Bareboat Charter

A bareboat charter, also known as a demise charter, is a contractual agreement in the maritime industry where the charterer rents a vessel from the owner for a specified period and assumes full responsibility for its operations, including the provision of crew, maintenance, insurance, and other related costs. The charterer essentially becomes the ship's operator and is responsible for all operational expenses, including fuel, port charges, and crew wages. The owner of the vessel, on the other hand, is relieved of these responsibilities but retains ownership of the ship. Bareboat charters are common in both commercial and recreational boating. In commercial shipping, companies often use bareboat charters to expand their fleet without the significant capital investment required to purchase new vessels. In recreational boating, individuals or groups may charter a yacht or other vessel for a vacation or special event. The term of a bareboat charter can vary widely, from a few days to several years, depending on the agreement between the owner and the charterer.