Bareboat Charter Order Example: Long-Term Bareboat Charter, BARECON, and Purchase Option
A bareboat charter order is very different from an ordinary time charter requirement. In a time charter, the Shipowner continues to manage the ship, employ the crew, maintain the ship, and control the technical operation while the Charterer directs the commercial employment. In a bareboat charter, the Charterer takes possession and full commercial and technical control of the ship for a long period, usually assuming responsibility for crewing, insurance, maintenance, dry-docking, class compliance, operating costs, and day-to-day management.For this reason, a proper bareboat charter requirement is normally structured as a long-term ship finance, leasing, ownership, or fleet-control transaction rather than a short employment fixture. In modern commercial practice, bareboat charters are frequently connected with newbuildings, resale newbuildings, sale-and-leaseback structures, bareboat hire purchase arrangements, leasing-house finance, export credit support, or a purchase option at the end of the charter period.
A short employment period may be appropriate for a time charter, but it is generally not the natural structure for a true bareboat charter. A serious bareboat order should therefore describe a long-term period, the ship type, delivery basis, technical specification, management responsibility, flag/class requirements, insurance arrangements, purchase-option terms, and the intended trading area.
Main Information Required in a Bareboat Charter Order
A professional bareboat charter order should normally include the following details:- Charterer’s name, domicile, and financial background, because the Shipowner or financing owner is transferring long-term operational control of a valuable ship.
- Ship type and size, including DWT, cargo capacity, class, flag preference, gear, hatch arrangement, fuel type, emissions standard, and trading capability.
- Newbuilding or modern eco-design preference, especially where the charter is connected to shipyard delivery, lease finance, or a purchase option.
- Delivery and redelivery position, although in long-term finance-style bareboat structures the commercial focus is often delivery from shipyard, resale newbuilding, or owner’s nominated delivery port.
- Charter period, usually long term, such as 10, 12, 15, 20, or 25 years, depending on ship type, financing structure, age, residual value, and purchase-option terms.
- Purchase option or BBHP structure, including whether title may transfer at the end of the charter period or upon payment of an agreed balloon amount.
- Trading limits, including sanctions exclusions, war-risk areas, ice restrictions, cargo exclusions, and any flag or class limitations.
- Form of charterparty, usually BARECON or a finance-house form based on BARECON with rider clauses.
- Commission, including address commission, brokerage, and whether commission applies to bareboat hire and purchase-option payments.
Bareboat Charter Order Example 1: Ultramax Bulk Carrier Newbuilding
Direct Charterers are seeking a long-term bareboat charter for a modern Ultramax bulk carrier:Account: First-class industrial Charterers, full details against suitable firm candidate Requirement: Ultramax bulk carrier of about 60,000–64,000 DWT Build: 2026 or 2027 newbuilding, or resale newbuilding from a reputable yard Yard preference: Japan, South Korea, China Tier-1, or other first-class yard acceptable to Charterers and financiers Gear: Four cranes of about 30–35 metric tons each preferred Delivery: Directly from shipyard or upon completion of delivery documents Trading area: Worldwide, excluding sanctioned countries and excluded war-risk areas Period: 15 years firm bareboat charter Purchase option: Charterers to have purchase option from year 10 onwards and final purchase option at expiry Form: BARECON-based charterparty with newbuilding and finance rider clauses Commission: 1.25% address commission plus brokerage as agreed
Bareboat Charter Order Example 2: Kamsarmax Bulk Carrier
Charterers invite proposals for a long-term bareboat lease-to-own structure:Requirement: Kamsarmax bulk carrier of about 81,000–85,000 DWT Build: 2025 onwards, eco-design, Tier III where applicable Ship condition: Newbuilding, resale newbuilding, or very modern secondhand ship with full class records Delivery: Far East shipyard or mutually agreed delivery port Trading: Grains, coal, bauxite, alumina, fertilizers, and other lawful bulk cargoes Period: 12 years firm bareboat charter Purchase option: Fixed purchase option at the end of year 8, year 10, and expiry Finance structure: Leasing company or bank-financed bareboat hire purchase structure acceptable Insurance: Hull and machinery, war risks, and P&I to be arranged in accordance with the charterparty and financing requirements Form: BARECON-based finance lease documentation Commission: 1.25% address commission
Bareboat Charter Order Example 3: Panamax Bulk Carrier With Purchase Option
Principals require a Panamax bulk carrier for long-term bareboat employment:Requirement: Panamax bulk carrier of about 75,000–79,000 DWT Build: 2025 or newer preferred; 2024 may be considered only if class, surveys, and energy-performance profile are excellent Class: IACS member class required Delivery: Singapore/Japan/Korea/China range or other mutually acceptable place Trading area: Worldwide lawful trade, excluding prohibited cargoes, sanctioned areas, and unsafe ports Period: 10 years firm bareboat charter Option: Charterers’ option to extend for 5 additional years or exercise purchase option at pre-agreed residual value Form: BARECON 2017 or equivalent long-form bareboat charterparty Commission: 2.50% total commission
Bareboat Charter Order Example 4: Newcastlemax Bulk Carrier Newbuilding
