Article 166 of the Saudi Commercial Maritime Law
المادة 166 من النظام البحري التجاري · الفصل الثالث: إيجار السفينة المجهزة
If loading or discharge is not completed within the original period, an additional period runs with daily compensation set by the contract, then a second period at the first rate plus one half; the compensation counts as an accessory of the freight.
Official text (Arabic)
This article has not been amended since the law was issued.
1- إذا لم يتم الشحن أو التفريغ في المدة الأصلية التي يحددها عقد الإيجار, تسري مهلة إضافية لا تتجاوز المدة الأصلية، ويستحق المؤجر عنها تعويضاً يوميًّا يحدده العقد. وإذا لم يتم الشحن أو التفريغ خلال المهلة الإضافية تسري مهلة إضافية ثانية لا تتجاوز المهلة الأولى، ويستحق المؤجر عنها تعويضاً يوميًّا يعادل التعويض اليومي المقرر للمهلة الإضافية الأولى زائداً النصف، وذلك دون إخلال بما قد يستحق من تعويضات أخرى.
2- يعد التعويض اليومي الذي يستحق عن المهل الإضافية من ملحقات الأجرة, وتسري عليه أحكامها.
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 166 explained in plain English
This article regulates delay in loading or discharge under a voyage charter, through a system of successive grace periods:
First: the first additional period. If loading or discharge is not completed within the original period set in the contract, an additional period runs:
- It may not exceed the original period.
- The lessor is entitled for it to a daily compensation set by the contract.
Second: the second additional period. If loading or discharge is not completed within the first period, a second period runs:
- It may not exceed the first period.
- The lessor is entitled for it to a daily compensation equal to the first period's compensation plus one half.
This is without prejudice to any other compensation that may be due.
Third: the nature of the compensation. The daily compensation for the additional periods is treated as an accessory of the freight, and the rules on freight apply to it.
It is preceded by Article 165, which requires the place and period of loading and discharge to be stated in the contract. It is followed by Article 167, which prevents the remaining days of the loading period from being carried over to the discharge period unless otherwise agreed. Parties to the contract are advised to consult a lawyer specialized in maritime and commercial law when calculating compensation.
Practical example
A voyage charter provides that the discharge period is four days and the daily compensation is SAR 20,000. Discharge is delayed by six additional days: the first four at compensation of SAR 20,000 per day, and the next two, in the second period, at compensation of SAR 30,000 per day.
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 166 of the Saudi Commercial Maritime Law
What happens if the ship's discharge is delayed beyond the agreed period?
An additional period runs that may not exceed the original period, and the lessor is entitled for it to a daily compensation set by the contract.
How much is the compensation in the second additional period?
A daily compensation equal to the first period's compensation plus one half.
Is delay compensation treated as part of the freight?
It is treated as an accessory of the freight, and the rules on freight apply to 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.