Article 148 of the Saudi Commercial Maritime Law
المادة 148 من النظام البحري التجاري · الفصل الأول: عقد إيجار السفينة
A ship charter ends when its fixed term ends unless otherwise agreed, extends to the end of the voyage if it expires during a voyage with rent for the extra days, and rent is not reduced if the ship is returned early unless agreed.
Official text (Arabic)
This article has not been amended since the law was issued.
1- ينتهي عقد إيجار السفينة بانتهاء المدة المحددة له, ما لم ينص على خلاف ذلك.
2- إذا انقضت مدة الإيجار أثناء السفر امتد العقد إلى نهاية الرحلة، ويستحق المؤجر الأجرة المنصوص عليها في العقد عن الأيام الزائدة.
3- لا تخفض الأجرة إذا ردت السفينة قبل انتهاء مدة الإيجار, إلا إذا اتفق 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 148 explained in plain English
This article regulates the end of the ship charter contract and its effects on the rent:
First: ending on expiry of the term. The contract ends when its fixed term ends, unless otherwise provided.
Second: the term expires during a voyage. If the term ends while the ship is on a voyage:
- the contract extends to the end of the voyage.
- and the lessor is entitled to the rent stated in the contract for the extra days.
The purpose is that a voyage is not cut off midway, while preserving the lessor's right to additional rent.
Third: returning the ship before the term ends. If the lessee returns the ship early, the rent is not reduced, unless otherwise agreed. The lessee owes the full rent for the agreed term even if he did not use the ship throughout it.
Article 147 gives the lessor a privilege over the lessee's goods to secure the rent. Article 149 obliges the lessor to place the ship at the lessee's disposal in a seaworthy condition, and to repair damage to it in certain cases. When drafting terms on ending and early return, consult a lawyer specializing in maritime and commercial law.
Practical example
A company chartered a ship for six months ending on 30 June, and on 30 June the ship was midway through a voyage to the port of Dammam, which it reached on 8 July. The contract extends to the end of the voyage, and the company pays the agreed rent for the eight extra days.
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 148 of the Saudi Commercial Maritime Law
What happens if the ship charter term ends during a voyage?
The contract extends to the end of the voyage, and the lessor is entitled to the rent stated in the contract for the extra days.
Is the rent reduced if the ship is returned before the end of the term?
No, unless otherwise agreed.
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.