Article 173 of the Saudi Commercial Maritime Law
المادة 173 من النظام البحري التجاري · الفصل الثالث: إيجار السفينة المجهزة
The charterer may, at any time during the voyage, ask for the goods to be discharged before reaching the agreed port, provided it pays the full freight and the discharge costs.
Official text (Arabic)
This article has not been amended since the law was issued.
للمستأجر أن يطلب في أي وقت أثناء السفر تفريغ البضائع قبل وصولها إلى الميناء المتفق عليه, بشرط أن يدفع الأجرة كاملة ونفقات 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 173 explained in plain English
This article gives the charterer flexibility during the voyage: it may request, at any time during the voyage, the discharge of the goods before they reach the agreed port.
The charterer may need this for commercial reasons, for example if it finds a buyer at an intermediate port, or its plans change.
But this right is conditional on the charterer paying:
- The full freight, which is not reduced because the voyage was not completed.
- The costs of discharge.
The reasoning is that the lessor placed the ship at the charterer's disposal for the whole voyage, and early discharge is at the charterer's request and in its interest, so the lessor should not bear a shortfall in freight or additional costs.
It is preceded by Article 172, which allows the charterer to terminate the contract before loading begins, compensating the lessor by an amount not exceeding the freight. Once the voyage has begun, the charterer's option is to request early discharge under this article. It is followed by Article 174, which keeps the contract in force without any increase in freight and without compensation if force majeure temporarily prevents the voyage, and allows the charterer to discharge its goods at its own expense. When considering early discharge, it is advisable to consult a lawyer specialized in maritime and commercial law.
Practical example
A merchant chartered a ship to carry a shipment of dates from Yanbu to a European port, and during the voyage found a buyer at an intermediate port. He may ask for discharge there, provided he pays the full freight and the costs of discharge.
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 173 of the Saudi Commercial Maritime Law
Is the charterer entitled to discharge the goods before the agreed port?
Yes, at any time during the voyage, provided it pays the full freight and the discharge costs.
Is the freight reduced if the goods are discharged early?
No, payment of the full freight is a condition.
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.