operations, false declarations and safety breaches, with the government empowered to reroute or ban vessels for public interest or national defence. Strategic and Economic Gains By harmonising with international protocols and safeguarding domestic waters, the two Acts aim to cut freight costs, reduce foreign vessel dependency and enhance multimodal transport efficiency. This is a twin reform package, one that makes India a rule-aligned, competitive player in global trade while securing our vast 7,500 km coastline for strategic and commercial benefit, a senior MoPSW (Ministry of Ports, Shipping & Waterways) official said. Both laws allow the Centre to amend schedules, issue rules and resolve initial implementation issues within defined timelines, with parliamentary oversight. Their commencement dates will be separately notified. www.thehindubusinessline.com, dt. 11-08-2025

India overhauls maritime laws with New Merchant Shipping & Carriage of Goods by Sea Acts

In the biggest overhaul of India's maritime legal framework in a century, President Droupadi Murmu has signed into law two landmark legislations, the Carriage of Goods by Sea Act, 2025 and the Coastal Shipping Act, 2025. The two legislations are aimed at modernising sea trade regulations, strengthening domestic shipping capacity and enhancing India's strategic maritime security.

The Acts, cleared by Parliament earlier this month and notified in the Official Gazette on August 8 and 9, respectively, replace outdated provisions dating back to the Indian Carriage of Goods by Sea Act, 1925 and Part XIV of the Merchant Shipping Act, 1958.

Together, they align India's maritime framework with global conventions, streamline coastal trade and prioritise Indian-owned vessels in domestic waters.

Modernising for Global Trade

The Carriage of Goods by Sea Act, 2025 draws from the Hague-Visby Rules, standardising rights, liabilities and immunities of carriers to reduce legal disputes and improve India's standing in global logistics.

It mandates due diligence in ship seaworthiness, detailed bills of lading and caps carrier liability to provide predictability for shippers and insurers.

Exemptions cover force majeure events like war and natural disasters, while allowing negotiated terms for special cargo. Experts say the Act will lower insurance costs, boost exporter confidence and make India a more reliable trading partner.

Securing Coastal Trade

The Coastal Shipping Act, 2025 consolidates rules for coasting trade, defined as cargo or passenger movement between Indian ports or related offshore activities, requiring foreign vessels to obtain licenses from the Director-General of Shipping. Indian vessels, while exempt from licensing, must meet reporting norms.

The law mandates a National Coastal and Inland Shipping Strategic Plan, updated every two years, to map routes, forecast traffic and integrate coastal shipping with inland waterways. Strict penalties target unlicensed operations, false declarations and safety breaches, with the government empowered to reroute or ban vessels for public interest or national defence.

Strategic and Economic Gains

By harmonising with international protocols and safeguarding domestic waters, the two Acts aim to cut freight costs, reduce foreign vessel dependency and enhance multimodal transport efficiency.

This is a twin reform package, one that makes India a rule-aligned, competitive player in global trade while securing our vast 7,500 km coastline for strategic and commercial benefit, a senior MoPSW (Ministry of Ports, Shipping & Waterways) official said.

Both laws allow the Centre to amend schedules, issue rules and resolve initial implementation issues within defined timelines, with parliamentary oversight.

Their commencement dates will be separately notified.

www.thehindubusinessline.com, dt. 11-08-2025