In force
Saudi Commercial Maritime Law
النظام البحري التجاري
The Commercial Maritime Law, set out in 391 articles.
- Articles
- 391
- In force
- 391
- Amended
- 0
- Issued
- 5/4/1440 AH
Issued by: مرسوم ملكي رقم ( م/33 ) وتاريخ 1440/04/05هـ · قرار مجلس الوزراء رقم (197) بتاريخ 1440/4/4هـ
Each article shows the official Arabic text, which is the only legally binding version, followed by our plain-English explanation.
Browse Commercial Maritime Law by topic
Scope of the Maritime Law and Ship Nationality12 articlesRegistration of Ships and Maritime Units35 articlesShip Construction and Co-Ownership19 articlesMaritime Liens and Mortgages30 articlesPrecautionary and Executory Attachment of Ships24 articlesLiability of the Ship Owner and Operator11 articlesThe Master: Authority and Duties29 articlesShipping Agent and Carriage Contractor8 articlesMaritime Employment Contract and Seafarer Rights23 articlesShip Charter43 articlesCarriage of Goods by Sea and the Bill of Lading55 articlesPassenger Carriage and Maritime Tourist Cruises30 articlesCollision and Maritime Salvage26 articlesGeneral Average21 articlesMarine Insurance68 articlesMarine Pollution, Towage and Pilotage23 articlesPenalties Under the Commercial Maritime Law16 articles
Articles of the Saudi Commercial Maritime Law
الباب الأولArticles 2–30
- Article 2Article 2 sets the scope of the Commercial Maritime Law: Saudi ships and foreign ships anchored in the Kingdom's ports or maritime zones, excluding warships and public service ships except for collision, salvage and general average.
- Article 3Article 3 applies the rules on movable property to ships, subject to the provisions of the law, except the rule on acquiring movables by possession and anything covered by a special provision.
- Article 4Article 4 requires, for a ship to acquire Saudi nationality, registration in a Kingdom port and full ownership by a Saudi, or a Saudi majority of shares in co-ownership, and allows the Chairman to adjust the ownership percentage.
- Article 5Article 5 requires every Saudi ship to fly the Kingdom's flag and permits flying another flag only where maritime custom allows, or to avoid certain danger or capture.
- Article 6Article 6 limits towing, pilotage, supply services in the Kingdom's maritime zones and coastal transport between its ports to Saudi ships, and lets the Chairman exempt other ships by a license for a set period.
- Article 7Article 7 bars a self-propelled ship from sailing under the Kingdom's flag without registration, refers the procedures to the regulations, and exempts specific vessels by length, tonnage and type.
- Article 8Article 8 regulates ship registration offices approved by the Chairman, the ship register and its entries, the registration record and its publication and announcement at the owner's expense, and registration fees.
- Article 9Article 9 bars a ship from sailing under the flag of more than one state, registering a ship already registered in another state before its deletion, and changing flag while sailing or stopped except for a transfer of ownership or registration change.
- Article 10Article 10 requires, for a ship to be registered, that the Authority or a delegated approved classification society inspect, survey and measure it and assess its tonnage, after the ownership document is submitted.
- Article 11Article 11 requires every Saudi ship to have a name, written at its bow and stern in clear Arabic and Latin letters with its port of registration, and bars the same name for more than one ship in the Kingdom.
- Article 12Article 12 empowers the registration office to issue a temporary registration certificate valid for one or more voyages, or for six months renewable for up to two years.
- Article 13Article 13 allows a Saudi to whom ownership of a ship has passed outside the Kingdom to obtain a temporary registration certificate from a registration office or a Kingdom representative office, valid for six months at most.
- Article 14Article 14 lets any interested person object to a ship's registration within 90 days of publication of the registration record, by a reasoned objection followed by a lawsuit within 15 days, failing which it is treated as never made.
- Article 15The article provides for issuing a permanent registration certificate for the ship if no objection is filed in time or a final judgment rejects it, once the conditions and documents set by the regulations are met.
- Article 16The article makes the registration certificate a document proving ownership of the ship and its Saudi nationality, requires it to stay on board with a copy posted, and bars its assignment or seizure for a debt or any other reason.
- Article 17The article regulates issuing a replacement certificate for a lost or damaged ship registration certificate, a temporary certificate if it is lost outside the Kingdom, and the owner's right to transfer registration to another office.
- Article 18The article lists five cases in which a ship's registration is cancelled: loss of the ship, transfer of ownership to a foreigner, capture by the enemy, a court judgment cancelling it, and the owner's request.
- Article 19The article makes in rem suits relating to the ship fall within the competent court in whose jurisdiction the ship's registration office is located.
- Article 20The article permits registering a chartered foreign bareboat ship at the Kingdom's registration offices if the charterer meets the registration conditions, and creates a special temporary register for such ships.
- Article 21The article subjects a chartered foreign bareboat ship registered in the Kingdom to the Kingdom's laws, with the charterer taking the owner's place in the law's obligations and penalties for the whole charter period.
- Article 22The article requires the charterer of a ship that is not fitted out to apply to cancel its register and return the temporary registration certificate within fifteen days of the end of the charter contract.
- Article 23The article requires the owner of a Saudi ship not fitted out, chartered to a foreigner, to notify the registration office fifteen days before the contract takes effect; registration is suspended or cancelled temporarily and the Kingdom's flag may not be flown during the charter.
- Article 24The article requires marine units exempt from registration under paragraph (2) of Article 7 to be entered in the register, and refers the conditions and procedures for entry to the regulations.
- Article 25The article provides that the competent registration office issues the marine unit an entry certificate after an ownership document is submitted, stating its name, specifications, entry number, owner or owners and their shares, and the service it is assigned to.
- Article 26The article permits the owner of a marine unit to transfer its entry from the registration office where it is entered to any other approved registration office in the Kingdom, under procedures set by the regulations.
- Article 27The article bars non-Saudis from owning marine units exempt from registration, except pleasure boats, which foreigners may own under conditions set by the regulations.
- Article 28The article sets three cases for cancelling the entry of a marine unit: its loss, transfer of its ownership to a foreigner, and a court judgment cancelling the entry.
- Article 29The article empowers the Authority to license offshore platforms to work in the Kingdom's maritime areas, requires the licensee to meet safety, security and environmental assessment requirements, and subjects the platform to periodic inspection every five years.
- Article 30The article lets the President determine by decision the classification societies that may be authorized by agreement with the Authority to survey, inspect and certify Saudi-flagged ships, provided they are IACS members and meet the regulations' conditions.
الباب الثاني: الحقوق العينية على السفينةArticles 31–73
- Article 31The article requires a ship construction contract, and any amendment to it, to be proved in writing, and the contract is valid only if signed by its parties.
- Article 32The article provides that ownership of the ship remains with the builder and passes to the party ordering it only on accepting delivery after trials, unless agreed otherwise.
- Article 33The article makes the ship builder guarantee that the ship is free of hidden defects, even if the party ordering it accepted delivery after trials.
- Article 34The article provides that a suit for guarantee of hidden defects is not heard after one year from the date of learning of the defect.
- Article 35The article extends the hidden-defect guarantee and the one-year period from learning of the defect, set in Articles 33 and 34, to ship repair contracts.
- Article 36The article requires acts creating, transferring or ending ownership of a ship or other real rights in it to be proved by an official document, otherwise void, and they are effective against third parties only once entered in the ship's register.
- Article 37The article provides that the majority view, meaning owners of more than half the shares, governs decisions on operating a jointly owned ship, and lets the dissenting minority ask a court to annul a decision within 15 days.
- Article 38The article permits the joint owners to entrust management of the joint ownership to one or more managers from among the owners or others, with management powers except sale, mortgage, creating real rights and chartering without majority permission.
- Article 39The article makes each joint owner bear a share of the joint ownership's expenses and losses in proportion to his share in the ship, unless otherwise agreed, and entitles him to the net profits in the same proportion.
- Article 40The article makes a joint owner who is a manager liable with all his property for debts arising from the joint ownership, jointly with the other managers, and makes non-manager owners liable likewise unless they agree otherwise and the agreement is published.
- Article 41The article lets a joint owner dispose of his share without the others' consent unless that would cost the ship its Saudi nationality, requires approval of three-quarters of the shares to mortgage a share, and keeps the seller liable until the disposal is published.
- Article 42The article requires an owner who sells his share to a non-partner to notify the other owners in writing of the sale and price, and gives each owner the right to redeem the share within 15 days by paying the price and expenses.
