The "Maritime Code of the People's Republic of China", which has been comprehensively revised for the first time in 30 years, will come into effect on May 1, 2026. Among the most notable major adjustments is the complete rewrite of Article 93, which concerns the liability rules for unclaimed goods at the port of destination.
The original rule (Article 86): The demurrage, detention, storage and disposal fees arising from unclaimed goods shall mainly be borne by the consignee abroad.
New Rule (Article 93): If no one takes delivery of the goods at the port of discharge, the master may unload the goods in a warehouse or other appropriate place. The costs and risks arising therefrom shall be borne by the shipper, but the shipper shall be notified promptly. If the consignee has exercised the rights under the contract of carriage of goods by sea but delays or refuses to take delivery of the goods, the master may handle the goods in accordance with the provisions of the preceding paragraph, and the costs and risks arising therefrom shall be borne by the consignee.
In the past, the risk was borne by the shipper upon delivery of the goods. Now, it might shift to a lifetime responsibility. The risk has moved from the overseas buyer to the domestic consignor, foreign trade enterprises, and freight forwarding companies.
There are many hidden dangers in the FOB model of foreign trade enterprises. Foreign trade enterprises often adopt the FOB clause, believing that the risk is transferred upon delivery of the goods to the ship. After the implementation of the new law, if there are sudden changes in the market, a sharp increase in tariffs, buyers running away, or bankruptcy at the destination port, resulting in no one picking up the goods (abandoning the goods), the shipping company can directly claim compensation from the domestic consignor (booking party/seller). This includes demurrage fees, terminal storage fees, warehousing management fees, operation fees, and disposal fees for re-import or destruction.
Suggested Action
The contract strengthens the buyer's obligation to pick up the goods and includes provisions for penalty for breach of contract. It also requires the provision of a pick-up guarantee or a letter of credit for payment.
Strengthen the logistics tracking at the destination port and intervene in abnormal warnings in advance.
Purchase relevant liability insurance or logistics insurance to transfer some of the risks.
The freight forwarding companies have evolved from "middlemen" to "front-line responsible parties" in freight forwarding. As the booking party, they are often regarded as the contractual shipper (the party who enters into a transportation contract with the carrier). Article 44 of the new law clearly distinguishes between the contractual shipper and the actual shipper (the party who actually delivers the goods). According to Guiding Case No. 230 of the Higher People's Court, the entity responsible for the unclaimed goods is the contractual shipper. The actual shipper generally does not bear the responsibility.
Suggested Actions:
Review high-risk in-transit/ready-to-ship orders and supplement agreements.
Update the standard contract template and add a special clause for unattended delivery.
Establish an internal warning SOP (Standard Operating Procedure).
The new "Maritime Code" consists of 16 chapters and 310 articles, covering aspects such as the legalization of electronic documents, the improvement of the definition of actual carriers, the strengthening of marine ecological protection, and anti-counterfeiting provisions. The overall aim is to adapt to the digitalization of shipping, international trends, and the requirements of high-level opening up.
For practitioners, in the short term, they should immediately review the contract templates, insurance configurations, and notification procedures. During the transitional period (from now until May 1st), they should promptly adjust their business models. In the long term, they should strengthen customer credit assessment, implement full-chain visualization of logistics, and conduct legal compliance training. This will enhance their ability to resist risks and professional service levels.
Please note to all shippers and freight forwarders: Keep track of the price trends of each shipping route. Before shipping, please check the latest shipping schedules and price information and make a detailed shipping plan in advance.