The Carriage of Goods by Sea Bill 2025: What Has Changed from the 1925 Act

India's Parliament passed the Carriage of Goods by Sea Bill 2025, replacing the Carriage of Goods by Sea Act 1925, which had been in force for a century. The 1925 Act was based on the Hague Rules, an international framework from the 1920s that had long been superseded in most major shipping nations. The 2025 legislation aims to bring India in line with modern commercial practice and improve the ease of doing business in the maritime sector.

This article explains what the old law provided, what has changed, and what it means for shippers, carriers, freight forwarders, and cargo interests operating in India.

Why the 1925 Act Was Outdated

The Hague Rules, which formed the basis of the 1925 Act, were drafted at a time when shipping was fundamentally different. Container shipping did not exist. Electronic bills of lading were not contemplated. The liability limits in the old Act had become commercially meaningless given inflation and the scale of modern cargo values.

Most major shipping nations moved to the Hague-Visby Rules in the 1960s and 1970s, which updated the liability framework and addressed some of the gaps in the original Hague Rules. India remained on the old framework for far longer than most, creating friction in cross-border transactions where counterparties were operating under different legal regimes.

Key Changes Under the 2025 Bill

The 2025 Bill aligns India's framework broadly with the Hague-Visby Rules and incorporates elements reflecting modern commercial practice. The liability limits for cargo loss or damage have been revised upward to reflect current cargo values, removing the situation where the old limits provided almost no meaningful protection for cargo interests in a large loss.

The definition of "goods" has been broadened to better capture the range of cargo types that move through Indian ports today, including containerised cargo and goods carried on deck where that has been agreed between the parties.

The period of responsibility of the carrier, which under the old Act ran from the time goods were loaded to the time they were discharged, has been clarified. This matters in practice because cargo damage often occurs during the periods of loading and discharge, which were areas of uncertainty under the old framework.

Bills of Lading and Documentation

The 2025 Bill makes provision for electronic documentation, reflecting the industry's gradual move toward electronic bills of lading. The old Act was drafted entirely around paper documents and made no provision for electronic equivalents. While the global shipping industry is still in transition on this point, the legislative recognition of electronic documentation removes a barrier to adoption in India.

The rules on the evidential weight of bills of lading have also been clarified. Under the old Act, questions arose about the extent to which statements in a bill of lading were binding on the carrier when the bill was transferred to a third-party holder. The 2025 Bill addresses this more clearly, providing greater certainty for banks, buyers, and other parties who rely on bills of lading as documents of title in trade finance transactions.

Carrier Defences

The list of defences available to a carrier against a cargo claim has been updated from the old Act. The old list of excepted perils, which included acts of God, perils of the sea, act of war, and similar events, has been revised to reflect modern risk allocation. Some of the old defences that were seen as too broad and too easily invoked by carriers have been narrowed.

The defence of nautical fault, which allowed carriers to escape liability for losses caused by errors in navigation or management of the ship, remains controversial in international shipping law. How the 2025 Bill treats this defence is significant for cargo interests, as it was one of the most commonly used defences under the old framework.

Time Limits for Claims

The time limit for bringing a cargo claim against a carrier remains one year from the date of delivery or the date when delivery should have taken place. This is a short limitation period by the standards of general commercial litigation, and cargo interests who have suffered loss need to act promptly. Notice of loss or damage must also be given to the carrier within specified periods, and failure to give timely notice can affect the ability to bring a claim.

What This Means in Practice

The transition from the 1925 Act to the 2025 Bill is a significant modernisation of India's legal framework for sea carriage. Businesses that ship goods to or from India should review their standard terms, their cargo insurance coverage, and their contract of carriage documentation in light of the new framework. Carriers operating services to and from Indian ports should ensure their bills of lading and standard trading conditions reflect the updated legal position.