Shipping 2026

SAUDI ARABIA Law and Practice Contributed by: Faisal Daudpota, Daudpota International (in alliance with Khalil Aljehani Law Firm)

5. Maritime Liens and Ship Arrests 5.1 Ship Arrests Saudi Arabia is not a party to international arrest con - ventions (1952 or 1999); instead, arrests are governed entirely by domestic laws rooted in Sharia principles. The primary statute is the Commercial Maritime Law (2019), which replaced older Ottoman-based laws. Procedural aspects are handled under the Enforce - ment Law and the Law of Procedure Before Shari’ah Courts. • Requirements: A ship can only be arrested for a specific “maritime debt”, as defined in Article 75. Applications are filed online with Commercial Courts, which must respond within three days. • Scope: Arrests of “sister-ships” (same registered owner) are permitted, but arrests of “associated ships” (common control/different owner) are gener - ally not. • Release: To release a vessel, the defendant must typically provide a bank guarantee from a local Saudi bank; courts may also demand counter- security from the applicant to cover potential wrongful arrest damages. 5.2 Maritime Liens Saudi Arabia recognises maritime liens as privileged debts that take priority over registered mortgages and attach directly to the vessel, surviving changes in ownership. • Scope: These liens typically secure claims related to crew wages, salvage and maritime torts (includ - ing crew injury indemnities). • Distinction: The jurisdiction distinguishes between these high-priority maritime liens and broader maritime claims (such as contractual charterparty disputes), which do not carry the same privileged status. • Time bar: A maritime lien is valid from the moment the claim arises but is generally extinguished after one year unless the creditor files a lawsuit or arrests the vessel within that period.

• contractual carrier – the party issuing the bill of lad - ing (often a charterer or forwarder) bears primary responsibility to the cargo owner; and • actual carrier – the ship-owner physically perform - ing the transport may still be liable directly under tort law, or jointly and severally with the charterer, particularly regarding vessel seaworthiness. 4.4 Misdeclaration of Cargo Under the Saudi Maritime Commercial Law (Article 79) and the Civil Code (2023), shippers are liable for dam - ages resulting from inaccurate declarations of goods in the bill of lading. • Dangerous goods: Shippers face strict liability for misdeclaring dangerous cargo, covering costs for vessel contamination, container damage and emer - gency response. • Recoverable damages: Carriers can file recourse actions to recover compensation paid to third parties (eg, cargo owners), as well as surveyor fees, legal costs and lost profits resulting from the breach. • Judicial approach: Saudi courts strictly enforce the contract of carriage. If a carrier proves a discrep - ancy (eg, weight exceeding the declared amount) or inadequate packaging, the shipper is generally held responsible for the resulting losses. 4.5 Time Bar for Filing Claims for Damaged or Lost Cargo Maritime cargo claims generally lapse 365 days after delivery (or when delivery was due). Air cargo limits are significantly tighter: 14 days for damage, 21 days for delay and 120 days for total loss from the air waybill date. A broader five-year limitation period applies to general commercial suits under the Commercial Courts Law. Under the Civil Transactions Law (2023), limitation periods are rigid but may be interrupted if the defend - ant admits liability, or suspended due to force majeure or a “lawful excuse” (such as bona fide negotiations making filing impossible). Statutory liability limits may be voided if it is proven that the carrier acted with intent or gross negligence.

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