SAUDI ARABIA Law and Practice Contributed by: Faisal Daudpota, Daudpota International (in alliance with Khalil Aljehani Law Firm)
5.3 Liability in Personam for Owners or Demise Charterers Owner Versus Charterer Liability Generally, a creditor can only arrest a vessel if the registered owner or demise (bareboat) charterer is personally liable for the debt. Debts incurred by time charterers typically do not justify an arrest unless they A ship can be arrested regardless of the owner’s per - sonal liability if the claim constitutes a maritime lien (eg, crew wages, collision damage, salvage). These “privileged debts” attach directly to the vessel itself rather than the owner. Sister Versus Associated Ships generate a specific maritime lien. Maritime Liens (“Guilty Vessel”) Saudi law permits the arrest of sister ships (vessels sharing the exact same registered owner). However, arresting associated ships (different owners within the same fleet or management) is generally not possible. 5.4 Unpaid Bunkers A bunker supplier in Saudi Arabia can arrest a vessel for unpaid fuel as a valid maritime claim, but success depends on who ordered the fuel and the supplier’s status. Owner Versus Charterer Liability Arresting a vessel is straightforward if the ship-owner ordered the bunkers. However, if a charterer ordered them, the supplier faces significant challenges. A charterer’s debt does not automatically create a lien against the vessel unless the supplier can prove the charterer had specific authority to bind the vessel owner. Supplier Status A physical supplier (who actually delivered the fuel) generally has a stronger claim than a contractual sup - plier (a middleman or trader). The physical supplier is better positioned to prove the fuel was provided on
the charterer was ordering for their own account, the right to arrest the owner’s ship may be negated. 5.5 Arresting a Vessel Arresting a vessel is an expedited process under the Saudi Maritime Law 2019, typically concluded within 48–72 hours via the Commercial Court’s online portal. Mandatory Documentation Applicants must submit an apostilled power of attor - ney (POA) and a formal affidavit with supporting evi - dence (contracts, invoices). Crucially, all foreign docu - ments must be translated into Arabic by a certified translator. Urgency and Security The claimant must provide evidence that the debtor intends to remove the ship or will not settle. Addi - tionally, the court often requires a security deposit (counter-security) to cover potential damages if the arrest is later found to be wrongful. Next Steps To maintain the arrest, a substantive lawsuit regarding the debt must be filed within a strict timeframe (typi - The 2019 Commercial Maritime Law permits the arrest of vessels for maritime debts (eg, unpaid charter fees or supplies). Courts typically issue warrants within three days, and sister-ship arrests are allowed if the owner is the same. Bunkers (Fuel) Arresting fuel independently is generally not possible under standard law. Unpaid suppliers usually arrest the vessel itself, as bunker claims qualify as maritime cally days) following the arrest order. 5.6 Arresting Bunkers and Freight Vessels
debts. Cargo
the vessel’s credit. Authority to Bind
Seizing cargo is possible but difficult; it generally requires the cargo to be owned by the party liable for the maritime debt, often arising when a carrier fails to deliver goods.
Charterers typically lack the inherent authority to bind the vessel for necessaries like fuel. If the supplier knew
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