Article 58 of the Saudi Commercial Maritime Law
المادة 58 من النظام البحري التجاري · الفصل الثاني: حقوق الامتياز على السفينة
The lien provisions apply to ships operated by an owner-operator, a non-owner operator or a principal charterer, and do not apply where the owner lost possession of the ship through an unlawful act and the creditor acted in bad faith.
Official text (Arabic)
This article has not been amended since the law was issued.
تسري أحكام مواد هذا الفصل على السفن التي يستغلها المجهز المالك أو المجهز غير المالك أو المستأجر الأصلي، ومع ذلك لا تسري الأحكام المشار إليها إذا فقد المالك حيازة السفينة بفعل غير مشروع وكان الدائن سيء النية.
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 58 explained in plain English
This article specifies the scope of application of the chapter on liens on ships.
1. The provisions apply to ships operated by:
- An owner who is the operator.
- An operator who is not the owner.
- The principal charterer.
Under Article 1, the operator is the person who operates the ship for his own account as an owner, a charterer or a manager of the co-ownership, and the owner is considered the operator unless proved otherwise.
2. The exception: these provisions do not apply when two conditions are both met:
- The owner has lost possession of the ship through an unlawful act.
- The creditor is in bad faith.
In practical terms, privileged debts arise on the ship even when the person operating it is a charterer and not the owner, so the owner cannot argue that he was not the operator. But if the ship was taken from the owner by an unlawful act, such as theft or unlawful seizure, and the creditor knew of that or was in bad faith, the creditor does not benefit from the lien provisions. The two conditions are cumulative: on the wording of the text, the creditor's bad faith alone, or the unlawful act alone, is not enough.
A person who owns a ship operated by someone else, or who has lost possession of it, may consult a lawyer specializing in commercial cases.
Practical example
A company chartered a ship and operated it, and port fees accumulated against it. The lien provisions apply to the ship even though the operator is a charterer and not the owner.
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 58 of the Saudi Commercial Maritime Law
Do liens arise on a ship if a charterer operates it?
Yes. The chapter's provisions apply to ships operated by the owner-operator, a non-owner operator or the principal charterer.
When do the lien provisions not apply?
When the owner lost possession of the ship through an unlawful act and the creditor was in bad faith.
More articles on Maritime Liens and Mortgages
- Article 46
The article lists the debts that carry a maritime lien on the ship, from court costs and crew employment debts to fees, salvage rewards, compensation and the master's contract debts.
تشمل حقوق الامتياز على السفينة ما يأتي: 1- المصروفات القضائية التي أنفقت لحفظ السفينة وبيعها وتوزيع ثمنها. 2- الديون الناشئة عن عقد عمل الربان والبحارة وغيرهم م
- Article 47
The article provides that maritime liens on a ship are not subject to any formality or any special requirement of proof.
لا تخضع حقوق الامتياز لأي إجراء شكلي، أو لأي شرط خاص بالإثبات.
- Article 48
The article specifies the property that the Article 46 liens attach to: the ship, the freight of the voyage that gave rise to the debt, and their accessories, with a special rule for the paragraph 3 lien.
1- تترتب حقوق الامتياز المنصوص عليها في المادة (السادسة والأربعين) على السفينة، وأجرة النقل الخاصة بالرحلة التي نشأ عنها الدين، وعلى ملحقات كل من السفينة، وأجرة
- Article 49
The article defines what counts as accessories of the ship and the freight subject to the lien, such as compensation for unrepaired damage and salvage rewards; passenger fares count as freight; insurance compensation and State subsidies are excluded.
1- يعد من ملحقات السفينة وأجرة النقل المنصوص عليها في الفقرة (1) من المادة (الثامنة والأربعين) ما يأتي: أ- التعويضات المستحقة للمالك عن الأضرار المادية التي لحق
- Article 50
The article provides that the lien on freight remains as long as the freight is payable or is held by the master or the owner's representative, and likewise the lien on the accessories of the ship and the freight.
يبقى حق الامتياز على أجرة النقل قائماً ما دامت الأجرة مستحقة الدفع، أو كانت تحت يد الربان أو ممثل المالك، وكذلك الحال بالنسبة إلى الامتياز على ملحقات السفينة وم
- Article 51
The article sets the ranking of liens for a single voyage in the order of Article 46, with proportional sharing within one paragraph, reverse chronological order for paragraphs (4) and (6), and one date for rights arising from one incident.
1- تُرتب حقوق الامتياز المتعلقة برحلة واحدة وفقاً للترتيب الوارد في المادة (السادسة والأربعين) من النظام. 2- تكون للحقوق المذكورة في كل فقرة من المادة (السادسة
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.