- Article 43The article requires approval of owners holding at least three-quarters of the shares to sell a jointly owned ship, and lets any owner ask the court to end the joint ownership by sale where a dispute makes it impossible to continue usefully.
- Article 44The article provides that if shares representing more than half the ship are attached, the judicial sale covers the whole ship, though the court may limit it to the attached shares for serious reasons at the request of an owner whose shares were not attached.
- Article 45The article provides that co-ownership of a ship does not end on the death, legal restriction, declared bankruptcy or insolvency of one of the owners, unless otherwise agreed.
- Article 46The article lists the debts that carry a maritime lien on the ship, from court costs and crew employment debts to fees, salvage rewards, compensation and the master's contract debts.
- Article 47The article provides that maritime liens on a ship are not subject to any formality or any special requirement of proof.
- Article 48The article specifies the property that the Article 46 liens attach to: the ship, the freight of the voyage that gave rise to the debt, and their accessories, with a special rule for the paragraph 3 lien.
- Article 49The article defines what counts as accessories of the ship and the freight subject to the lien, such as compensation for unrepaired damage and salvage rewards; passenger fares count as freight; insurance compensation and State subsidies are excluded.
- Article 50The article provides that the lien on freight remains as long as the freight is payable or is held by the master or the owner's representative, and likewise the lien on the accessories of the ship and the freight.
- Article 51The article sets the ranking of liens for a single voyage in the order of Article 46, with proportional sharing within one paragraph, reverse chronological order for paragraphs (4) and (6), and one date for rights arising from one incident.
- Article 52The article provides that liens arising from any voyage rank ahead of those arising from an earlier voyage, and that liens arising from a single employment contract covering several voyages share one rank.
- Article 53The article provides that maritime liens follow the ship into whoever's hands it passes.
- Article 54The article sets out how liens on a ship are extinguished: judicial sale at auction, voluntary sale at auction subject to publication and objection conditions, and the passage of one year or six months for supply debts, with the start of each period stated.
- Article 55The article extends the lien expiry period in paragraph (3) of Article 54 to three years where the ship cannot be attached in the Kingdom's maritime areas, for specified categories of creditors.
- Article 56The article provides that giving the master and crew an advance or a payment on account does not make their debts referred to in paragraph (2) of Article 46 payable before their due date.
- Article 57The article gives the Authority the right to detain a wreck and sell it administratively at auction, with priority, to secure the costs of its removal, and gives a builder or repairer in possession of a ship the right to retain it until his claim is paid or the court orders its release.
- Article 58The lien provisions apply to ships operated by an owner-operator, a non-owner operator or a principal charterer, and do not apply where the owner lost possession of the ship through an unlawful act and the creditor acted in bad faith.
- Article 59The article provides that a mortgage on a ship is not concluded except by an official contract.
- Article 60The article permits the mortgage of a co-owned ship with the approval of owners holding at least three quarters of the shares; if that is not obtained, the matter may be referred to the court to rule in line with the owners' interest.
- Article 61A ship mortgage remains in force over its wreck, and it does not extend to freight, subsidies, compensation or insurance sums unless there is an express agreement, accepted in writing by the insurers, on the insurance sum.
- Article 62The article permits the mortgage of a ship under construction, provided the registration of the mortgage is preceded by a declaration at the registration office stating the place of construction, the length and dimensions of the ship and its approximate tonnage.
- Article 63A ship mortgage is registered in the ship register at the ship's registration office, a mortgage on a ship under construction must be registered at the registration office, and the regulations specify the registration and proof procedures.
- Article 64If the mortgage rights pass to a new creditor through endorsement of the debt secured by the mortgage, which is payable to order, the new creditor's name must be noted in the mortgage registration.
- Article 65A ship mortgage registration is kept until the end of its term or ten years from its making, whichever is earlier, and its effect is void if it is not renewed before the end of that period.
- Article 66A maritime mortgage ranks after liens, mortgages rank by their registration dates, and if registered on the same day the earlier in time is preferred to the later.
- Article 67Mortgagee creditors may pursue the mortgaged ship into any hands and apply for a precautionary attachment, and the ship may not be disposed of once the attachment report is registered in the ship register.
- Article 68If half of the ship or less is mortgaged, the creditor may attach and sell only the mortgaged part; if more than half, the court may order the sale of the whole ship, and co-owners must be notified fifteen days before the sale.
- Article 69Carrying out a court order for the sale of the ship clears it of all mortgages, and the rights of mortgagee creditors shift from the ship to its price.
- Article 70If ownership of the mortgaged ship has passed before the attachment report is registered, the creditor notifies the possessor of the attachment and demands the price; the possessor may avoid attachment and sale by notifying the registered creditors within the period and stating his readiness to pay.
- Article 71When ownership of a mortgaged ship has passed under Article 70, each creditor may request its sale by judgment of the competent court with a guarantee for the price and expenses, and the request is notified to the possessor within ten days.
- Article 72If no mortgagee creditor requests the sale of the ship under Article 71, the possessor may clear it of mortgages by depositing the price in the court's treasury and request cancellation of the mortgage registration without any other procedure.
- Article 73A ship mortgage registration is cancelled by judgment or by agreement between the creditor and the debtor, and in an agreement the debtor submits a declaration signed by the creditor, with the signature certified, consenting to cancellation, subject to Article 72.
الباب الثالث: الحجز على السفينةArticles 74–91
- Article 74A precautionary attachment may be imposed on a ship only by a court order from the competent court, a report is drawn up, and it may be imposed only to satisfy a maritime debt.
- Article 75The article lists the nineteen causes that make a debt a maritime debt, such as collision and pollution damage, charter and carriage contracts, salvage, seafarers' wages, port dues and insurance.
- Article 76A maritime creditor may attach the ship to which the debt relates or any other ship the debtor owns when the attachment is requested, except for the debts in items 14, 15 and 16 of Article 75.
- Article 77If the charterer manages the ship's navigation and alone is liable for the maritime debt, the ship or the charterer's other ships may be attached, but not the other ships of the lessor-owner.
- Article 78Copies of the ship attachment report are delivered to the master or his substitute, to the competent port authority to prevent sailing, and to the port registration office, which notifies the ship's registry office to annotate the register.
- Article 79The creditor must file the action on the debt and on the validity of the attachment before the competent court within eight days of delivering the attachment report to the master, otherwise the attachment is void and the operator may seek its cancellation.
- Article 80The debtor may appeal the judgment upholding the attachment of the ship, whatever the amount of the debt, within fifteen days of being notified of the judgment.
- Article 81The competent court orders the ship released if a guarantee or sufficient security for the debt is provided, except in ownership and co-ownership disputes, where it may only permit operation of the ship against security or organize its management.
- Article 82Enforcement attachment of a ship may be imposed only after the debtor is formally notified to pay the debt; notice and attachment may be combined, and the notice is delivered to the owner or, for a debt against the ship, to the master.
- Article 83The report of enforcement attachment of a ship must include a summons to appear before the enforcement judge of the court within whose jurisdiction the attachment took place, to hear the order of sale.
- Article 84Copies of the enforcement attachment report are delivered to the master, to the port authority to prevent sailing, to the port registration office, which notifies the ship's registry office, and to the consul of the flag state.
- Article 85If the judge orders the compulsory sale of the ship, his order must fix the base price, the conditions of sale and the days on which the compulsory sale auction is held.
- Article 86The compulsory sale of a ship takes place in two sessions seven days apart; the highest bid in the first is accepted provisionally and becomes the base price for the second, and the sale is finally awarded to the highest bidder.
- Article 87If no bid is made on the day of the ship sale, the competent court fixes a new base price lower than the first and appoints a bidding day, following the announcement procedures set by the regulations.
- Article 88The person to whom a ship auction is awarded pays 20% of the price at once and deposits the balance and expenses in the court treasury within seven days at most, otherwise the ship is resold at his risk.
- Article 89A judgment awarding a ship auction may be challenged only for a defect in the bidding procedures or in the form of the judgment, within fifteen days of its issuance.
- Article 90Claims of entitlement and nullity of attachment are filed with the court conducting the sale at least forty-eight hours before the auction, do not stop the sale except by court order, and the judgment may be appealed within fifteen days.
- Article 91If a ship is sold compulsorily as a result of its attachment, the person to whom the auction is awarded is not bound by the employment contracts of the master or the seamen working on it.
الباب الرابع: أشخاص الملاحة البحريةArticles 92–141
- Article 92The ship's owner or operator is civilly liable for the acts of the master, the seamen, the pilot and all persons in the ship's service committed in the course of or because of their duties, and for the master's contracts within his powers.
