Article 144 of the Saudi Commercial Maritime Law
المادة 144 من النظام البحري التجاري · الفصل الأول: عقد إيجار السفينة
The lessee may use the ship to carry persons and to carry goods even if owned by others, unless the charter contract provides otherwise.
Official text (Arabic)
This article has not been amended since the law was issued.
للمستأجر أن يستغل السفينة في نقل الأشخاص، وفي نقل البضائع ولو كانت مملوكة للغير, إلا إذا نص في عقد الإيجار على غير ذلك.
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 144 explained in plain English
This article sets the scope of the lessee's use of the ship. The rule is that the lessee may use it to:
- Carry persons.
- Carry goods, even if owned by others, so he is not limited to carrying his own goods.
This means the lessee can operate as a carrier for others using the chartered ship, concluding carriage contracts with shippers and passengers and earning income from them.
But this rule can be restricted by agreement: if the charter contract provides otherwise, for example by limiting use to the lessee's own goods or prohibiting the carriage of passengers, what the contract says must be followed.
In practice, a lessor who wants to restrict the use of his ship must say so expressly in the contract, otherwise the lessee has the freedom described in the article.
It follows Article 143, under which a charter contract of more than one year may not be invoked against third parties unless entered in the ship register. It is followed by Article 145, which allows the lessee to sublease the ship unless the contract provides otherwise. When drafting restrictions on use, consult a lawyer specializing in maritime and commercial law.
Practical example
A logistics company in Jeddah chartered a ship for one year without the contract restricting how it is used. It may carry its merchant customers' goods on it, because the article allows this unless the contract provides otherwise.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentCommercial & Corporate Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Commercial & Corporate Law lawyers
Lawyers who handle this kind of case
Ibrahim Al Salem Law Firm
Active contributor
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Frequently asked questions about Article 144 of the Saudi Commercial Maritime Law
Can the lessee of a ship carry other people's goods?
Yes, he may use it to carry goods even if owned by others, unless the charter contract provides otherwise.
Can the lessor prevent the lessee from carrying passengers?
Yes, if the charter contract provides so.
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.