New Rules Around China-Linked Cargo Are Now in Effect

Significant changes to China’s Maritime Code came into effect on 1 May 2026, and they could impact importers, exporters and freight forwarders involved in ocean freight movements linked to Chinese ports.

One of the key concerns is that Chinese maritime law may now apply to international shipping contracts involving China, even where contracts specify foreign law or overseas arbitration. In practical terms, this could make dispute resolution more complicated for businesses trading with Chinese counterparties.

The revised Code also introduces new liability rules around unclaimed or abandoned cargo. If a consignee refuses delivery, responsibility for storage, removal and disposal costs may fall back onto the “shipper” listed on the shipping documents, even if they are not the cargo owner.

This has created particular concern around how Incoterms® and transfer-of-risk arrangements will interact with the new laws, especially for containerised cargo and FCA shipments.

The changes also strengthen a shipper’s rights to redirect cargo or change the consignee during transit, which may affect businesses using negotiable Bills of Lading.

Businesses trading to or from China are being encouraged to review:

• shipping contracts and Bills of Lading

• governing law and arbitration clauses

• Incoterms arrangements

• insurance and liability exposure

While the long-term impact will depend on how Chinese courts interpret the revised Code, importers and exporters with China-linked supply chains should ensure they understand how the changes may affect their contractual and shipping responsibilities.

Source: Freight & Trade Alliance (FTA) and Australian Peak Shippers Association (APSA).