- Article 93The liability of the ship's owner is limited in accordance with the international conventions on limitation of liability for maritime claims to which the Kingdom has acceded.
- Article 94The article sets out the six kinds of claims in which a ship's owner may limit his liability, such as death, injury, loss of property, damage to port installations, delay and wreck removal.
- Article 95A ship's owner may not limit his liability for intentional damage or reckless neglect with awareness of damage, salvage and general average claims, the rights of crew members and their heirs, and pollution damage.
- Article 96Limitation of liability applies to the balance after set-off between the owner's debt and the creditor's debt from the same incident, and execution against the owner's property is barred if the compensation sum is placed at the creditor's disposal or an acceptable guarantee is provided.
- Article 97If the ship's owner pays one of the debts before the compensation sums are distributed, he is subrogated to the creditor to the extent of what he paid, and the court may, at his request, hold back part of the sums for a debt he proves he may become liable for.
- Article 98No liability action against the ship's owner is heard after two years from the date of the act giving rise to the liability, without prejudice to rights arising from death or bodily injury.
- Article 99The rules on limiting the ship owner's liability apply to the operator, charterer, manager of a jointly owned ship, insurer and salvage service providers, and to the master and subordinates even if personally at fault; relying on them is not an admission.
- Article 100The ship's operator appoints and dismisses the master, and a dismissed master is entitled to compensation where warranted under the general rules.
- Article 101The master alone commands the ship and directs the voyage, the next officer replaces him on his death or absence, and he must observe technical standards, conventions and maritime custom and maintain the ship's seaworthiness and the sufficiency of supplies.
- Article 102The master may not give up command of the ship until it reaches port, and may not leave it or order it abandoned except in the face of certain danger after consulting its officers, saving money, papers and the most valuable cargo where possible.
- Article 103The master must personally command the ship when entering and leaving ports, passing through waterways and whenever special obstacles confront navigation, even if he is obliged to use a pilot.
- Article 104The master has the authority to notarize on the ship, and over those on board the powers needed to preserve order and the security of the ship, passengers and cargo and the safety of the voyage, and to impose disciplinary penalties in accordance with the regulations.
- Article 105The master records births and deaths in the official logbook and follows the civil status rules, inventories a deceased person's belongings with an officer and hands them over at the first Saudi port, and may put off a person with a contagious disease at the nearest port.
- Article 106If a crime is committed on the ship, the master gathers evidence and makes urgent inquiries until the authorities arrive, may detain the accused and preserve evidence, then hands over a report and seized items at the first Saudi port.
- Article 107The master is the shipowner's agent and represents the owner in court in matters of the ship and the voyage; any limit on liability in that agency cannot be asserted against third parties in good faith, and the agency exists only where the owner or the owner's agent is absent.
- Article 108The master must follow the shipowner's instructions in commercial functions and, according to custom, inform the owner of every matter concerning the ship and the cargo.
- Article 109During the voyage the master must keep on board the documents, certificates and records concerning the ship, the crew, the passengers and the cargo that the Law and international conventions require.
- Article 110The master keeps the official logbook, endorsed by the registration office and with numbered pages, records in it what the regulations specify, and presents it for endorsement within 24 hours of arrival, or at the Kingdom's representation abroad.
- Article 111The master submits a report on unusual incidents to the Authority within 24 hours of arrival; the Authority verifies it and draws up a record, and the master may not unload the affected cargo before the report except in extreme necessity.
- Article 112In urgent necessity the master may borrow against the ship and its freight, then the cargo, with permission of the court or the representation; if borrowing fails, goods may be sold with permission, and shippers may object and demand unloading on paying full freight.
- Article 113The master may not sell the ship without special authorization from its owner.
- Article 114The master and seafarers may not load goods for their own account without the shipowner's permission; a violator pays double the freight, and the master may throw the goods overboard if they endanger safety or entail fines or expenses.
- Article 115If the master must repair the ship during the voyage, the shipper may wait or take out the goods while paying full freight, with no increase in freight; if repair is not possible, the master hires a substitute ship at his own expense.
- Article 116The master protects the interests of the owner, shipowner, seafarers, passengers and cargo owners; in necessity he does every urgent act for the safety of lives, the ship and the cargo, and informs the shipowner before an unusual step where circumstances allow.
- Article 117Contracts and acts carried out by the shipping agent and the transport contractor are governed by the laws of the country in which those contracts or acts are made.
- Article 118A claim by the shipping agent or transport contractor against the principal or the employer is brought under the Law of Sharia Procedure, and may be brought before the court of the agent's or contractor's domicile.
- Article 119A claim by the principal or employer against the shipping agent or transport contractor is not heard after two years from the date the debt falls due.
- Article 120The shipping agent remains liable to the shipowner as a paid agent.
- Article 121The shipping agent is liable to shippers or consignees for loss of or damage to goods when loaded or unloaded only for the agent's own fault or the fault of those working for the agent.
- Article 122The cargo agent must preserve the rights of the goods' owners against the carrier; otherwise the agent is presumed to have received the goods in the condition and quantity stated in the bill of lading, unless the contrary is proved by an official record.
- Article 123The transport contractor carries out loading or unloading for the account of the person who engaged him, is answerable only to that person, and is liable for his own fault or the fault of those working for him in this work.
- Article 124The provisions limiting the carrier's liability set out in the Law apply to the transport contractor.
- Article 125The maritime employment contract provisions apply to those working on ships on international voyages, and a Saudi may not work on ships sailing outside the Kingdom's maritime areas without a maritime service record from the Authority.
- Article 126The employer must pay seafarers' wages at the time and place specified in the contract, or those required by maritime custom.
- Article 127A seafarer's voyage wage is not reduced if the shipowner or master shortens the voyage, and increases in proportion to the extension if they lengthen or postpone it, with no increase for the master where it was his fault.
- Article 128If a seafarer dies during the voyage, his heirs receive his wage up to the day of death if monthly, the full voyage wage if paid by the voyage, and the full share if his pay is a share in profits.
- Article 129A seafarer's wage may not be attached or assigned except within the limits set out in the labor law.
- Article 130The employer treats a seafarer injured or ill in the ship's service free of charge, deducting the costs from his wage if it arose from misconduct, and the obligation ends if the condition is proved incurable.
- Article 131A seafarer injured or ill in the ship's service is entitled to his full wage during the voyage, the labor law governs after the voyage, and there is no wage or grant if it resulted from disobedience or misconduct.
- Article 132The employer bears the burial costs in his home country for a seafarer who dies in the ship's service whatever the cause, and deposits his dues with the competent authority within 15 days of death, disappearance or inability to hand them over.
- Article 133If a maritime employment contract ends during the voyage it continues until the ship reaches the first port in the Kingdom, unless it first calls at the port to which the seafarer must be returned, when it continues until the ship anchors there.
- Article 134If a seafarer dies defending the ship, its cargo or its passengers, his heirs receive a reward equal to three months' wage, or the voyage wage if fixed by the voyage, in addition to the compensation provided by law.
- Article 135A dismissed seaman cannot be required to leave the ship in a foreign port without written permission from the Kingdom's representative office, and the dismissal, its date and its reasons must be recorded in the ship's logbook or it is unlawful.
- Article 136If force majeure prevents the voyage from starting or continuing, a seaman hired for the voyage is entitled to pay for the days he actually served on the ship, with no award or compensation.
- Article 137If the ship sinks, is confiscated, lost or unfit for navigation, the court may relieve the employer of the seamen's wages if their conduct or failure caused it, and the employer may end the contract without notice or compensation.
- Article 138A claim arising from the maritime employment contract is not heard after twelve months from the date the employment relationship ends.
- Article 139Ships carrying the Kingdom's nationality are not permitted to sail to areas dominated by the dangers of war, piracy or armed robbery until proof of insurance of their crew against these dangers is provided.
- Article 140The regulations determine the conditions and qualifications required of the master, officers, marine engineers and seamen, and their number on the ship.
- Article 141In matters on which the Commercial Maritime Law has no provision, the provisions of the labor law in force in the Kingdom apply to the maritime employment contract.
الباب الخامس: استغلال السفينةArticles 142–253
- Article 142A ship charter contract can be proven only in writing and must state the ship, the parties, loading and unloading, the rent and compensation and the type of charter, and a sale of the ship does not end the charter.
- Article 143If a ship charter contract runs for more than one year, it may not be invoked against third parties unless it is entered in the ship register.
- Article 144The lessee may use the ship to carry persons and to carry goods even if owned by others, unless the charter contract provides otherwise.
