Article 143 of the Saudi Commercial Maritime Law
المادة 143 من النظام البحري التجاري · الفصل الأول: عقد إيجار السفينة
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.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا زادت مدة عقد الإيجار على سنة فلا يحتج به قِبَل الغير, إلا إذا كان مقيداً في
سجل السفن.
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 143 explained in plain English
This article deals with long ship charter contracts, that is, those of more than one year. Such contracts may not be invoked against third parties unless they are entered in the ship register.
The article concerns the effect of the contract against third parties, such as a new buyer of the ship or a creditor holding a claim on it, against whom it may not be invoked until it is entered in the ship register. It does not deal with the relationship between the lessor and the lessee themselves.
A long-term lessee therefore has a clear interest in entering his contract, so as to protect his right against anyone dealing with the ship.
Under Article 1, the ship register is the official register in which the particulars of ships and their owners are recorded. This article does not specify the entry procedures.
This rule relates to Article 142, which provides that a sale of the ship does not end its charter contract; if the charter runs for more than one year, the lessee should enter the contract so that it can be invoked against third parties. Article 144 allows the lessee to use the ship to carry persons and goods unless the contract provides otherwise. Anyone concluding long charter contracts is advised to consult a lawyer specializing in maritime and commercial law.
Practical example
A company chartered a tanker for three years. To protect its right if the tanker is sold or dealt with by third parties, it enters the charter contract in the ship register, because a contract of more than one year may not be invoked against third parties until it is entered.
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 143 of the Saudi Commercial Maritime Law
Must a ship charter contract be registered?
If it runs for more than one year, it may not be invoked against third parties unless it is entered in the ship register.
Is an unregistered charter contract void?
The article does not make it void, but it prevents invoking it against third parties if it runs for more than one year and is not entered.
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 142
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.
1- لا يثبت عقد إيجار السفينة إلا بالكتابة, ويجب أن يكون متضمناً اسم السفينة, ومقدار حمولتها, ودرجتها, والدولة التابعة لها، واسم المؤجر والمستأجر، والمكان والزما
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.