Article 171 of the Saudi Commercial Maritime Law
المادة 171 من النظام البحري التجاري · الفصل الثالث: إيجار السفينة المجهزة
A ship charter is dissolved without compensation to either party if force majeure makes the voyage impossible, or trade is prohibited with the country of one of the loading or discharge ports.
Official text (Arabic)
This article has not been amended since the law was issued.
ينفسخ عقد إيجار السفينة دون تعويض على المؤجر أو المستأجر إذا قامت قوة قاهرة تجعل تنفيذ الرحلة مستحيلاً، أو إذا مُنعت التجارة مع الدولة التي يقع فيها أحد ميناءي الشحن أو التفريغ.
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 171 explained in plain English
This article identifies two cases in which a ship charter is dissolved automatically:
- The occurrence of force majeure that makes carrying out the voyage impossible.
- A prohibition of trade with the country in which one of the loading or discharge ports is located.
The effect in both cases is the same: the contract is dissolved without compensation to the lessor or the charterer. Neither may claim compensation from the other, because the impossibility is not attributable to either of them.
Note that the article requires the force majeure to make the voyage impossible. If the force majeure is temporary, it is governed by other provisions of the Law, which this article does not address.
The second case concerns decisions prohibiting trade with a particular country; if a prohibition is issued covering the country of the loading or discharge port, the contract is dissolved even if the voyage is technically possible.
It is preceded by Article 170, which prevents the owner of the chartered ship from loading goods not belonging to the charterer without its permission. It is followed by Article 172, which allows the charterer to terminate the contract at any time before loading begins, compensating the lessor by an amount not exceeding the agreed freight. Parties to a contract affected by a force majeure event are advised to consult a lawyer specialized in maritime and commercial law to assess whether the article applies.
Practical example
A Saudi company chartered a ship to carry goods to a port in a certain country, and then a decision was issued prohibiting trade with that country. The charter is dissolved without either the lessor or the charterer being obliged to compensate the other.
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 171 of the Saudi Commercial Maritime Law
When is a ship charter dissolved automatically?
If force majeure occurs that makes carrying out the voyage impossible, or trade is prohibited with the country in which one of the loading or discharge ports is located.
Is either party entitled to compensation when the contract is dissolved by force majeure?
No, the contract is dissolved without compensation to the lessor or the charterer.
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.