- Article 145The lessee may sublease the ship unless the contract prohibits it, remains liable to the lessor, and the lessor has no direct relationship with the sublessee except a claim against him up to what he owes the original lessee.
- Article 146The lessor may request detention of the lessee's goods on the ship at the port of arrival to collect the rent and its accessories unless security is provided, and the court orders them deposited with a custodian and may order their sale.
- Article 147The lessor has a privilege over the lessee's goods referred to in Article 146 to secure the debt of the rent and its accessories.
- Article 148A ship charter ends when its fixed term ends unless otherwise agreed, extends to the end of the voyage if it expires during a voyage with rent for the extra days, and rent is not reduced if the ship is returned early unless agreed.
- Article 149The lessor of a bareboat ship delivers it seaworthy as agreed, repairs damage from force majeure, inherent defect or ordinary use, and no rent is due for downtime beyond 24 hours.
- Article 150The lessee of a bareboat ship must look after it and use it for the agreed purpose in accordance with its technical characteristics stated in its certificates.
- Article 151In a bareboat charter the lessee appoints the seamen, concludes their contracts and pays their wages and other employer obligations, and bears the costs of operating and insuring the ship.
- Article 152The lessee of a bareboat ship returns the ship and its provisions in the condition received, allowing for ordinary wear, at the port of receipt, and for delay caused by him pays the rent for 15 days and then double the rent.
- Article 153The lessee of a bareboat ship guarantees third-party rights against the lessor where the right arises for a reason attributable to the lessee's operation of the ship.
- Article 154A claim arising from a bareboat ship charter is not heard after two years from the date the ship is returned to the lessor, or from its removal from the ship register if it is lost.
- Article 155The lessor of a fully equipped ship is liable for damage to the goods the lessee places on the ship, unless he proves he fully performed his obligations and the damage did not arise from his fault or that of his subordinates.
- Article 156The lessee of a fully equipped ship is liable for damage to the ship or the goods loaded on it if it arose from his misuse of the ship or from a defect in the goods he placed on it.
- Article 157Claims from a fully equipped ship charter are not heard after two years, running from the end of the term or last voyage, the end of each voyage, or knowledge of the preventing event, and from removal from the register if the ship is lost.
- Article 158A time charter of a fully equipped ship must state the names and addresses of both parties, the ship's name, nationality, tonnage, class and description, the rent or how it is calculated, and the charter period.
- Article 159The lessor of a fully equipped ship must place it at the lessee's disposal at the agreed time and place, seaworthy and equipped for the operations in the contract, and keep it in that condition throughout the contract.
- Article 160In a fully equipped ship charter the lessor keeps the nautical management, while the commercial management and its costs, such as fuel, port and pilotage fees, pass to the lessee unless agreed otherwise, and the master follows his instructions on it.
- Article 161The lessee of a fully equipped ship pays the full rent even if the ship stops due to navigation accidents, unless damage makes it unfit for commercial use and its repair takes more than 24 hours, in which case no rent is due for the extra period.
- Article 162No rent is due on a fully equipped ship if it is lost or stops through force majeure or an act of the lessor or his subordinates, and if news of the ship is lost and its loss is later proven, rent is due up to the date of the last news.
- Article 163If the lessor does not collect the rent within three days of warning the lessee, he regains the right to dispose of the ship, while still bound to carry the lessee's goods to the port of arrival at the usual rate, and keeps his right to compensation.
- Article 164The lessee returns a fully equipped ship at the port where it was placed at his disposal unless otherwise agreed, the contract extends to the end of a voyage in progress with rent for the extra days, and the rent is not reduced on early return.
- Article 165A voyage charter must state the names and addresses of both parties, the ship's details, the type and quantity of cargo, the loading and discharge places and periods, the freight and how it is calculated, and the agreed voyages.
- Article 166If loading or discharge is not completed within the original period, an additional period runs with daily compensation set by the contract, then a second period at the first rate plus one half; the compensation counts as an accessory of the freight.
- Article 167Unused loading days are not added to the discharge period, and early discharge does not make up for extra loading days unless otherwise agreed; a bonus for speed may be agreed.
- Article 168After the discharge periods expire, the master may unload the goods at the charterer's expense and responsibility, and must take the measures needed to preserve the goods he has unloaded.
- Article 169If the charterer does not load all the agreed goods, it must still pay the full freight.
- Article 170The owner of a fully equipped chartered ship may not load goods not belonging to the charterer in the chartered part without its permission; the charterer may claim their freight plus compensation, and the lessor has a privilege over them to secure the freight.
- Article 171A ship charter is dissolved without compensation to either party if force majeure makes the voyage impossible, or trade is prohibited with the country of one of the loading or discharge ports.
- Article 172The charterer may terminate a ship charter at any time before loading begins, and must compensate the lessor for its loss up to the agreed freight.
- Article 173The charterer may, at any time during the voyage, ask for the goods to be discharged before reaching the agreed port, provided it pays the full freight and the discharge costs.
- Article 174A ship charter stays in force with no increase in freight and no compensation if force majeure temporarily prevents the voyage; the charterer may discharge and reload its goods at its own expense, paying the full freight.
- Article 175If the voyage has begun and cannot be continued for a reason attributable to the lessor or its subordinates, the charterer owes only the freight for the part of the voyage completed.
- Article 176If the ship cannot reach the discharge port, the lessor directs it to the nearest possible port and bears the costs of carrying the goods to the agreed port, except in force majeure, when the charterer bears them.
- Article 177Freight is not due when the charterer's goods are lost unless agreed, but it is due if the loss results from the charterer's fault, the nature or defect of the goods, their sale, or destruction for danger, and for animals dying without the lessor's fault.
- Article 178The charterer is not released from paying freight by abandoning the goods, even if they are damaged or reduced in quantity or value during the voyage.
- Article 179A contract of carriage by sea can be proved only in writing.
- Article 180The sale of the ship does not result in the cancellation of the contract of carriage by sea.
- Article 181The carrier issues the bill of lading at the shipper's request on receiving the goods, and may give a receipt before loading to be replaced by a bill once the goods are on board; the receipt has the bill's force if it contains the Article 182 particulars.
- Article 182This article sets out the particulars to be stated in a bill of lading: the parties and their addresses, the description of the goods, the ship and master, the two ports, the freight, the place and date of issue and number of copies, and deck loading.
- Article 183The shipper gives the goods' particulars in writing to be entered in the bill; the carrier may enter reservations, giving the reason, if in doubt or unable to verify; the shipper must report dangerous goods and mark them with a warning.
- Article 184The shipper is liable to the carrier for compensating the harm arising from the inaccuracy of the particulars it gave about the goods, even if it has assigned the bill of lading to a third party.
- Article 185The marks placed on the goods must be sufficient to identify them, and placed in a fixed and clear spot, remaining legible until the end of the voyage.
- Article 186A bill of lading is drawn up in two originals for the shipper and the carrier; the carrier signs the shipper's copy, which entitles its lawful holder to take delivery; several copies may be drawn up, and delivery against one cancels the others.
- Article 187A bill of lading is drawn up as nominative, to order or to bearer; the nominative is transferred by assignment of the right, the order bill by endorsement under the Law of Commercial Papers, the bearer bill by hand delivery; assignment or negotiation may be prohibited.
- Article 188The lawful holder of a bill of lading is the person named in it, or its bearer if it is to bearer or endorsed in blank, or the last endorsee if it is to order and names him.
- Article 189A letter of guarantee in which the shipper undertakes to indemnify the carrier for issuing a clean bill of lading cannot be invoked against a good-faith third party; the consignee counts as a third party unless he is the shipper.
- Article 190Before sailing the master may remove goods not mentioned in the bill or carry them at the usual freight plus compensation; during the voyage he may throw them overboard if they cause damage, cost more than their value, or are prohibited.
- Article 191The carrier may remove or destroy dangerous goods loaded without its knowledge without liability, and the shipper is liable for the damage; if it agreed to their loading it may do so only if they threaten the ship or cargo.
- Article 192The bill of lading is evidence that the goods were received in the condition stated and is proof of its particulars; between carrier and shipper the contrary may be proved, but not against a good-faith third party.
- Article 193The shipping receipt referred to in paragraph 2 of Article 181 is evidence that the carrier received the goods in the condition stated in it, unless the contrary is proved.
- Article 194A person entitled to take delivery may ask for delivery orders for quantities of the goods if the bill so provides; they are issued to a named person, to order or to bearer, signed by the carrier and the applicant, and entitle the lawful holder to take what they state.
- Article 195The Commercial Maritime Law allows the bill of lading particulars in Article 182 to be recorded in an electronic transport record with the consent of the carrier and shipper, and the record has the same effect as a bill of lading in possession and transfer.
