Article 187 of the Saudi Commercial Maritime Law
المادة 187 من النظام البحري التجاري · الفصل الرابع: عقد النقل البحري : أولاً: أحكام عامة
A bill of lading is drawn up as nominative, to order or to bearer; the nominative is transferred by assignment of the right, the order bill by endorsement under the Law of Commercial Papers, the bearer bill by hand delivery; assignment or negotiation may be prohibited.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يحرر سند الشحن باسم شخص معين، أو لأمره، أو لحامله.
2- يكون التنازل عن سند الشحن الاسمي باتباع القواعد المقررة في شأن حوالة الحق.
3- يكون سند الشحن المحرر للأمر قابلاً للتداول بالتظهير، ويعد مجرد توقيع حامله على ظهر السند بمثابة تظهير ناقل للملكية، وتسري على هذا التظهير أحكام نظام الأوراق التجارية، ويُتداول سند الشحن المحرر لحامله بالمناولة.
4- يجوز النص في سند الشحن على حظر حوالته أو تداوله.
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 187 explained in plain English
This article specifies the forms of the bill of lading and how each is negotiated:
- The nominative bill (in the name of a specific person): it is assigned by following the rules on assignment of a right.
- The bill to order: it is negotiable by endorsement, and the mere signature of its holder on the back of the bill counts as an endorsement transferring ownership, and the provisions of the Law of Commercial Papers apply to this endorsement.
- The bill to bearer: it is negotiated by hand delivery.
Prohibition of negotiation: the bill of lading may provide that its assignment or negotiation is prohibited.
The way the bill is transferred therefore differs by its form: assignment of the right for the nominative bill, endorsement for the bill to order, and hand delivery for the bill to bearer. The party who draws up the bill may prevent its negotiation altogether by stating so in it.
It is preceded by Article 186, which regulates the copies of the bill. It is followed by Article 188, which specifies who is the lawful holder of the bill according to its form. When choosing the form of the bill, it is advisable to consult a lawyer specialized in maritime and commercial law.
Practical example
A bill of lading was issued to the order of an importing company in Riyadh, and while the goods were at sea the company sold them to another merchant. The company signed the back of the bill and handed it to the merchant, so ownership of the bill passed to him by endorsement.
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 187 of the Saudi Commercial Maritime Law
What types of bill of lading are there?
It is drawn up in the name of a specific person, to order, or to bearer.
How is a bill of lading to order transferred?
By endorsement; the mere signature of its holder on the back of the bill counts as an endorsement transferring ownership, and the provisions of the Law of Commercial Papers apply to it.
May the negotiation of a bill of lading be prohibited?
Yes, the bill may provide that its assignment or negotiation is prohibited.
More articles on Carriage of Goods by Sea and the Bill of Lading
- Article 115
If the master must repair the ship during the voyage, the shipper may wait or take out the goods while paying full freight, with no increase in freight; if repair is not possible, the master hires a substitute ship at his own expense.
1- إذا اضطر الربان إلى إصلاح السفينة أثناء السفر، كان للمستأجر أو الشاحن الخيار بين الانتظار حتى إتمام إصلاح السفينة أو إخراج بضائعه منها، وفي هذه الحالة الأخير
- Article 121
The shipping agent is liable to shippers or consignees for loss of or damage to goods when loaded or unloaded only for the agent's own fault or the fault of those working for the agent.
لا يسأل الوكيل الملاحي من قبل الشاحنين أو المرسل إليهم عن هلاك أو تلف البضائع التي يتسلمها لشحنها في السفينة أو التي يتولى تفريغها منها لتسليمها لأصحابها إلا عن
- Article 122
The cargo agent must preserve the rights of the goods' owners against the carrier; otherwise the agent is presumed to have received the goods in the condition and quantity stated in the bill of lading, unless the contrary is proved by an official record.
يجب على وكيل الشحنة اتخاذ الإجراءات والتدابير اللازمة للمحافظة على حقوق أصحاب الشأن في البضاعة قِبَل الناقل أو متعهد النقل، وإلا افترض أنّ الوكيل تسلم البضاعة ف
- Article 124
The provisions limiting the carrier's liability set out in the Law apply to the transport contractor.
تسري على متعهد النقل أحكام تحديد المسؤولية المتعلقة بالناقل المنصوص عليها في النظام.
- Article 155
The lessor of a fully equipped ship is liable for damage to the goods the lessee places on the ship, unless he proves he fully performed his obligations and the damage did not arise from his fault or that of his subordinates.
يسأل مؤجر السفينة المجهزة عن الضرر الذي يصيب البضائع التي يضعها المستأجر في السفينة, إلا إذا أثبت أنه قام بتنفيذ التزاماته كاملة, وأن الضرر لم ينشأ عن تقصيره أو
- Article 179
A contract of carriage by sea can be proved only in writing.
لا يثبت عقد النقل البحري إلا بالكتابة.
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.