Carriage of Goods by Sea Bill, 2024

The Lok Sabha has recently passed the Carriage of Goods by Sea Bill, 2024. This legislation aims to modernise the framework governing maritime transport in India. It replaces the outdated Indian Carriage of Goods by Sea Act, 1925, aligning with international standards. The Bill was introduced on August 9, 2024, and passed on March 28, 2025, through a voice vote.

Objectives of the Bill

The primary objective of the Carriage of Goods by Sea Bill is to simplify maritime regulations. It seeks to eliminate colonial-era laws that have hindered business efficiency. The Bill provides a clear framework for the responsibilities and liabilities of carriers. This clarity is essential for enhancing the ease of doing business in the maritime sector.

Key Features

The Bill retains all provisions from the original Act while introducing new elements. It empowers the Union government to issue directions for the Bill’s implementation. This includes amending the schedule that specifies rules applicable to Bills of Lading. A Bill of Lading is important document in maritime transport, detailing the type, quantity, and condition of goods.

Stakeholder Involvement

The government has engaged various stakeholders in the drafting of this Bill. This inclusive approach ensures that the needs and concerns of all parties involved in maritime transport are addressed. The aim is to create a more streamlined process that benefits shippers, carriers, and consumers alike.

International Compliance

The new Bill aligns with the International Convention for the Unification of Certain Rules of Law relating to Bills of Lading, known as the Hague Rules. This compliance with international standards is vital for enhancing India’s position in global maritime trade.

Government’s Vision

Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, emphasised the government’s commitment to modernising maritime laws. He stated that this legislation is part of a broader initiative to eliminate remnants of colonialism in Indian law. The goal is to create a rationalised legal framework that is easier to understand and implement.

Impact on Business

The simplification of maritime laws is expected to have a positive impact on the shipping industry. By clarifying the rights and responsibilities of carriers, the Bill aims to reduce disputes and enhance operational efficiency. This will ultimately benefit the economy by facilitating smoother trade operations.

Future Prospects

With the passage of this Bill, India is poised to strengthen its maritime sector. The focus on modernisation and compliance with international standards is likely to attract more investment. This could lead to improved infrastructure and services in the shipping industry.

Questions for UPSC:

1. Critically analyse the impact of colonial laws on contemporary Indian maritime regulations.
2. Estimate the significance of Bills of Lading in international trade and shipping.
3. What measures can be taken to enhance stakeholder participation in legislative processes? Discuss.
4. Point out the challenges faced by the shipping industry in India and suggest solutions.

Answer Hints:

1. Critically analyse the impact of colonial laws on contemporary Indian maritime regulations.

1. Colonial laws often reflect outdated practices that do not align with modern business needs.
2. The Indian Carriage of Goods by Sea Act, 1925, is an example of such a law, hindering efficiency.
3. Colonial-era regulations may create legal ambiguities affecting the rights and liabilities of carriers.
4. Modernisation efforts aim to eliminate these laws, encouraging a more rationalised legal framework.
5. Removing colonial laws can enhance India’s competitiveness in global maritime trade.

2. Estimate the significance of Bills of Lading in international trade and shipping.

1. Bills of Lading serve as essential documents that detail the type, quantity, and condition of goods.
2. They act as a receipt for the shipper, providing proof of the contract of carriage.
3. These documents are crucial for transferring ownership and rights over the goods during transit.
4. In international trade, they facilitate customs clearance and are vital for financing arrangements.
5. Compliance with international standards, like the Hague Rules, enhances their legal validity globally.

3. What measures can be taken to enhance stakeholder participation in legislative processes? Discuss.

1. Conduct regular consultations with industry stakeholders during the drafting of legislation.
2. Establish public forums and workshops to gather feedback and suggestions from affected parties.
3. Utilise digital platforms for broader outreach and engagement with diverse stakeholders.
4. Incorporate stakeholder input into the legislative process to ensure concerns are addressed.
5. Provide transparency in the legislative process to build trust and encourage active participation.

4. Point out the challenges faced by the shipping industry in India and suggest solutions.

1. Challenges include outdated regulations that hinder operational efficiency and competitiveness.
2. Infrastructure deficiencies, such as inadequate port facilities and logistics support, impede growth.
3. High operational costs due to bureaucratic hurdles and lack of technological adoption.
4. Solutions include modernising legal frameworks, improving infrastructure, and adopting technology.
5. Enhancing public-private partnerships can lead to better investment in shipping infrastructure.