- Article 196The carrier must prepare and equip the ship so it is fit to sail, to make the agreed voyage and to carry the type of goods, and must prepare the cargo sections so they are fit to hold and preserve the goods.
- Article 197The carrier must load and unload the goods unless otherwise agreed, and must stow them in the ship, preserve them, carry them and deliver them on arrival.
- Article 198Except in coastal navigation between the Kingdom's ports, goods may be loaded on deck only with the shipper's written permission, a legal requirement, the nature of the cargo or custom, and this must be stated in the bill of lading.
- Article 199If the ship stops and cannot continue, the carrier must exercise due care to prepare another ship at its own expense, except in cases of exemption, where the shipper bears the cost; the carrier earns the full freight if the goods arrive.
- Article 200The shipper must deliver the goods to the carrier at the agreed place and time, and compensation due for delay in doing so may not exceed the amount of the freight.
- Article 201The shipper pays the freight; if it is payable on arrival, the person entitled to receive the goods pays it if he accepts them. If the bill of lading does not state freight due on arrival, it is presumed paid in full, and the freight is not discharged by loss of or damage to the goods.
- Article 202Freight is payable for goods that the master decides to throw into the sea or sacrifice to save the ship or the cargo, subject to the general average provisions.
- Article 203Freight is not due if the goods are lost through force majeure or through the carrier's negligence in performing the obligations the Law or the contract imposes on him.
- Article 204The shipper is liable for damage to the ship or the goods loaded on it if the damage arises from his act, the act of those working for him, or a defect in his goods.
- Article 205The master must deliver the goods on arrival to the lawful holder of the bill of lading or his representative in receiving them.
- Article 206Delivery of a copy of the bill of lading to the carrier is a presumption that the goods were delivered to the person entitled to receive them, unless the contrary is proved.
- Article 207Where several holders of copies of a negotiable bill of lading come forward, the holder whose first endorsement is earliest is preferred; but a good-faith holder who actually received the goods is preferred even if others' endorsements are earlier.
- Article 208If the person entitled does not appear to receive the goods, or refuses to take them or to pay the freight, the carrier may ask the court for permission to deposit or sell them, and has a privilege over their price.
- Article 209The carrier's responsibility for the goods begins when he receives them at the port of loading from the shipper or the person or body designated, and ends on delivery to the consignee, placing them at his disposal, or delivery to the body designated at the port of discharge.
- Article 210The carrier is liable for loss of, damage to or delay of the goods while in his custody unless he proves he took the required measures; goods are treated as lost after 60 days from the delivery deadline, with special rules for fire and live animals.
- Article 211The carrier is exempt from the liability in paragraph 1 of Article 210 if he proves that the loss of or damage to the goods is due to an external cause in which neither he nor his representative, servants or agents had a hand.
- Article 212If the shipper deliberately states incorrect particulars in the bill of lading about the nature or value of the goods, the carrier is not liable for their loss or damage if he proves the particulars were incorrect.
- Article 213The carrier is not liable for loss of or damage to goods stated in the bill of lading as carried on deck if he proves that the damage arises from the special risks of this kind of carriage.
- Article 214If the shipper gave a statement before loading about the nature and value of the goods and their special importance for preservation, and it was stated in the bill of lading, the carrier may not rely on limitation of liability against him; the statement is a presumption of the value.
- Article 215Any agreement made before the incident that exempts the carrier from liability for loss of or damage to the goods, alters the burden of proof placed on him, or assigns to him the rights arising from cargo insurance is void.
- Article 216The carrier may waive all or some of the rights and exemptions granted to him and may increase his liability and obligations, provided this is stated in the bill of lading.
- Article 217In exceptional circumstances Article 215 may be departed from by agreement, provided the carrier is not exempted from liability for his own fault or that of his servants, no bill of lading is issued, and the agreement is recorded in a non-negotiable receipt.
- Article 218The receiver must notify the carrier in writing of loss or damage by the working day after receipt, or within 15 days if it is not apparent; otherwise the goods are presumed delivered as described in the bill of lading. No notice is needed if a joint inspection was recorded.
- Article 219The carrier may not rely on limitation of liability if the damage arose from an act or omission by him, his representative or his servants, done with intent to cause damage or recklessly with knowledge that damage could occur; intent is presumed in two cases.
- Article 220The carrier may entrust the carriage or part of it to another carrier unless otherwise agreed; the contracting carrier remains liable to the shipper for all damage, and the actual carrier is liable jointly with him for damage during the part he performs.
- Article 221Claims arising from a contract of carriage of goods by sea are not heard after two years from receipt or the date receipt should have occurred; the period is interrupted by a registered letter, delivery of documents or appointment of an expert, and recourse must be brought within 90 days.
- Article 222Claims for carriage of goods by sea are brought before the competent court under the Law of Sharia Procedure, and the claimant may also choose the defendant's place of business, the place of contracting, the ports or the place named in the contract.
- Article 223Where a contract of carriage of goods by sea provides for arbitration, it must be held, at the claimant's choice, at one of the specified places, and any pre-dispute agreement that deprives the claimant of or restricts this choice is void.
- Article 224Where a claim arising from a contract of carriage of goods by sea is referred to arbitration by agreement, the arbitrators must decide the dispute under the arbitration rules agreed between the parties.
- Article 225A contract for carrying persons by sea is proved by a document called a travel ticket, which states the carrier, passenger, ship, ports, fare and class of accommodation; the ticket cannot be assigned to another person without the carrier's consent.
- Article 226A travel ticket may be replaced by a document stating the carrier's name and services if the ship's tonnage is no more than twenty tons or it operates within the port or in areas set by the maritime authorities.
- Article 227A passenger carrier must make the ship seaworthy and fit for the agreed voyage and keep it so throughout the trip, and must provide the necessary meals, comfort facilities and toilets appropriate to the voyage.
- Article 228A passenger must appear at the time and place stated in the travel ticket; if the passenger fails to appear or is late, the passenger remains liable to pay the fare.
- Article 229If the passenger dies or is prevented from traveling, the contract is terminated and the full fare is refunded provided the carrier is notified in good time; otherwise the carrier is entitled to a quarter of the fare. This also applies to the passenger's family and dependents.
- Article 230Once the voyage has begun, circumstances relating to the passenger personally have no effect on the obligations arising from the contract of carriage.
- Article 231If the voyage becomes impossible for a reason not attributable to the carrier, the contract is terminated and the fare refunded; if attributable to the carrier, half the fare is due as compensation; after an interruption of over three days the passenger may terminate on conditions.
- Article 232The passenger may terminate the contract, with compensation where appropriate, if the carrier materially changes the schedule, route or ports of call; the carrier is exempt from compensation if it proves it exercised the usual care.
- Article 233The carrier is liable for the death or injury of a passenger if the accident occurs during performance of the contract, including the voyage, boarding, disembarking and the period of its custody; it pays full compensation where at fault and is exempt by proving an external cause.
- Article 234The carrier's liability for the death or injury of a passenger does not exceed 400,000 accounting units per accident where it is not due to the carrier's fault or negligence, without prejudice to the passenger's rights under Islamic Sharia and the regulations.
- Article 235The carrier may not rely on the limitation of liability if it is proved that the harm resulted from an act or omission by it or its representative, done with intent to cause harm or recklessly with awareness that harm would probably result.
- Article 236The carrier must hold insurance or a guarantee from a recognized body covering its liability for death and bodily injury, and the injured party may claim directly against the insurer or guarantor.
- Article 237Any agreement made before the accident is void if it exempts the carrier from liability toward the passenger, the heirs or dependents, alters the burden of proof on the carrier, or assigns the passenger's insurance rights to the carrier.
- Article 238The carrier must be notified in writing of a bodily injury within fifteen days of the passenger leaving the ship; otherwise the passenger is presumed to have left uninjured unless proved otherwise.
- Article 239The carrier is liable for harm arising from delay in performing the obligations of a contract for carriage of persons, unless it proves that the delay is due to an external cause beyond its control.
- Article 240Claims for death or injury are not heard after two years, claims for death occurring after leaving the ship due to an accident during carriage after three years from leaving, and claims for delay in arrival after six months.
- Article 241If a compensation claim is brought against the carrier's agent or servant, that person may rely on the carrier's defenses, liability provisions and limitation period, if the person proves the act occurred in the course of, or by reason of, the person's duties.
- Article 242The carrier is liable for the death or injury of a passenger carried free of charge, and damage to baggage, if the accident occurred during the carriage period under the Athens Convention and was due to fraud, deliberate fault or gross negligence.
