Shipping to or from China? Here's Why You Should Review Your Contracts
China's revised Maritime Code came into effect on 1 May 2026, introducing changes that could affect how maritime disputes are handled for cargo moving through Chinese ports.
While the changes are primarily legal in nature, they have practical implications for importers, exporters, freight forwarders and logistics providers involved in international sea freight.
A key issue is the potential for Chinese maritime law to apply to transport contracts connected to China, even where parties have relied on foreign governing law, arbitration or jurisdiction clauses in their agreements.
For businesses that regularly move cargo through Chinese ports, this creates an additional layer of risk. Contractual protections that appear straightforward on paper may not always operate as expected if a dispute is pursued or enforced in China.
This could impact a range of common shipping issues, including:
Cargo damage and loss claims
Freight payment disputes
Demurrage and detention charges
Carrier and shipper liability
Contractual indemnities
Recovery actions between supply chain parties
The changes are particularly relevant for Australian businesses given China's ongoing importance as one of Australia's largest trading partners. Many commercial arrangements rely on predictable contract enforcement and clearly defined dispute resolution processes. Any uncertainty in these areas has the potential to increase commercial risk.
For cargo owners, now is an appropriate time to review contracts, trading terms and shipping documentation involving Chinese port calls. Particular attention should be paid to governing law clauses, arbitration provisions, limitation clauses, indemnities and shipper liability provisions.
While the full practical impact of the revised Maritime Code will become clearer over time, businesses should avoid assuming that long standing contractual arrangements will continue to operate exactly as they have in the past.
Understanding where potential risks exist and reviewing contractual protections now may help avoid costly disputes later.