The Lok Sabha passed the Carriage of Goods by Sea Bill, 2024 on March 28.

Union minister Sarbananda Sonowal said the new legislation is part of the government’s broader initiative to eliminate colonial-era laws and simplify maritime regulations for the ease of doing business.

Why the govt brings in new legislation?

• The Bill aims to replace the Indian Carriage of Goods by Sea Act, 1925. 

• The Indian Carriage of Goods by Sea Act, 1925 was enacted to amend the law with respect to carriage of goods by sea, with a view to establishing the responsibilities, liabilities, rights and immunities attaching to 

carriers under bills of lading. 

• The Act is substantially based on the International Convention for the Unification of Certain Rules of Law relating to Bills of Lading of August, 1924 (Hague Rules), which was amended by the Protocol signed at Brussels on February 23, 1968 and on December 21, 1979 (Visby Rules). 

• The said Act is applicable to outward cargo, that is, ships carrying goods from Indian port to any other port, whether in or outside India. Every bill of lading, or similar document of title, issued in India, which contains or is evidence of any contract to which the rules apply, shall contain an express statement that it is to have effect subject to the provisions of the rules as applied by the said Act.

• Though the substantive aspects of the said Act continue to remain relevant for maritime trade, being a pre-independence statute, it is imperative that some new provisions need to be incorporated therein without changing the substance or spirit of the said Act, so as to bring it in line with modern legislations in order to facilitate simplification and ease of understanding.

• Accordingly, it is proposed to repeal and re-enact the said Act with a new legislation and for the said purpose, to introduce the Carriage of Goods by Sea Bill, 2024.

• The new Bill aligns India’s maritime law with international conventions and seeks to modernise provisions governing the carriage of goods by sea.

• The Bill aims to provide clear responsibilities, liabilities, rights and immunities for carriers in the shipping industry, ensuring a smooth implementation.

• The new law would make maritime trade regulations more effective while granting the central government the authority to issue directions for smooth implementation.

(The author is a trainer for Civil Services aspirants.)