Article 159 of the Saudi Commercial Maritime Law
المادة 159 من النظام البحري التجاري · الفصل الثالث: إيجار السفينة المجهزة
The lessor of a fully equipped ship must place it at the lessee's disposal at the agreed time and place, seaworthy and equipped for the operations in the contract, and keep it in that condition throughout the contract.
Official text (Arabic)
This article has not been amended since the law was issued.
يلتزم المؤجر بأن يضع السفينة تحت تصرف المستأجر في الزمان والمكان المتفق عليهما، وفي حالة صالحة للملاحة, ومجهزة بما يلزم لتنفيذ العمليات المنصوص عليها في عقد الإيجار. ويلتزم كذلك بإبقاء السفينة على هذه الحالة طوال مدة العقد.
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 159 explained in plain English
This article sets the basic obligation of the lessor of a fully equipped ship, which has two parts:
First: delivery. The lessor places the ship at the lessee's disposal:
- at the agreed time and place.
- in a seaworthy condition.
- equipped with what is needed to carry out the operations provided for in the charter contract.
Second: maintaining the condition. The lessor must keep the ship in this condition throughout the term of the contract. It is not enough for it to be seaworthy and equipped only at delivery; it must remain so until the end of the charter.
This is what distinguishes a fully equipped ship charter: the lessor provides a ship ready for work and is responsible for keeping it ready. This relates to Article 160, under which the lessor keeps the nautical management of the ship, while the commercial management passes to the lessee, who bears its costs such as fuel and port and pilotage fees unless the contract provides otherwise.
It follows Article 158, which specifies the particulars of a time charter of a fully equipped ship. The lessee of an equipped ship that was not delivered, or did not remain in the required condition, is advised to consult a lawyer specializing in maritime and commercial law.
Practical example
A company in Dammam chartered a fully equipped ship for one year to carry containers. The lessor must deliver it at the agreed time and port, seaworthy and equipped for carrying containers, and keep it so until the end of the year.
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 159 of the Saudi Commercial Maritime Law
What are the obligations of the lessor of a fully equipped ship?
To place the ship at the lessee's disposal at the agreed time and place, seaworthy and equipped for the operations provided for in the contract, and to keep it in that condition throughout the contract.
Is it enough for the ship to be seaworthy only at delivery?
No, the lessor must keep it in that condition throughout the term of the contract.
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.