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Lloyd's Shipping & Trade Law

Qatari embargo: implications on charterparties

On 5 June 2017 seven countries – Saudi Arabia, United Arab Emirates, Bahrain, Egypt, Yemen, Libya and the Maldives – decided to cut all diplomatic ties with Qatar and impose an economic blockade against the emirate, accusing Qatar of supporting and funding extremists’ ideology and terrorist groups in the region. This article examines the legal implications of the Qatari blockade, which carries neither a UN mandate nor an Arab League one, on charterparties.

The impact of the blockade on Qatar is catastrophic since some of the allied nations have also banned its use of their airspace, waters and land. Qatar shares land borders only with Saudi Arabia and is otherwise surrounded by the Persian Gulf. Qatar relies heavily on all transport modes to meet its demands and needs. Shipping is undoubtedly its main contributing artery of life.

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