In shipping, contracts are built on certainty. But what happens when a sudden, uncontrollable event blocks a vessel’s path mid-voyage? Does the contract survive? Can the carrier demand more money? The answers under the UAE Maritime Law, issued under Federal Decree-Law No. (43) of 2023, are clear and practical.
The Temporary Blockage
When a force majeure event strikes and temporarily prevents a ship from sailing or continuing its voyage, the charter does not die. According to the UAE Maritime Law, the contract remains valid and effective. The carrier cannot demand a freight increase for the delay, and no compensation is owed to either party. The law freezes obligations in place until the situation resolves.
This is critical for cargo owners. A temporary crisis does not give the carrier the right to rewrite the financial terms of the deal. The agreed price holds.
When the Voyage Becomes Impossible
The situation changes dramatically if the force majeure event makes completing the voyage definitively impossible. The law is direct: the charter is terminated, and no compensation is payable to either side.
This creates a clean break. The contract ends. The carrier is released from its obligation to deliver. The cargo owner is released from its obligation to pay freight. Neither party has a claim against the other.
The Practical Impact
For businesses managing cargo in unstable times, the distinction between temporary and permanent impossibility is everything. A waterway closure that lasts days or weeks triggers the temporary rule. A closure with no foreseeable end triggers termination.
The law removes uncertainty from these moments. It establishes a clear framework that protects both parties. A carrier cannot use a crisis to demand higher freight, and a cargo owner cannot insist on delivery when the voyage has become genuinely impossible. Rights and obligations are balanced on both sides. Knowing exactly where your contract stands on this line will shape every decision that follows. If you are facing a stalled voyage or an uncertain route, contact us today to understand your legal position before the costs start mounting.
Should you require clarity on force majeure and its implications for your shipping arrangements, please feel free to contact Wael Deyab at w.deyab@alsuwiaid.ae or Zeyad Elmorsi at z.elmorsi@alsuwaidi.ae