- Article 243The sea carrier's obligation includes carrying the passenger's baggage within the limits set by the contract, in accordance with procedures set by the regulations.
- Article 244The carrier must give the passenger a receipt for baggage it takes over and record it in a special register or notice; cars and vehicles delivered by the passenger count as registered baggage.
- Article 245The article caps the passenger's compensation at 22,500 accounting units for loss of or damage to registered baggage and 12,700 units for other baggage, and subjects unregistered baggage to the rules on carriage of goods.
- Article 246The carrier is liable for loss of or damage to unregistered baggage kept by the passenger if its fault is proved; things deposited with the master or the deposit keeper are excluded from the compensation limits.
- Article 247The master may not detain the passenger's unregistered baggage in satisfaction of the carriage fare.
- Article 248A claim arising from the carriage of baggage is not heard after two years from the day after the passenger leaves the ship or the day on which the passenger should have left it.
- Article 249The article specifies the courts before which a claim on a contract for carriage of persons by sea may be brought, gives the claimant the choice among them, and voids any pre-dispute agreement that deprives the claimant of or restricts this right.
- Article 250The article obliges the organizer of a sea cruise to perform it toward the participants in accordance with the terms and rules in the organizing contract or the announced terms.
- Article 251The article obliges the cruise organizer to give each participant or group a trip ticket, failing which the contract is void, a nullity only the participant may invoke, and to give a booklet of vouchers for services ashore.
- Article 252The article makes the sea cruise organizer liable to compensate for harm to the participant or the participant's baggage during performance of the contract, and subjects this liability to the provisions of the Law.
- Article 253The article provides that the provisions of the Convention on Multimodal Transport of Goods between Arab States, and its amendments, apply to multimodal transport contracts.
الباب السادس: الحوادث البحريةArticles 254–292
- Article 254The article specifies who bears compensation for a maritime collision according to its cause: fault of one ship, force majeure or an unknown cause, or common fault, and sets out the cases of joint liability toward third parties.
- Article 255The Article provides that the liability set out in the collision chapter also arises if the collision occurs through the pilot's fault, even if pilotage is compulsory, without prejudice to the general rules of liability.
- Article 256The Article requires the master of each ship involved in a collision to help the other ships and those aboard without endangering his own ship, and to give them his ship's particulars; the shipowner is liable only on his express instructions.
- Article 257The Article lists the courts before which a claimant may bring a maritime collision action, and allows arbitration agreements provided it takes place within the area of one of these courts, as the claimant chooses.
- Article 258The Article bars hearing a collision compensation action after two years from the incident and a recourse action after one year from the death, and suspends the periods if the ship cannot be arrested and the claimant is Saudi or domiciled in the Kingdom.
- Article 259The Article obliges the master to follow the rules for directing and navigating ships in the 1972 International Regulations for Preventing Collisions at Sea and their amendments in force in the Kingdom.
- Article 260The Article obliges every master to act promptly to rescue anyone at sea in danger of being lost without endangering his ship or those aboard, and makes the operator also liable if the breach was on his express instructions.
- Article 261The Article provides for a salvage reward when there is a useful result, not exceeding the value of what was saved, reasonable expenses when there is none, and special compensation for saving a ship threatening the marine environment.
- Article 262The Article provides that the salvage reward is set by agreement of the parties, failing which the court sets it and its apportionment among owner, master, and crew; for a foreign salvage ship, apportionment follows its flag state's law.
- Article 263The Article provides that a marine salvage reward is due even if the salvaging and salvaged ships are owned by one person.
- Article 264The Article sets three cases where no salvage reward or related expenses are due: express reasonable refusal by the ship, salvage of mail, and a tug's assistance to the ship in tow except for exceptional services.
- Article 265The Article provides a reward for rescuing persons at sea, set by the court if disputed, which may exempt the rescued person for his financial condition, and gives life-savers a fair share of the ship and cargo salvage reward without cumulating both.
- Article 266The Article allows the court, at a party's request, to annul or amend a salvage agreement if its terms are unfair and made at the time of danger, if consent was tainted by fraud, or if the reward is disproportionate.
- Article 267The Article sets ten bases the court considers in determining the salvage reward, including the value of what was saved, the danger, the duration, expenses, and efforts to prevent environmental damage.
- Article 268The Article allows the court to reduce or cancel the salvage reward if the salvors committed faults that made the salvage necessary, or committed thefts, concealed stolen items, or committed other fraud.
- Article 269The Article bars hearing an action for a salvage reward or expenses after two years from the end of the salvage operations, and suspends the period if the ship cannot be arrested in Saudi waters and the defendant is Saudi or domiciled there.
- Article 270The Article voids any agreement giving a foreign court jurisdiction over salvage actions, or providing for arbitration outside the Kingdom, if the salvage occurred in the Kingdom's maritime areas and the salvaging or salvaged ship is Saudi.
- Article 271The Article provides that marine loss is governed first by the parties' agreement, then by this chapter's provisions, then by maritime custom where there is neither agreement nor provision.
- Article 272The Article divides marine loss into joint and particular, presumes a loss is particular unless the person claiming it is joint proves otherwise, and places particular loss on the owner of the damaged thing or whoever bore the expenses, with a right of recourse.
- Article 273The Article limits what is accepted in joint loss to physical damage to the ship or cargo and sums spent on them arising directly from the master's sacrifice or expenses, excluding damage from delay and indirect damage.
- Article 274The Article provides that a loss remains joint even if the incident that caused it occurred through the fault of one of the parties concerned in the voyage, with the others' right of recourse against the party at fault preserved.
- Article 275The Article treats as joint loss expenses incurred in place of other expenses that would have been accepted in the loss had they been incurred, provided they do not exceed the expenses not incurred.
- Article 276The Article includes the value of goods loaded on deck in joint loss if saved, and allows their owner to claim jettisoned or damaged goods as joint loss only in specified cases, except in coastal navigation.
- Article 277The Article excludes from joint loss the loss of or damage to goods for which no bill of lading or receipt was issued by the carrier or his representative, and requires these goods to contribute to the loss if saved.
- Article 278The Article provides that goods declared at less than their real value contribute to joint loss at their real value, and are accepted in it, if lost, damaged, or missing, only at the declared value.
- Article 279The Article provides that seamen's and passengers' baggage with no bill of lading or receipt, and mail, do not contribute to joint loss if saved, and are accepted in it at their estimated value.
- Article 280The Article organizes the calculation of joint loss in two groups: a debit group including the ship, freight, and goods at set values, and a credit group including damage and expenses valued under special rules for the ship and goods.
- Article 281The Article provides that expenses incurred to collect the share of a party who has not paid his contribution to the joint loss are themselves accepted in the joint loss.
- Article 282The Article requires cash sums provided by cargo owners to guarantee their contribution to joint loss to be deposited at once in a joint account at an agreed bank, with nothing paid out except with written permission from the person carrying out the settlement.
- Article 283The Article provides that joint loss is distributed among all the parties concerned in the maritime voyage.
- Article 284The Article puts the settlement of joint loss in the hands of one or more experts appointed by the parties concerned, failing which the court of the last port of discharge appoints them, or the court of the ship's port of registry if that port is outside the Kingdom.
- Article 285The article requires a general average settlement to be submitted to the competent court for ratification, at the request of any interested party, if not all of them accept it, and requires the court, if it refuses, to appoint an expert for a new settlement.
- Article 286The article gives the master the right to refuse to deliver goods that must be included in the general average unless their owner provides sufficient security for his share, and refers disagreement over the security to the court.
- Article 287The article makes general average debts privileged: the shipowner's over the goods saved or their price, and the cargo owners' over the ship saved, its freight and accessories, with settlement expenses ranking first.
- Article 288The article rules out joint liability among those obliged to contribute to the general average, but spreads the share of anyone who cannot pay among the others in proportion to what each owes.
- Article 289The article provides that a claim for contribution to the general average is not heard after two years from the ship's arrival at the designated port or the port where the voyage was interrupted, and that appointing the settlement expert interrupts the period.
- Article 290The article makes the competent authority responsible for investigating maritime accidents in the Kingdom's maritime zones and, for Saudi-flagged ships, on the high seas, involving loss of life, serious injury or damage, and for cooperating with other states.
- Article 291The article requires the competent authority, on a written request from any state, to investigate any violation of the international pollution prevention rules allegedly committed by a Saudi ship in that state's maritime zones, and to notify it of the result.
- Article 292The article provides that the competent authority forms special committees to investigate maritime accidents, taking the legal and technical aspects into account in forming them.
