Article 169 of the Saudi Commercial Maritime Law
المادة 169 من النظام البحري التجاري · الفصل الثالث: إيجار السفينة المجهزة
If the charterer does not load all the agreed goods, it must still pay the full freight.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا لم يشحن المستأجر كل البضائع المتفق عليها التزم مع ذلك بدفع الأجرة كاملة.
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 169 explained in plain English
This article sets out a clear rule: if the charterer does not load all the agreed goods, it must nevertheless pay the full freight.
The reasoning is that the lessor placed the ship or the agreed space at the charterer's disposal and prepared it to carry the agreed quantity. If the charterer does not use all of that space, that is its choice or its shortfall, and the lessor does not bear the consequences.
The practical result is that the charterer must estimate the quantity of its goods accurately before contracting, because the freight is calculated on the basis of what was agreed, not what was actually loaded.
Note that the article mentions no exceptions, and does not address the case where the shortfall in the cargo is due to a cause attributable to the lessor.
It is preceded by Article 168, which allows the master, after the discharge periods have expired, to unload the goods at the charterer's expense and responsibility. It is followed by Article 170, which prevents the owner of the chartered ship from loading goods that do not belong to the charterer in the ship or the chartered part without its permission, and gives the charterer the right to claim the freight for goods loaded without its permission. Anyone facing a dispute over freight after a shortfall in the cargo is advised to consult a lawyer specialized in maritime and commercial law.
Practical example
A company chartered a ship to carry 10,000 tons of cement but loaded only 7,000 tons. The company must pay the full freight as if it had loaded the agreed quantity.
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 169 of the Saudi Commercial Maritime Law
Do I pay the full freight if I load less than the agreed quantity?
Yes. If the charterer does not load all the agreed goods, it must still pay the full freight.
Is the ship's freight reduced by the shortfall in the cargo?
No, the article provides that the charterer must pay the full freight.
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.