We, Mohammed bin Zayed Al Nahyan President of the United Arab Emirates, − Having reviewed the Constitution; and 

− Federal Law No. (1) of 1972 concerning the competences of ministries and the powers of  ministers, as amended; and 

− Federal Law No. (26) of 1981 concerning the Maritime Commercial Law, as amended; and − Based on the proposal submitted by Minister of Energy and Infrastructure and approved  by the Cabinet. 

Do Hereby Promulgatethe following Decree by Law: 

Section One 

Definitions and General Provisions 

Chapter One 

Definitions 

Article (1) 

For the purpose of applying the provisions of this Decree-Law, the following words and  expressions shall bear the meanings assigned thereto respectively, unless the context requires  otherwise: 

The State : The United Arab Emirates  

The Ministry : Ministry of Energy and Infrastructure 

The Minister : The Minister of Energy and Infrastructure. 

The Competent  Authority 

Territorial  

Waters of the  State 

: The government of any of the Emirates or any other entity affiliated  therewith. 

: All maritime zones of a State, including the internal waters, the  territorial sea, the contiguous zone and exclusive economic zone  defined by law.

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Marine Facility : Any man-made structure that is floating and intended to be used in  the marine environment. 

The Ship : Any seagoing watercraft operating, or intended to be operated for  maritime navigational purposes, even if it does not aim to make a  

profit. All accessories of the ship shall be deemed part of the ship. 

The Watercraft : Any seagoing or marine craft operating or intended to be operated  in the territorial waters and water streams in the Emirate, whether  

for personal, commercial, sports or tourism purposes, and of  

whatever type or form. 

The Port : Any natural or artificial harbor for ships to dock, and at which ships  are provided with the necessary services to prepare or end their sea  

voyages. It includes all buildings, installations and facilities located  

in,above or next to the water and all lands necessary for their use. 

The Ship’s  Husband 

: The person who exploits the ship navigationally and commercially  for his own account in its capacity as an owner, charterer of the ship  or the manager of the co-owned ship. The owner shall be deemed  the Ship’s Husband unless proven otherwise. 

The Captain : Every natural person who commands and is in charge of a ship from  a navigational port, and from whom, or from whose representative,  

all seafarers take directions directly. The Captain shall be considered  

a seafarer with regard to the Seafarer Employment Agreement  

concluded between him and the Ship’s Husband. 

The Seafarer : Every natural person bound by a Seafarer Employment Agreement. 

The Towing  Officer 

: Every natural person who exploits a tugboat to tow and move  another ship, in consideration of a freight. 

The Pilot : Every natural or legal person licensed to provide marine pilotage  services to ships. 

The Ship Agent : A paid agent who works in the name and for the account of the  ship’s husband in the port that the agent takes as his headquarters. 

The Shipping : A paid agent who acts on behalf of the right holders entitled to 

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Agent receive the cargoes at the port of unloading, and takes all necessary  actions to receive, examine and release the cargoes, in addition to  

providing the appropriate way for their exit from the port of  

unloading. 

The Transit  Agent 

Loading and  Unloading  

Contractor 

The Charter  Party 

Contract of  Carriage by Sea 

: A paid agent who acts on behalf of the Carrier or the cargo owner,  as the case may be, to establish connection and linkage between the  stages of receipt and handover of cargoes by different Carriers.  

: A natural or legal person charged with carrying out the work of  loading and unloading of cargoes on a ship, in consideration of a  freight.  

: A contract whereby the Shipowner undertakes to put at the disposal  of the Charterer a seagoing ship or part thereof for a fixed period of  time or for carrying out one or more voyages, in consideration of a  freight. 

: A contract whereby the Carrier undertakes to carry cargoes or  passengers, in consideration of a freight. 

Bill of Lading : It is a document that establishes the execution of the contract of  carriage of cargo and the Carrier’s receipt or shipping of the cargo,  

and whereby the Carrier undertakes to deliver the cargo against the  

recovery of the original bill of lading.  

Contract Carrier : Any person by whom, or in whose name, a contract for carriage of  cargo by sea has been concluded with the Consignor or its  

representative.  

Actual Carrier : A person whom the Contract Carrier assigns to perform all or part of  the carriage of cargoes, including also any other person to whom  

the actual Carrier entrusts the performance of the same.  

Multimodal  Transport 

: It is a transportation approach whereby the Carrier undertakes,  under one BOL, to transport cargoes under its responsibility from  the place of receipt to the place of handover using two or more 

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Freight  

Forwarding 

Marine Accident  / Casualty 

General Average  Losses 

Special Drawing  Rights (SDRs) 

different modes of transport, one of which at least is a maritime  mode.  

: A contract whereby a natural or legal person undertakes on behalf  of the Consignor to carry out all or any of the work necessary to  handle and transport cargoes from their country of origin to their  destination by sea as a main stage of transportation or as one of its  main stages, whether it performs these works in its personal name  and for the benefit of the Consignor or in the name and for the  benefit of the latter.  

: An event, or a sequence of events, that occurs directly in connection  with the operation or berthing of a ship in the port and which causes  or could cause damage to the ship or to other ships, persons or  property aboard, third parties or the marine environment. 

: Loss or extraordinary expenses determined by the captain, and  which are borne or incurred intentionally and through a reasonable  manner for the sake of general safety and to avoid an imminent  danger jeopardizing the ship and the on-board cargoes.  

: An international unit of measurement for monetary values  determined by the International Monetary Fund on a daily basis and  denominated in various national currencies, including the State’s  currency.  

Marine Risk : An unexpected incident that is likely to occur during a sea voyage.  

The Executive  Regulations 

: The Executive Regulations of this Decree-Law. 

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Chapter Two 

General Provisions 

Article (2) 

1. The provisions of this Decree-Law shall apply to all seagoing watercrafts, ships, and  maritime means that engage in activities in relation to freight forwarding and maritime  navigation, in a manner that does not conflict with the provisions of relevant international  agreements, treaties and protocols ratified by the State. 
2. The provisions of Federal Decree-Law No. 50/2022 Issuing the Commercial Transactions  Law shall apply to activities in connection with the maritime navigation as commercial  businesses, regarding matters for which there is no special provision in this Decree Law. 
3. Ships and marine vessels designated for military purposes, and government-owned  vessels and marine vessels designated for non-commercial purposes, shall be excluded  from the provisions of this Decree-Law. 

Article (3) 

The following provisions shall apply to the relationship that may be established between  persons in relation to the matters regulated by this Decree-Law: 

1. Contracts and agreements concluded between them, unless they go against the provision  set forth in this Decree-Law. 
2. The provisions of this Decree-Law shall apply if there is no special agreement executed  between the parties or where the application of the agreement is not appropriate. 3. Relevant laws in force in the State. 
3. Maritime practices that do not conflict with the provisions of this Decree-Law, and in  respect of which no special provision is provided under any of Articles (1) and (2) of this  Article. 
4. Rules of justice, if there is no maritime practice that can be applied. 

Article (4) 

If a dispute arising fromthe application of the provisions of this Decree-Law is settled by way  of reconciliation or conciliation, the rules regulating the ratification of arbitration awards  contained in Federal Law No (6) of 2018 on Arbitration shall apply to the reports of 

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reconciliation or conciliation. In case the report is ratified, it shall have the force of res judicata  before the State courts. 

Article (5) 

The employees of the Ministry or the competent authority, who are designated by a decision  issued by the Minister of Justice or the head of the local judicial authority in agreement with  the Minister or the head of the competent authority, as the case may be, shall, within their  respective sphere of competence, have the capacity of judicial enforcement officers with  regard to proving what has occurred in violation of the provisions of this Decree-Law, its  Executive Regulations, and the decisions issued in implementation thereof. 

Article (6) 

Employees granted the capacity of the judicial enforcement officers have the right to board  and inspect ships, seagoing watercrafts and marine means of transport, investigate and  document violations. They further have the right to request access to any documents or data  in relation to the ship, seagoing watercraft or marine means of transport, within their  respective sphere of competence. 

Section Two 

The Ship 

Chapter One 

Ship and Shipbuilding Contract 

Article (7) 

1. The ship is a tangible movable property, and the provisions that apply to tangible movable  property shall also apply thereto, except for the provisions in respect of the ownership of  ship by way of physical possession, whatever the aspects thereof may be. 
2. The Ministry shall create a register to be labelled the “Ships Register” to register ships and  seagoing watercrafts. The register shall include the types of ships and seagoing  watercrafts, their sizes, classifications, navigation purposes and sailing areas, as  determined by the Executive Regulations.

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3. The Cabinet may entrust the creation of the register stipulated in Clause (2) of this Article  to any of the competent authorities within the limits of its competence. The provisions  applicable to the register created in the Ministry and the effects resulting from registration  or removal thereof shall apply to this register, and thecompetent authority shall substitute  for the Ministry. In this case, the competent authority shall inform the Ministry of all data  recorded in this register and any amendments thereto in accordance with the controls and  conditions determined by the Cabinet. 

Article (8) 

1. Each ship shall be given a specific name, which shall be placed in a prominent place on  the ship. 
2. The ship’s total tonnage and net tonnage shall be recorded in a certificate approved by the  Ministry or its authorized representative in this regard. 
3. The ship shall be classified according to a certificate issued by any of the classification  bodies licensed by the Ministry, or whose certificates are approved by the Ministry. 4. The ship’s home port shall be determined to be the port specified by its owner upon  applying for its registration. 
4. The controls and procedures necessary for the application of the provisions of this  Article shall be determined by a decision of the Minister. 

Article (9) 

1. The shipbuilding contract is the contract whereby the shipbuilding contractor undertakes  to build the ship according to the specifications determined by the shipbuilding applicant  after their approval by the Ministry or its authorized representative, in accordance with  the laws in force in this regard. 
2. The shipbuilding contract and every amendment thereto shall be made in writing,  otherwise it shall be rendered null and void. 
3. The Ministry shall create a special register called the “Register of Ships Being Built”, in  which shipbuilding contracts are recorded. 
4. The shipbuilding contractor shall record the shipbuilding contract in the register referred  to in Clause (3) of this Article in accordance with the procedures specified by the Ministry.

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Article (10) 

1. Ownership of the ship shall not be transferred to the shipbuilding applicant unless he  accepts the handover thereof after testing the same unless otherwise agreed upon. 2. If the parties to the shipbuilding contract agree to transfer its ownership to the  shipbuilding applicant during the shipbuilding period, the shipbuilding contractor may  withhold the ship upon completion of its shipbuilding until the full price is paid. 

Article (11) 

1. The shipbuilding contractor shall be held accountable for hidden defects in the ship, even  if the ship’s takeover report does not contain any reservation. 
2. In the event of a denial, the liability claim for the hidden defect referred to in Clause (1) of  this Article shall not be heard after one year from the date of detection of the defect in the  ship or after two years from the date of takeover of the ship, whichever is later. 
3. The provisions of Clauses (1) and (2) of this Article apply to the ship maintenance or repair  contractor regarding maintenance and repair works. 

Chapter Two 

Nationality and Registration of the Ship 

Article (12) 

1. The ship acquires the nationality of the State if it is registered in the Ministry’s Ships  Register. 
2. Ships confiscated by the State and bulk ships found by ships holding the nationality of the  State shall be deemed to be ships that hold the nationality of theState. 3. By a decision of the Cabinet, the nationality of the State may be granted to a ship owned  by a legal person in which several countries, including the State, have shares, pursuant to  an international agreement. 

Article (13) 

1. In order to register aship in the Ministry’s Ships Register, the following requirements shall 

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be met: 

1. It shall be normally designated for navigation in the State’s maritime zones, coastal  navigation between the State’s ports or navigation on the high seas. 
2. The majority of the shares in the ship shall be owned by natural persons or legal  persons who have the nationality of the State or the nationality of any of the countries  of the Gulf Cooperation Council, or shall be owned by natural persons or legal persons  who have a domicile, headquarters or ship management office in the State. 
3. It shall not be more than (20) twenty years old from the date of completion of its  shipbuilding in accordance with the shipbuilding contract, with the exception of  passenger ships, which shall not be more than (10) ten years old. 
4. Its drawings and specifications shall be approved by the Ministry or its authorized  representative after inspecting the ship. 
5. It shall have valid international certificates indicating its suitability for maritime  navigation, issued by any of the classification bodies licensed by the Ministry, or  whose certificates are approved by the Ministry. 
6. The Cabinet may amend any of the conditions referred to in Clause (1) of this Article. 3. The Executive Regulations shall specify ship registration procedures. 4. Notwithstanding the provisions set out in Clause (1) of this Article, and in accordance with  

the requirements of the public interest of the Ministry, the registration of the ship may be  refused. 

Article (14) 

Ships registered in the Ships Register shall fly the State’s flag, and no other ships can fly the  State’s flag, without prejudice to international maritime agreements and customary practices. 

Article (15) 

1. Foreign ships may not carry out maritime carriage between the State’s ports or engage in  fishing, towing, piloting, cruise, supply and fueling or other maritime services and  activities in the State’s maritime zones without the approval of the Ministry in accordance  with the conditions specified by the Executive Regulations. 
2. Foreign ships may not carry out any military activities, hydrographic surveys, marine 

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scientific research, search and exploration for oil and other resources, or any work  connected with submerged cultural heritage in the exclusive economic zone without  obtaining prior permission from the competent authorities in the State. 

Article (16) 

1. No natural or legal person may practice any maritime activity through a seagoing  watercraft unless the said watercraft is registered in the Register with either the Ministry  or the competent authority. The Executive Regulations shall specify the controls for  registering the seagoing watercrafts in the Register. 
2. The competent authority shall link and share all data in relation to the seagoing watercraft  registered in its Register, and any change or update made thereto with the Ministry shall  be made in accordance with the controls determined by the Ministry, after coordination  with the competent authority. 

Article (17) 

1. The Ministry shall maintain a special register for seagoing watercrafts and buoys  designated and not normally designated for maritime navigation. Moreover, the Executive  Regulations shall specify their types, conditions and procedures for registration and the  consequences thereof. 
2. The Cabinet may entrust the creation of the Register described in Clause (1) of this Article  to any of the competent authorities within the limits of its competence, in addition, the  provisions applicable to the Register created in the Ministry and the effects resulting from  registration therein or removal therefrom shall apply to this Register. The competent  authority shall substitute for the Ministry, and in this case the competent authority shall  inform the Ministry of all data recorded in this Register and any amendments thereto in  accordance with the controls and conditions determined by the Cabinet. 

Article (18) 

1. The Charterer of a ship registered abroad that meets the conditions for registration under  the Emirati flag referred to in Article (13) of this Decree-Law may request its registration  with the Ministry, if the following conditions are met:

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1. The chartered ship shall not be a bareboat. 
2. The charter party period shall not be less than (6) six months. 
3. The Ministry shall determine the mechanism and procedures for registering a chartered  bareboat. 