الباب السابع: التأمين البحريArticles 293–357
- Article 293The article provides that the maritime insurance provisions apply to an insurance contract covering maritime risks, without prejudice to the Law on Supervision of Cooperative Insurance Companies.
- Article 294The article requires a maritime insurance contract and any change to it to be proved in writing, sets the particulars of the insurance policy, and makes a provisional policy binding on both parties until the final policy is issued.
- Article 295The article allows a maritime insurance policy to be issued in the name of the insured, to his order or to bearer, and gives its lawful holder the right to claim compensation, subject to the insurer's defenses against the insured.
- Article 296The article lists what may be the subject of maritime insurance: the ship and its equipment, even if under construction, cargo, containers and property on board, freight and commission, and potential liability relating to the ship and cargo.
- Article 297The article requires a party to a maritime insurance contract or its beneficiary to have an interest in the risk not occurring, and prevents the insured from relying on the reinsurance contract the insurer concludes.
- Article 298The article provides that an insurance policy has no effect if ninety days pass from the contract date or the date set for the risk to begin without the insured risk beginning, with an exception for open policies except as to the first shipment.
- Article 299The article provides that the insurance contract is based on good faith, and if either party does not observe it the other has the right to annul the contract.
- Article 300The article allows the insurer to ask for the insurance to be annulled for incorrect or withheld particulars that led it to assess the risk as less than it truly is, and the court may award it the premium or up to half of it.
- Article 301The article requires the insured to notify the insurer within three working days of circumstances that increase the risk, and sets the effect of notifying or not notifying depending on whether the increase was caused by the insured.
- Article 302The article allows the insurer to annul the contract if the sum insured exceeds the value of the things insured and fraud is proved, otherwise the contract is valid up to their value, and limits the insurer to the sum insured if it is lower.
- Article 303The article voids an insurance contract concluded after the things insured were lost or arrived if news of it reached the place of contract or of either party before, and under a good-or-bad-news clause voids it only on proof of personal knowledge.
- Article 304The article provides that where a risk is insured with several insurers in one contract, each is liable in proportion to his share of the sum insured and within that share, without joint liability among them.
- Article 305The article regulates several insurance contracts on one risk exceeding the thing's value: the contracts stand, the insured claims within the damage and the true value, must declare the other insurances, and the contracts may be annulled for fraud.
- Article 306The article sets what the insurer is liable for: physical damage from a maritime risk or force majeure that the insurance covers, the insured property's share in general average losses, and expenses to protect it from damage or reduce it.
- Article 307The article makes the insurer liable for damage caused by the fault of the insured or his shore-based subordinates unless intentional, grossly negligent or careless, and for damage from the fault of the master or crew, subject to Article 330.
- Article 308The article keeps the insurer liable for covered risks where the route, voyage or ship must be changed out of necessity, and otherwise limits his cover to incidents on the specified or usual route unless agreed otherwise.
- Article 309The article excludes from maritime insurance war, piracy, unrest, sabotage, terrorism and nuclear risks unless otherwise agreed, and damage the insured things cause to others, except as stated in Article 331.
- Article 310The article states what war risk insurance covers if agreed: hostile acts, capture, seizure, restraint and coercion by authorities, and explosion of mines and war equipment, even if war was not declared or has ended.
- Article 311The article provides that if it cannot be known whether damage was caused by a war risk or a maritime risk, it is considered to arise from a maritime risk unless the contrary is proved.
- Article 312The article lists what the insurer is not liable for: inherent defect and poor packing, ordinary shortage, fines, confiscation, smuggling and the like, detention compensation and its bail, and non-physical losses such as delay and price differences.
- Article 313The article allows agreeing to exempt the insurer from compensation within limits set by the contract, deducted from the compensation unless full compensation is agreed once damage exceeds the limit, calculated after deducting ordinary shortage.
- Article 314The article sets the insured's obligations: paying the premium and expenses at the agreed place and time, exercising reasonable care to preserve the thing insured, and giving accurate particulars and reporting increased risks within his knowledge.
- Article 315The article allows the insurer to terminate the contract for non-payment of the premium; termination takes effect only 30 days after formal notice and notification, and does not bind a good-faith third party to whom the policy passed.
- Article 316The article requires the insured, when the insured risk occurs, to do what he can to save the insured things and to take steps to preserve the insurer's right of recourse against third parties, and makes him liable for neglect.
- Article 317The article makes compensation the basic way of settling damage in marine insurance, unless the insured chooses to abandon the insured thing to the insurer in the cases agreement or the Law allows.
- Article 318The article provides that the insurer is not obliged to repair or replace the insured things.
- Article 319The article requires the insurer to pay the insured things' share in general average and salvage expenses, in proportion to their value after deducting the particular loss borne by the insured, if any.
- Article 320The article prohibits partial or conditional abandonment and withdrawing it without the insurer's consent; it makes abandonment transfer ownership and require full payment of the insured sum from the date it is declared, while allowing the insurer to refuse the transfer of ownership.
- Article 321The article requires notifying the insurer of the wish to abandon by judicial notice, registered letter or any means establishing knowledge, within three months of learning of the accident or from the dates in Articles 336 and 349.
- Article 322The article requires the insured, when notifying his wish to abandon, to declare all insurance contracts he made or knows to exist.
- Article 323The article allows a ruling that the insured loses his right to the insurance in whole or in part if, in bad faith, he gave a declaration about the accident that does not conform to the truth and the insurer suffered damage as a result.
- Article 324The article provides that the insurer is subrogated to the insured in all his rights arising from the damage covered by the insurance, within the limit of the compensation he paid.
- Article 325The article provides that claims under a marine insurance contract are not heard after two years, sets when the period starts for each claim and for claims to recover sums paid, and lists what interrupts the period.
- Article 326The article allows a ship insurance contract to cover a single voyage, several successive voyages or a limited period, and to be made on the ship while under construction.
- Article 327The article sets the period of cover in voyage insurance from the start of loading to the end of unloading, not exceeding fifteen days from arrival and the declaration of readiness to unload, and for an empty ship from sailing until anchoring.
- Article 328The article provides that if the insurance covers several successive voyages, the place named in the policy for the end of the last voyage is treated as where the insurer's cover ends.
- Article 329The article provides that insurance for a fixed period covers risks from the first day to the end of the last day, with the day counted as twenty-four hours starting from the hour the contract is concluded, by the time at the place of conclusion.
- Article 330The article excludes from the insurer's liability damage from natural wear of the ship's hull or its inherent defect unless hidden, and damage from the master's intentional faults.
- Article 331The article requires the insurer, apart from damage to persons, to pay the compensation the insured owes to third parties when the insured ship collides with another ship or strikes a fixed, moving or floating object.
- Article 332The article makes the premium fully due once the risks begin to run in voyage insurance; in insurance for a period it is fully due on a loss or abandonment the insurer bears, and otherwise only for the period up to the accident.
- Article 333The article provides that the insurer guarantees the damage from each accident during the policy within the insured sum even if accidents are multiple, and allows agreement that he may claim a supplementary premium after each accident.
- Article 334The article limits the insurer's obligation on settlement by compensation to the expenses of replacing parts and the repairs necessary to make the ship seaworthy, without compensation for loss of value, idleness or the like.
- Article 335The article prevents disputing the ship's value agreed in the insurance contract except for contribution to general average or salvage expenses, and states what the value includes and the effect of separate insurance on accessories.
- Article 336The article lists the cases in which the ship may be abandoned to the insurer: total loss, repair or salvage costs of three quarters of its value, no news for three months, irreparable damage, and war cases.
- Article 337The article provides that insurances on several ships of one ship operator apply as if each ship belonged to a different operator, and that the operator's goods and property are treated, for the ship's insurer, as owned by others.
- Article 338The article continues ship insurance for the benefit of the new owner or charterer on condition the insurer is notified within fifteen days, and regulates the insurer's right to terminate and suspension of the insurance if no notice is given.
- Article 339The article applies the provisions of the chapter on ship insurance to an insurance contract limited to the period the ship is in a port, anchorage, dry dock or any other place.
- Article 340The article limits insurance on a ship's freight whose being due is not stipulated to 60% of it unless otherwise agreed, and limits the cover to its share in general average and its recovery on abandonment, on conditions.
- Article 341The article regulates insurance of assistance and salvage rewards, under which the insurer pays their costs and rewards caused by an insured risk where the ship's insurance is insufficient, and insurance of refloating costs where abandonment is permitted.
