Article 117 of the Saudi Commercial Maritime Law
المادة 117 من النظام البحري التجاري · الفصل الثالث: الوكيل الملاحي ومتعهد النقل
Contracts 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.
Official text (Arabic)
This article has not been amended since the law was issued.
تخضع العقود والأعمال التي يجريها الوكيل الملاحي ومتعهد النقل لأنظمة الدولة التي تُجرى فيها هذه العقود أو الأعمال.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 117 explained in plain English
This article determines the law applicable to the contracts and acts of the shipping agent and the transport contractor: it is the laws of the country in which those contracts or acts are carried out.
For clarity, Article 1 defines:
- Shipping agent: a person who, as agent of the shipowner, carries out the work of providing what the ship needs.
- Transport contractor: a person who carries on the business of carrying goods by sea under a single contract of carriage and a single transport document, acting as a principal.
So if a shipping agent concludes a contract or does an act in a Saudi port, the laws of the Kingdom apply. If the contract or act takes place in another country, it is governed by that country's laws.
The reasoning is that these persons work in many ports and deal with local parties, so it is logical for their work to be governed by the law of the place where it is done.
The following articles set out other rules: Article 118 provides that a claim by the shipping agent or transport contractor against the principal is brought under the Law of Sharia Procedure, and may be brought before the court of the agent's domicile. For cross-border transactions, consulting a lawyer specializing in international maritime and commercial law is advised.
Practical example
A shipping agent in the port of Jeddah contracts with a local supplier to provision a ship. The contract is governed by the laws of the Kingdom because it was made there.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 117 of the Saudi Commercial Maritime Law
Which law governs the shipping agent's contracts?
The laws of the country in which those contracts or acts are carried out.
Do Saudi laws apply to a shipping agent's contract in a foreign port?
The article makes contracts and acts subject to the laws of the country in which they are carried out, so a contract made in another country is governed by that country's laws.
More articles on Shipping Agent and Carriage Contractor
- Article 118
A 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.
تقام دعوى الوكيل الملاحي أو متعهد النقل على الموكل أو صاحب العمل وفق نظام المرافعات الشرعية، ويجوز أن تقام أمام المحكمة التي يقع في نطاق اختصاصها موطن الوكيل أو
- Article 119
A 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.
لا تسمع دعوى الموكل أو صاحب العمل على الوكيل الملاحي أو متعهد النقل بعد مضي سنتين من تاريخ استحقاق الدين.
- Article 120
The shipping agent remains liable to the shipowner as a paid agent.
يبقى الوكيل الملاحي مسؤولاً أمام المجهز بوصفه وكيلاً بأجر.
- Article 121
The 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.
لا يسأل الوكيل الملاحي من قبل الشاحنين أو المرسل إليهم عن هلاك أو تلف البضائع التي يتسلمها لشحنها في السفينة أو التي يتولى تفريغها منها لتسليمها لأصحابها إلا عن
- Article 122
The 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.
يجب على وكيل الشحنة اتخاذ الإجراءات والتدابير اللازمة للمحافظة على حقوق أصحاب الشأن في البضاعة قِبَل الناقل أو متعهد النقل، وإلا افترض أنّ الوكيل تسلم البضاعة ف
- Article 123
The 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.
1- يقوم متعهد النقل بالشحن أو التفريغ لحساب من كلفه بالقيام به، ولا يسأل في هذا الشأن إلا قِبَل هذا الشخص الذي يكون له وحده إقامة دعوى عليه. 2- يسأل متعهد النقل
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.