Article 161 of the Saudi Commercial Maritime Law
المادة 161 من النظام البحري التجاري · الفصل الثالث: إيجار السفينة المجهزة
The lessee of a fully equipped ship pays the full rent even if the ship stops due to navigation accidents, unless damage makes it unfit for commercial use and its repair takes more than 24 hours, in which case no rent is due for the extra period.
Official text (Arabic)
This article has not been amended since the law was issued.
يلتزم المستأجر بدفع الأجرة كاملة عن المدة التي تكون فيها السفينة تحت تصرفه, ولو توقفت بسبب حوادث الملاحة. وإذا أصيبت السفينة بضرر جعلها غير صالحة للاستعمال التجاري, واحتاج إصلاحها لمدة تتجاوز أربعاً وعشرين ساعة, فلا تستحق الأجرة خلال المدة الزائدة التي تبقى فيها السفينة غير صالحة للاستعمال.
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 161 explained in plain English
This article regulates the effect of a fully equipped ship stopping on the rent.
The rule: the lessee must pay the full rent for the period in which the ship is at his disposal, even if it stops because of navigation accidents.
The exception: where two conditions are met together:
- the ship suffers damage that makes it unfit for commercial use.
- and its repair requires a period exceeding twenty-four hours.
In that case no rent is due for the extra period in which the ship remains unfit for use. For the first twenty-four hours the rent remains due.
The difference between the two cases: a temporary stoppage because of a navigation accident does not relieve the lessee of the rent, whereas damage that takes the ship out of commercial use and takes long to repair suspends the rent for the extra period.
It follows Article 160, which puts the commercial management and its costs on the lessee. It is completed by Article 162, which provides that no rent is due if the ship is lost or stops because of force majeure or an act of the lessor or his subordinates. In a dispute about the length of the downtime, consult a lawyer specializing in maritime and commercial law.
Practical example
A company chartered a fully equipped ship, and it suffered a breakdown that made it unfit for commercial use and took four days to repair. The company pays the rent for the first day only, and no rent is due for the three 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 161 of the Saudi Commercial Maritime Law
Do I pay the ship's rent if it stops because of a navigation accident?
Yes, the lessee must pay the full rent even if the ship stops because of navigation accidents.
When does the rent of a fully equipped ship stop?
If it suffers damage that makes it unfit for commercial use and its repair takes more than twenty-four hours, no rent is due for the extra period.
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.