Article 147 of the Saudi Commercial Maritime Law
المادة 147 من النظام البحري التجاري · الفصل الأول: عقد إيجار السفينة
The lessor has a privilege over the lessee's goods referred to in Article 146 to secure the debt of the rent and its accessories.
Official text (Arabic)
This article has not been amended since the law was issued.
للمؤجر حق امتياز على البضائع المشار إليها في المادة (السادسة والأربعين بعد المائة) ضماناً لدين الأجرة وملحقاتها.
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 147 explained in plain English
This article gives the ship's lessor a privilege over the goods referred to in Article 146, which are the goods owned by the lessee that are on the ship, to secure the debt of the rent and its accessories.
A privilege means the lessor has priority in collecting the rent from the value of these goods. It differs from the right of detention in Article 146:
- Detention (Article 146): the right to request that the goods be held at the port of arrival specified in the contract, unless security assessed by the court is provided, and the court may order them deposited with a custodian and sold in whole or in part.
- Privilege (this article): priority in collecting the rent and its accessories from these goods.
The lessor thus has two rights that strengthen his security: to hold the goods, and to have priority in collecting his right from them.
The article does not specify the rank of this privilege among other rights. It is followed by Article 148, which governs the end of the charter contract on the expiry of its term and its extension if the term expires during a voyage. Ship lessors seeking to collect the rent are advised to consult a lawyer specializing in maritime and commercial law.
Practical example
The goods of a ship's lessee were sold by court order after being detained for non-payment of the rent. The lessor has a privilege over these goods, so he collects the debt of the rent and its accessories from them with priority.
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 147 of the Saudi Commercial Maritime Law
Does a ship's lessor have priority over the lessee's goods?
Yes, he has a privilege over the goods owned by the lessee that are on the ship, to secure the debt of the rent and its accessories.
What is the difference between the lessor's right of detention and his privilege?
Detention allows him to request that the goods be held at the port of arrival, while the privilege gives him priority in collecting the rent and its accessories from them.
Articles this article refers to
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.