Article (19) 

1. The Ministry may license the owner of a ship registered with the Ministry to fly the flag of  another country if it wishes to rent the ship as a bareboat to a charterer who requests its  registration abroad. 
2. The shipowner shall submit an application for a license to fly the flag of another country,  accompanied by the following documents: 
3. Charter party for the bareboat. 
4. A letter issued by the ship’s registration office abroad stating that the charterer’s home  country has approved the registration of the ship and the raising of its flag. 3. The Ministry may not license the raising of the flag of another country, unless all rights in rem on the ship are settled or the written approval is obtained from all owners of rights  in-rem registered in the Register. 
5. Under no circumstances, the shipowner may challenge the Ministry’s decision to refuse a  license to fly the flag of another country in accordance with the requirements of the public  interest, not even with any form of challenge. 

Article(20) 

1. The Ministry shall inform the maritime administration of the country, whose flag will be  raised on the ship, of the decision to permit the shipowner to fly the flag of that country. 2. The issuance of a decision permitting the raising of the flag of another country results in  freezing the ship’s registration in the Ministry, taking into account noting in the Register  the name of the country permitting the shipowner to carry its flag. 
2. If the ship is subject to Enforcement Attachment in the State, the Ministry shall notify the  registration office abroad to take procedures for the judicial sale of the ship. 4. The Ministry determines the mechanism and procedures for chartering a ship registered  in the Ministry to fly the flag of another country.

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Article )21( 

1. The ship shall be removed from the Register in any of the following cases: a. If the ship permanently loses its suitability for maritime navigation and becomes  shipwreck. 
2. If the bareboat charter party registered abroad is terminated in accordance with the  provisions of Article (18) of this Decree-Law. 
3. If its ownership is transferred to a person who does not meet the registration  conditions. 
4. If a court order is issued to cancel the ship’s registration. 
5. If the shipowner applies for the removal. 
6. When the public interest so requires. 
7. The shipowner or its representative, or the charterer or its representative, shall inform the  Ministry of the reason for the deregistration of the ship, not later than (30) thirty days from  the date the reason therefor. 
8. The shipowner or its representative, or the charterer or its representative, shall return the  ship’s registration certificate to the Ministry, if possible. 
9. The Ministry shall determine the procedures for the removal of the ship from the Register. 

Chapter Three 

Navigation License 

Article )22( 

1. Any ship registered with the Ministry shall be prohibited from practicing any maritime  activities without obtaining a navigation license to be issued by the Ministry. 2. Any seagoing watercraft registered with the Ministry or the competent authority shall be  prohibited from practicing any maritime activities without obtaining a navigation license  to be issued by the Ministry or the competent authority, as the case may be. 3. The Executive Regulations shall specify the controls and procedures for issuing the  navigation license, its duration, amending its data, provisions for its renewal and cases of  suspension and cancellation.

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Article )23( 

1. The captain of the ship or seagoing watercraft shall inform the Ministry or the competent  authority, as the case may be, immediately upon the occurrence of a Marine accident or if  the shipowner introduces changes in its structure or in its devices and equipment in  violation of the validity certificates issued thereto, failing which, the Ministry or the  competent authority may, as the case may be, issue a decision to suspend or cancel the  navigation license. 
2. In the event of cancellation of the license, the Ministry or the competent authority may  issue a new navigation license for the ship after removing thecauses of the violation. 

Chapter Four 

Legal Dispositions Associated with the Ship 

Article (24) 

1. The Ministry shall attest every contract that results in the creation, transfer or termination  of a right in-rem over the ship, otherwise it shall be deemed null and void. The Executive  Regulations shall specify the controls and procedures for ratification and the  responsibility arising therefrom. 
2. If the contract was concluded outside the State, and it is associated with a ship registered  there, it shall be executed before the consul of the country or before the competent  authority abroad. 
3. The ship-related data contained in the contracts shall be full and accurate so that the  parties to the contract can be fully aware of all relevant information. 
4. All legal actions and rights associated with the ship shall be recorded in the Register, none  of which may be invoked unless being registered in the Register. Judicial judgments and  decisions associated with the ship shall also be recorded in the Register. 

Article (25) 

1. The owner of a ship registered in the State may not take any action in respect of the  transfer of ship’s ownership before paying all debts recorded in the Register or obtaining  the creditor’s approval to transfer ownership. Otherwise, the action shall be deemed void.  The Executive Regulations shall specify the mechanism and procedures for the transfer of 

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ownership. 

2. If ownership of the ship is transferred to another person under the provisions of Clause  (1) of this Article, the transferor shall return the ship’s registration certificate to the  Ministry, and the Ministry shall issue a new registration certificate in the name of the  transferee upon its request, once the latter meets the requirements set forth in Article (13)  of this Decree-Law. 

Article (26) 

1. The owner of a ship registered in the State may not dismantle the ship or sell its wreckage  before obtaining the Ministry’s approval in accordance with the controls and procedures  specified by the latter. 
2. The Ministry may not issue the approval referred to in Clause (1) of this Article, unless the  party concerned pays off the debts and compensation, as well as the maritime debts  registered in the Ship Register owed to the State. 

Chapter Five 

Co-ownership of A Ship 

Article (27) 

1. If there are multiple owners of the ship, they shall be deemed co-owners, whether they  are natural persons, legal persons or both. The ship shall be divided into (100) hundred  shares. The owner’s share in the ship shall be determined based on the shares owned  thereby. 
2. With the approval of the majority of the shipowners, who own more than half of the  shares in the ship, the management of the ship may be entrusted to one or more managers  chosen from among the shipowners or third parties. 
3. The Executive Regulations shall specify the mechanism for managing the ship, making  decisions and objecting to the same. 

Article (28) 

1. No joint owner may mortgage or sell its share in the ship without obtaining the approval  of the rest of the owners. In the event of a sale, the notification shall include the price 

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determined for its share. Each owner has the right to request the redemption of the sold  share through a notice addressed to both the seller and the purchaser on the condition  that it pays the price and expenses, in accordance with the controls and procedures  specified in the Executive Regulations. 

2. The disposition referred to in Clause (1) of this Article shall be deemed void if it results in  rendering any of the conditions for registering the ship in the State invalid, without the  approval of all shipowners, and in accordance with the controls set out in the Executive  Regulations. 
3. The co-ownership of the ship may not be terminated except by a decision of the owners  who hold at least two-thirds of the shares in the ship. However, any of the owners may  request the sale of the entire ship at open auction through applying the procedures for the  compulsory sale of the ship. If the owners, who hold at least half of the shares in the ship,  do not approve this sale, the competent court shall order the sale if necessary. 

Chapter Six 

Liens Over the Ship 

Article (29) 

The lien holder of a ship may keep a watchful eye on the ship wherever it exists, in order to  satisfy its right as per the following order of priority: 

1. The judicial costs incurred for the protection, maintenance and sale of the ship and  distribution of its price, as well as loading fees, port fees, lighthouses fees and other fees  and taxes payable to the State and compensation resulting from damage to ports, docks  and navigation streams and charges for removing navigation obstacles caused by the ship  and maintenance expenses from the time the ship anchors in the last port.. 
2. The rights arising from the employment agreement of the captain, seafarers and other  persons who are bound by a seafarer employment agreement on the ship. 3. Amounts due for the marine salvage and the ship’s contribution to the General Average  Losses. 
3. Compensation due for marine causalities and physical injuries sustained by the  passengers and crew, other than compensation due for loss or damage sustained by the  goods and luggage.

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5. The debts arising from the contracts concluded by the Ship Agent on behalf of the ship’s  husband or concluded by the captain outside the ship’s port of registration within the  limits of its legal authorities. 
6. Debts arising from loading, unloading, pilotage and towing operations. 7. Malfunction and damage that require compensation for the ship’s charterers. 8. The total insurance premiums taken out on the ship’s hull, equipment and devices due for  

the last insured voyage if the insurance was executed with respect to a voyage or until the  end of the insurance period if the insurance was executed for a specific period, provided  that in both cases the total does not exceed one year’s premiums. 

Article (30) 

1. Liens are not subject to any formal procedure or any special requirement of proof, except  for cases for which the Decree-Law specifies special procedures or specific forms of proof. 2. As an exception to the provisions of Clause (1) of this Article, the liens referred to in  Clauses (7) and (8) of Article (29) of this Decree-Law may be registered in the Ships  Register, provided that the contract is notarized. 

Article (31) 

1. The preferred debts described in Article (29) of this Decree-Law become payable on the  ship and the forwarding freight for the voyage during which the debt arose and on the  accessories of both the ship and the forwarding freight earned since the start of the  voyage. 
2. Without prejudice to the provisions of Clause (1) of this Article, the lien referred to in  Clause (2) of Article (29) of this Decree-Law shall apply to the forwarding freights due for  all voyages made under an employment contract. 
3. The following items are considered accessories to both the ship and the freight: a. Compensation due to the owner for material damage inflicted on the ship that has not  been repaired or for loss of freight. 
4. Compensation due to the owner for common marine losses, if they are the result of  physical damage to the ship that has not been repaired or from loss of freight. c. Therewards due to the owner for assistance or salvage activities performed until the 

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end of the voyage, after deducting the amounts due to the pilots, seafarers and other  persons who are linked to a seafarer employment contract on the ship. 

Article (32) 

1. The forwarding freight is considered to be the travel freight of passengers, and the value  for determining the responsibility of the shipowners, when necessary. 
2. Compensations due to the owner in exchange for insurance contracts, rewards or  assistance granted by the State are not considered part of the ship’s accessories or  forwarding freight. 

Article(33) 

The lien associated on the forwarding freight shall remain valid as long as the freight is  payable or its value is under the control of the captain or theship’s husband’s representative.  The same shall apply to the lien associated with the ship’s accessories and the forwarding  freight. 

Article (34) 

1. The preferred debts relating to a single voyage shall be created in accordance with the  order mentioned in Article (29) of this Decree-Law, and the debts contained in each clause  thereof shall be in the same rank and associated with the distribution in proportion to the  value of each. 
2. The debts mentioned in Clauses (3), (5) and (6) of Article (29) of this Decree-Law shall be  created with respect to each clause on a case-by-case basis according to the reverse order  of the date of their creation. 
3. The debts associated with a single casualty shall be deemed to be created in a single date. 

Article (35) 

Preferred debts arising from the ship’s last voyage take precedence over the preferred debts  arising from its previous voyages. However, debts arising from a single seafarer employment  contract for several voyages are all ranked equal to the debts in respect of the last voyage.

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Article (36) 

The liens associated with the ship shall expire in any of the following cases: 1. Judicial sale of the ship. 

2. Voluntary sale of the ship is optional; if the purchaser takes the following steps before  paying the price: 
3. Register the purchase contract in the Ships Register. 
4. Publish a statement of the sale and the corresponding price via the Ministry’s website,  provided that the publication includes specifying the name and domicile of the  purchaser. 
5. Publish a summary of the purchase contract stating the price, name and domicile of  the purchaser. This publication shall be made twice, eight (8) days apart, in a widely  circulated local daily newspaper. The liens shall be transferred to the price if the  preferred creditors, within thirty (30) days from the date of the last publication in the  newspapers, notify both the old owner and the new owner of their opposition to  paying the price unless it has been paid or distributed. 

Article (37) 

1. In the event of denial and absence of a legally-admissible excuse, the cases relating to liens  associated with the ship shall not be heard after one year has passed, except for cases in  relation to liens guaranteeing debts arising from the aforementioned contracts referred to  in Clause (5) of Article (29) of this Decree-Law shall not be heard after six (6) months have  passed from the due date of the debt. 
2. The period referred to in Clause (1) of this Article shall begin to take effect as follows: a. As for the liens guaranteeing compensation for assistance and salvage, starting from  the day these operations end. 
3. Concerning liens guaranteeing compensation for collisions, other casualties and  physical injuries from the day the damage occurred. 
4. With regard to the right of lien for loss or damage to cargoes or luggage, from the day  the goods or luggage were delivered or from the day on which they should have been  delivered. 
5. With regard to repairs, supplies and cases referred to in Clauses (7) and (8) of Article 

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(29) of this Decree-Law from the day the creation of debt. 

3. In all other cases, the period takes effect from the day the debt becomes due. 3. Permitting captains, seafarers and other persons who are bound by an employment  contract on the ship to receive amounts in advance or on account does not result in their debts  referred to in Clause (2) of Article (29) of this Decree-Law being considered payable and due  before the deadline set therefor. 

4.The periods referred to in Clause (1) of this Article shall be extended to (3) three years if it  is not possible to impose an attachment on the ship on which the lien is granted in the  territorial waters. The category benefiting therefrom includes persons who hold the  nationality of the State, persons who hold the nationality of a country providing the same  privileges as the ones provided to the State’s nationals or the persons who have a domicile in  the State. 

Article (38) 

The foregoing provisions shall apply to ships operated by the owner ship’s husband, the non owner ship’s husband or the original charterer. However, the foregoing provisions shall not  apply if possession of the ship is lost by an unlawful act and the creditor is acting in bad faith. 

Article (39) 

The competent authority has the right to impose an attachment on the shipwreck to  guarantee the expenses of removing this wreck. It may sell it administratively at an open  auction and collect its debt from the price in preference to other creditors. The remainder of  the price shall be deposited with its treasury to be distributed among them, if any. 

Article (40) 

The provisions contained in this Chapter shall apply to commercial ships owned, operated or  managed by any federal or local authority.

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Chapter Seven 

Bottomry Bond 

Article (41) 

1. The ship may be mortgaged in accordance with the provisions referred to in this Chapter,  regardless of its tonnage. 
2. If the ship is co-owned, it may be mortgaged in its entirety with the approval of the  majority of the owners holding at least three-quarters of the shares. If this majority is not  present, the matter may be referred to the court in whose jurisdiction the ship’s port of  registration is located, to take a decision in a manner consistent with the interests of the  co-owners. 
3. A ship may be mortgaged while it is in the process of shipbuilding, and the Executive  Regulations shall specify the controls and procedures for registering the mortgage in the  Register. 

Article (42) 

1. The ship shall be mortgaged by a bond accompanied by the authentication of the  signatures of the parties thereto, otherwise it shall be deemed void, in accordance with the  provisions of Article (24) of this Decree-Law. 
2. It is permissible to mortgage the ship and carry out all transactions in relation to the  mortgage through modern technological means. 

Article (43) 

1. The mortgage executed in connection with the ship or a share therein shall remain  effective with respect to its wreck. 
2. The mortgage executed in connection with the ship shall apply to neither the forwarding  freight, nor to the rewards, subsidies or assistance granted by the State, nor to the  insurance amounts or compensation for damages, but it includes compensation due to  the owner for material damage inflicted on the ship that has not been repaired. 
3. Notwithstanding the provisions stated in Clause (2) of this Article, it may be stipulated in  the mortgage contract that the mortgage creditor shall recover its debt from the insurance  amount, provided that the insurers accept the same in writing or are notified of the same.

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Article (44) 

1. The mortgage shall be immediately next in rank to the preferred debts referred to in  clauses (1), (2) (3), (4), (5) and (6) of Article (29) of this Decree-Law, except for the liens  referred to in Clauses (7) and (8) of Article (29) of this Decree Law, if the lien was registered  in the register at a date prior to the registration of the mortgage. 
2. The rank of debts secured by a mortgage shall be determined according to the dates of its  registration. If two or more mortgages are registered on a ship or on a share therein on the  same day, their order shall be determined according to the precedence of registration. 
3. The registration entails guaranteeing the cost of the debt for the last two years, in addition  to its cost for the current year at the time of winning the bid, and these costs have the same  rank as the principal of the debt. 

