On May 1, 2026, the People’s Republic of China (“PRC”) implemented the most extensive revision of its Maritime Code since the Code’s enactment in 1993. For anyone trading to, from, or within China, the revisions will impact liability, dispute resolution, and more—especially for cargo carriers and claims.
Under the prior code, Article 51(2) provided that an international carrier was exempt from liability regardless of whether the fire accident occurred at sea or on land as long as the fire accident leading to the cargo loss or damage occurred within the carrier’s period of responsibility and was not the actual fault of the carrier.
Under the new code, shore-side terminal and warehouse fires during the carrier’s period of responsibility are no longer exempt. So, the fire exemption is now limited to on-board fires.
It is important to note that the new code creates consistency between international carriage and domestic carriage—port-to-port voyages within China (the Code remains inapplicable to transport in rivers, lakes, and other similar inland waters)—whereas the prior code applied only to international voyages. Although the code now extends to domestic carriage to create consistency, domestic carriage is excluded from being able to rely on the fire exemption.
The differing seaworthiness obligations contained in Article 48 of the new code likely explain the domestic carriage exclusion. For international voyages, a vessel must be seaworthy before and at the commencement of a voyage, yet for domestic carriage, the carrier shall exercise due diligence for the vessel to be seaworthy throughout the entire voyage. This would create a conflict of clauses if a vessel engaged in domestic carriage, required to be seaworthy for an entire voyage, claims the fire exemption for damage that was caused by unseaworthiness.
In sum, the code revision limits the fire exemption clause to international voyages—where the port of loading or discharge is located within a PRC territory—for damage caused by fire on board the vessel. In the age of lithium-ion batteries and incorrectly disclosed cargo, this revision could have significant effects on an international carrier’s exposure.
For more information or questions on how this revision may impact you or your company’s operations, contact Liskow attorney Elizabeth Strunk and visit Liskow’s Maritime Litigation & Casualty Response practice page.