Shipping Disputes in China: Cargo Claims, Demurrage and Vessel Arrest

Introduction

For a cargo owner, freight forwarder, charterer or shipowner, a Chinese shipping dispute turns on three practical questions: whether the claim was notified in time, whether the limitation period is still open, and whether a ship can be arrested as security. Get the deadlines wrong and an otherwise strong claim dies at the threshold.

A threshold fact to get straight first: China's Maritime Law was comprehensively revised in 2025 — adopted on 28 October 2025 by the 18th session of the Standing Committee of the 14th National People's Congress and in force since 1 May 2026. It is the law's first systematic overhaul since 1992. The Supreme People's Court's judicial interpretation on its temporal application was issued 28 April 2026 and took effect with the new law. For facts occurring before 1 May 2026, the 1993 text generally still applies.

Cargo Claims: Notice Deadlines You Cannot Miss

Before suing, a cargo interest must lodge written notice — and the windows are short. Under the revised law, apparent damage must be notified in writing at delivery; for damage that is not apparent, written notice must be given within 7 consecutive days for non-containerized cargo and 15 days for containerized cargo, counting from the day after delivery. Failure to notify makes the goods presumed delivered in good condition (a joint survey can substitute for notice). For economic loss from delayed delivery, the carrier is released from liability unless it receives written notice within 60 days of the day after delivery.

Limitation Periods Under the Revised Law

Cargo carriage claims: 1 year — now with dual-direction commencement: against the carrier or actual carrier, from delivery or the date delivery was due; against the shipper, consignee or document holder, from when the claimant knew or should have known the right was infringed;
Voyage charter claims: 2 years;
Recourse claims: 90 days;
Interruption and suspension — a "request for performance" is now an express ground of interruption, and suspension ends 6 months after the cause is removed; the parties may not extend the period by agreement;
Multimodal transport — where the loss, damage or delay occurred in an identifiable leg, the operator's liability, liability limits and limitation period follow the law governing that leg (network liability extended to limitation).

Vessel Arrest: The Special Maritime Procedure Law

Arrest is governed by the Special Maritime Procedure Law (adopted 25 December 1999, effective 1 July 2000, still in force without substantive amendment). The essentials:

Closed list of maritime claims: only the claims enumerated in Article 21 (22 categories, including loss from ship operation, ship use or charter agreements, and cargo or passenger carriage agreements) support an arrest;
Pre-action application: filed in writing with the maritime court where the property is located, and it is not bound by the parties' jurisdiction or arbitration agreement;
Security: the court may require the applicant to provide counter-security; refusal to provide it leads to dismissal;
48-hour ruling: the court rules within 48 hours of acceptance (with a 5-day reconsideration window);
30-day window: the applicant must sue or commence arbitration within 30 days or the arrest is lifted; if no security is provided and the ship cannot remain under arrest, the court may order its auction;
Wrongful arrest: a mistaken application exposes the applicant to liability in damages.

Demurrage: A Claim That Can Secure Itself

Demurrage is generally arrestable, because it arises from a ship-use/charter or carriage relationship within Article 21. Its limitation period turns on the underlying contract: a demurrage claim on a voyage charter is 2 years, while a demurrage or container-detention claim based on a bill of lading or carriage contract is 1 year (with detention fees running from the day after the free-use period expires). Where freight, general average, demurrage or necessary sums the carrier advanced remain unpaid, the carrier may also exercise a lien on the cargo within reasonable limits.

A Practical Playbook

Notify in writing immediately — apparent damage at delivery, latent damage within the 7/15-day window, delay within 60 days;
Identify the correct limitation period by contract type (carriage vs charter) before it runs;
Move for arrest early where a ship is within jurisdiction — it is the highest-leverage security tool available;
Budget for counter-security and be ready to sue or arbitrate within 30 days of arrest;
Confirm current article numbers against the official text of the revised Maritime Law before citing them.

For the broader framework of the 2026 revision, see Key Points of the New Chinese Maritime Law, or contact us to discuss a specific shipment or arrest.

How Tianni Law Firm Can Help

Tianni Law Firm (江苏天倪律师事务所), based in Nanjing, Jiangsu, advises cargo owners, freight forwarders, charterers and shipowners on shipping disputes in China. Our work includes cargo and demurrage claims, vessel-arrest applications and counter-security, maritime evidence and property preservation, and the enforcement of maritime judgments and arbitral awards.