Article 162 of the Saudi Commercial Maritime Law
المادة 162 من النظام البحري التجاري · الفصل الثالث: إيجار السفينة المجهزة
No rent is due on a fully equipped ship if it is lost or stops through force majeure or an act of the lessor or his subordinates, and if news of the ship is lost and its loss is later proven, rent is due up to the date of the last news.
Official text (Arabic)
This article has not been amended since the law was issued.
1- لا تستحق الأجرة إذا هلكت السفينة, أو توقفت بسبب قوة قاهرة أو بفعل المؤجر أو تابعيه.
2- إذا انقطعت أنباء السفينة, ثم ثبت هلاكها استحقت الأجرة إلى تاريخ آخر نبأ عنها.
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 162 explained in plain English
This article specifies the cases in which the rent of a fully equipped ship is not due:
- The ship is lost.
- It stops because of force majeure.
- It stops because of an act of the lessor or his subordinates.
In these cases the lessee does not owe the rent, because the ship is no longer at his disposal for use for a reason not attributable to him.
Loss of news: if news of the ship is lost and then its loss is proven, the rent is due up to the date of the last news of it. The lessee does not pay for the period after the last news, because it is not known exactly when it was lost.
Note the difference between this article and Article 161; that one obliges the lessee to pay the rent despite stoppage due to navigation accidents, except for damage requiring more than twenty-four hours to repair. This article concerns loss, force majeure and an act of the lessor, in which the rent is not due.
It is followed by Article 163, which restores to the lessor the right to dispose of the ship if he has not collected the rent within three days of warning the lessee. To distinguish a navigation accident from force majeure in a particular case, consult a lawyer specializing in maritime and commercial law.
Practical example
A company chartered a fully equipped ship, whose last news was on 10 May, and it was later proven that it had sunk. The rent is due only up to 10 May.
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 162 of the Saudi Commercial Maritime Law
Is the rent due if the chartered ship sinks?
The rent is not due if the ship is lost.
Does the lessee pay the rent if the ship stops through the lessor's fault?
No, the rent is not due if it stops because of an act of the lessor or his subordinates.
What if news of the ship is lost and then its loss is proven?
The rent is due up to the date of the last news of it.
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.