City boss Rod Stringer has made improvements to his side's recent defensive fratalities by adding the young defender to his options.
Joing from Colchester United, 19-year-old James has appeared twenty-two times for the Sky Bet League Two side, including featuring nine times for the U's so far this term.
Clarets fans may recognise the youngster after he appeared City's 1-0 win over the U's in the BBC Essex Senior Cup last month.
James arrives at the Melbourne Community Stadium as a a highly rated youngster and is available for selection in tomorrow's Vanarama National League South tie against Chippenham Town.
Everybody at Chelmsford City Football Club welcomes James to the Melbourne Community Stadium.