Article 174 of the Saudi Commercial Maritime Law
المادة 174 من النظام البحري التجاري · الفصل الثالث: إيجار السفينة المجهزة
A ship charter stays in force with no increase in freight and no compensation if force majeure temporarily prevents the voyage; the charterer may discharge and reload its goods at its own expense, paying the full freight.
Official text (Arabic)
This article has not been amended since the law was issued.
يبقى عقد الإيجار نافذاً دون زيادة الأجرة ودون تعويض, إذا حالت قوة قاهرة مؤقتاً دون سفر السفينة أو استمرار سفرها. وفي هذه الحالة يجوز للمستأجر تفريغ بضائعه على نفقته, وله بعد ذلك أن يعيد شحنها في السفينة على نفقته أيضاً، وتستحق عليه 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 174 explained in plain English
This article deals with temporary force majeure that prevents the ship from sailing or from continuing its voyage.
First: the contract remains. The charter remains in force:
- Without any increase in the freight.
- And without compensation to either party.
The contract is not dissolved, because the obstacle is temporary.
Second: the charterer's option. During the period of stoppage, the charterer may:
- Discharge its goods at its own expense.
- Then reload them on the ship, also at its own expense.
In this case the full freight is due from it.
This option may benefit the charterer if its goods are affected by a long stay on the ship, so it discharges and stores them until the obstacle ends.
Note that the article concerns temporary force majeure only. It is preceded by Article 173, which allows the charterer to request discharge before the agreed port provided it pays the full freight and the discharge costs. It is followed by Article 175, which limits the charterer's obligation to the freight for the part of the voyage completed if continuing it becomes impossible for a reason attributable to the lessor or its subordinates. To assess the nature of an obstacle in a particular case, it is advisable to consult a lawyer specialized in maritime and commercial law.
Practical example
A port was temporarily closed because of an exceptional storm, and a chartered ship stopped sailing for two weeks. The contract remains in force with no increase in freight and no compensation, and the charterer may discharge its goods and reload them at its own expense, paying the full freight.
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 174 of the Saudi Commercial Maritime Law
Is a ship charter dissolved if the ship is stopped temporarily by force majeure?
No, it remains in force with no increase in the freight and no compensation.
May the charterer discharge its goods during the temporary stoppage?
Yes, at its own expense, and it may also reload them at its own expense, and the full freight is due from 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.