Article 142 of the Saudi Commercial Maritime Law
المادة 142 من النظام البحري التجاري · الفصل الأول: عقد إيجار السفينة
A 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.
Official text (Arabic)
This article has not been amended since the law was issued.
1- لا يثبت عقد إيجار السفينة إلا بالكتابة, ويجب أن يكون متضمناً اسم السفينة, ومقدار حمولتها, ودرجتها, والدولة التابعة لها، واسم المؤجر والمستأجر، والمكان والزمان المتفق على الشحن والتفريغ فيهما، ومبلغ الأجرة, ومقدار التعويض في حالة التأخير في الشحن أو التفريغ، ويذكر أيضاً في هذا العقد كون التأجير للسفينة كاملة أو لبعضها، وما إذا كان لمدة محددة، أو للقيام برحلة أو رحلات معينة.
2- لا يترتب على بيع السفينة إنهاء عقد إيجارها.
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 142 explained in plain English
This article lays down the basic rules of the ship charter contract.
First: writing. A ship charter contract can be proven only in writing; an oral agreement is not enough to prove it.
Second: required particulars. The contract must include:
- The name of the ship, its tonnage, its class and the state it belongs to.
- The names of the lessor and the lessee.
- The agreed place and time of loading and unloading.
- The amount of the rent.
- The amount of compensation in case of delay in loading or unloading.
- Whether the charter is of the whole ship or part of it.
- Whether it is for a fixed period, or for a particular voyage or voyages.
Third: sale of the ship. A sale of the ship does not end its charter contract. The lessee keeps his right even if ownership of the ship passes to someone else.
Article 143 completes this rule: a charter contract of more than one year may not be invoked against third parties unless it is entered in the ship register. Anyone concluding a ship charter contract is advised to consult a lawyer specializing in maritime and commercial law to draft the contract with all its particulars.
Practical example
A Saudi company chartered a cargo ship for six months. The parties drew up a written contract stating the ship's name, tonnage, class and state, the rent, the loading and unloading dates and the compensation for delay. When the owner sold the ship two months later, the charter continued.
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 142 of the Saudi Commercial Maritime Law
Must a ship charter contract be in writing?
Yes, a ship charter contract can be proven only in writing.
What particulars does a ship charter contract include?
The ship's name, tonnage, class and state; the names of the lessor and lessee; the place and time of loading and unloading; the rent; compensation for delay; and the type and period or voyages of the charter.
Does the charter end if the ship is sold?
No, a sale of the ship does not end its charter contract.
More articles on Ship Charter
- Article 20
The 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.
1- تسجل السفينة الأجنبية غير المجهزة -لسفرة أو لرحلة واحدة أو لعدد من الرحلات والسفرات أو لمدة محددة- التي يستأجرها من تتوافر لديه شروط التسجيل بأي مكتب من مكات
- Article 21
The 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.
تطبق على السفينة الأجنبية المستأجرة غير المجهزة المسجلة في المملكة، الأنظمة المعمول بها في المملكة، ويحل المستأجر طوال مدة الإيجار محل المالك فيما يتعلق بالالتز
- Article 22
The 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.
يلتزم المستأجر بتقديم طلب شطب سجل السفينة المستأجرة غير المجهزة، وإعادة شهادة التسجيل المؤقتة الخاصة بها خلال خمسة عشر يوماً من تاريخ انتهاء عقد الإيجار.
- Article 23
The 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.
في حالة تأجير سفينة سعودية غير مجهزة لأجنبي، فعلى مالكها إبلاغ مكتب التسجيل المسجلة فيه السفينة قبل سريان عقد الإيجار بخمسة عشر يوماً على الأقل، وعلى مكتب التسج
- Article 77
If 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.
1- إذا كان مستأجر السفينة يتولى إدارتها الملاحية، وكان وحده مسؤولاً عن أي دين بحري متعلق بها، جاز للدائن توقيع الحجز على هذه السفينة أو على أي سفينة أخرى مملوكة
- Article 143
If 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.
إذا زادت مدة عقد الإيجار على سنة فلا يحتج به قِبَل الغير, إلا إذا كان مقيداً في سجل السفن.
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.