- Article 342The article requires the insurer, where the insurance covers seamen's wages and expenses, their repatriation and expected profits, to compensate damage caused by an insured maritime risk if the claimant proves the damage relates to the subject of the insurance.
- Article 343The article provides that insurance on goods is made by a single-voyage policy or by a floating policy.
- Article 344The article makes goods covered by the insurance without interruption during the voyage set out in the policy, with the insurer allowed to ask for a higher premium if they stay in a port, or the ship takes refuge or changes route.
- Article 345The article applies the marine insurance provisions to goods during land, river or air transport that completes the sea voyage, unless otherwise agreed.
- Article 346The article requires ships carrying oil from or to the Kingdom to carry a civil liability insurance certificate covering liability for any damage arising from the carriage.
- Article 347The article caps the sum insured on goods at the highest of three amounts: purchase price or current price with transport and expected profit, value on arrival, or sale price plus agreed amounts.
- Article 348The article estimates losses to goods by the difference between their value damaged and sound at one time and place, and applies the percentage of loss in value to the sum insured.
- Article 349The article sets the cases for abandoning goods to the insurer: no news of the ship for three months, unseaworthiness with impossible carriage, damage of three quarters of value, sale due to damage, and war cases.
- Article 350The article requires a floating policy to include the terms binding both parties, the maximum payable per shipment and the premiums, with goods, voyages and ships specified in endorsements for each shipment.
- Article 351The article requires the insured under a floating policy to notify the insurer of his own shipments and third-party shipments entrusted to him, with the insurer bound to accept them, and sets when cover starts for each kind.
- Article 352The article allows the insurer, on breach of Article 351's obligations, to demand immediate termination with compensation equal to the premiums of unnotified shipments, and to recover what he paid after the first willful breach where there is bad faith.
- Article 353The article requires the insured to notify the insurer of damage to insured goods within fifteen days of receiving them, otherwise he is presumed to have received them sound unless he proves otherwise.
- Article 354The article provides that in liability insurance the insurer is bound to compensate only if the injured third party directs an amicable or judicial claim to the insured, and within the limits of what the insured is bound to pay.
- Article 355The article provides that liability insurance for damage to third parties caused by the ship under Article 331 has effect only if the sum insured on the ship is not enough to compensate for the damage.
- Article 356The article provides that where several liability insurances exist, each insurer is bound for each incident within the limit of his policy even if incidents multiply, provided the insured's total recovery does not exceed the damage.
- Article 357The article allows whoever undertakes building or repairing a ship to conclude insurance covering his liability for damage to the ship or to third parties.
الباب الثامن: منع التلوث البحري ومكافحتهArticles 358–362
- Article 358The article requires the master to notify port authorities immediately of any oil leak from his ship in the Kingdom's ports or maritime areas, and requires ships to carry a pollution emergency plan that the master implements at once.
- Article 359The article gives the authority competent for maritime inspection the right to inspect the oil records of all ships in the Kingdom's ports.
- Article 360The article requires barges and fuel-carrying ships operating to and from ships in the Kingdom's ports and territorial waters to keep a special record of their operations as the regulations specify.
- Article 361The article requires ships flying the Kingdom's flag to carry an emergency plan for pollution incidents by oil and toxic and hazardous substances, and to notify the competent body of such incidents, as the regulations specify.
- Article 362The article provides for notifying the International Maritime Organization of any violation committed by ships in the Kingdom's ports and maritime areas, and of information on any requirement or procedure relating to ballast water.
الباب التاسع: سلامة الملاحة بالموانئ والمياه الإقليميةArticles 363–372
- Article 363The article gives management of towage within ports to the master of the towed ship, whose operator answers for damages; by written agreement it may go to the tug's master, whose operator answers unless he proves the damage came from the towed ship.
- Article 364The article gives management of towage outside ports to the tug's master, whose operator answers for damages unless he proves the fault of the towed ship; by written agreement it may go to the towed ship's master, whose operator then answers.
- Article 365The article provides that towage services are performed under a contract between the master or operator of the towing ship and the master or operator of the towed ship.
- Article 366The article makes the towing ship responsible for damage to the towed ship, unless it was due to force majeure or an unforeseen event, a cause attributable to the towed ship or its defect, or the fault of its operator, master or crew.
- Article 367The article provides that a claim arising from the towage operation is not heard after two years from the date the operation ended.
- Article 368The article makes pilotage compulsory for all ships entering, moving in or leaving the Kingdom's ports, leaves its rules, areas and fees to the competent body, and exempts specified categories of ships.
- Article 369The article requires a ship subject to pilotage to raise the signal requesting a pilot before entering, moving in or leaving the pilotage area, and the master to inform the pilot of the ship's particulars, posted in the wheelhouse.
- Article 370The article keeps command of the ship with the master during pilotage, exempts the pilot and his body from damage to the piloted ship, makes the operator liable for third-party damage from the pilot's errors, and covers damage to the pilot vessel, pilot and crew, with exceptions.
- Article 371The article requires the pilot to help a ship in imminent danger first even if not asked, coordinating with the competent authority, and makes the operator bear the pilot's expenses if he must travel with the ship.
- Article 372The article provides that a claim arising from the pilotage operation is not heard after two years from the date the operation ended.
الباب العاشر: العقوباتArticles 373–391
- Article 373The article punishes with a fine of SAR 100,000 to 1,000,000 anyone who flies the Kingdom's flag on an unregistered ship, with possible confiscation, or hides or defaces the ship's particulars, except to avoid capture.
- Article 374The article punishes the operator of a marine platform with a fine of SAR 100,000 to 500,000 if he operates it without the safety requirements needed to protect persons and the environment.
- Article 375The article punishes with a fine of SAR 100,000 to 500,000 moving stranded ships or wreckage into territorial waters to evade the Law, preventing or obstructing the rescue of stranded ships, and hiding wreckage or its markers.
- Article 376The article punishes with a fine of SAR 10,000 to 100,000 a master who does not respond to a distress call without an acceptable justification, and the operator if the violation is on his express instructions.
- Article 377The article punishes with a fine of SAR 10,000 to 100,000 the master or operator of a Saudi ship who sails it without a valid certificate, or sails a ship that has been ordered suspended or barred from sailing.
- Article 378The article punishes with a fine of SAR 10,000 to 100,000 anyone who disrupts or obstructs maritime inspection delegates or experts of classification societies authorized by the Authority from carrying out their task.
- Article 379The article punishes with a fine of SAR 10,000 to 50,000 any person who pilots a ship without holding a permit from the competent authority.
- Article 380The article punishes with a fine of SAR 3,000 to 30,000 a ship's master who drops anchor within the separation zones of navigation lanes without an acceptable reason.
- Article 381The article punishes with a fine of SAR 5,000 to 20,000 anyone who recovers known maritime wreckage without prior permission, and anyone who boards a stranded or endangered ship without its master's permission.
- Article 382The article punishes with a fine of SAR 1,000 to 20,000 a crew member who causes a ship to be suspended or barred from sailing by untrue statements, rising to as much as SAR 50,000 if in bad faith.
- Article 383The article punishes a ship's owner with a fine of SAR 2,000 to 10,000 for violating registration, reporting of modifications or deregistration requirements, misusing a temporary certificate, or withholding the registration certificate.
- Article 384The article punishes with a fine of SAR 2,000 to 5,000 a ship's master where the ship does not keep an oil record book.
- Article 385The article allows a licensee who breaches his license obligations or conditions or his obligations to those he deals with to be punished with a warning, suspension of up to a year, permanent withdrawal, or a fine of up to SAR 100,000.
- Article 386The article punishes the master, owner or operator of a regular passenger ship that carries more passengers than its certificates allow with a fine equal to twice the ticket price of the extra passengers for each voyage, except in necessity or on the Authority's instructions.
- Article 387The article sets a general penalty of a fine of SAR 2,000 to 50,000 for any violation of the Law or its regulations for which no penalty is provided in the penalties chapter.
- Article 388The article provides that the Law's penalties do not prevent a more severe penalty under another law or claims for compensation against the violator, and that each competent body applies them within its legal jurisdiction.
- Article 389The article provides that applying the Law does not prejudice the Kingdom's obligations under the international conventions and codes it has ratified, or the GCC Common Customs Law and its implementing regulations.
- Article 390The article provides that the President issues the regulations necessary for the Law, in coordination with the relevant bodies, within one hundred and eighty days from its publication in the Official Gazette.
- Article 391The article provides that the Law takes effect one hundred and eighty days after its publication in the Official Gazette, and repeals Part Two of the Commercial Court Law, the Ports, Harbors and Lighthouses Law, and anything inconsistent with it.