Shipping 2026

CHINA Law and Practice Contributed by: John Wang, Xu Jun, Song Jia and Zhao Yuxuan, Wang Jing & Co

5.12 Damages in the Event of Wrongful Arrest of a Vessel The applicant shall indemnify the respondent for the wrongful arrest of a vessel. It is clear that the arrest is wrongful if the applicant loses in the substantive pro - ceeding. In other scenarios, it is subject to the court’s discretion. 6. Passenger Claims 6.1 Laws and Conventions Applicable to the Resolution of Passenger Claims The applicable laws and conventions are as follows: • Athens Convention Relating to the Carriage of Pas - sengers and Their Luggage by Sea, 1974 and its • the Provisions on Limitation of Liability for Carriage of Passengers by Sea between Ports of the PRC. Time Bar Article 258 of the CMC states: “The time limit for bringing a claim against the carrier with regard to the carriage of passengers by sea is two years, counting respectively as follows: 1976 Protocol; • the CMC; and (1) Claims for personal injury: counting from the day on which the passengers disembarked or should have disembarked; (2) Claims for death of passengers that occurred during the carriage period: counting from the day on which the passenger should have disembarked; whereas those for the death of passengers that occurred after the disembarkation but resulted from an injury during the carriage period by sea, counting from the day of the death of the passenger concerned, provided that this period does not exceed three years from the time of disembarkation; (3) Claims for loss of or damage to the luggage: count- ing from the day of disembarkation or the day on which the passenger should have disembarked.”

Article 285 of the CMC2025 makes no substantive changes to the contents of the above Article 258. Limitation of Liabilities for a Ship-Owner Article 117 of the CMC states: “Except the circumstances specified in paragraph 4 of this Article, the limitation of liability of the carrier under each carriage of passengers by sea shall be governed by the following: (1) For death of or personal injury to the passenger: not exceeding 46,666 Units of Account per passenger; (2) For loss of or damage to the passengers’ cabin luggage: not exceeding 833 Units of Account per pas - senger; (3) For loss of or damage to the passengers’ vehicles including the luggage carried therein: not exceeding 3,333 Units of Account per vehicle; (4) For loss of or damage to luggage other than that mentioned in subparagraphs (2) and (3) in this Article: not exceeding 1,200 Units of Account per passenger. An agreement may be reached between the carrier and the passengers with respect to the deductibles applicable to the compensation for loss of or damage to the passengers’ vehicles and luggage other than their vehicles… A higher limitation of liability than that set out in sub- paragraph (1) above may be agreed upon between the carrier and the passenger in writing...” In addition, according to Article 207, a ship-owner (including a charterer and a ship-operator) or a sal - vor could enjoy the limitation of liability for maritime claims stipulated in Article 211 of the same law. However, Articles 118 and 209 regulate that the car - rier or a person liable shall not be entitled to limit their liability based on the above provisions if it is proved that the loss resulted from their act or omission done with the intent to cause that loss or damage, or if they acted recklessly and with the knowledge that such loss would probably result.

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