Article 207 of the Saudi Commercial Maritime Law
المادة 207 من النظام البحري التجاري · الفصل الرابع: عقد النقل البحري : أولاً: أحكام عامة
Where several holders of copies of a negotiable bill of lading come forward, the holder whose first endorsement is earliest is preferred; but a good-faith holder who actually received the goods is preferred even if others' endorsements are earlier.
Official text (Arabic)
This article has not been amended since the law was issued.
1- إذا تقدم عدة أشخاص يحملون نسخاً من سند الشحن القابل للتداول بطلب تسلم البضائع، وجب تفضيل حامل النسخة التي يكون أول تظهير فيها سابقاً على تظهيرات النسخ الأخرى.
2- إذا تسلم البضائع حامل حسن النية لإحدى النسخ كانت له الأفضلية على حاملي النسخ الأخرى, ولو كانت تظهيراتها أسبق تاريخاً.
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 207 explained in plain English
This article deals with several persons holding copies of one negotiable bill of lading competing, each requesting to receive the goods.
First: before delivery. The holder of the copy whose first endorsement precedes the endorsements of the other copies is preferred. What counts is the date of the first endorsement on each copy.
Second: after delivery. If a good-faith holder of one of the copies received the goods, he is preferred over the holders of the other copies, even if their endorsements are earlier in date.
The first rule settles the dispute before delivery; the second protects the person who actually received the goods in good faith, so they are not taken from him on the argument that another's endorsement was earlier.
Note that the article concerns a negotiable bill of lading, and that protection of the person who received the goods is conditional on his being in good faith.
It follows Article 206, which makes delivery of a copy of the bill to the carrier a presumption that the goods were delivered. It is followed by Article 208, which regulates the case where the person entitled does not appear to receive the goods. Where there is competition over a shipment, it is advisable to consult a lawyer specializing in maritime and commercial law.
Practical example
An importer endorsed two copies of one bill of lading to two different merchants: the first on March 1 and the second on March 5. If both come forward together before delivery, the holder of the March 1 copy is preferred. But if the holder of the March 5 copy has already received the goods in good faith, he is preferred.
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 207 of the Saudi Commercial Maritime Law
Who receives the goods if several persons come forward with copies of the bill of lading?
The holder of the copy whose first endorsement precedes the endorsements of the other copies is preferred.
What if one of them received the goods in good faith?
He is preferred over the holders of the other copies even if their endorsements are earlier in date.
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.