Shipper Agreement Template for Saudi Arabia

A Shipper Agreement is a comprehensive commercial contract that governs the relationship between shipping service providers and businesses requiring transport services in Saudi Arabia. This legally binding document establishes the terms, conditions, and responsibilities for moving goods domestically within the Kingdom or internationally through Saudi ports and logistics networks.

When do you need this document?

You need a Shipper Agreement when establishing ongoing commercial relationships with shipping companies, freight forwarders, or logistics providers in Saudi Arabia. Manufacturing companies exporting goods through Saudi ports require these agreements to ensure reliable transport services and compliance with local regulations. E-commerce businesses shipping products to customers across the Kingdom use these contracts to secure consistent delivery services and manage shipping costs effectively. Import-export companies need formal shipping agreements to coordinate complex international shipments through Saudi customs and port authorities. Additionally, businesses participating in Saudi Arabia's growing logistics sector under Vision 2030 rely on these agreements to establish professional transport partnerships.

Key legal considerations

Your Shipper Agreement must clearly define service standards, including delivery timeframes, cargo handling procedures, and liability limitations for damaged or lost goods. The contract should specify pricing structures, payment terms, and any applicable VAT charges under Saudi Arabia's 15% tax requirement for shipping services. Risk allocation clauses are crucial, determining responsibility for cargo insurance, customs delays, and force majeure events affecting transport schedules. The agreement must address dispute resolution mechanisms, preferably through Saudi Commercial Courts or arbitration procedures recognised under Saudi law. Documentation requirements should align with Saudi Customs Law and Electronic Commerce Law provisions, ensuring proper record-keeping and digital transaction compliance. Insurance obligations and liability caps protect both parties while meeting Saudi regulatory standards for commercial transport operations.

Legal requirements in Saudi Arabia

Under the Commercial Courts Law (Royal Decree No. M/93), your Shipper Agreement must comply with Saudi commercial transaction standards and dispute resolution procedures. The Saudi Ports Authority Law governs all shipping activities through Kingdom ports, requiring agreements to address port procedures, documentation standards, and operational compliance. Saudi Customs Law mandates specific import-export documentation and procedures that must be referenced in shipping contracts. The Electronic Commerce Law (Royal Decree No. M/126) applies to digital documentation and electronic transaction elements within shipping agreements. VAT Law implementation requires clear specification of 15% tax obligations on shipping services provided within Saudi Arabia. All contract terms must align with Sharia principles governing commercial relationships, ensuring enforceability under Saudi legal frameworks and supporting the Kingdom's logistics development goals under Vision 2030.