Article 164 of the Saudi Commercial Maritime Law
المادة 164 من النظام البحري التجاري · الفصل الثالث: إيجار السفينة المجهزة
The lessee returns a fully equipped ship at the port where it was placed at his disposal unless otherwise agreed, the contract extends to the end of a voyage in progress with rent for the extra days, and the rent is not reduced on early return.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يلتزم المستأجر عند انتهاء عقد الإيجار برد السفينة في الميناء الذي وضعت فيه تحت تصرفه, إلا إذا اتفق على غير ذلك.
2- إذا انقضت مدة الإيجار أثناء الرحلة امتد العقد إلى نهايتها ويستحق المؤجر الأجرة المنصوص عليها في العقد عن الأيام الزائدة.
3- لا تخفض الأجرة إذا ردت السفينة قبل انتهاء مدة الإيجار.
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 164 explained in plain English
This article regulates the end of a fully equipped ship charter and the return of the ship:
First: place of return. When the contract ends, the lessee must return the ship at the port where it was placed at his disposal, unless otherwise agreed.
Second: the term expires during a voyage. If the charter 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.
Third: early return. The rent is not reduced if the ship is returned before the charter term ends. Note that this paragraph does not mention an exception by agreement.
The general rule is that the lessee bears the rent for the full agreed term, and pays for any extension that the voyage requires.
It follows 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 the warning. It is followed by Article 165, which specifies the particulars of a voyage charter, such as the type of cargo, the place and period of loading and unloading, the rent and the agreed voyages. Parties to the contract are advised to consult a lawyer specializing in maritime and commercial law in a dispute about return or rent.
Practical example
A company chartered a fully equipped ship from the port of Jeddah for one year, then decided to return it after ten months. It returns it at the port of Jeddah unless otherwise agreed, and the rent for the remaining two months is not reduced.
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 164 of the Saudi Commercial Maritime Law
Where is a chartered fully equipped ship returned?
At the port where it was placed at the lessee's disposal, unless otherwise agreed.
What if the charter 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.
Is the rent reduced if the ship is returned before the end of the term?
The rent is not reduced in this case.
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.