Article 160 of the Saudi Commercial Maritime Law
المادة 160 من النظام البحري التجاري · الفصل الثالث: إيجار السفينة المجهزة
In a fully equipped ship charter the lessor keeps the nautical management, while the commercial management and its costs, such as fuel, port and pilotage fees, pass to the lessee unless agreed otherwise, and the master follows his instructions on it.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يحتفظ المؤجر بالإدارة الملاحية للسفينة.
2- تنقل الإدارة التجارية للسفينة إلى المستأجر, ويتحمل نفقاتها, وبخاصة تزويد السفينة بالوقود والزيوت والشحوم، وأداء رسوم الموانئ والإرشاد, وغير ذلك من المصروفات، ما لم ينص في عقد الإيجار على خلاف ذلك, ويلتزم الربان بتنفيذ تعليمات المستأجر المتعلقة بهذه الإدارة.
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 160 explained in plain English
This article divides the management of a fully equipped ship between the lessor and the lessee:
First: nautical management stays with the lessor. The lessor keeps the nautical management of the ship.
Second: commercial management goes to the lessee. The commercial management passes to the lessee, who bears its costs, in particular:
- supplying the ship with fuel, oils and greases.
- paying port and pilotage fees.
- other expenses.
This applies unless the charter contract provides otherwise; the parties may agree on a different distribution of costs.
Third: the relationship between the master and the lessee. The master must carry out the lessee's instructions relating to the commercial management. Matters relating to navigation remain with the lessor.
The article does not define the limits of each management in detail, and only gives examples of the costs of commercial management.
It follows Article 159, which obliges the lessor to deliver the ship seaworthy and equipped and to keep it so. It is followed by Article 161, which obliges the lessee to pay the full rent even if the ship stops because of navigation accidents, except where damage requires more than twenty-four hours to repair. When drafting the distribution of costs, consult a lawyer specializing in maritime and commercial law.
Practical example
A company chartered a ship equipped with its crew for six months. The master follows the company's instructions on commercial management, and the company pays for fuel and port and pilotage fees because the contract does not provide otherwise, while the nautical management stays with 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 160 of the Saudi Commercial Maritime Law
Who bears the fuel of a chartered fully equipped ship?
The lessee, as part of the costs of commercial management, unless the contract provides otherwise.
Must the master follow the instructions of the ship's lessee?
He must carry out the lessee's instructions relating to the commercial management, while the nautical management remains with the lessor.
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.