Article (45) 

1. Creditors who are mortgagee of a ship or part thereof shall keep a watchful eye on the ship  wherever it is, and the mortgage shall not be extinguished by the confiscation of the ship  for violating the State’s legislation. 
2. It is not permissible to dispose of the ship after registering the attachment report in the  Ships Register. 

Article (46) 

Any disposal of a ship burdened by a mortgage that results in it losing the nationality of the  State shall be prohibited, and the disposal shall be deemed null and void. 

Article (47) 

1. If the mortgage is on a share not exceeding half of the ship, the mortgagee creditor has no  choice but to apply for the attachment on such share and sale of the same. If the mortgage  is executed on more than half of the ship, the creditor may, after the imposition of the  attachment, sell the entire ship. 
2. In the both cases referred to in Clause (1) of this Article, the creditor shall formally notify  the remaining partners, at least fifteen (15) days prior to the start of the sale procedures,  of paying the outstanding debt or bearing the enforcement procedures.

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Article (48) 

1. Enforcement on the mortgaged ship shall be carried out in accordance with the  procedures for Prejudgment attachment of the ship contained in this Decree-Law, unless  the parties agree on other rules for the mortgaged creditor to recover his rights. The  decision of the auctioneer or the completion of the agreed-upon procedures shall result  in the ship being discharged of all mortgages and the rights of the creditors being  transferred to the price. 
2. It may be agreed on the mortgage contract that the mortgagee creditor shall own the ship  or the mortgaged share in the event of failure to pay the debt secured by the mortgage at  its maturity date. If the mortgagor debtor refuses to hand over the ship to the mortgagee  creditor, the latter may submit an application to the competent court within the  jurisdiction of which the ship is located to enable him to take over the ship. 
3. The order issued by the competent court within a period not exceeding (3) three working  days from the date of submitting the application thereto shall be deemed Writ of  Execution for takeover, and the same shall not result in the ship being discharged of other  mortgages. 

Article (49) 

1. If ownership of the mortgaged ship or any thereof is transferred before the attachment  report is registered, the mortgagee creditor who took enforcement measures against the  ship shall notify the possessor thereof by virtue of the attachment report and formally  request him to pay the debt. 
2. If the possessor wants to cancel the attachment and sale procedures, he shall, before the  initiation of these procedures or within (15) fifteen days following notification of payment  of the debt, serve a notice to the creditors registered in the Ships Register to the domiciles  chosen therefor contained in the mortgage contracts of his willingness to pay the debts  secured by the mortgage immediately, whether they are payable or not payable, within  the limits of the price of the ship, for which he is liable. Furthermore, the aforementioned  notice shall include the following details: 
3. A summary of his contract, indicating the date of the contract, the name and  nationality of the seller, the name of the ship, its type, tonnage, price and expenses.

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1. A list of registered debts, along with their maturity dates, amounts and names of  creditors. 

Article (50) 

1. In the case described in Article (49) of this Decree-Law, any creditor may apply for the sale  of the ship or part thereto by auction, along with drawing up a report on the increase  estimated by the judge and providing a guarantee for the price and expenses. 
2. This application shall be informed to the possessor, signed by the creditor, not later than  (10) ten days from the date of the notification referred to in Article (49.1) of this Decree Law. The application shall include requiring the purchaser to appear before the competent  court in whose jurisdiction the ship is located, or the court in whose jurisdiction the ship’s  port of registration is located if it is not located in any of the State’s ports, in order to hear  the judgment in connection with conducting the sale by auction. 

Article (51) 

If no mortgagee creditor submits the application referred to in Article (50) of this Decree-Law,  the purchaser may release the ship from the mortgage by depositing the price with the  treasury of the competent court. In this case, he may request the cancellation of the  restrictions without following any other procedures. 

Article (52) 

The mortgage registration shall be removed by agreement to be executed between the parties  or by a final judgment. 

Chapter Eight 

Prejudgment Attachment 

Article (53) 

1. Prejudgment attachment shall be created on the ship in satisfaction of a maritime debt, by  a decision of thecompetent court. 
2. The debt shall be considered of a maritime nature if it arises out of any of the following 

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reasons: 

1. The destruction or damage sustained as a result of the use of the ship; b. Losses in human lives or physical injuries caused by the ship or arising from its use; c. Salvage operations or salvage agreements, even if the ship or its cargo causes  imminent damage to the environment; 
2. The damage that the ship may cause to the environment, the coastal strip or the  interests connected therewith, as well as the resulting expenses and costs in relation  to avoiding, reducing or removing the damage; 
3. The costs for raising a sunken, wrecked, stranded or abandoned ship and the expenses  for transporting and restoring the same, stopping its harmful effects or destroying it; f. Any agreement concluded for the purpose of the use of a ship, whether contained in a  charter party or other document; 
4. Any agreement concluded with regard to the carriage of cargoes or passengers aboard  a ship, whether contained in a bill of lading, travel ticket or other document; h. Loss or damage to cargoes or baggage carried aboard a ship; 
5. General Average Losses; 
6. Ship towage; 
7. Ship pilotage; 
8. The cargoes, materials, supplies, fuel, equipment or containers supplied to the ship, as  well as the services provided thereto in order to operate, manage maintain or safekeep  the ship; 
9. Building, rebuilding, repairing, converting or outfitting a ship; 
10. Fees for ports, canals, basins, harbors and other waterways; 
11. Remunerations and other sums due to the captain and crew in connection with their  duties aboard the ship, including repatriation expenses and social insurance  contributions payable on their behalf; 
12. Amounts paid on behalf of the shipowner or ship’s husband; 
13. The insurance premiums for the ship and its Takaful insurance contributions that are  obligated to be paid by the shipowner or charterer of the bareboat or their  representative; 
14. Any commissions, brokerage or agency expenses payable by the shipowner, its 

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charterer or their representative; 

1. Any dispute over ownership or possession of the ship; 
2. The dispute over the co-owners of the ship and the rights and profits resulting from its  use; 
3. Mortgage of the ship or any other in-king guarantee executed on the ship; and v. Any dispute arising from the ship sale contract. 

Article (54) 

1. Holders of the debts described in Article (53.2) of this Decree-Law may apply for  attachment of the ship to which the debt relates or attachment of any other ship owned by  the debtor, in the event that the ship is owned thereby at the time of attachment application,  even if the ship was prepared for a voyage. 
2. However, no attachment may be imposed on a ship to which the debt is not related if the  debt is among those set out in Article (S, T, U and V of Article 53.2) of this Decree-Law. 

Article (55) 

1. The creditor may request attachment of the ship or on any other ship owned by the  charterer, if the navigation management of the ship is performed by such a charterer, and  the charterer is solely responsible for a relevant maritime debt. No Prejudgment  attachment may be imposed on any other ship belonging to the owner of the chartered  ship to which the maritime debt relates. 
2. The provisions of Clause (1) of this Article shall apply to all cases in which a person other  than the shipowner is burdened with a maritime debt. 

Article (56) 

It is not permissible to order the imposition of a Prejudgment attachment on the ship unless  the competent court accepts the financial guarantee submitted by the attachment application  to fulfill the necessary needs for the security and safety of the ship and its crew during the  period of attachment. The amounts spent from this guarantee shall be considered judicial  expenses when distributing the proceeds of enforcement on the ship.

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Article (57) 

1. The attachment of the ship shall result in preventing the same from sailing. 2. The competent court shall order the lifting of the Prejudgment attachment if a guarantee  or other guarantee sufficient to satisfy the debt is provided. However, no order may be  issued for the lifting of the attachment if the same is decided due to the maritime debts  referred to in Clauses (S) and (T) of Article (53.2) of this Decree-Law. In this case, the court  may authorize the shipowner to exploit it if he provides sufficient guarantee. It may also  entrust another person to manage the ship during the attachment period in the manner it  determines. 
2. Letters of guarantee issued by protection and compensation clubs or by financial  institutions that are accepted by the competent court shall be considered a reason for  lifting the Prejudgment attachment, in accordance with the provisions of Clause (2) of this  Article. In addition, the Executive Regulations shall specify the provisions for admitting  letters of guarantee. 
3. The application for lifting of the Prejudgment attachment or provision of a guarantee or  security shall not be considered an admission of responsibility for the debt nor a waiver  of the obligation to limit the shipowner’s liability. 

Article (58) 

1.A copy of the Prejudgment attachment report shall be delivered by the enforcement officer  to the Ship Agent, in the port where the ship was attached, or to the captain of the ship or his  representative. Another copy shall be submitted to the authority of the port in which the  attachment is executed to prevent the ship from sailing, or to the authority competent to  prevent the ship from sailing if it is kept outside the borders of the port. Another copy shall  also be submitted to the Ministry for notation in the register. 

2.Copies of the Prejudgment attachment report referred to in Clause (1) of this Article may be  delivered through modern technological means, provided that it is proven that the addressee  is aware of the content of the letter he receives. 

3.If a Prejudgment attachment is imposed on a foreign ship, the Ministry may notify the  registration office of the ship’s flag State of the attachment for notation in the register.

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Article (59) 

1. The Prejudgment attachment applicant shall file a case for the validity of the attachment  before the competent court in whose jurisdiction the attachment is executed, not later than  (5) five working days from the date of the attachment. Otherwise, the Prejudgment  attachment shall be considered null and void. 
2. A date shall be set for the hearing, not exceeding (15) fifteen days following the date of the  Prejudgment attachment report. The ship’s husband or agent shall be notified thereof. The  court shall review the case expeditiously and no other deadline may be added to this period. 3.The judgment affirming the Prejudgment attachment shall include the order to sell the ship,  

the conditions of the sale, the day designated therefor and the basic price. 4.The judgment may be appealed within fifteen (15) days in accordance with the procedures  established for appeal. 

5.The court shall decide on the appeal in the courtroom without preparation from the case  management within a week from the date of completion of the statement of appeal, and it  may set a hearing to consider the matter if necessary. 

Article (60) 

Without prejudice to any agreement to refer the dispute to arbitration, the court, in whose  jurisdiction the Prejudgment attachment is made, has jurisdiction to adjudicate the subject  matter of the case in any of the following cases, even if the ship does not hold the nationality  of the State, in addition to the cases referred to in the Procedure Law in force in the State: 

1. If the plaintiff has a habitual residence or headquarters in the State. 2. If the maritime debt arises in the State. 
2. If the maritime debt arises during a voyage during which a Prejudgment attachment of  the ship is made. 
3. If the maritime debt results from a collision or salvage, the court has jurisdiction. 5. If the debt is secured by a maritime mortgage on the attached ship.

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Chapter Nine 

Enforcement Attachment 

Article (61) 

1. No Enforcement Attachment may be imposed on the ship until at least (24) twenty-four  hours have passed following serving the formal notice for payment of the maritime debt  by a bailiff. 
2. The notice referred to in Clause (1) of this Article shall be delivered to the shipowner to  his domicile or his legal representative. If is a matter regarding a maritime debt on a ship,  it may be delivered to the Ship Agent, the captain or his representative on the ship. 
3. If it is not possible to notify the person required to be notified in accordance with Clauses  (1) and (2) of this Article, the matter shall be presented to the competent judge or the head  of the Department, as the case may be, for investigation by at least any of the relevant  authorities. Then, the notification shall be made through a notice to be placed on the ship  or published in any of the widely-circulated daily newspapers or an electronic newspaper  published in the State in the Arabic language, and in another newspaper published in the  English language, if necessary, if the person required to be notified is a foreigner. 

Article(62) 

1. A copy of the Enforcement Attachment report shall be delivered to the Ship Agent, captain  or his representative, and a second copy shall be delivered to the competent authority or  the port where the attachment is made to prevent the ship from sailing, and a third copy  shall be delivered to the Ministry. 
2. The Ministry shall record the Enforcement Attachment in the Ship Register. If the ship is  foreign, the Ministry shall notify the ship’s registration authority abroad if possible. 3. After the notation procedure referred to in Clause (2) of this Article, the execution debtor  may not dispose of the ship by selling or mortgaging. 

Article (63) 

1. TheEnforcement Attachment report shall include a summons for the parties concerned to  appear before the court in whose jurisdiction the attachment is made to hear the sale 

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judgment. 

2. The date of the hearing before the competent court to hear the sale judgment may not be  set after the fifteenth day from the date of attachment. 
3. If the foreign shipowner does not have a domicile in the State nor does he have a legal  representative there, he shall be notified in accordance with the provisions stipulated in  the legislation in force in this regard. 

Article (64) 

If the court orders the sale, it shall determine the basic price, conditions of sale and days on  which the auction will be executed. The Executive Regulations shall specify the controls and  procedures for publishing the order to sell the ship through open auction and the data  required to be included in the notification. 

1. Auctioneer’s auction decision may not be appealed except where there is a defect in terms  of form. 
2. The appeal period shall be fifteen (15) days from the date of issuance of the decision. 

Article (65) 

1. Concerning the cases filed requesting the entitlement to the ship and invalidation of the  Enforcement Attachment, the said cases shall be announced before the auction to the  competent court that conducts the sale within (48) forty-eight hours, otherwise the right  to announce the same shall be forfeited, and the plaintiff shall, within a period not  exceeding (3) three working days from this announcement, submit his evidence and  documents. Whoever disputes the plaintiff’s claims shall submit his evidence within three  (3) three working days following the same. 
2. The court shall adjudicate the case expeditiously, and the judgment may be appealed, not  later than fifteen (15) days following its issuance before the competent Court of Appeal. 

Article (66) 

1. Cases for entitlement filed after the auction shall be considered an objection to the  delivery of the amounts obtained from the sale. 
2. Objections to the distribution of the price shall be admitted within thethree working days 

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following the date of issuance of the distribution list. The objecting creditors shall submit  their debt bonds to the case management office at the competent court not later than the  three working days following notification from the attachment applicant creditor or the  owner of the attached ship. Otherwise, the price shall be distributed without them being  included therein. 

3. The provisions contained in the legislation in force in the State shall apply to the  distribution of the price obtained from the auction. 

Article (67) 

Sale of the ship by auction shall result in its release, and the winning bidder is not be obligated  to fulfill the employment contracts of the pilots and seafarers. 

Section Three 

Security & Safety and Marine Environment 

Article (68) 

1. For the purposes of enforcing international and national requirements in relation to  security, safety and preserving the marine environment, the Ministry and the competent  authority, each according to its competence, shall take the following measures: a. Take all necessary measures to ensure that national ships comply with the  

requirements and rules set by the International Maritime Organization and other  relevant organizations, as well as the legislation in force in the State. 

1. Control and inspect foreign ships in the State’s maritime zones and ports to ensure  their compliance with ratified international agreements and the provisions of  applicable legislation. The Ministry shall determine the controls and procedures for  this inspection. 
2. Ensure that ports, classification bodies, companies and establishments that practice  maritime activities in the State adhere to international requirements and rules, the  legislation in force in the State and the Ministry’s decisions and circulars in respect of  carrying out their activities. 
3. Cooperate with federal and local government entities with regard to taking the  necessary measures to carry out the duties of the coastal State in compliance with 

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ratified international agreements and the provisions of applicable legislation. The  Ministry shall determine these duties and obligations. 

