Article 177 of the Saudi Commercial Maritime Law
المادة 177 من النظام البحري التجاري · الفصل الثالث: إيجار السفينة المجهزة
Freight is not due when the charterer's goods are lost unless agreed, but it is due if the loss results from the charterer's fault, the nature or defect of the goods, their sale, or destruction for danger, and for animals dying without the lessor's fault.
Official text (Arabic)
This article has not been amended since the law was issued.
1- لا تستحق الأجرة إذا هلكت البضائع التي وضعها المستأجر في السفينة, إلا إذا اتفق على استحقاق الأجرة في جميع الأحوال.
2- تستحق الأجرة إذا كان الهلاك ناشئاً عن خطأ المستأجر أو تابعيه، أو عن طبيعة البضاعة, أو عن عيب فيها، أو إذا اضطر الربان إلى بيعها أثناء السفر بسبب عيبها أو تلفها، أو إذا أمر الربان بإتلافها لخطورتها أو ضررها أو خطر نقلها, ولم يكن المؤجر يعلم ذلك وقت وضعها في السفينة.
3- تستحق الأجرة عن الحيوانات التي تنفق أثناء السفر بسبب لا يرجع إلى خطأ المؤجر أو تابعيه.
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 177 explained in plain English
This article regulates the effect of the loss of goods on entitlement to freight in the charter of a fully equipped ship.
First: the rule. Freight is not due if the goods that the charterer placed on the ship are lost, unless it was agreed that it is due in all cases.
Second: cases where freight is due despite the loss. Freight is due if the loss:
- Results from the fault of the charterer or its subordinates.
- Results from the nature of the goods or a defect in them.
- Is because the master was compelled to sell them during the voyage because of their defect or damage.
- Is because the master ordered their destruction because of their danger, harm or the danger of carrying them, and the lessor did not know of this when they were placed on the ship.
Third: animals. Freight is due for animals that die during the voyage for a reason not attributable to the fault of the lessor or its subordinates.
The overall rule is that the charterer bears the freight if the cause of the loss is attributable to it or to its goods, and is relieved of it if the goods are lost for any other reason.
It is preceded by Article 176, which regulates the ship's inability to reach the discharge port. It is followed by Article 178, which prevents the charterer from escaping the freight by abandoning the goods even if they are damaged or reduced. Anyone whose goods have been lost is advised to consult a lawyer specialized in maritime and commercial law.
Practical example
A livestock merchant chartered a ship to carry sheep from a foreign port to Jeddah, and some of them died during the voyage for a reason not attributable to the fault of the lessor or its crew. Freight is due for the sheep that died.
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 177 of the Saudi Commercial Maritime Law
Do I pay the ship's freight if my goods are lost?
The rule is that freight is not due if the goods are lost, unless it was agreed that it is due in all cases, or the loss falls within the cases the article lists.
When is freight due despite the loss of the goods?
If the loss results from the fault of the charterer or its subordinates, the nature or defect of the goods, their sale by the master because of their defect or damage, or their destruction because of danger without the lessor's knowledge when they were placed.
Is freight due for animals that die during carriage?
Yes, if they died for a reason not attributable to the fault of the lessor or its subordinates.
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.