When preparing and drafting ship charter contracts, ready-made forms should not be used, as these contracts have a special nature and rules that include how to conclude them, and should not be confused.
Between the ship charter contract and the bill of lading contract, even though they are two means of carrying out maritime transport.

When constructing the terms of these contracts, care must be taken to take into account the circumstances and nature of the contractual relationship and its risks. The contractual relationships that arise from marine business
It requires familiarity with the provisions, the specific nature of work in this field, and the technical and legal aspects thereof. There are works in this field that are carried out without a contract
Such activities are carried out by oil companies that own their own transport ships.

What is a ship charter contract?
First of all, the ship lease contract is only recorded in writing, and is known as: (It is a contract according to which the lessor undertakes to place at the disposal of the lessee in exchange for the rent of a ship or part of it.
For the purpose of maritime exploitation, for a specific period, or to undertake a specific voyage or voyages), if the duration of the contract exceeds one year, it will not be effective against third parties unless it is registered in the ships’ registry.

What data is required to be included when drafting the contract?
(1) The name of the ship
(2) The amount of its load and its degree
(3) The state to which it belongs
(4) The name of the lessor and lessee
(5) The amount of the rent
(6) The agreed upon place and time for loading and unloading
(7) The amount of compensation in the event of delay in shipping or discharging
(8) It must be stated whether the lease is for the entire vessel or for part of it
(9) If it is for a specific period or for a specific trip or trips

It also requires examining several things to ensure the validity of all certificates, including safety equipment certificates, registration certificates, pollution certificates, and lines certificates.
Shipping and operating machines.

The ship rental contract must include operating and maintenance costs, the wages of the ship’s crew, quantities of goods and cargo, methods of transporting them, and conditions of the port of delivery.
Determine the responsibilities and consequences that arise if damages occur to either party to the contract.

Types of ship charter contracts?
The first type: a contract for renting an unequipped (bare) ship, that is, without a crew of sailors and without supplies and fuel. It is a contract according to which the owner is obligated to enable the lessee to benefit from it.
on the ship without equipping it with supplies, supplies, or sailors. The Commercial Maritime System defines the lease contract for an unequipped ship as: (the contract under which the lessor is obligated to
Placing a specific ship at the disposal of the lessee for a specific period without equipping it with supplies, sailors, or fuel) and the lessee has the right to manage the ship from both a navigational and commercial standpoint.
It is called a demise charter, in which the lessee bears all operating expenses, and the lessee acquires the status of a sea carrier vis-à-vis shippers.

The second type: a contract for leasing an equipped ship, which is the owner preparing the ship and leasing it. It is a contract according to which the lessor commits to placing a specific, fully equipped ship at his disposal.
The charterer to undertake a specific voyage or voyages or during the period agreed upon in the contract and under the conditions mentioned therein. The commercial maritime system defines the ship charter contract.
Rigged is: (the contract under which the lessor undertakes to place a specific ship fit for navigation and fully equipped with supplies, sailors or fuel at the disposal of the lessee, for a specified period,
Or to undertake a specific trip or trips). In this type, the lessor maintains the navigational and commercial management of the ship.

This type of contract has two forms:
(1) A contract to rent a ship for a specific period of time (time charter) and it is called (Time Charter). The ship owner bears responsibilities such as providing the crew, maintenance, etc.
The lessor maintains the status of the supplier, and the ship is placed at the disposal of the lessee. If the latter uses the ship to transport goods for others, he acquires the status of a carrier.
The marine vis-à-vis the shippers, and becomes solely responsible, not the owner (lessor/supplier), for implementing these contracts or operations.

(2) A contract for renting a ship for a voyage, which is called (Voyage Charter), and the ship owner bears all of its obligations. This type of rent may be paid on the ship
All or part of it. The time lease contract must include the following information:
– Elements of the designation of the chartered vessel.
– The names of both the landlord and the lessee.
– The amount of the fare.
– Rental period.

The maritime sector in Saudi Arabia is witnessing unprecedented growth due to its vital importance as one of the key pillars of the National Transport and Logistics Strategy, which stems from Saudi Vision 2030. This strategy aims to establish the Kingdom as a global logistics hub. Believing in the significance of our role in the legal sector as a supporting pillar of this strategy and a core component in protecting maritime trade, goods exchange, and various modes of transportation from risks, as well as an investment attraction factor in the transport and logistics sector, we have dedicated our knowledge and expertise to participate in this significant role. Drawing from our previous experiences, we specialized in providing legal solutions and services for the maritime and logistics sector, making us the first law firm specialized in the maritime sector.

Importance of the Maritime Sector in Saudi Arabia:
The maritime sector is a fundamental driver of the economy due to the Kingdom’s strategic geographic location overlooking the Red Sea and the Arabian Gulf. The maritime sector encompasses a wide range of activities, including maritime transport, fishing, coastal tourism, port development, in addition to logistics and marine services.

Contributing to Achieving the National Transport and Logistics Strategy Objectives:
Our role in the legal and consulting sector is crucial in achieving the objectives of the National Transport and Logistics Strategy stemming from Saudi Vision 2030. We work to enhance our capabilities and our team to serve this vital sector by providing high-quality professional legal outputs using advanced methods and models in delivering legal services that keep pace with current developments. This contributes to achieving the main goals of the transport strategy by establishing the Kingdom as a global logistics hub and reaching the targeted indicators.

Legislative Development in the Maritime Sector and Transport Systems:
Saudi Arabia is experiencing significant and noticeable development in maritime legislation to align with Vision 2030 and global developments in the maritime and marine transport fields. These developments include issuing and updating numerous regulations that support maritime transport, the marine environment, navigation and ship safety, maritime security, coastal tourism, and increasing the number of marine berths overlooking the Red Sea.

Target Audience for Our Specialized Services and Works:
We strive to be alongside various sectors operating in the maritime sector, whether in commercial ports, coastal tourism, or marine environment conservation sectors. We leverage all our capabilities to achieve the main objectives of Vision 2030. We also aim to attract more clients interested in benefiting and investing in this vital sector, serving as the legal gateway for our clients to enter this sector according to official requirements. We encourage clients to comply with the instructions, regulations, and systems related to this sector and aim to be an effective legal partner in achieving national objectives and Vision 2030.