2. The Ministry shall determine the requirements for security, safety and preservation of the  marine environment required to be met by seagoing watercrafts and ships not subject to  the provisions of international agreements. 
3. The Ministry has the right to exempt ships from complying with any requirements and  conditions in accordance with the powers contained in ratified international agreements  and legislation in force, and the Ministry shall determine the controls and cases of these  exemptions. 

Article (69) 

1. All parties concerned shall enable representatives of the Ministry to embark the ship, enter  seagoing watercrafts and question people aboard and shall provide representatives of the  Ministry with the information, evidence, documents and certificates requested by  representatives of the Ministry. 
2. The persons mentioned in Clause (1) of this Article may not get access to the places  designated for the accommodation of members of the crew unless the examination,  inspection or investigation is related to the living conditions of the seafarers on the ship. 
3. Any ship carrying the flag of the State and any ship present in the territorial waters shall  maintain all certificates, licenses and permits in relation to its work and shall submit the  same to representatives of the Ministry upon request. 

Article (70) 

The captain of any ship sailing in the State’s maritime zones shall take all necessary measures  to protect the marine environment from pollution in accordance with the provisions of  international agreements and legislation in force, in addition to taking all necessary measures  to prevent the damage arising from his action giving rise to pollution. Moreover, the captain  shall immediately report any marine pollution detected in the State’s maritime zones. 

Article (71) 

1. Any captain who intends to enter the ship into any of the State’s ports shall ensure the 

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existence of a security plan that includes an international certificate approved by the  government of the ship’s flag State or its authorized representative, in addition to adhering  to the security level declared for the port as a minimum. 

2. The Ministry shall determine the security level of the State’s ships and ports, after  coordination with the competent authority and relevant authorities. 
3. While the ship is in the State’s ports, it shall be subject to the supervision of the Ministry,  with the aim of verifying that it carries a security plan and a valid international certificate  regarding ship security in accordance with the provisions of Clause (1) of this Article. 

Article (72) 

1. Compliance with the security controls on the ship shall have priority over the interests  represented on the voyage. The ship’s husband may not impose restrictions on the captain  regarding taking actions or measures required for the course of the ship’s security. 
2. Taking into account the provisions of Clause (1) of this Article, maritime safety  considerations shall have priority over the security controls in force on the ship, in  addition, the captain shall take alternative security measures other than the ones not  permitted. 

Article (73) 

1. The Ministry may prevent ships and seagoing watercrafts that do not comply with ratified  international agreements and applicable legislation from sailing, and it may order the  cancellation of the ban and authorize them to sail when their conditions are corrected. 
2. The Ministry has the right to prevent foreign ships and watercrafts from entering the  State’s maritime zones and ports in the event that they do not comply with ratified  international agreements and the provisions of applicable legislation or the public  interest. 
3. Before the ship sails, the ship’s husband or his representative shall obtain a travel permit  from the competent authorities in the port after fulfilling the conditions for granting the  permit.

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Section Four 

Port Facilities 

Article (74) 

The port authorities in the State shall take the following measures: 

1. Notify the Ministry of the location of the port before starting its construction, its  boundaries, drawings and coordinates, provided that the port drawings shall specify its  navigational waterways and the shipping lanes thereof. 
2. Provide infrastructure and superstructures at every pier and facility used to dock ships  operating in maritime navigation, depending on the type and size of the pier and the cargo  traded thereon, and in accordance with international standards approved in this regard. 
3. Fulfill the international requirements and standards in relation to international ship  voyages, in accordance with ratified international agreements and applicable legislation  determined by the Ministry in coordination with the competent authorities. 
4. Establish lighthouses and navigational aids necessary to pilotage the ships to shipping  lanes and port piers in a manner that ensures the safety of their navigation and regulate  the same in coordination with the Ministry. 
5. All port facilities in the State that receive ships on international voyages shall apply the  requirements of the International Ship and Port Facility Security Code, while taking into  account creating a complete database for visiting ships and providing the Ministry with  that data periodically. 
6. Approve and apply the environmental management system established under the  international standards, and which includes developing policies, plans and programs for  continuous improvement in environmental performance, along with reducing  environmental problems before they occur. 

Article (75) 

The port authority shall, in coordination with the competent authority, issue a special  regulation regarding the conditions for occupational safety, health and environmental  protection, which shall be complied with by all entities licensed to provide services or carry  out work within the port. This regulation may include a ban on carrying out certain activity in  the port.

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Article (76) 

The Ministry may, on its own initiative or upon the recommendation of the competent  authority, impose administrative attachment on ships and seagoing watercrafts and sell the  same at open auction, in satisfaction of the rights of the State, the rights of the port or taking  into account humanitarian or health considerations or their technical condition, in  accordance with the controls and procedures specified by the Executive Regulations. 

Section Five 

Crew 

Chapter One  

Ship’s Husband 

Article (77) 

1. The shipowner shall be presumably be the ship’s husband, unless it is proven that its use  has been transferred to another person. 
2. The following persons shall be deemed to be the ship’s husband, regarding the application  of the provisions of liability arising from the ship’s non-seaworthiness: a. The manager of co-owned ship; 
3. The ship’s manager assigned to manage the ship by the ship’s husband; c. Freight Forwarder vis-à-vis the Consignor; and 
4. Commission agent for carriage by sea vis-à-vis the client. 
5. The following persons shall be considered as a ship’s husband, regarding the application  of his limited liability provisions: 
6. The owner of the ship, even if he is not the ship’s husband; 
7. The bareboatcharterer; 
8. The manager of the co-owned ship; and 
9. The ship’s manager assigned to manage the ship by the ship’s husband. 

Article (78) 

The ship’s husband shall, before and during the sea voyage, take all necessary measures to  ensure the ship’s seaworthiness. The Ministry shall determine the requirements required to 

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be met for preparing the ship for the voyage in accordance with international agreements and  maritime customary practices. 

Article (79) 

1. The ship’s husband shall be absolutely responsible for his personal faults, especially in the  event of his failure to comply with ship safety provisions and ensure the ship’s  seaworthiness. 
2. The liability of the ship’s husband shall be deemed a civil liability for the faults of the  captain, seafarers, pilot and any other person in the ship’s crew, whenever they are  committed during the performance of their duties or because of them, and result in  damage. The ship’s husband shall have the right to recourse against the person who, by  his mistake, caused the damage. 
3. The ship’s husband shall be held accountable for the obligations arising from contracts  concluded by the Ship Agent or the captain within the limits of the powers established for  either of them. 

Article (80) 

1. The ship’s husband or the like may invoke the limitation of their liability for the faults and  obligations referred to in Article (79) of this Decree-Law if the fault or obligation arises  from any of the following reasons: 
2. Deaths, physical injuries, loss of or damage to property, including damage to port  facilities, docks, shipping lanes and aids to navigation, occurring on board the ship or  directly related to its operation or salvage operations and any resulting damage. 
3. Damage resulting from delay in the carriage of cargo, passengers or their baggage by  sea. 
4. Claims for any other damage arising from the violation of non-contractual rights, as a  result of the operation of the ship or in connection with its salvage operations. d. Damage arising from the removal, destruction or unloading of dangerous cargo from  the ship. 
5. Measures taken by a person other than the responsible person to prevent or limit  damage, for which the responsible person may limit his liability in accordance with 

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the provisions of this Decree-Law, as well as the damages resulting therefrom. 2. The ship’s husband or the like may invoke the limitation of his liability for the obligations  referred to in Clause (1) of this Article vis-à-vis all creditors, including federal or local  authorities. 

3. Invocation of limiting liability shall not be considered an admission of liability. 

Article (81) 

The ship’s husband or the like may not invoke the limitation of his liability in any of the  following cases: 

1. If the incident creating the obligation resulted from a personal fault on the part of the  ship’s husband or resulted from a deliberate act or omission or a serious fault on the part  of his representative, and the burden of proof lies on the plaintiff claiming the personal  fault. 
2. Obligations arising from salvage and rescue or contribution to general average losses. 3. The rights of the captain, the seafarers and every other subordinate of the ship’s husband  who is on board the ship or whose work is related to its service, as well as the rights of  their successors. 
3. Debts arising from nuclear damage. 
4. Damage arisingfrom the recovery, removal, destruction or getting rid of the danger of the  ship if it is sunk, wrecked stranded or abandoned, as well as the damage resulting from  objects that are or were already on board. 

Article (82) 

1. The captain, seafarers or other subordinates may invoke the limitation of liability if the  casualty resulting in the damage occurred due to a personal fault committed by them  during or in connection with their duties on board the ship. 
2. The persons referred to in Clause (1) of this Articlemay not invoke the limitation of liability  if the damage arises from a deliberate act or omission, either with the intention of causing  damage or recklessly coupled with awareness of the possibility of any damage occurring.

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Article (83) 

1. The liability of the ship’s husband or the like for damage resulting from a single casualty  shall be determined according to the following: 
2. In cases of compensation for death and physical, organic and psychological damage,  liability shall be determined as follows: 

1) (2,000,000) two million of Special Drawing Rights, if the ship’s tonnage does not  exceed two thousand tons; 

2) If the ship’s tonnage exceeds the limit referred to in the foregoing paragraph of this  Article, the following shall be added to the maximum compensation limit referred  to: 

 -(800) eight hundred out of Special Drawing Rights for each additional ton, if  the ship’s tonnage ranges from (2,001) two thousand and one tons to (30,000)  thirty thousand tons. 

 -(600) six hundred out of Special Drawing Rights for each additional ton, if the  ship’s tonnage ranges from (30,001) thirty thousand and one tons to (70,000)  seventy thousand tons. 

 -(400) four hundred of Special Drawing Rights for each additional ton, if the  ship’s tonnage exceeds (70,000) seventy thousand tons. 

1. In cases of compensation for material damage: 

1) (1,000,000) one million of Special Drawing Rights, if the ship’s tonnage does not  exceed (2,000) two thousand tons; 

2) If the ship’s tonnage exceeds the limit referred to in the foregoing paragraph of this  Article, the following shall be added to the maximum compensation limit referred  to: 

-(400) four hundred of Special Drawing Rights for each additional ton, if the ship’s  tonnage ranges from (2,001) two thousand and one tons to (30,000) thirty  thousand tons. 

 -(300) three hundred of Special Drawing Rights for each additional ton, if the  ship’s tonnage ranges from (30,001) thirty thousand and one tons to (70,000)  seventy thousand tons. 

 -(200) two hundred of Special Drawing Rights for each additional ton, if the ship’s 

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tonnage exceeds (70,000) seventy thousand tons. 

1. The maximum liability of the ship’s husband, in cases of compensation for deaths and  physical, organic and psychological injuries sustained by passengers on board the  ship, shall be the result of multiplying (175) one hundred and seventy-five thousand  Special Drawing Rights by the number of passengers that the ship may carry in  accordance with the certificate issued thereto in this regard. 
2. The ship’s tonnage means the total tonnage for which the basis of measurement is  determined by a decision of the Ministry. 
3. The maximum compensation shall be calculated in accordance with Clause (1) of this  Article, in light of the matters determined by the International Monetary Fund on the day  of issuance of the judgment regarding the value of Special Drawing Rights denominated  in the State’s national currency. The convict shall only be obligated to pay compensation  in accordance with this currency. 
4. The Cabinet may amend the values referred to in Clause (1.A) of this Article, provided that  these values are not less than what is stipulated in the international agreements regulating  the ship’s liability’s liability in force in the State. 

Article (84) 

1. If the maximum limit for compensation for deaths and physical injuries is notsufficient to  cover it in full, the remainder thereof shall be shared with other damage-related debts in  the amounts allocated to compensate for the latter damage. 
2. The court may temporarily retain part of the amounts allocated for compensation to  satisfy debts whose creditors have not taken actions to claim them. 
3. The creditor may not take any action against the assets of the ship’s husband, if the latter  has already placed at the disposal of the creditor the amounts allocated for compensation  or if he provides a banking guarantee approved by the court. 

Article (85) 

1. If there are multiple debts arising from a single casualty, the ship’s husband or the like may  request the establishment of a compensation fund before the court in whose jurisdiction  the casualty occurred, unless otherwise agreed upon.

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2. The court shall establish a compensation fund immediately upon submitting the  application to do so, in accordance with the provisions specified in the Executive  Regulations. 
3. The establishment of the fund results in the exclusive jurisdiction of the court to decide  on claims in relation to debts in respect of which no valid judgments have been issued,  and it also has exclusive jurisdiction over all prejudgment or enforcement measures in  relation to those claims. 
4. When establishing the fund, the court shall determine the guarantees to be approved  thereby and their value. The provision of these guarantees by the ship’s husband or the  like shall result in the creditors refraining from taking any prejudgment or enforcement  action in relation to all of its assets. 
5. The court, in which the compensation fund was established, shall establish a list of  compensations approved in the fund in light of its adjudication of the claims thereof or  were determined pursuant to a judgment that had acquired res judicata or pursuant to an  enforceable arbitration award. 
6. The court states in its judgment the method of distributing compensation to the creditors,  taking into account the liens determined when necessary, according to a judgment  independent of the judgments issued on debt-based claims. 

Chapter Two 

The Captain 

Article (86) 

1. The ship’s husband shall appoint the captain, in accordance with the controls determined  by the Ministry. 
2. The ship’s husband may dismiss the captain at any time, if he has justifiable reasons for  doing so. Otherwise, the captain may claim for compensation for the damage he sustains  due to the dismissal, if necessary, in accordance with the general rules. 

Article (87) 

1. The captain has the authority necessary to maintain order and security of the ship, as well  as onboard the passengers and cargo and the safety of the voyage.

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2. The captain shall assume the command of the ship. In the event of his absence, the  navigation officer next in rank shall act on his behalf on the ship, provided that the captain  assumes command of the ship himself, if he employs a pilot or the ship is exposed to  imminent maritime danger. 
3. The captain has the authority to collect evidence and investigate crimes committed on  board the ship during the sea voyage, and he has the authority to detain those accused of  committing these crimes until they are handed over to the competent authority upon the  ship’s arrival. 
4. If the ship is operating automatically without the need for a human to steer it, the cruise manager appointed by the ship’s husband shall undertake the administrative and  commercial tasks assigned to the captain. 

Article (88) 

1. The captain is considered the legal representative of the ship’s husband and represents  him before the judicial authorities. 
2. The captain shall act on behalf of the ship’s husband in respect of carrying out the  necessary activities to operate and exploit the ship, in the event that the ship’s husband or  his representative is absent, except as specified based on the customary practices. 
3. The restrictions imposed on the captain acting on behalf of the ship’s husband shall not  be invoked vis-à-vis third parties unless he is aware of them. 
4. The captain shall comply with the instructions of the ship’s husband regarding the  commercial operation of the ship, and he shall notify him of all matters in relation to the  ship or shipment. 

Article(89) 

The captain shall take the following measures: 

1. Take the necessary measures to maintain the ship’s seaworthiness. 2. Take into account the generally-accepted technical principles in respect of steering a ship,  as well as international agreements and provisions, laws or regulations regulating  maritime navigation and the provisions in force in the State within the territorial waters  of which the ship is located.

