Chinese Maritime Law

Scope and Principles

The Maritime Code of the People’s Republic of China, adopted in 1992 and effective from 1 July 1993, governs maritime transport relations between parties of equal status. The Code distinguishes between international maritime transport, which is governed by the Code, and coastal transport, which is governed exclusively by Chinese law and is reserved for Chinese-flagged vessels. The Code establishes the principle that international treaties to which China is a party prevail over the Code, and international customs apply where neither treaties nor the Code provide a solution. The Code has been supplemented by judicial interpretations of the Supreme People’s Court.

The Ship

The nationality of the ship is determined by registration with the Maritime Safety Administration (MSA). Ships registered in China fly the Chinese flag and are subject to Chinese jurisdiction on the high seas. The ship’s mortgage is regulated by the Maritime Code, requiring registration for validity against third parties. The priority of maritime claims follows an order of preference: crew wages, salvage and general average, port and pilotage dues, tort claims, and cargo claims. The limitation of liability for maritime claims implements the LLMC 1976, with Chapter XI of the Code establishing limits based on the ship’s tonnage.

Contract of Carriage of Goods

The contract of carriage of goods by sea is governed by Chapter IV of the Maritime Code, which follows the Hague-Visby Rules system. The bill of lading is the primary document, serving as evidence of the contract, a receipt for the goods, and a document of title. The carrier’s obligations include the duty to exercise due diligence to make the ship seaworthy before and at the beginning of the voyage and the duty to properly care for the cargo during the voyage. The period of responsibility runs from loading to discharge (tackle to tackle). The carrier’s liability is limited to 666.67 SDRs per package or 2 SDRs per kilogram, unless the nature and value of the goods were declared.

Nautical Fault and Exclusions

The Maritime Code excludes the carrier’s liability for nautical fault — errors in the navigation or management of the ship by the master, crew, or pilot — following the Hague-Visby Rules approach. The actual carrier, who performs the whole or part of the carriage, shares the obligations of the contracting carrier. The delivery of the goods is governed by detailed rules for the delivery of unclaimed goods and the right of the carrier to place goods in warehouse if the consignee fails to take delivery.

Charter Parties

Charter parties are governed by Chapter VI of the Maritime Code, which distinguishes voyage charters and time charters. The voyage charter regulates the shipowner’s obligation to provide the vessel and the charterer’s obligation to provide the cargo. The time charter regulates the hire period, the shipowner’s obligation to maintain the vessel, and the charterer’s obligation to pay hire within the trading limits. The Code also recognises the bareboat charter, under which the charterer assumes full control and responsibility for the vessel.

General Average and Collision

General average is governed by the Beijing Adjustment Rules, issued by the China Council for the Promotion of International Trade (CCPIT), supplementing the York-Antwerp Rules. Average adjustment is conducted by the CCPIT Adjustment Centre in Beijing. Collision liability is governed by the 1910 Collision Convention principles, with liability apportioned according to fault. Where fault cannot be determined, the loss is borne equally. Collisions caused by force majeure or unexplained causes result in the injured party bearing its own loss.

Salvage and Pollution

Salvage is regulated by the Maritime Code implementing the International Convention on Salvage 1989. The salvors are entitled to a reward for successful salvage operations, with special compensation available for operations that prevent or minimise environmental damage. Marine pollution is governed by the Maritime Code and the Marine Environment Protection Law, implementing the International Convention on Civil Liability for Oil Pollution Damage 1992 (CLC). The shipowner bears strict liability for oil pollution damage, subject to limitation and compulsory insurance requirements.

Maritime Courts

China maintains a system of specialised maritime courts in 11 cities, including Shanghai, Tianjin, Qingdao, Dalian, Guangzhou, Haikou, Xiamen, Ningbo, Wuhan, Beihai, and Nanjing. The maritime courts have jurisdiction over first-instance maritime and trade disputes, including cargo claims, charter party disputes, collision claims, salvage and general average claims, and marine insurance disputes. Appeals lie to the higher people’s courts of the respective provinces or municipalities, with further appeal to the Supreme People’s Court.