India moves over 90% of its trade volume by sea, so a badly drafted shipping contract can cost crores in demurrage, cargo claims or a vessel stuck at port. For shipowners, charterers, traders, exporters and financiers, maritime law is a daily commercial reality, not a niche subject.

The core maritime agreements

Charter parties. A voyage charter hires a ship for a particular voyage, a time charter hires it for a period, and a bareboat (demise) charter transfers possession and control to the charterer. Standard forms such as GENCON, NYPE and BARECON are widely used, usually with London or Singapore arbitration clauses. Disputes typically arise over laytime and demurrage, off-hire, safe port warranties, and freight.

Bills of lading. A bill of lading is simultaneously a receipt for cargo, evidence of the contract of carriage and a document of title. Delivery against the wrong document, or without the original bill, is a frequent source of cargo claims and fraud.

Shipbuilding, sale and purchase contracts. Newbuilding contracts deal with milestone payments, delivery dates, refund guarantees and delay damages. Second-hand sales are commonly documented on the Norwegian Saleform memorandum of agreement, covering inspection, class status, and delivery condition.

Salvage, towage and offshore contracts. Salvage is often concluded on Lloyd's Open Form on a no cure, no pay basis, while towage and offshore support contracts allocate risk through knock-for-knock clauses and insurance.

India's updated statutory framework

Parliament has overhauled the colonial-era shipping statutes in 2025. The Carriage of Goods by Sea Act, 2025 (Act 19 of 2025) replaces the 1925 Act and is built around the Hague-Visby Rules, with a Schedule that the Central Government can update. The Bills of Lading Act, 2025 replaces the 1856 enactment, and the Merchant Shipping Act, 2025 replaces the 1958 Act, extending its reach and aligning it with IMO conventions; the Coastal Shipping Act, 2025 deals with coastal trade. Commencement of individual statutes has been by notification, so the in-force date of each provision must be checked before relying on it.

Practical drafting points

• Choose the governing law and arbitration seat expressly, and decide whether Indian courts should have supervisory jurisdiction.
• Define laytime, notice of readiness and demurrage rates precisely.
• Check that the bill of lading terms are consistent with the charter party, particularly the incorporation clause.
• Keep P&I club correspondence and letters of indemnity under legal review before cargo is released.

Indian shipping and commodity players, including large port operators, ship-owning companies and trading houses, rely on these contracts every day; smaller exporters and importers are equally exposed when a cargo goes wrong.

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This article is for general information only and is not legal advice. Law and procedure change; please verify the current position for your specific case. Last reviewed: November 2026.