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3. Take the necessary measures to maintain security and order on board the ship, the safety  of onboard passengers and objects and the protection of the marine environment. 4. Provide assistance to any ship about to sink or to any person at sea who is at risk of death,  provided that he does not expose his ship or the onboard passengers to danger. 5. Maintain all records and documents in relation to the ship, seafarers or passengers and  submit the same to the competent authorities upon request. 

Article(90) 

1. The captain has the authority to document and record births and deaths that occur on  board the ship during the sea voyage. 
2. In the event of the death of a person on board the ship, the captain shall, with the  assistance of an officer, conduct an inventory on the deceased’s luggage, preserve and  hand over the same to the authorities of the port of the State to which the ship arrives. 
3. If any onboard person is infected with a contagious disease, the captain may disembark  him in the nearest place where he can be treated after notifying the competent authorities. 

Article (91) 

1. If unusual causalities occur during the voyage in relation to the ship, the cargo or the  passengers, the pilot shall draw up a report thereon. 
2. The captain shall submit the report to the Ministry and the competent authority within  (24) twenty-four hours of the ship’s arrival in the State, and the report shall be submitted  outside the State to the competent authority abroad. 
3. In the event that the casualty referred to in Clause (1) of this Article occurs outside the  State, the Ministry or the competent authority abroad shall investigate the facts contained  in the report, hear the statements of seafarers and passengers, if necessary, and collect  information contributing to reaching the truth. After conducting this investigation, the  report shall be considered evidence for the facts contained therein until evidence to the  contrary is established. 
4. The captain may not, except in cases of necessity, begin unloading the ship before  submitting thereport referred to in this Article.

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Article (92) 

1. The captain shall be held accountable for his personal mistakes with respect to the ship’s  husband and third parties. 
2. A mistake with regard to taking a specific measure according to his discretion to confront  a danger is not considered a mistake that necessitates the captain’s liability vis-à-vis the  ship’s husband, while the ship’s husband shall remain liable for the damage caused to  third parties. 

Chapter Three 

Seafarers 

Article (93) 

1. The ship’s husband shall appoint the seafarers, in accordance with the conditions and  controls determined by the Ministry. 
2. No person under the age of sixteen (16) Gregorian years may be employed to work on  any ship registered in the State. 
3. It is prohibited to assign a seafarer under the age of eighteen (18) Gregorian years to work  at night except in cases of necessity or training, provided that working during the night  does not result in any harm to the seafarer’s health. 

Article (94) 

1. The employment of a seafarer to work on board the ship shall be made pursuant to a  seafarer employment contract to be concluded between the ship’s husband and the  seafarer. 
2. The seafarer employment contract shall be executed in writing. However, the seafarer  may provide evidence of the contract depending on all means of proof. 3. The Executive Regulations shall specify the controls and procedures for concluding a  seafarer employment contract, working hours on board the ship, rest hours and official  holidays.

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Article (95) 

1. The provisions of the Federal Decree-Law No. (33) of 2021 Regarding the Regulation of  Employment Relationships, as amended, shall apply to matters for which there is no  special provision in this Decree-Law or in its Executive Regulations. 
2. The provisions of Federal Law No. (7) of 1999 concerning Pensions and Social Security,  as amended, shall apply to seafarers who hold the nationality of the State. 

Article (96) 

1. The seafarer shall perform the duties agreed upon in the seafarer employment contract  and shall comply with the orders of his superiors regarding servicing the ship. In addition,  he shall not be permitted to disembark the ship without their permission. 
2. The Ministry shall determine the controls for seafarers’ work on board the ship, which  include controls for living on board, food and drink, work safety and appropriate medical  and health services. 

Article (97) 

1. The amount or type of wage shall be determined in the seafarer employment contract, in  accordance with the controls received from the Ministry. 
2. If the wage is not specified in the contract, the competent court shall determine it. 3. The ship’s husband shall pay wages to the seafarer on the due dates, in accordance with  the conditions, controls and procedures specified in the Executive Regulations and based  on the categories of seafarers working on the ship. 
3. Wages shall be paid in UAE dirhams, and they can be paid in another currency if agreed  upon between the parties in the seafarer employment contract. 
4. No amounts may be deducted or reduced from the seafarer’s wages except in accordance  with the cases specified in the Executive Regulations. 

Article (98) 

The seafarer is not entitled to additional pay for performing any of the following activities: 1. Any action determined by the captain, which is necessary and urgent for the safety of the  ship or to save lives or the onboard cargoes.

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2. Firefighting training courses or maneuvers, launching lifeboats and other salvage training  activities. 
3. Any additional work in relation to customs procedures, quarantine and other government  work. 
4. The actions assigned by the captain to the seafarer with the intention of assisting another  ship that is at risk, without prejudice to the provisions regarding the salvage reward and  its distribution. 

Article (99) 

The ship’s husband shall conclude a health insurance policy contract for the benefit of the  seafarer, and he may not deduct the value of the insurance premium from the wage due to  the latter. The Executive Regulations shall determine the minimum rights required to granted  to the seafarer under the aforementioned insurance. 

Article (100) 

1. If the seafarer is injured or becomes ill while working on board the ship, and the injury or  illness results in his inability to perform his duties, the ship’s husband shall pay his full  wages for the duration of his stay on the ship until he is returned to his home.  Furthermore, he shall pay the expenses of treatment, accommodation and compensation,  if necessary. 
2. The following cases shall be excluded from the obligation of the ship’s husband to pay the  full wage: 
3. The injury is inflicted due to a cause not related to the ship’s service. b. The injury is the result of the seafarer’s misconduct. 
4. Illness or disability that the seafarer deliberately concealed from the ship’s husband  when concluding the seafarer employment contract. 

Article (101) 

1. The seafarer employed for a definite period shall be entitled to an annual leave of not less  than (3) three days for each month of service, and any agreement to the contrary shall be  deemed null and void.

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2. Annual leave dates shall be determined depending on the requirements and conditions of  work, and leave shall be granted based on a written application to be submitted from the  seafarer and approved by both the captain and the ship’s husband. 
3. Upon termination of his service for any reason, the seafarer shall be granted cash  compensation for the days of annual leave not exhausted, equal to the wage due to him  for the days of work, within the limits of a maximum of two years of leave. 

Article (102) 

1. The Executive Regulations shall specify the violations committed by the seafarer, the  disciplinary penalties, the conditions, controls and procedures necessary for imposing the  penalties and the mechanism for grievance against them. 
2. If the act or omission attributed to the seafarer constitutes a crime under the laws of  the State, the captain shall hand him over to the competent authorities upon arrival at the  first port in the State. 

Article (103) 

1. The employment relationship shall be terminated in any of the following cases: a. Upon Termination of the contract period. If the period expires during the sea voyage,  the contract shall be extended by virtue of law until the ship arrives at the first port or  docks at the agreed-upon port to return the seafarer. 
2. At the request of either party if the agreement is of an indefinite term, provided that  he notifies the other party in writing at least (30) thirty days prior to termination. c. Upon completion of the voyage(s); if the agreement is executed for a single voyage or  more voyages. 
3. Compulsory or voluntary sale of the ship. 
4. The death of the seafarer, either de facto or de jure. The seafarer is considered dead if  he remains missing for a period of a month as a result of the ship being exposed to a  maritime disaster, a collision, an act of piracy or any other exceptional incident in  which the death of the seafarer is likely. 
5. Without prejudice to the provisions of Clause (1.A) of this Article, the seafarer may  terminate the seafarer employment contract if there are serious reasons that justify 

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terminating the contract before the expiry of its period or if he is medically unable to  continue performing his duties specified in the contract. 

3. Violation of the notice period referred to in Clause (1.B) of this Article shall result in the  violator being obligated to pay compensation to the other party equal to the seafarer’s  wage for the notice period. 
4. In the event that the seafarer employment contract is terminated due to the compulsory  or voluntary sale of the ship, the wages and other amounts shall be considered an  acquired right, so the seller may not recover them. Furthermore, the seafarer may claim  for appropriate compensation as a result of the termination of the seafarer employment  contract. 
5. In the event that the ship is abandoned and the seafarers’ wages are not paid for two  months in a row, the Ministry may impose an administrative attachment on the ships of  the ship’s husband and sell them at open auction in order to pay their salaries, in  accordance with the conditions, controls and procedures specified by the Executive  Regulations. 

Article (104) 

1. Those who have the nationality of the State may perform any activity on ships sailing  outside territorial waters without obtaining a seafarer’s register from the Ministry. 2. No person may carry out any activity on a ship that has the nationality of the State unless  he obtains the approval of the Ministry in accordance with the legislation in force in this  regard. 
2. The Ministry may issue a seafarer’s register for seafarers or trainee students who are not  of State nationality working on ships that have nationality of the State. 

Article (105) 

The State’s courts have jurisdiction to adjudicate claims arising from a seafarer employment  contract, unless otherwise agreed upon in the contract at the time of its conclusion. 

Article (106) 

In the event of denial and absence of a legally-admissible excuse, claims arising from a 

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seafarer employment contract shall not be heard after one year from the date of expiration of  the contract. 

Chapter Four 

Towing Officer 

Article (107) 

1. The towing operation shall be managed by the towed ship’s captain in any of the following  cases: 
2. If the towing operation is performed inside the port. 
3. If it is explicitly agreed that the captain shall undertake the towing operation outside  the port boundaries. 
4. The towed ship’s husband shall be liable for damage resulting from towing operations,  unless it is proven that the damage arose as a result of the fault of the towing ship. 

Article (108) 

The management of the towing operation shall be vested in the captain of the towing ship in  any of the following cases: 

1. If the towing operation is performed inside the port. 
2. If it is explicitly agreed that the captain shall undertake the towing operation outside the  port boundaries. 

Article )109( 

In the event of denial and absence of a legally-admissible excuse, liability claims arising from  towing operations shall not be heard after one year has passed from the date of the end of  these operations. 

Chapter Five 

Pilot 

Article (110) 

1. Pilotage shall be deemed compulsory for ships at ports and areas designated by a decision 

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from the Minister in coordination with the competent authority. This provision shall apply  to ships designated for public service. 

2. The port authority may exempt warships, ships less than twenty-four (24) meters in length  or other ships from being subject to pilotage service in accordance with the controls it  determines. 
3. The Ministry shall, in coordination with the competent authority, issue a decision  regulating the pilotage activities. No pilotageservice may be provided in the State without  obtaining the approval from the Ministry and a license from the competent authority.  

Article (111) 

1. Ships subject to the pilotage obligation shall follow the rules specified in the pilotage  regulations in force in the pilotage area before entering it, while sailing therein and  leaving. 
2. If providing the remote pilotage service through electronic or other means is possible,  ships equipped with these means shall receive the service through them in accordance  with the pilotage regulations in force. 
3. The application for pilotage shall be submitted to the competent port authority in  accordance with the procedures it determines. 

Article (112) 

The command and management of the ship shall remain the responsibility of the captain  while the pilot is conducting the pilotage. 

Article (113) 

If the pilot has to travel with the ship or at the request of the pilot for reasons justifying so, the  ship’s husband shall be liable for the costs of the pilot’s food, stay and return to the port from  which he gets on the ship, with the pilot’s right to claim compensation, if necessary. 

Article (114) 

1. The ship’s husband shall be liable for the damage caused to his ship or to third parties due  to any fault made by the pilot during the execution of the pilotage.

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2. The ship’s husband shall be liable for the damage caused to the pilot ship during the  execution of the pilotage and while getting on and off the ship, unless the ship’s husband  proves that the damage has resulted from the fault of the pilot or the crew of the pilot ship. 
3. The ship’s husband shall be liable for the damage caused to the pilot during the execution  of the pilotage or while getting on and off the ship, unless it is proven that the damage has  resulted from the fault of the pilot or the crew of the pilot ship. 
4. The pilot shall not be liable for damage caused to the ship piloted thereby, unless its ship’s  proves that the former made a serious fault during the execution of the pilotage. 5. In all cases, the State assumes no liability for the damage resulting from the appointment  of the pilot. 

Article (115) 

In the event of denial and absence of a legally-admissible excuse, liability claims arising from  the pilotage shall not be heard after one year has passed from the date of the end of the  pilotage. 

Chapter Six 

Ship Agent 

Article (116) 

No Ship Agent may perform his activities in the State without obtaining the approval of the  Ministry and a license from the competent authority, in accordance with the conditions and  procedures specified in the Executive Regulations. The Ministry may suspend or cancel the  employment of the Ship Agent in the event that he violates the applicable legislation or the  decisions and circulars issued thereby. 

Article (117) 

The ship’s agent or the like shall be considered the representative of the ship’s husband in  cases filed by or against him in the State. The Ship Agent’s domicile is also considered the  domicile of the ship’s husband in the State where he is notified of judicial and non-judicial  papers.

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Article (118) 

1. The Ship Agent shall take the following measures: 
2. Coordinate with the captain to take the necessary measures to meet the ship’s control  requirements. 
3. Provide correct data about the ship’s crew to the relevant authorities in the State. c. Carry out activities in relation to the usual needs of the ship, including entering into  contracts in relation to the navigation and exploitation of the ship in the name and for  the account of the ship’s husband. 
4. The Ship Agent has the right to receive the cargo from Consignors and hand over the same  to the right holders entitled to receive the cargoes, in addition to assigning a loading and  unloading contractor, issuing bills of lading and delivery notes and collecting the freight  for the account of the ship’s husband. 

Article (119) 

The ship’s agent shall be liable for both his personal faults and faults committed by his  subordinates, and the ship’s agent shall remain liable vis-à-vis the ship’s husband in his  capacity as a paid agent. 

Chapter Seven 

Shipping Agent 

Article (120) 

No shipping agent may perform his activities in the State’s ports without obtaining the  approval of the Ministry and a license from the competent authority, in accordance with the  conditions and procedures specified in the Executive Regulations. The Ministry may suspend  or cancel the employment of the shipping agent in the event that he violates the applicable  legislation or the decisions and circulars issued thereby. 

Article (121) 

The shipping agent shall take all reasonable measures to preserve the cargoes he receives on  behalf of his client and preserve his rights with respect to the Carrier and all parties engaged 

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in the implementation of sea transport. Otherwise, he is presumed to have received the  cargoes in the condition described in the bill of lading, and he shall prove otherwise. 

Article (122) 

The condition contained in the bill of lading whereby the Consignor authorizes the Carrier to  appoint a shipping agent shall not be effective against the person entitled to receive the  cargoes unless the same is approved by the Consignor. In the event of non-approval, the  cargoes shall be deemed to be in the possession of the agent appointed by the Carrier to  safeguard the latter. 

Article (123) 

The shipping agent shall be liable vis-à-vis the cargo owner and third parties for his personal  faults and the faults committed by his subordinates. 

Chapter Eight 

Transit Agent 

Article (124) 

No transit agent may perform his activities in the State’s ports without obtaining the approval  of theMinistry and a license from the competent authority, in accordance with the conditions  and procedures specified in the Executive Regulations. The Ministry may suspend or cancel  the employment of the agent in the event that he violates the applicable legislation or the  decisions and circulars issued thereby. 

