Understanding Bills of Lading Bill, which will replace colonial-era Indian Bills of Lading Act

The Lok Sabha recently passed the Bills of Lading Bill which seeks to update and simplify the legal framework for shipping documents. The bill will replace the colonial-era Indian Bills of Lading Act, 1856, offering a more modern and user-friendly approach to maritime shipping.

The current law, a brief three-section act, primarily governs the transfer of rights and confirmation that goods were loaded onto a vessel. Amid the changes in a constantly evolving global trade landscape, India needed a more comprehensive and understandable law that aligns with international standards.

“The new legislation aims to simplify the language and reorganize provisions without altering their underlying substance. It also empowers the Central government to issue directions to facilitate the law’s implementation along with an inclusion of a standard repeal and saving clause, while eliminating the colonial legacy of the 1856 Act,” the Union ministry of ports, shipping and waterways said in a release.

Union Minister of Ports, Shipping & Waterways Sarbananda Sonowal, who introduced the bill in Lok Sabha, said, “This bill, which replaces the outdated Indian Bills of Lading Act, 1856, eliminates archaic provisions and aligns India's maritime laws with global standards, enabling smoother and more secure shipping practices.” He called the passing of the bill a “historic milestone in India’s journey towards a modern, efficient, and globally competitive shipping sector.”

The bill will bring in several benefits, including streamlined business processes, reduced litigation risks, and improved clarity for carriers, shippers, and lawful holders of goods.

"The modernization of the Bills of Lading Act will support India’s growing role in global trade, making it easier for businesses to navigate shipping processes while reducing disputes, this is a crucial step towards positioning India as a global leader in maritime commerce,” the minister said.

He pointed out that by simplifying the language, reorganizing provisions, and empowering the government to better implement and manage this legislation, the law will lead to a more business-friendly environment that will reduce legal complexities and foster greater trust in India's maritime trade.

The Bills of Lading Bill, 2024, is part of a broader effort to modernize India's maritime laws and enhance the country's competitiveness in international shipping, the ministry said.

Maritime