Article 175 of the Saudi Commercial Maritime Law
المادة 175 من النظام البحري التجاري · الفصل الثالث: إيجار السفينة المجهزة
If the voyage has begun and cannot be continued for a reason attributable to the lessor or its subordinates, the charterer owes only the freight for the part of the voyage completed.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا بدأت الرحلة, ثم استحال الاستمرار فيها بسبب راجع إلى المؤجر أو تابعيه، فلا يلتزم المستأجر إلا بدفع أجرة ما تم من الرحلة.
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 175 explained in plain English
This article deals with the case where the voyage stops permanently for a reason attributable to the lessor. Its conditions are:
- The voyage must have begun.
- It must be impossible to continue it.
- This must be for a reason attributable to the lessor or its subordinates.
If these conditions are met, the charterer owes only the freight for the part of the voyage completed. It does not pay the full freight for a voyage that was not completed because of the lessor.
The reasoning is clear: the lessor caused the voyage not to be completed, so it should not receive the full freight.
Note that the article addresses only the freight, and does not address the charterer's right to claim compensation for the harm it suffered because of the stoppage of the voyage.
This differs from Article 174, which concerns temporary force majeure preventing the voyage, where the contract remains in force and the full freight is due if the charterer discharges its goods and reloads them. It is followed by Article 176, which obliges the lessor to direct the ship to the nearest port where discharge is possible if it cannot reach the designated port. Anyone whose voyage has stopped because of the lessor is advised to consult a lawyer specialized in maritime and commercial law.
Practical example
A company chartered a ship for a voyage from Jeddah to an Asian port, and midway the ship permanently broke down because of the lessor's negligence in maintaining it. The company owes only the freight for the part of the voyage completed.
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 175 of the Saudi Commercial Maritime Law
Do I pay the full freight if the voyage stops because of the lessor's fault?
No. If continuing the voyage becomes impossible after it has begun, for a reason attributable to the lessor or its subordinates, you owe only the freight for the part of the voyage completed.
Does the article apply if the stoppage occurs before the voyage begins?
The article requires that the voyage have begun and then become impossible to continue.
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.