Article 178 of the Saudi Commercial Maritime Law
المادة 178 من النظام البحري التجاري · الفصل الثالث: إيجار السفينة المجهزة
The charterer is not released from paying freight by abandoning the goods, even if they are damaged or reduced in quantity or value during the voyage.
Official text (Arabic)
This article has not been amended since the law was issued.
لا تبرأ ذمة المستأجر من دفع الأجرة بترك البضائع ولو تلفت أو نقصت كمياتها أو قيمتها أثناء السفر.
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 178 explained in plain English
This article provides that the charterer cannot escape the freight by abandoning the goods to the lessor.
A charterer whose goods are damaged or reduced in value might think of abandoning them to the lessor instead of paying the freight. But the article expressly prevents this: its liability for the freight is not discharged by abandoning the goods, even if they:
- are damaged during the voyage, or
- are reduced in quantity, or
- are reduced in value.
The reasoning is that freight is the price of the carriage service and of making the ship available, and is not tied to the value of the goods. A fall in the value of the cargo, for whatever reason, does not change the charterer's obligation to pay the freight.
Note that the article speaks of damage or reduction, which differs from the case of loss regulated by Article 177, which provides that freight is not due if the goods are lost unless otherwise agreed, with exceptional cases in which it is due despite the loss.
It is followed by Article 179, which opens the provisions on the contract of carriage by sea by providing that it can be proved only in writing. Anyone whose goods are damaged and who believes he has a right against the lessor is advised to consult a lawyer specialized in maritime and commercial law rather than abandon the goods.
Practical example
A shipment of fruit arrived at the port of Jeddah with half of it damaged and its value greatly reduced, and the merchant offered to abandon the shipment to the lessor in return for being relieved of the freight. He is not released by this abandonment and remains obliged to pay the 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 178 of the Saudi Commercial Maritime Law
Can I abandon the damaged goods to the lessor instead of paying the freight?
No. The charterer is not released from the freight by abandoning the goods, even if they are damaged or reduced in quantity or value.
Does the freight fall away if the value of the goods drops during carriage?
No, the freight remains due even if the value of the goods is reduced during the voyage.
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.