Article (125) 

The transit agent shall take the following measures: 

1. Receive the cargoes from the former Carrier, conclude a contract of carriage with the  next Carrier and hand over the cargoes to him. 
2. Take all reasonable actions and measures to preserve the goods in transit from a Carrier  to another.

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3. Customs release of goods if they pass the customs gate in preparation for the next  forwarding. 

Article (126) 

The transit agent shall be liable for both his personal faults and faults committed by his  subordinates. 

Chapter Nine 

Loading and Unloading Contractor 

Article (127) 

No loading and unloading contractor may perform his activities in the State’s ports without  obtaining the approval of the Ministry and a license from the competent authority, in  accordance with the conditions and procedures specified in the Executive Regulations. The  Ministry may suspend or cancel the employment of the agent in the event that he violates the  applicable legislation or the decisions and circulars issued thereby. 

Article (128) 

1. The loading and unloading contractor shall take the following measures: a. Provide services and supply the necessary tools to load or unload cargo, and he may  use ship cranes if necessary. 
2. Carry out the work that precedes or complements the activities of loading and  unloading, such as bringing the cargoes from the warehouses and transporting them  to the ship by any unit, marine means, or other tools used therefor, in addition to  storing the same in the warehouses after they are unloaded. 
3. The loading and unloading contractor may be entrusted with carrying out, on behalf of  the ship’s husband, Consignor or consignee, legal or physical operations in relation to the  cargoes that he undertakes to load or unload, provided that he is assigned, with an express  written agreement, from the Ship Agent or the shipping agent.

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Article (129) 

1. The loading and unloading contractor shall be liable for its own personal faults and the  faults committed by its personnel, and which cause damage to third parties. In addition, it  shall also be liable for the loss or damage of the cargoes vis-à-vis the person who assigned  it to load or unload the cargoes. 
2. The provisions of Articles (175), (177), (180), and (183.1) of this Decree-Law shall apply  to the liability of the shipping and unloading contractor for the loss or damage of the  cargo. 

Section Six 

Use of the Ship 

Chapter One 

General Provisions on Ship Chartering 

Article (130) 

1. The provisions of this Chapter shall apply to charter parties unless the parties agree  otherwise, provided that the charter party does not include any condition conflicting with  the nature of the charter party. 
2. The ship’s flag law shall apply to the ship’s charter party unless the contracting parties  agree otherwise. 

Article (131) 

1. The charter party of a ship shall be executed in writing, and the document of a charter  party shall be labelled a charter party. 
2. The charter party shall contain the following information: 
3. The name and domicile of both the shipowner and charterer. 
4. The name, nationality, tonnage and IMO number of the ship. 
5. The amount of tonnage covered by the charter party. 
6. The amount of the freight and the calculation method thereof. 
7. The type of shipment, if specified, or sufficient data to specify it. 
8. The agreed upon place and time for loading and unloading.

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1. Terms of the agreement regulating the charter party. 
2. The validity of the data referred to in Clause (2) of this Article as evidence shall be limited  to the data contained therein. 
3. The charter party shall be deemed valid in respect of the relationship between the  shipowner and the charterer, and between them and the person entrusted with the  management of the ship, if any. The contents of the charter party shall not be used as  evidence against third parties unless it is proven that the third party was aware of the data  contained therein with respect to the performance of the charter party. 

Article (132) 

1. The charterer may sublet the ship, unless a condition is stated in the charter party  prohibitingthe same. 
2. The original charterer shall remain liable vis-à-vis the shipowner for the obligations arising  from the charter party. 
3. The sub-charter party shall not create a direct relationship between the original shipowner  and the sub-charterer. However, the shipowner may have the right to recourse against the  sub-charterer in an amount not exceeding the value owed by this charterer to the original  charterer, without prejudice to the rules of tort liability. 

Article (133) 

1. The cargo shipped on the chartered ship shall guarantee payment of the ship’s freight and  related charges. 
2. The shipowner may not attach the ship’s cargo upon arrival due to non-payment of the  freight, and may petition the judge of urgent matters to keep the same in the custody of a  third party as bailment, and may request that the same be sold in whole or in part, unless  the charterer provides a guarantee for the outstanding amounts. The costs associated with  attachment, bailment and sale shall be borne by the charterer. 
3. The shipowner shall have a lien on the cargoes shipped on the chartered ship as a security  for payment of its freight and related charges, and the lien shall remain effective for a  period of (15) fifteen days after the handover or bailment of the cargoes, unless a bona  fide third party has obtained a right in rem over the cargoes.

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4. The lien shall remain valid even if the cargoes are mixed with other cargoes. 

Article (134) 

The Charterer shall be liable for any claim filed by a third party against the shipowner due to  the use of the chartered ship. 

Article (135) 

The sale of a ship shall not result in automatic termination of the charter party. However, the  buyer may request termination of the charter party if it is proven that the buyer has had no  knowledge, at the time of sale, of the existence of the charter party or has had no ability to  become aware of the same. 

Article (136) 

In the event of denial and absence of a legally-admissible excuse, the following actions shall  not be heard: 

1. The actions arising out of a charter party after the passage of one year following the  expiration date thereof. 
2. The actions that seek refund of any unlawfully paid amounts after the passage of one year  starting from the day on which the party seeking refund becomes aware of its right to seek  recovery. 

Chapter Two 

Bareboat Charter 

Article (137) 

1. A Bareboat Charter is a contract whereby the shipowner undertakes to put, for a fixed  period of time, a specific seaworthy ship at the disposal of a charterer, without crew,  provisions or needs or without any part thereof, in consideration of a freight to be agreed  upon between the contracting parties. 
2. The charter party with option to buy or coupled with a promise to sell may serve as a  bareboat charter.

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Article (138) 

The shipowner shall be held accountable for getting the damage arising out of a defect in the  ship repaired, and where such a defect causes the ship to be prevented from sailing for more  than twenty-four (24) hours, the shipowner shall not be entitled to any freight during the  stoppage period. 

Article (139) 

1. The charterer may manage the ship navigationally and commercially, unless otherwise  agreed. 
2. The charterer of a ship under a bareboat charter shall: 
3. Use the ship for the agreed-upon purpose according to its technical specifications  recorded in its certificates. 
4. Bear the costs of ship repair and maintenance, in addition to the expenses required for  the exploitation of the ship and insurance costs. 
5. Provide the ship with seafarers and pay their wages and provide the necessary  provisions and treatment for them. 
6. Deliver the ship back upon expiration of the charter term at the port of handover, in  the same condition that existed when the ship was put at its disposal, subject to fear  tear and wear of the ship, unless otherwise agreed. 

In the event of delayed handover of the ship by the charterer due to any reason attributed to  the charterer, the latter shall pay twice the agreed-upon freight for the delay period, unless  the shipowner proves that the amount of damage exceeds twice the freight amount. 

Chapter Three 

Voyage Charter 

Article (140) 

1. Voyage Charter is a contract whereby the shipowner undertakes to put at the disposal of  the charterer a specific seaworthy ship or any part thereof, provided that the chartered  ship or part thereof is equipped with the provisions, needs and seafarers for one or more  voyages, in consideration of a freight to be agreed upon between the parties to the charter  party.

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2. The shipowner shall put at the disposal of the charterer at the agreed-upon place and time  a specific seaworthy ship, provided that the chartered ship is equipped with the  provisions, needs and seafarers for one or more voyages, and shall keep the ship in such a  condition throughout the agreed-upon voyage or voyages. 
3. Subject to Article (131.2) of this Decree-Law, the executive regulations shall define the  basic details to be included in the voyage charter. 

Article (141) 

1. The shipowner shall assume navigational and commercial management of the ship. 2. The shipowner may not load aboard the ship or the chartered part thereof any cargo that  does not belong to the charterer without the latter’s prior permission; otherwise, the  freight due for the unpermitted loaded cargo shall accrue to the charterer, without  prejudice to the latter’s right to claim compensation from the shipowner, if applicable. 3. The shipowner shall be liable for the damage caused to the cargo received by the captain  aboard the ship within the limits defined in the charter party. 
2. The shipowner shall be relieved of the liability referred to in Clause (2) of this Article, if it  proves that all its obligations have been fulfilled or that the damage has not occurred as a  result of defective performance of such obligations. 

Article (142) 

1. The voyage charter shall remain effective without compensation or freight increase, if a  force majeure event arises and temporarily prevents the sailing of the ship or halts the  continuation of the voyage, unless the contracting parties agree otherwise. 
2. If the force majeure event causes the completion of the voyage to become impossible, the  voyage charter shall be terminated without compensation. 

Article (143) 

1. The charterer of a ship under a voyage charter shall be required to: a. Load the agreed-upon quantity of cargo aboard the ship, so that if the same loads a  lesser quantity, it shall be liable to pay the full freight. 
2. Pay the freight for the completed part of the voyage, if the event of impossible 

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completion of the full voyage due to any reason not attributed to the shipowner or its  subordinates. 

2. The charterer may decide against performing the charter party; in which case, it shall  indemnify the shipowner for the damage sustained due to non-performance, provided  that the compensation does not exceed the agreed-upon freight amount. 
3. The charterer shall be liable for the damage caused to the ship or the cargo aboard the  ship, if the same arises out of the wrongful act of the charterer or its subordinates or  representative, or where the damage is caused due to any defect in the charterer’s cargo. 

Article (144) 

1. The charterer shall load and unload the cargo within the agreed-upon period(s), and in  the absence of a specified period, the customary practices at the port of loading or  unloading shall be applicable, and in the absence of customary practices at the port, the  maritime norms shall apply. 
2. If the loading or unloading operations are not completed within the agreed-upon period  or within the period prescribed by the customary practices or norms, an additional time  extension not exceeding the initial period shall apply, and for such additional period, the  shipowner shall be entitled to compensation to be specified based on the agreement or  customary practices for each day of delay, with no need for the shipowner to take any  action in order to collect the freight for theadditional time extension. 
3. If the loading or unloading operations are not completed within the additional time  extension referred to in Clause (2) of this Article, a second additional time extension shall  apply but the duration of which shall not exceed the duration of the initial time extension.  For the second additional time extension, the shipowner shall be entitled to compensation  equal to one and a half times the compensation due for the initial time extension, without  prejudice to any other compensation that accrues to the shipowner. 
4. The amounts payable to the shipowner for the additional time extensions shall be deemed  supplements of the freight, and shall be subject to the provisions of Article (133) hereof. 

Article (145) 

1. The loading or unloading period shall commence as of the day immediately following the 

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day on which the captain informs the charterer that the ship is ready for loading or  unloading of the cargo. 

2. If the loading operations are completed prior to the expiration of the agreed-upon loading  period, the remaining duration of the loading period shall not be added to the unloading  period, unless otherwise agreed. However, the parties may agree that the charterer be  entitled to a reward for speeding up the loading or unloading of the cargo. 
3. The loading or unloading period shall not include public holidays as well as the generally accepted holidays, unless the same has already fallen during the loading or unloading  operations. 
4. The loading or unloading period shall be interrupted where a force majeure event arises  and causes the loading or unloading operations to become impossible or difficult. 5. The public holidays and generally-accepted holidays shall be part of the additional time  extensions, and shall not be interrupted by the force majeure events. However, the  reduction of compensation for the initial time extension may be ordered by the court in  the event that the impediment continues. 

Article (146) 

Upon expiration of the unloading period, the captain may unload the cargo aboard the ship  at the charterer’s expense and risk, and shall take the necessary precautions to safekeep the  cargo. 

Article (147) 

1. If the ship fails to reach the agreed-upon port for unloading of the cargo, the captain shall  head for the nearest port for unloading the cargo, unless the captain receives other  instructions as mutually agreed between the shipowner and the charterer. 
2. If the captain heads for the nearest port for unloading the cargo, the shipowner shall bear  the costs of transporting the cargo to the agreed-upon unloading port, unless the ship fails  to reach such a port due to any force majeure event, and in the latter case, the charterer  shall bear the relevant costs.

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Article (148) 

1. The charterer may unload its own cargo at its own expense during the voyage at any port  before reaching the agreed-upon port, provided that the charterer shall be required to pay  the full agreed-upon freight. 
2. The charterer shall not be relieved of the obligation to pay the freight by abandoning the  cargo upon arrival, even if the cargo is destroyed or becomes less in quantity or in value  during the voyage. 

Article (149) 

1. The freight shall become due in the event that the cargo loaded aboard the ship is  destroyed before delivery, where such destruction arises out of any of the following  reasons: 
2. A wrongful act on the part of the charterer or its subordinates or representatives; b. The nature of, or in defect in, the cargo; 
3. Where the captain has to sell the cargo due to its defect or destruction, and, in which  case, the sale costs shall be deducted from the price collected by the captain; d. Where the loaded cargo contains living animals which die during the voyage not  because of a wrongful act on the part of the charterer or its subordinates or  representatives; 
4. If the captain decides to jettison the cargo into the sea in order to save the ship or the  persons or things aboard, subject to the provisions governing the general average  losses; or 
5. Any other reasons mutually agreed upon between the shipowner and the charterer  under the charter party. 
6. Any condition set forth in the charter party and which stipulates that the ship’s freight fall  due in the event of occurrence of any of the reasons referred to in Clause (1) of this Article  shall be null and void.

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Chapter Four 

Time Charter 

Article (150) 

1. Time Charter is a contract whereby the shipowner undertakes to put at the disposal of the  charterer a specific seaworthy ship equipped with the provisions, needs and seafarers for  a fixed period of time, in consideration of a freight to be agreed upon between the parties  to the charter party. 
2. The shipowner shall put at the disposal of the charterer at the agreed-upon place and time  a specific seaworthy ship and equipped with the necessary provisions and seafarers as  required to enable the charterer to exploit the ship as mutually agreed under the charter  party, and shall keep the ship in such a condition throughout the agreed-upon charter  term. 

Article (151) 

1. The shipowner shall assume the navigational management of the ship, shall equip the  ship with the necessary provisions, shall be liable for the maintenance work of the ship,  shall appoint the seafarers and the captains and shall undertake their accommodation and  costs of their living, treatment and wages throughout the charter term. In addition, the shipowner may assign any other person to undertake the navigational management of the  ship. 
2. It may be agreed that the charterer issue instructions on the ship’s navigational  management to the person in charge of managing the ship, so that the shipowner shall  ensure that the person in charge of managing the ship abides by the instructions issued  by the charterer, and in which case, the ship’s navigational management shall be  transferred to the charterer. 
3. The shipowner shall be held liable for the destruction of the ship and the general average  losses, unless the shipowner proves that the destruction is caused due to the wrongful act  or default on the part of the charterer, and the latter shall be liable for the destruction and  losses if the navigational management is transferred thereto, unless the charterer proves  that the destruction is due to navigational risks or a wrongful act on the part of the  shipowner.

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4. The shipowner shall be held liable for the damage to the cargo loaded aboard the ship, if  the same is caused by its own fault or defective performance of its obligations. 5. If the ship’s charter party expires during the voyage, the charter term shall be extended  until the voyage is completed, and, in which case, the shipowner shall be entitled to the  agreed-upon freight for the additional duration of the voyage. 

