Shipping 2026

UAE Law and Practice Contributed by: Abdelhak Attalah and Ghassan Hidar, Attalah Legal Consultancy

4. Cargo Claims 4.1 Bills of Lading

= AED4.84, the total compensation in United Arab Emirates dirham can now be calculated as 8,200,000 SDR × 4.84 AED/SDR = AED39,688,000. The maximum compensation for a vessel with a tonnage of 20,000 GT is 8,200,000 SDR, which is equivalent to AED39,688,000. Deposit and guarantees The requirement for a deposit depends on the court’s determination, as clarified in Article 85 (4) of the ML. The competent court may require a deposit as security for the fund, but this is at its discretion and based on the guarantees deemed necessary. Who can establish the fund? The responsibility for establishing the limitation fund rests with the court in the jurisdiction where the inci - dent occurred. This ensures that the fund is tied to the legal proceedings and jurisdictional context of the maritime incident. In summary, the procedure for establishing a limitation fund is initiated by the ship-owner or their representa - tive, with the court overseeing its creation. Compen - sation is calculated according to specified guidelines, and the requirement for a deposit is subject to the court’s decision. However, since the ML was recently implemented, there is currently uncertainty regarding the establishment of the limitation fund within the UAE judicial system. The concept of creating a limitation fund in the UAE has yet to be tested by its legal and litigation systems. 3.6 Seafarers’ Safety and Owners’ Liability The UAE has not ratified the Maritime Labour Con - vention (MLC) of 2006, but many of its provisions have been informally integrated into the UAE’s leg - islative framework, and the Ministry of Transport has expressed its commitment to aligning with the core principles of the MLC. In this regard, the ML imposes specific obligations on vessel operators, including owners and charterers, to ensure seafarers’ well-being while on board. Articles 93–104 of the ML establish the rights, entitlements and safety measures for sea - farers, addressing their working conditions, welfare and protections in line with both international stand - ards and domestic regulations.

The UAE has not ratified any international conven - tions concerning B/L, such as the Rotterdam Rules, Hamburg Rules, Hague-Visby Rules or Visby Rules. However, the ML includes provisions that are largely based on the Hague-Visby Rules. Specifically, Articles 155–187 of the ML address issues related to carriage of goods by sea, and B/L and Articles 188–198 govern the multimodal carriage of goods and B/L. 4.2 Title to Sue on a Bill of Lading The lawful holder of the B/L – whether that is the con - signee, the last endorsee or the designated holder – has the right to bring a lawsuit. The UAE courts also recognise the assignment of title to sue, such as assignment in favour of the cargo insurer. 4.3 Ship-Owners’ Liability and Limitation of Liability for Cargo Damages Pursuant to Article 177 of the ML, the carrier’s liability for damage or loss to cargo is limited to an amount not exceeding 835 SDR for each package or unit used to calculate the freight, or alternatively not exceeding 2.5 SDR per kilogram of the total weight of the goods, whichever is greater. The value of the SDR, as deter - mined by the International Monetary Fund, is applied, and the payment must be made in United Arab Emir - ates dirham. However, this limitation may not apply in certain situations, including: • if the damage results from an act or omission by the carrier or their agents, with the intent to cause harm or with recklessness, knowing that harm could occur; • if the carrier issues a B/L without reservations, despite circumstances requiring such reservations, with the intent to harm bona fide third parties; • if goods are loaded on deck in violation of an agreement stipulating that they should be loaded in the hold; and • if the shipper provides a statement before ship - ment about the goods’ nature, value and special preservation needs – this statement is included in the B/L.

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