Maritime and Shipping Risks in the Gulf: Legal Considerations for Shipping Stakeholders in Bahrain
Recent security developments in the Gulf, including threats or possible disruptions affecting the Strait of Hormuz, can create challenges for shipping operations. These situations may affect routes, port calls, insurance coverage, and costs for vessels, cargo interests, charterers, and insurers.
In Bahrain, maritime activities are regulated by the Maritime Law (Legislative Decree No. 10 of 2022), which sets out the rules for shipping, carriage of goods by sea, and the responsibilities of shipowners and charterers.
In this context, several legal considerations may arise for shipping stakeholders.
Route Deviation and Duties of the Ship
Ships are generally expected to follow the planned route. However, if the Strait becomes unsafe or closed due to security concerns, a ship may legally take a different route in order to protect the vessel, crew, and cargo.
It is important to document the reasons for the change and the decisions taken by the master or shipowner. Proper documentation can help avoid claims for delay or breach of contract.
Safe Port Obligations
Charterers who nominate ports under a charterparty must ensure that the port is reasonably safe for the vessel to enter, use, and leave.
If a port becomes unsafe due to hostilities or security threats, the shipowner may be entitled to refuse the nomination and request an alternative port.
War-Risk and Insurance Considerations
Security incidents or hostilities may trigger war-risk clauses in shipping contracts or marine insurance policies. Standard ship or cargo insurance often does not cover war-related or military damage unless specific war-risk coverage is in place.
In such situations, it is important for parties to review their insurance arrangements and notify insurers promptly if the risk environment changes.
Delays and Allocation of Costs
Route changes or operational disruptions may lead to delays and additional costs, including increased fuel consumption, extended voyage times, or additional port charges.
The allocation of these costs will depend on the terms of the relevant charterparty or contract of carriage and which party bears responsibility under those agreements.
Notices and Record Keeping
Timely notices are often required when circumstances change during a voyage. This may include notices relating to route deviations, war-risk alerts, or the withdrawal of port nominations.
Maintaining proper records—such as voyage logs, master’s reports, and relevant security advisories—can also be important in protecting contractual rights and supporting any future claims or defences.
How we can assist
ASAR regularly advises shipowners, charterers, cargo owners, and insurers on maritime matters in Bahrain, including issues arising from regional security developments affecting the Strait of Hormuz.
Our team can assist with:
- reviewing charterparty and shipping contracts, including provisions relating to route deviation, safe ports, and war risks
- advising on marine insurance coverage and notification obligations
- assessing liability and cost allocation arising from delays or route changes
- coordinating with insurers and other stakeholders
- representing clients in maritime disputes, litigation, or arbitration
Given the evolving security environment in the Gulf, shipping stakeholders may wish to review contractual protections, insurance arrangements, and operational procedures to manage potential maritime risks effectively.
If you have questions arising from regional security developments affecting shipping operations, or related maritime or insurance considerations, please contact Amal Lari (Partner), ASAR Bahrain, at alari@asarlegal.com.