Article (152) 

1. The commercial management of the ship shall be assumed by the charterer, who shall  bear its expenses and all matters in relation to supplying the ship with fuel, oils, grease  and fresh water and paying port fees, pilotage, towing and other expenses required for its  commercial use. 
2. The captain shall adhere to the instructions issued by the charterer in all matters  connected with the commercial use of the ship within the limits specified in the charter  party. 
3. The charterer and the person assigned to manage the ship, if any, shall return the ship to  the shipowner upon expiration of the charter period. 
4. The charterer shall be liable for damage resulting from the commercial use of the ship, taking into account the depreciation resulting from its normal use. 

Article (153) 

1. The shipowner shall be entitled to the freight rate as of the day the ship is put at the  disposal of the charterer. However, the freight rate shall not be due if the ship is destroyed  or becomes idle due to a force majeure event or a fault on the part of the shipowner. 
2. No agreement may be executed that the shipowner is entitled to the freight rate in all  cases, otherwise the agreement shall be void. 
3. If there is no news of the ship and then it is proven that it is destroyed, the full freight rate  shall be due until the date of the latest news thereabout. 
4. The freight rate shall not be reduced if the ship is returned before the expiry of the charter  period.

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Article (154) 

Thecharter party shall be terminated after five (5) working days from the date of notifying the  charterer in writing of the obligation to pay the ship’s freight rate. Thereafter, the shipowner  regains his right to manage the ship, along with his obligation to carry the shipped cargo to  the agreed-upon port of unloading against a freight rate for a similar cargo delivery, without  prejudice to his right to claim for compensation, if necessary, unless otherwise agreed upon. 

Chapter Five 

General Provisions on the Contract of Carriage by Sea 

Article (155) 

1. The provisions of this Chapter and the subsequent Chapters thereof shall apply  exclusively to the contract of carriage by sea, whether the Carrier is the shipowner, ship’s  husband or its charterer. 
2. The contract of carriage by sea shall only be confirmed in writing. 

Chapter Six 

Contract of Carriage of Goods by Sea 

Article (156) 

1. The contract of carriage of goods by sea shall be deemed a contract whereby the Carrier  undertakes to carry cargo by sea from a port to another against a freight. 2. The bill of lading shall constitute evidence that the Carrier has received the cargo from the  Consignor in the condition stated therein, whereby the Carrier undertakes to deliver the  cargo to any named person or the person to whose order the BOL is issued or to the bearer. 

Article (157) 

1. Upon receiving or loading the cargoes on board the ship, the Carrier shall issue a bill of  lading at the Consignor’s request. 
2. The bill of lading, including the general and special data and conditions for carriage  contained therein, shall be deemed valid in respect of proving the contract of carriage  between the Carrier and the Consignor and vis-à-vis third parties.

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3. The bill of lading shall include the following data: 
4. The main signs necessary to verify the type of cargo depending on the data provided  by the Consignor in writing before shipping, the quantity of cargo, the number of  packages and their weight or size. These signs shall be sufficient to identify the cargo  and placed in a way that makes them easy to view throughout the voyage and to verify  their apparent condition. 
5. The name of the ship, its nationality, its cargo and the name of the captain. c. The carriage freight and the calculation and payment method thereof. d. The place and date of issuance of the BOL, the number of copies issued and the  number of each copy. 
6. Carriage is made on deck, if it is carried out in this manner. 
7. Loading port and unloading port. 
8. The date or period within which the cargo be delivered at the port of unloading, if any. h. Signature of the Carrier or his representative. 
9. The Carrier shall include in the bill of lading or any other document evidencing the  contract of carriage a statement of the shipment of the cargo on board the ship. If this  statement is not included, he shal prove the execution of an agreement to ship the cargo  in this manner. In which latter case, he may not invoke such an agreement vis-à-vis third  parties, including the consignee who received the bill of lading in good faith. 
10. The Consignor shall be liable vis-à-vis the Carrier for the incorrectness of the information  he provided concerning the cargo and which was recorded in the bill of lading. 6. In the relationship between the Carrier and the Consignor, it is permissible to prove the  opposite of the facts stated in the bill of lading by all means of proof except for the data  on the cargo referred to in Clause (3.A) of this Article, the opposite of which may only be  proven by written evidence. 
11. The Carrier may not prove contrary to the facts stated in the bill of lading vis-à-vis a bona  fide third party, and the consignee shall be considered a third party unless he is the  Consignor himself. As for a third party, he may prove the opposite of the facts stated in the  bill of lading by all means of proof.

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Article (158) 

1. The Carrier or his representative may express reservations about recording the data  provided by the Consignor regarding the cargo if he has serious reasons to doubt their  authenticity or if he does not have sufficient means to verify them. 
2. The Carrier or his representative shall state the reasons for the reservation in respect of  recording the data in the bill of lading, and the justifications for the reservation. The  Consignor or the consignee shall prove the accuracy of the data provided by the Consignor  by all means of proof. 

Article (159) 

1. An agreement may be made that the Consignor shall issue a letter of guarantee under  which he undertakes to compensate the Carrier for the damage sustained by the latter due  to incorrect data provided by the Consignor, against the Carrier issuing a bill of lading free  of reservations. 
2. The Carrier may not invoke the letter of guarantee referred to in Clause (1) of this Article  vis-à-vis a third party who does not know at the time of obtaining the bill of lading that the data provided by the Consignor is incorrect. However, a third party may invoke the  letter of guarantee vis-à-vis the Consignor. 

The consignee in whose name or to whose order the bill of lading was issued shall be  considered a third party, unless he is the Consignor himself. 

Article (160) 

1. The paper bill of lading shall be issued in two authentic copies, one of which shall be  handed over to the Consignor after being signed by the Carrier or his representative, and  the other shall remain with the Carrier after being signed by the Consignor or his  representative, and it shall be stated that it is not negotiable. 
2. The copy handed over to the Consignor shall be negotiable unless it is stated that it is not  negotiable, and the copy shall confer to its legal holder the right to send and to receive the  cargo from the Carrier. 
3. The bill of lading may be issued in several copies at the request of the Consignor, provided  that the bill of lading is not issued to the bearer. Each copy shall be numbered, indicating 

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thetotal number of copies issued for the bill of lading. The delivery of cargo under any of  them results in the other copies being considered invalid with respect to the Carrier. 

Article (161) 

1. If there is a discrepancy between the copy of the bill of lading signed by the Consignor or  his representative and the copy signed by the Carrier or his representative, in this case  each authentic copy shall be certified against its signatory. 
2. If the bill of lading was issued in implementation of a charter party and there was a  discrepancy between the charter party and the bill of lading: 
3. The charter party is based on the relationship between the shipowner and the  charterer. 
4. The bill of lading is based on the relationship between the charterer and the Consignor  or consignee unless the bill of lading includes an express reference to the charter party. c. The bill of lading is based on solely on the relationship between the shipowner who  issued the bill of lading and the Consignor or consignee. 

Article (162) 

1. A negotiable paper bill of lading shall be issued in the name of a specific person, to his  order, or to the bearer. 
2. The nominal bill of lading may be assigned by written statement to the effect in the bill of  lading, taking into account indicating the name of the assignee. The assignment shall not  be considered effective vis-à-vis the Carrier unless he is aware or is notified thereof. 
3. The “to order” bill of lading shall be negotiable by endorsement. Endorsing the bill of  lading in blank shall be considered ownership endorsement, provided that the date of its  execution is mentioned. Otherwise, it shall be considered an endorsement of the power  of attorney. In the event of a conflict between several holders of authentic copies of the  bill of lading, the holder of the copy whose first endorsement is the earliest of all the copies  shall prevail. 
4. If the “to order” bill of lading is negotiated; it may be agreed to limit the guarantee to the  authenticity of the contract of carriage and to the existence of the cargo at the time of endorsement.

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5. The bill of lading issued to the bearer shall be negotiable by delivery, and this provision  shall apply to the bill of lading endorsed in blank as an ownership endorsement. 

Article (163) 

1. The bill of lading may be issued via any electronic means. 
2. An electronic bill of lading shall have the same probative force as a paper bill of lading. It  may be negotiated through electronic means, and the same shall have the same effects as  negotiating a paper bill of lading. 
3. To recognize the authenticity of an electronic bill of lading, the following requirements  shall be met: 
4. The means of issuing or negotiating the BOL shall be one that allows the designation  of its legal holder. 
5. The method of issuing or negotiating the BOL shall guarantee its validity. c. The method of issuing or negotiating the BOL shall provide the holder with a method  of proving his possession of the BOL. 

Article (164) 

1. The Carrier may give the Consignor a non-negotiable receipt for receiving the cargo before  loading them on the ship. The bill of lading may be replaced by this receipt upon the  Consignor’s request after the cargo are loaded on the ship. 
2. The receipt referred to in Clause (1) of this Article shall have the validity prescribed for  the bill of lading if it includes the data referred to in Article (157.3) of this Decree-Law, and  it shall be marked with the word “shipped.” 

Article (165) 

1. If the captain or his representative finds cargo on the ship that are not mentioned in the  bill of lading or the data connected therewith are incorrect, he may unload them from the  ship at the place of shipment or keep them there and collect a freight equivalent to the  highest carriage freight paid for the delivery of cargo of their type to the agreed upon  destination port, without prejudice to the compensation he is entitled to. Accordingly, in  the event that the data is incorrect, the BOL’s data shall be amended according to the 

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reality of the cargo. 

2. Without prejudice to the rules regarding liability arising from pollution of the marine  environment, the captain may order the throwing of cargo into the sea in any of the  following cases: 
3. If it would cause damage to the ship or the onboard cargo. 
4. If its carriage requires paying fines or paying expenses exceeding its value. c. If its sale or export is prohibited by law. 

Article (166) 

1. The Carrier shall deliver the cargo to the person eligible to receive them or to their  representative. 
2. The person eligible to receive the cargo shall be determined by the Consignor, the person  in whose name the non-negotiable paper bill of lading was issued, the consignee named  on the nominal bill of lading, the person to whom the bill of lading was assigned by virtue  of an effective transfer by the Carrier, the legal holder of the “to order” paper bill of lading  or its bearer or the legal holder of the electronic bill of lading. 
3. If several persons simultaneously holding negotiable copies of the paper bill of lading  apply to receive the cargo, the holder of the copy whose first endorsement date is earlier  shall take precedence over the first endorsement of the other copies. If the date of the  endorsement is the same, the captain shall entrust the cargo with a trustee agreed upon  by the contenders, otherwise he shall be appointed by the judge of urgent matters of the  competent court. 
4. The undated endorsement shall be considered issued on the day the bill of lading is  presented to receive the cargoes. 
5. Delivery of the cargoes to the holder of a copy of the bill of lading shall be a discharge for  the Carrier, and the holder of another copy of the bill of lading may not have recourse  against the Carrier unless the latter’s bad faith is proven. 

Article (167) 

1. Whoever is entitled to receive the cargoes under the bill of lading may request from the  Carrier permission to hand over certain quantities thereof, provided that the same is 

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stipulated in the contract of carriage. Delivery notes shall be issued in the name of a  specific person, to his order, or to the bearer, and they shall be signed by the Carrier and  the permission applicant. 

2. If the bill of lading is negotiable, the Carrier shall include a statement about the delivery  notes issued thereby and the cargoes described therein. If the entire shipment is  distributed among multiple delivery notes, the Carrier shall retrieve the paper bill of lading  or cancel the electronic bill of lading. 
3. An intact authentic copy of the paper bill of lading provided by the Carrier or his  representative shall constitute evidence that the cargoes have been delivered to the  person entitled to receive them in the condition shown on the bill of lading, unless  evidence to the contrary is produced. 

Article (168) 

If the person entitled to receive the cargoes fails to appear or refuses to receive them, the  Carrier may ask the judge of urgent matters at the competent court for permission to keep  them with a trustee appointed by the judge. The Carrier may request permission to sell all or  any of the cargoes in order to collect the carriage freight. 

Article (169) 

1. The Consignor shall submit the data relating to thecargoes when they are delivered to the  Carrier in writing, and this data shall be recorded in the bill of lading and the Carrier has  the right to make reservations about recording it if he has serious reasons to doubt its  authenticity or does not have the normal means to verify it, and he mentions the reasons  for reservations regarding recording the data in the bill of lading. 
2. The Consignor shall notify the Carrier if the cargoes are dangerous and place a statement  thereon to warn of their danger and how to prevent it. Otherwise, the Carrier may, at any  time, remove such cargoes from the ship, destroy or remove their danger. The Consignor  shall be liable for the damage and expenses that arise from the same. 
3. Both the Carrier and the Consignor shall provide the information and instructions  necessary for the safe handling and proper carriage of cargoes.

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Article (170) 

1. The Carrier may, at any time, remove dangerous cargoes from the ship, destroy or remove  their danger. He is not liable if he proves that he would not have agreed to load them on  the ship if he had known of their nature. The Consignor shall be liable for the damage and  expenses that arise from placing these cargoes on the ship. 
2. If the Carrier is aware of the nature of these cargoes and authorizes their carriage, he may  not subsequently remove them from the ship, damage or remove their danger unless he  proves that their danger has become a threat to the ship or the cargo. In this case, the  Carrier shall not bear any liability except for what is related to General Average Losses,  when necessary. 

Article (171) 

1. The Carrier shall take the following measures: 
2. Exert the necessary care before and during the sea voyage, to make the ship in a  navigable condition, in addition to preparing the ship for the voyage, providing the  crew, fueling the ship to make it fit to complete the voyage and preparing the holds  and all its parts and other sections of the ship to receive, transport and preserve the  cargoes, depending on the nature and type of the cargoes. 
3. Exert the necessary care to deliver the cargoes complete, intact and on time to the  agreed-upon destination port of unloading. 
4. Load and unload cargoes on a ship, unless otherwise agreed. 
5. Stow, preserve, transport and deliver the onboard cargoes upon their arrival. e. Exert the necessary care to prepare another ship to transport the cargo to the agreed  upon port and at its expense, in the event that the ship stops continuing the voyage  for any reason. 
6. With the exception of coastal navigation, the Carrier or his representative may not load  cargoes on deck without obtaining written permission from the Consignor or if the  regulations in force at the port of shipment or the nature of the cargoes require so or where  the customary practices at the port require the application of such method for shipping.  In all cases, it shall be stated in the bill of lading that the cargoes are loaded on deck.

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Article (172) 

The Consignor shall take the following measures: 

1. Deliver the cargoes to the Carrier at the time and place agreed upon in the bill of lading or  required by the prevailing customary practices at the shipping port if there is no  agreement. In the event of delay in delivery, the compensation may not exceed the  amount of the freight. 
2. Make the necessary preparation for the cargoes in a manner that protect them from  destruction when carried by sea and in a way that does not cause harm to persons or  property, including packing, wrapping, packaging or stowing them in containers, unless  otherwise agreed upon. 
3. Assume the liability for the damage that befalls the ship, the cargoes shipped thereon or  third parties, if the damage results due to faults on his part or the part of his subordinates  or due to a defect in his cargoes. 
4. Pay the carriage freight agreed upon before the start of the voyage. If it is stated in the bill  of lading that the freight shall be payable in whole or in part upon arrival, whoever is  entitled to receive the cargoes shall pay such freight. 

