Lok Sabha Passes Carriage of Goods by Sea Bill, 2024 – A Major Step in Modernizing Maritime Trade


The Lok Sabha has passed the Carriage of Goods by Sea Bill, 2024, marking a significant step toward modernizing India's maritime trade regulations. This new legislation is designed to replace the Indian Carriage of Goods by Sea Act, 1925, a law that has been in place since the pre-independence era.

Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, introduced the Bill, emphasizing that the Indian shipping sector needs updated regulations to align with modern trade practices and international maritime conventions.

What Does the Carriage of Goods by Sea Bill, 2024 Aim to Achieve?

The primary goal of this Bill is to update, streamline, and enhance regulations governing sea transportation. It focuses on:

  • Clearly defining the responsibilities, liabilities, rights, and immunities of carriers involved in the transport of goods by sea.

  • Covering both international and domestic maritime trade, ensuring that Indian ports comply with modern global standards.

  • Strengthening India’s position in global shipping by aligning with international conventions such as Hague-Visby Rules, Hamburg Rules, and Rotterdam Rules.

Replacing a 100-Year-Old Law: Why Was It Necessary?

The Indian Carriage of Goods by Sea Act, 1925 was based on outdated legal frameworks that did not account for:

  • Modern shipping practices such as containerization and digital documentation.

  • Clear legal provisions for liability in case of loss or damage to goods.

  • The evolving nature of international trade agreements.

The Carriage of Goods by Sea Bill, 2024, ensures that India’s maritime trade operates under a more efficient, transparent, and globally recognized framework.

Key Features of the Carriage of Goods by Sea Bill, 2024

  • Applicability to International and Domestic Shipping – The Bill applies when ships transport goods:

    • From an Indian port to a foreign port (international trade).

    • Between two Indian ports (domestic shipping).

  • Legal Clarity for Carriers and Cargo Owners – The law clearly defines the responsibilities of shipping companies, cargo owners, and insurers, reducing disputes.

  • Enhanced Liability Framework – It ensures that compensation mechanisms for loss, damage, or delays in cargo transport are aligned with global best practices.

  • Supports India's Growing Maritime Trade – With 95 percent of India's trade volume moving via sea, this Bill ensures smoother trade operations and boosts the ease of doing business.

Indian Ports Bill, 2025 – Another Major Reform Coming Up

Following the passage of this Bill, Union Minister Sarbananda Sonowal is set to introduce The Indian Ports Bill, 2025, which focuses on:

  • Modernizing port management to enhance efficiency.

  • Promoting integrated port development for better connectivity.

  • Ensuring pollution control, disaster management, and maritime security.

  • Establishing State Maritime Boards for better governance of non-major ports.

This move will enhance India's port infrastructure, making it more competitive in the global maritime sector.

The Big Picture: Strengthening India’s Maritime Economy

These legislative changes come at a crucial time when:

  • India is expanding its trade partnerships worldwide.

  • Global shipping is undergoing rapid digitization.

  • The government is focusing on port-led development through initiatives like Sagarmala.

The Carriage of Goods by Sea Bill, 2024, and the upcoming Indian Ports Bill, 2025, are expected to increase efficiency, reduce costs, and enhance India's standing as a maritime powerhouse.

What Are Your Thoughts?

Will these new shipping laws benefit Indian businesses and exporters? How will they impact international trade? Share your views in the comments.

Location: Pune, Maharashtra, India

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