Article 145 of the Saudi Commercial Maritime Law
المادة 145 من النظام البحري التجاري · الفصل الأول: عقد إيجار السفينة
The 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.
Official text (Arabic)
This article has not been amended since the law was issued.
1- للمستأجر تأجير السفينة من الباطن, إلا إذا نص في عقد الإيجار على غير ذلك.
2- يظل المستأجر الأصلي في حالة الإيجار من الباطن مسؤولاً تجاه المؤجر عن الالتزامات الناشئة عن عقد الإيجار.
3- لا تنشأ عن الإيجار من الباطن علاقة مباشرة بين المؤجر الأصلي والمستأجر من الباطن. ومع ذلك يجوز للمؤجر الأصلي الرجوع على هذا المستأجر بما لا يتجاوز ما هو مستحق عليه للمستأجر الأصلي, وذلك دون الإخلال بقواعد المسؤولية التقصيرية.
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 145 explained in plain English
This article regulates subleasing the ship, that is, the lessee leasing the ship to a third person.
First: permitted. The lessee may sublease the ship, unless the charter contract provides otherwise.
Second: the original lessee remains liable. The original lessee remains liable to the lessor for the obligations arising from the charter contract; he is not released from them by subleasing.
Third: the relationship between the lessor and the sublessee.
- As a rule, no direct relationship arises between them.
- However, the original lessor may have recourse against the sublessee for an amount not exceeding what the sublessee owes the original lessee.
- This is without prejudice to the rules of tort liability.
So if the original lessee does not pay the rent, the lessor can claim from the sublessee, but only up to what the sublessee owes the original lessee.
It follows Article 144, which allows the lessee to use the ship to carry persons and goods. Article 146 gives the lessor the right to request the detention of the lessee's goods to collect the rent. Anyone entering a chain of charters is advised to consult a lawyer specializing in maritime and commercial law.
Practical example
Company (A) chartered a ship from its owner for SAR 500,000, then subleased it to Company (B) for SAR 600,000. If (A) fails to pay, the owner may claim from (B) an amount not exceeding what (B) still owes (A), and (A) remains liable to the owner.
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 145 of the Saudi Commercial Maritime Law
Can a chartered ship be leased to someone else?
Yes, the lessee may sublease it unless the charter contract provides otherwise.
Is the original lessee released from his obligations by subleasing?
No, he remains liable to the lessor for the obligations arising from the charter contract.
Can the owner claim from the sublessee?
He may have recourse against him for an amount not exceeding what he owes the original lessee, without prejudice to the rules of tort liability.
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.