It is not permissible to prove anything contrary to the foregoing vis-à-vis a third party who  does not know at the time of obtaining the BOL that the freight or part thereof is still payable.  The consignee, in whose name or to whose order the BOL was issued, shall be considered a  third party under the provisions of this Article unless he is the Consignor himself. 

Article (173) 

1. The Consignor or whoever is entitled to receive the cargoes shall not be discharged from  paying the freight even if the cargoes are damaged or their quantity or value decreases  during the sea voyage. 
2. The carriage freight shall not be payable if the cargoes are completely destroyed as a result  of force majeure or the Carrier’s negligence in respect of carrying out his obligations. 3. The carriage shall be payable for the cargoes that the captain decides to remove to save  the ship and the cargo. In this case, the provisions for General Average Losses apply if the  conditions for their application are met.

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Article (174) 

1. The Consignor may give the Carrier new instructions regarding the commencement of the  agreed-upon carriage, unless the bill of lading states otherwise. He may, in particular,  request that the port of unloading be modified or the person of the consignee designated  in the bill of lading be changed or that the cargoes be returned to the Consignor. 
2. The right to issue instructions relating to the cargoes carried shall be transferred to the  consignee upon delivery of the bill of lading and to any legal holder of the bill of lading. 3. The Carrier shall apply the instructions issued to him by the person who is entitled to take  over the cargoes after the Carrier has marked them on the bill of lading, unless the  instructions violate the conditions of carriage or the Carrier is unable to apply them or  such application would expose the Carrier to a penalty or incur expenses that exceed the  value of the cargoes. In this regard, the Carrier shall notify the person who issued the new  instructions of his abstention from applying them and the reason for this abstention. The  Carrier shall assume the liability if he abstains from applying them without legal  justification. 
3. Whoever issues new instructions to the Carrier shall pay the agreed-upon carriage freight  plus the freight due for prolonging the voyage, the expenses of applying the new  instructions and compensation for any damage that the Carrier may inflict due to his  application of these instructions. 

Article (175) 

1. The Carrier shall be liable for the loss or damage to the cargoes in the period between his  receipt of the cargoes and their delivery to the person entitled to receive them, unless he  proves that he, his subordinates and his agents took all reasonable measures to prevent  the occurrence of damage or that it was impossible for him to take these measures. 
2. The Carrier shall be liable for the loss or damage resulting from the fire, if the injured party  proves that the fire broke out as a result of the fault of the Carrier or any of his  subordinates or agents, or if any of these neglected to take the necessary measures to  extinguish the fire or prevent its spread. 
3. The Carrier shall be liable for damage to the live animals that he transports, if the  Consignor proves that the Carrier, his subordinates or his agents have neglected to apply 

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his instructions issued regarding this carriage. 

Article (176) 

The Carrier shall not be liable for the loss or damage to the cargoes or the delay in respect of  their delivery, if the same occurred as a result of saving or attempting to save lives at sea or  because of reasonable measures taken to save property at sea. 

Article (177) 

1. The Carrier’s liability for loss or damage to the cargoes shall be limited to a maximum of  (835) eight hundred and thirty-five Special Drawing Rights for each package or unit taken  as the basis for calculating the freight and not exceeding an amount of (2.5) two and a half  Special Drawing Rights for each kilogram of the total weight of the cargoes, whichever is  higher. 
2. If the packages or shipping units are collected in boxes, containers or other containers and  the bill of lading contains the number of packages or units included in the container, each  of them shall be considered a package or unit when compensated for in the event of the  container’s destruction. If the container is not owned by the Carrier or provided by him  and is destroyed or damaged, it shall be considered standalone an independent package  or unit. 
3. The maximum compensation referred to in this Article shall be calculated in light of what  the International Monetary Fund announces about the value of Special Drawing Rights.  The judgment debtor may only be obligated to pay compensation in the national currency. 

Article (178) 

1. It is permissible, by special agreement to be concluded between the Consignor and the  Carrier or his representative, to set a maximum limit of the Carrier’s liability that is  different from the limit referred to in Article (176) of this Decree-Law, provided that it is  not lesser. 
2. In all cases, the Carrier shall not be liable for the loss or damage to the cargoes if the  Consignor deliberately mentions incorrect data in the bill of lading in relation to the nature or  value of the cargoes.

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Article (179) 

1. Any condition in the bill of lading or in any other document that would exempt the Carrier  from liability for the loss or damage to the cargo as a result of a breach of the obligations  referred to in this Chapter or that would reduce this liability below the maximum limit  referred to in Article (177) of this Decree-Law shall be considered invalid. 
2. Any condition that includes a waiver to the Carrier of the rights arising from insurance on  the cargoes or shortens the period of maritime carriage during which the Carrier is liable  or shortens the period of non-hearing of the case in the event of denial, together with any  other condition that would relieve the Carrier from bearing the liability for compensation  for damage, shall be considered as a condition of exemption from liability. 

Article (180) 

The Carrier may not invoke the limitation of his liability for the loss or damage to the cargoes  in any of the following cases: 

1. If it is proven that the damage resulted from an act or omission committed by the Carrier  or any of his subordinates or agents, either with the intention of causing damage or  negligence coupled with the awareness that damage could be caused. 
2. If the bill of lading is issued devoid of reservations and there are provisions that require  them to be mentioned in the bill, with the intention of causing damage to bona fide third  parties. 
3. If the cargoes are shipped on deck in violation of an express agreement under which they  should be shipped in the ship’s holds. 
4. If the Consignor submits, before the commencement of shipping, a statement on the  nature of the cargoes, their value and the special significance of preserving them and  includes such a statement in the bill of lading, the aforementioned statement shall  constitute evidence of the correctness of the value determined for the cargoes by the  Consignor, but the Carrier may prove otherwise. 

Article (181) 

The Carrier may give up all or any of the rights and exemptions conferred thereupon or  increase his obligations referred to in this Chapter, provided that the same is mentioned in the 

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bill of lading delivered to the Consignor. 

Article (182) 

1. The parties may agree to regulate liability in derogation from the provisions contained in  Chapter VI of this Decree-Law, in any of the following cases: 
2. The coastal navigation. 
3. If the nature of the cargoes to be carried, the conditions of their shipment or the  exceptional circumstances of carriage justify concluding a special agreement in their  regard. 
4. If there is an agreement to ship the cargoes on deck, and the carriage is carried out in  this manner. 
5. If the carriage is executed pursuant to a charter party in the relationship between the  shipowner and the charterer. However, if in implementation of the charter party a bill  of lading is issued, the liability provisions contained in Articles (175) to (186) of this  Decree-Law apply to the relationship between the BOL issuer and the Consignor. 
6. For the agreement referred to in Clause (1) of this Article to be valid, the following  requirements shall be met: 
7. It shall not go against the public order in the State. 
8. The Carrier, his subordinates or agents shall not be exempted from the obligations arising  from the contract of carriage. 
9. Not to issue a bill of lading. 
10. The agreement shall be recorded in a receipt marked to indicate that it is not negotiable. 

Article (183) 

1. If the partial loss or damage to the cargoes is apparent to the person who is entitled to  receive them or his representative, he shall express his reservation in writing about the  condition of the cargoes before or during delivery. Otherwise, it is assumed that the  cargoes were delivered to him in the condition mentioned in the bill of lading until  evidence to the contrary is produced. 
2. The presumption referred to in Clause (1) of this Article shall apply if the partial loss or  damage is not apparent and the Carrier is not notified in writing at the port of unloading 

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within (15) fifteen days following the takeover of the cargoes. 

3. It is not necessary to submit a reservation or notification, if an inspection of the cargoes is  carried out at the time of delivery in the presence of the Carrier or his representative and  the person who receives the cargoes. 

Article (184) 

The Carrier, who undertakes to carry out the first stage of carriage by his own means, may  undertake to conclude the necessary contracts of carriage to carry out the following stages of  carriage by sea for the Consignor’s account. The Carrier shall be considered a commission  agent for the following stages of carriage unless he issues a bill of lading including all stages  of carriage, in which case the provisions contained in this Chapter shall apply to all stages of  carriage. 

Article (185) 

1. The Carrier shall be liable for the damage resulting from the delay in respect of delivering  the cargoes, unless he proves that he and his subordinates and agents have taken all  reasonable measures to prevent the damage. 
2. The Carrier shall be considered to have delayed delivery if he does not deliver the cargoes  on the date explicitly or implicitly agreed upon and in the event there is no agreement  regarding if he fails to deliver them on the date on which any Carrier delivers the cargoes  at similar circumstances. 
3. The Carrier’s liability for damage resulting from delay shall be limited to not more than  three times the agreed upon carriage freight. 
4. No compensation shall be due for damage resulting from delay in respect of delivery of  cargoes, if the person claiming compensation does not notify the Carrier in writing of the  delay within sixty (60) days from the date of delivery. 
5. The cargoes shall be considered perishable if they are not delivered within (60) sixty days  following the expiration of the delivery period referred to in Clause (2) of this Article. 

Article (186) 

1. The contract Carrier may entrust the implementation of the contract of carriage by sea or 

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the implementation of part thereof to the actual Carrier unless otherwise agreed upon.  The contract Carrier shall remain liable for all damage caused during the implementation  of the contract of carriage. The actual Carrier is only liable for damage caused during the  part of the performance of contract of carriage, and his liability for such damage shall be  jointly with the contract Carrier. 

2. Both the contract Carrier and the actual Carrier may invoke the limitation of liability  contained in this Decree-Law, and the compensation obtained by the compensation  claimant from the contracting Carrier and the actual Carrier may not exceed the maximum  limit contained in this Decree-Law. 

Article (187) 

The following cases shall not be heard when there is denial and there is no legally-admissible  excuse: 

1. Cases arising from the contract of carriage by sea after one year from the date of delivery  of the cargoes or the date on which delivery shall have been made. 
2. Cases for recourse against third parties against whom the case was initiated after ninety  (90) days have passed from the date of filing the case against him or from the date of his  payment, even if the period referred to in Clause (1) of this Article has passed. 
3. Cases to recover the amounts paid unduly after one year has lapsed from the day on which  the recovering party becomes aware of its right to claim recovery. 

Chapter Seven 

Multimodal Contract of Carriage by Sea 

Article (188) 

1. It is not considered multi-modal carriage by sea if the carriage contractor issues a separate  carriage document for each mode of carriage used. 
2. It is not permissible to practice multimodal carriage activity without obtaining the  approval of the Ministry after coordination with the competent authority in accordance with  the conditions and procedures specified in the Executive Regulations. The Ministry may  suspend or terminate the employment of the agent in the event that he violates the applicable  legislation or the decisions and circulars issued thereby.

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Article (189) 

The carriage contractor may not conclude any multimodal contract of carriage unless he  provides a security to guarantee his liability for damage to the carried cargoes. 

Article (190) 

1. The multimodal contract of carriage shall be executed in writing. 
2. The carriage contractor shall issue a multimodal document of carriage when he takes over  the cargoes from the Consignor. The document of carriage shall be issued in a paper or  electronic form. 
3. The Executive Regulations shall specify the data required to be included in the document  of carriage, and the mechanism and procedures for issuing the document. 4. The Consignor shall be liable for the accuracy of the data provided thereby to the carriage  contractor for inclusion in the document of carriage and shall further be liable for damage  arising from the incorrectness or insufficiency of the data provided thereby. 

Article (191) 

1. The multimodal document of carriage shall have the probative force in respect of proving  the data and conditions contained therein in relation to the carriage. 
2. Either Carrier and the Consignor may prove contrary to the facts stated in the document  of carriage vis-à-vis each other. 
3. The carriage contractor may not prove contrary to the facts stated in the document of  carriage vis-à-vis bona fide third parties, while the third party has the right to prove  contrary to the facts stated in the document of carriage by all means of proof, and after the consignee shall be deemed a third party in respect of applying the provisions of this  Clause. 

Article (192) 

1. The multimodal document of carriage may or may not be negotiable depending on the  Consignor’s choice. 
2. If a non-negotiable document of carriage is issued, the name of the consignee shall be  specified therein. Otherwise, the carriage contractor shall deliver the cargoes at the place 

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of delivery to the Consignor or his representative. 

3. If a paper document of carriage is issued and is negotiable, it may be transferred by  endorsement if it is issued to the order of the Consignor or consignee, or it may be  transferred by manual handling without endorsement if it is issued to the bearer. 
4. An electronic negotiable document of carriage may be issued via electronic means in  a way that ensures that the carriage contractor is aware of the owner of the right to receive  the cargoes as soon as the right is transferred to him. 

Article (193) 

The consignee or the holder of the document of carriage shall be granted all rights with regard  to the cargoes assigned to the Consignor vis-à-vis the carriage contractor, and he may file a  liability case against the carriage contractor for damage to the cargo as a result of the improper  carriage. 

Article (194) 

1. The multimodal carriage contractor shall deliver the cargoes received thereby from the  Consignor to the place of delivery, complete and intact, and on the agreed upon date. He  may entrust one or more other Carriers to carry out all or part of the carriage. 
2. If the carriage contractor detects the existence of cargoes not mentioned in the document  of carriage, he may refrain from transporting them, and he shall notify the Consignor and  adhere to his instructions regarding such cargoes. If the Consignor refrains from issuing  any instructions regarding such cargoes, the carriage contractor may request the  competent judge of urgent matters to keep the cargoes, for the Consignor’s account, in the  place designated by the judge. 
3. The carriage contractor shall not be liable for unloading cargoes founds during the voyage  from the means of transport. 

Article (195) 

The Consignor may withdraw from the multimodal contract of carriage before delivering the  cargoes to the carriage contractor, and it shall compensate the carriage contractor for the  damage the latter sustains as a result of non-performance of the contract, provided that the 

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compensation does not exceed the amount of the agreed-upon freight. 

Article (196) 

1. The Consignor shall pay the carriage freight agreed upon before the start of the voyage. If  it is stated in the document of carriage that the freight is due in whole or in part upon  arrival, the person who has the right to receive the cargoes is also obligated to pay it. 
2. If it is not stated in the document of carriage that the freight is due upon arrival, it is  assumed that the carriage contractor has received the entire freight upon takeover of the  cargoes. The contrary may not be proven vis-à-vis a third party who does not know at the  time of obtaining the document that the freight or part thereof is still payable. The  consignee, in whose name or to whose order the document was issued, shall be  considered a third party under the provisions of this Article unless he is the Consignor  himself. 
3. The Consignor or whoever has the right to receive the cargoes shall not be discharged  from paying the freight, even if the cargoes are damaged or their quantity or value  decreases during the voyage. 

Article (197) 

1. If the loss or damage of cargoes or the delay of their delivery arises during any of the  carriage-by-sea stages of multimodal carriage or the nature of the damage is unknown,  the provisions contained in Articles (175) to (186) of this Decree-Law shall apply. 
2. If the loss or damage of the cargoes or the delay of their delivery arises during other than  the carriage-by-sea stages of multimodal carriage, the provisions regulating the Carrier’s  liability shall apply according to the type of carriage from which the damage resulted. 

Article (198) 

In the event of denial and absence of a legally-admissible excuse, the following cases shall not  be heard: 

1. The cases arising from a multimodal contract of carriage after one year has lapsed from  the date of delivery of the cargoes or the date on which delivery should have been made.

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