Chartering
Bareboat Charter
The operational and risk questions behind a charter where possession and control move to the charterer.
In a bareboat or demise charter, the charterer generally takes possession, command and operational control for the charter period. Labels are less important than the actual allocation of control and obligations.
Allocate control in writing
Address delivery condition, crewing, maintenance, insurance, class, flag, operating area, dry-docking, regulatory compliance and return condition. Identify who is responsible for existing defects and capital repairs.
The charterer’s control may have tax, employment, insurance and liability consequences. Confirm that owners, lenders, insurers and registries permit the contemplated arrangement.
Manage the lifecycle
Use acceptance records, maintenance logs, incident notice requirements and inspection rights. Establish what happens after casualty, off-hire events, default, arrest or loss of certification.
At redelivery, document condition, inventory, fuel and outstanding claims. A practical handover record reduces dispute over ordinary wear and delayed maintenance.
Buyer checklist
- Confirm transfer of possession and operational control.
- Allocate crew, maintenance, insurance and regulatory duties.
- Obtain lender, insurer and registry consents.
- Set casualty, default and off-hire procedures.
- Record delivery and redelivery condition.
Put the plan into a controlled workflow
Create a transaction to coordinate parties, documents, diligence and closing milestones, or explore the marketplace with your broker.