Parliament Passes Two Landmark Maritime Bills

Introduction 

On August 6, 2025, the Indian Parliament passed two historic and transformative maritime bills—the Merchant Shipping Bill, 2025 in the Lok Sabha and the Carriage of Goods by Sea Bill, 2025 in the Rajya Sabha. Together, these legislations replace colonial-era statutory regimes, modernize India’s maritime legal framework, and align domestic laws with international maritime conventions. The central legal questions revolve around how these new statutes overhaul the outdated regulations to enhance maritime governance, promote trade facilitation, and bolster India’s ambition to become a global maritime hub. 

This article provides a detailed legal analysis of these bills, beginning with the background and context of the existing legal landscape, followed by a close examination of the statutory reforms, and concluding with an evaluation of the broader implications for India's maritime sector and legal system. 

Background

Before these bills, India’s maritime laws were governed primarily by two century-old statutes: 

1. Merchant Shipping Act, 1958 – A comprehensive but outdated act with 561 sections regulating merchant shipping, ship registration, safety, seafarer welfare, environmental protection, and other aspects of maritime governance. Over time, the Act became bulky, fragmented, and ill-suited to contemporary needs, lacking full compliance with international conventions. 

2. Indian Carriage of Goods by Sea Act, 1925 – This Act governed contracts for the carriage of goods by sea and had not been substantially updated for nearly a century. Its provisions were inconsistent with modern international standards and hampered efficiency in maritime trade. 

The accelerating pace of global maritime commerce and India's strategic vision to be a key maritime trade hub exposed the limitations of these antiquated laws, calling for urgent legislative reform. Aligning with international conventions such as those of the International Maritime Organisation (IMO) and the Hague-Visby Rules became imperative to improve legal predictability, safety, and competitiveness. 

Merchant Shipping Bill, 2025 

The Merchant Shipping Bill, 2025, replaces the Merchant Shipping Act, 1958, with a streamlined, future-ready statute consisting of 16 Parts and 325 clauses. Key legal modernisations and themes include: 

• Alignment with International Conventions: The Bill incorporates provisions of IMO conventions concerning safety at sea, pollution control (MARPOL), wreck removal, and seafarer welfare. This integration codifies India’s international commitments into domestic law, making the regulatory framework globally compliant. 

• Simplified Vessel Registration: All vessels, regardless of propulsion mode or tonnage, must be registered. New provisions allow temporary registration of vessels for ship recycling, incentivising sustainable practices in India’s shipbreaking industry. The Bill relaxes ownership criteria by permitting part ownership by Overseas Citizens of India (OCIs) and Indian companies, expanding investment opportunities. 

• Enhanced Seafarer Welfare: The statute extends protections and social security to all Indian seafarers on both Indian and foreign-flagged vessels. It improves working conditions and aligns seafarer rights with international labour standards, ensuring welfare regardless of the vessel’s flag. 

• Environmental Protection: Mandatory pollution prevention certifications align with international environmental standards. Stronger penalties are introduced for offences endangering lives, environmental non-compliance, and false declaration of vessel nationality, enhancing deterrence. 

• Institutional Reforms: The position of Director-General of Shipping is redesignated as Director-General of Marine Administration with expanded regulatory powers over maritime education, training, and security, reflecting a robust governance structure. 

• Promotion of Indian Tonnage: By streamlining procedures and easing compliance burdens, the Bill encourages the registration of vessels under the Indian flag, supporting the government’s policy to boost domestic tonnage and reduce foreign dependency. 

From a constitutional perspective, the Bill operates within the framework of the Union’s legislative competence over shipping under Entry 28 of the Union List in the Seventh Schedule of the Constitution of India. It balances legislative clarity with regulatory flexibility to respond swiftly to evolving maritime challenges. 

Carriage of Goods by Sea Bill, 2025 

The Carriage of Goods by Sea Bill, 2025 repeals the Indian Carriage of Goods by Sea Act, 1925, introducing a modern, commercial law aligned with globally accepted maritime cargo carriage standards: 

• Adoption of Hague-Visby Rules: The Bill adopts the Hague-Visby Rules, a well-established international convention delineating carrier liability, shipper obligations, and rights of cargo owners, thereby harmonizing Indian law with major trading partners such as the United Kingdom. This reduces legal uncertainties and litigation risks. 

• Modernization of Bill of Lading and Documentation: It endorses the use of electronic bills of lading to reduce paperwork and increase transaction efficiency. This modernization facilitates digital trade and quicker settlement of claims. 

• Liability and Contractual Clarity: The legislation clearly defines carrier liabilities, including limits of liability, exemptions for force majeure events such as war or natural disasters, and provisions for hazardous cargo, balancing commercial risk between carriers and shippers. 

• Ease of Doing Business: By replacing colonial-era complex provisions with simplified, clear, and internationally recognized standards, the Bill enhances transparency in commercial shipping contracts and facilitates cross-border maritime trade. 

• Government Powers: The Act confers broad powers on the Central Government to issue directions and amend the legislative schedule, ensuring adaptability to future developments. 

This Bill directly addresses a critical gap in Indian maritime law by providing uniformity and legal certainty for export-import businesses, insurers, and logistics companies, which is essential for improving India's standing in global shipping markets. 

Implications and Significance 

These legislative reforms collectively mark a paradigm shift in India’s maritime legal architecture with several far-reaching implications: 

• Legal Clarity and International Harmonization: By aligning domestic laws with international conventions (IMO, Hague-Visby), the Bills reduce conflicts of law issues, enhance compliance with global maritime norms, and increase investor and trading partner confidence in Indian maritime governance. 

• Maritime Trade Facilitation: The Bills streamline regulatory procedures, reduce compliance burdens, and introduce electronic documentation, significantly improving ease of doing business in maritime logistics and trade. 

• Boost to the Shipping Industry: Relaxed ownership norms, promotion of Indian-registered vessels, and welfare guarantees to seafarers are set to invigorate India’s shipping sector, attracting investment, fostering innovation, and boosting employment. 

• Environmental and Safety Enhancements: Strengthened safety standards, pollution control mandates, and stringent penalties reflect India’s commitment to sustainable development and marine environmental protection. 

• Governance and Enforcement Improvements: Institutional reforms enhancing regulatory oversight, along with clear government powers to adapt rules dynamically, ensure robust governance suited to evolving maritime challenges, including security risks and smuggling concerns. 

• Strategic Maritime Hub Vision: These reforms align with the government's broader vision of positioning India as a global maritime trade and shipping hub, complementing related legislative initiatives like the Coastal Shipping Bill, 2025. 

• Potential Litigation and Legal Stability: By codifying clear standards and aligning with international norms, the Bills are expected to reduce litigation and disputes in maritime trade, though implementation and judicial interpretation in initial years will be critical. 

Overall, these Bills settle old ambiguities in maritime law while creating a transparent, globally compatible, and investor-friendly legal environment critical for India's maritime economic aspirations. 

Conclusion 

The passage of the Merchant Shipping Bill, 2025 and the Carriage of Goods by Sea Bill, 2025 represents a landmark moment in India’s maritime legal reform. These statutes replace outdated colonial-era laws, modernize India’s maritime governance, and embed international conventions into the domestic legal framework. They enhance ship safety, seafarer welfare, environmental protection, and trade facilitation, while strategically supporting India’s ambition to become a leading global maritime hub.