Article 223 of the Saudi Commercial Maritime Law
المادة 223 من النظام البحري التجاري · الفصل الرابع: عقد النقل البحري : أولاً: أحكام عامة
Where a contract of carriage of goods by sea provides for arbitration, it must be held, at the claimant's choice, at one of the specified places, and any pre-dispute agreement that deprives the claimant of or restricts this choice is void.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا اتفق في عقد نقل البضائع بحراً على إحالة الادعاءات الناشئة عنه إلى التحكيم، وجب إجراء التحكيم بحسب اختيار المدعي في نطاق اختصاص المحكمة التي يقع فيه ميناء الشحن, أو ميناء التفريغ، أو في موطن المدعى عليه، أو في مكان إبرام العقد, بشرط أن يكون للمدعى عليه في هذا المكان مركز رئيس أو فرع أو كالة, أو في المكان المعين في اتفاق التحكيم, أو في نطاق المحكمة التي يقع فيه الميناء الذي حجز فيه على السفينة. ويقع باطلاً كل اتفاق سابق على قيام النزاع يقضي بسلب المدعي الحق في هذا الاختيار, أو تقييده.
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 223 explained in plain English
This article regulates the place of arbitration in disputes arising from a contract of carriage of goods by sea, if the parties have agreed on arbitration.
The choice is the claimant's. Arbitration is held at the claimant's choice in one of the following places:
- within the jurisdiction of the court in which the port of loading or port of discharge lies;
- the defendant's domicile;
- the place where the contract was made, provided the defendant has a main office, branch or agency there;
- the place designated in the arbitration agreement;
- within the jurisdiction of the court in which lies the port where the ship was arrested.
Protecting the right of choice. Void is any agreement made before the dispute arose that deprives the claimant of his right to this choice or restricts it. So if a bill of lading contains a term confining arbitration to one place, the claimant is not thereby deprived of the other options. An agreement made after the dispute arises is not covered by the voidness.
The purpose is to protect the owner of the goods from printed terms that impose arbitration in distant places.
It follows Article 222, which specifies the courts competent over the claim. It is followed by Article 224, which requires the arbitrators to decide the dispute under the arbitration rules agreed between the parties. Parties with an arbitration clause in a bill of lading are advised to consult a lawyer specializing in maritime law and commercial arbitration.
Practical example
A bill of lading contained a printed term confining arbitration to a distant foreign city. When a dispute arises, the Saudi importer, as claimant, may choose to hold the arbitration within the jurisdiction of the port of discharge in Jeddah, because the prior term restricting his choice is void.
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 223 of the Saudi Commercial Maritime Law
Where is arbitration held in sea shipping disputes?
At the claimant's choice: within the jurisdiction of the port of loading or discharge, the defendant's domicile, the place of contracting on its condition, the place designated in the arbitration agreement, or the port where the ship was arrested.
Is a term confining arbitration to one place valid?
Any agreement made before the dispute arose that deprives the claimant of the right of choice or restricts it is void.
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.