Parliament passes The Carriage of Goods by Sea Bill, 2025

Economic Times

06-08-2025

Synopsis
India's Parliament has passed the Carriage of Goods by Sea Bill, 2024, replacing the outdated 1925 Act. This modernizes maritime regulations, aligning them with international conventions and promoting ease of doing business. The new law clarifies liabilities, responsibilities, and grants the government powers to issue directions and amend rules, ensuring adaptability to evolving trade practices.
Agencies The Parliament on Wednesday passed the Carriage of Goods by Sea Bill, 2024, marking a significant step in the government's ongoing effort to modernise India's maritime legal framework.
The Bill had earlier cleared the Lok Sabha in March this year.
The legislation replaces the nearly century-old colonial period Indian Carriage of Goods by Sea Act of 1925, aligning Indian law with international maritime conventions.
Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal, who piloted the Bill, had said earlier that the new law is crucial to promote ease of doing business.
The Monsoon Session of Parliament began on July 21 and will run until August 21, with a packed agenda featuring several economic and reform-focused bills.
The main objective of the new law is to modernise India's maritime shipping regulations and make them easier to understand and apply. Key features include:
Clear allocation of liabilities and responsibilities for carriers and consignees
Legal safeguards for parties in shipping contracts
Regulatory flexibility for the government to adapt the law as needed
Replacement of the outdated 1925 law with language better suited to current trade realities The Bill gives the central government two key powers:
Issuing Directions: The government can issue guidelines or instructions to help implement the provisions of the Bill effectively. Amending Rules: The government can update or modify the rules related to bills of lading (listed in the schedule of the Bill) through notifications, without needing to bring a new law to Parliament. This flexibility, while useful for adapting to changing trade practices, has raised some concerns from opposition MPs, who argue that such wide powers should be balanced with adequate consultation and oversight.At the heart of the law is a document called a bill of lading. This is a legal receipt issued by a shipping company to the person sending the goods. It lists what goods are being shipped, their quantity and condition, and where they are going. It also acts as proof of ownership of the goods and is essential for international trade.The Bill outlines clear rules around these documents—including who is responsible if something goes wrong, and what rights both parties have.While replying to the debate in the Lok Sabha during the passing of the bill, Sonowal had stressed that the Bill was designed to make maritime regulations more transparent and easier to navigate for all stakeholders involved in sea cargo.'This new legislation is part of the greater initiative of the government to rid ourselves of all vestiges of the colonial mindset,' the union minister had said. 'Our intention is to make the law simpler and more effective, while ensuring it reflects the practical realities of international shipping," he added.The Bill provides for clearly defined roles, responsibilities, liabilities and protections for parties involved in the carriage of goods by sea. It also grants the central government authority to issue directions for the smooth implementation of the law, a provision that has drawn both support and criticism.