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Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association
(APSA) would like to update members on the latest regarding the significant
changes to China’s Maritime Code, which came into effect on 1 May 2026 and
may have material implications for parties involved in international ocean
shipments linked to Chinese ports.
Further clarification has recently
emerged regarding the practical operation of the revised Code:
Key issues for shippers and forwarders
1.
Mandatory application of Chinese maritime law
The revised
Maritime Code provides that all international sea transport contracts
involving a Chinese port (whether for loading or discharge) will be
subject to China’s Carriage of Goods by Sea law.
This raises the prospect that:
- Governing law clauses nominating foreign law (e.g. English law or US COGSA)
may be overridden in Chinese courts
- Arbitration or jurisdiction clauses specifying foreign venues may not
prevail where enforcement is sought in China
- Disputes involving Chinese counterparties could ultimately need to be
enforced under Chinese law, even where proceedings are commenced elsewhere
While Chinese courts have historically been reluctant to recognise bespoke
shipping contracts unless expressly provided for in Chinese law, the revised
Code may strengthen the position of a party seeking to resist enforcement of
foreign judgments or arbitral awards on public policy grounds.
The practical impact of these provisions will ultimately depend on how the
Chinese courts interpret and apply the revised Code.
2.
Liability for unclaimed or abandoned cargo
As previously
advised, the revised Code introduces mandatory liability for unclaimed or
abandoned cargo, transferring responsibility for:
- storage,
- removal, and
- disposal
to the “shipper”, where they have been notified by
the consignee without delay that delivery will not be accepted.
Importantly:
- The “shipper” may not be the cargo owner
- Liability applies regardless of any agreed transfer of ownership or
risk under Incoterms®
- This could expose exporters or forwarders to recovery obligations long
after they believed the sale was complete
Global Shippers Forum (GSF), of which the Australian Peak Shippers Association
(APSA) are Australia’s representative, has sought clarification on whether
Incoterms® delivery points will be recognised under the revised
Code. Particular uncertainty remains for:
- FCA terms (commonly used for containerised cargo), where delivery occurs at
the port or terminal of loading
- Situations where the buyer, not the exporter, arranges ocean transport but
subsequently refuses to accept delivery in China
Freight forwarders in China are already assessing their exposure with insurers
and, in some cases, advising importers to switch to CIF terms — a move
that may delay delivery to the buyer and increase residual liability for
exporters.
3. Rights to change consignee or
destination
The revised Code also clarifies and
strengthens a shipper’s rights to instruct a carrier to:
- change the consignee, or
- redirect cargo to an alternative port
This is particularly relevant for users of negotiable Bills of
Lading, and may also become significant for future users of negotiable
multimodal transport documents, given China’s strong support for
the UN Convention on Negotiable Cargo Documents.
What members
are encouraged to do
Members involved in ocean freight
movements to or from China are strongly encouraged to:
- Review governing law, jurisdiction and arbitration clauses in Bills of
Lading and shipping contracts
- Reassess exposure to unclaimed or abandoned cargo, particularly where acting
as “shipper” but not cargo owner
- Consider the interaction between Incoterms®, sales contracts and
shipping arrangements
- Seek legal and insurance advice where China-linked shipments form a material
part of operations
An article outlining potential risks for freight forwarders has also been
published by TT Club and may be of interest to members:
https://www.ttclub.com/news-and-resources/news/article/tt-talk-what-freight-forwarders-should-watch-under-chinas-revised-maritime-code
FTA / APSA will keep members informed of further developments.
Tom Jensen – General Manager Freight Policy & Operations – FTA /
APSA
Copyright © 2026 Freight & Trade Alliance
(FTA) Pty Ltd, All rights reserved.
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