Major commodity group is exploring a long-term bareboat structure for large ore and coal trades:Requirement: Newcastlemax bulk carrier of about 205,000–210,000 DWT Build: Newbuilding delivery 2027/2028 Yard: First-class yard acceptable to major miners, terminals, and financing parties Cargoes: Iron ore, coal, bauxite, and other major bulk commodities Delivery: Shipyard delivery against completion of building contract and acceptance trials Trading area: Australia/Far East, Brazil/Far East, South Africa/Far East, and other approved bulk trades Period: 20 years firm bareboat charter Purchase option: Purchase option at year 12, year 15, and at final expiry; purchase-price formula to be agreed Environmental specification: Latest applicable emissions standards, shore-power readiness where commercially required, and energy-efficiency documentation Form: BARECON-based newbuilding bareboat charter with purchase-option rider Commission: As agreed against firm financing structure
Bareboat Charter Order Example 5: MR Product Tanker Bareboat Hire Purchase
Charterers seek a modern MR product tanker under long-term bareboat hire purchase:Requirement: MR product tanker of about 49,000–55,000 DWT Build: 2025/2026 newbuilding or prompt resale newbuilding Class: IACS class, oil-major inspection history or oil-major readiness required Yard preference: South Korea, Japan, China Tier-1, or other reputable shipyard Delivery: Ex-yard or Far East delivery range Trading: Clean petroleum products and lawful IMO-compliant cargoes within approved trading limits Period: 12 years firm bareboat charter BBHP structure: Bareboat hire purchase with title transfer at expiry after payment of agreed final purchase amount Documents required: Q88, class status, shipyard specification, makers list, inspection itinerary, and financing information Form: BARECON with tanker, insurance, vetting, sanctions, and purchase-option riders Commission: 1.25% address commission
Bareboat Charter Order Example 6: LR2/Aframax Product Tanker From Shipyard
Direct oil-trading group requests long-term bareboat proposals for LR2/Aframax tonnage:Requirement: LR2/Aframax tanker of about 110,000–115,000 DWT Build: 2026 onwards newbuilding preferred Cargoes: lawful tanker cargoes subject to coating and class approvals Delivery: Shipyard delivery or prompt resale newbuilding delivery Trading area: Worldwide lawful trade excluding sanctioned countries and prohibited cargoes Period: 15 years firm bareboat charter Purchase option: Charterers to have purchase option after year 10 and compulsory purchase mechanism may be discussed Finance structure: Leasing-house or export-credit supported bareboat charter acceptable Insurance: Full insurance package to comply with owners’, mortgagee’s, and charterparty requirements Form: BARECON-based tanker bareboat charterparty Commission: 1.25% address commission
Bareboat Charter Order Example 7: Chemical/Product Tanker
Industrial Charterers invite offers for a long-term chemical/product tanker bareboat structure:Requirement: Stainless steel or coated chemical/product tanker of about 25,000–40,000 DWT Build: 2026 newbuilding or 2025 resale newbuilding Yard: Japan, South Korea, China Tier-1, or other first-class shipyard Cargoes: IMO II/III chemical cargoes and clean petroleum products, subject to tank coating and compatibility Delivery: Shipyard or mutually agreed Far East delivery place Period: 12 years firm bareboat charter Purchase option: Purchase option after year 8 and at final expiry Documents required: Q88, coating specification, cargo tank plan, class notation, makers list, delivery schedule, and inspection programme Form: BARECON-based charterparty with chemical-tanker rider clauses Commission: 1.25% address commission
Bareboat Charter Order Example 8: LPG Carrier Newbuilding
Energy group seeks long-term bareboat structure for LPG carrier tonnage:Requirement: LPG carrier of about 22,000–40,000 CBM capacity Build: 2026/2027 newbuilding from reputable gas-ship yard Class: IACS class with gas-carrier notation Delivery: Shipyard delivery Trading: Middle East, Indian Ocean, East Africa, Southeast Asia, and Far East trades, subject to sanctions and safety approvals Period: 15 years firm bareboat charter Purchase option: Charterers to have purchase option after year 10 and final purchase option at charter expiry Finance structure: Bareboat lease supported by financing owner, leasing company, or export credit lender Documents required: Gas Form-C, class specification, cargo containment details, delivery schedule, and technical managers’ approval Form: BARECON-based gas-carrier bareboat charterparty Commission: 1.25% address commission
Bareboat Charter Order Example 9: PCTC Car Carrier Long-Term Charter
Automotive logistics group seeks a long-term bareboat charter for a modern PCTC:Requirement: Pure car and truck carrier of about 7,000–9,000 CEU Build: 2026 onwards newbuilding preferred Technical specification: LNG-ready, methanol-ready, hybrid-ready, or other agreed environmental notation may be considered Delivery: Shipyard delivery in Asia or Europe Trading: Worldwide automotive trade, excluding sanctioned areas and ports outside agreed class/trading limits Period: 15 years firm bareboat charter Purchase option: Purchase option exercisable from year 10 onwards and at expiry Commercial structure: Long-term leasing company bareboat with operating control by Charterers Form: BARECON-based charterparty with PCTC operational rider Commission: As agreed
Bareboat Charter Order Example 10: NeoPanamax Container Ship Newbuilding
Liner operator requests a long-term bareboat structure for new container tonnage:Requirement: NeoPanamax container ship of about 13,000–15,500 TEU Build: 2027/2028 newbuilding Yard: First-class shipyard acceptable to Charterers and financing parties Delivery: Directly from shipyard after sea trials and delivery documentation Trading: Mainline liner service within agreed trading limits Period: 15 years firm bareboat charter Purchase option: Purchase option at year 10, year 12, and final expiry; residual-value formula to be agreed Finance structure: Sale-and-leaseback, export-credit finance, or leasing-house bareboat structure acceptable Form: BARECON-based long-term bareboat charterparty with container-ship rider Commission: As agreed against final structure
Bareboat Charter Order Example 11: Wood-Chip Carrier Newbuilding
Direct industrial buyers seek a long-term bareboat charter with purchase option:Requirement: Wood-chip carrier of about 70,000–85,000 DWT or equivalent high-cubic capacity Build: 2026 onwards newbuilding preferred Cargo: Wood chips, biomass, and other approved high-cubic lawful cargoes Delivery: Japanese, Korean, or Chinese first-class shipyard delivery Trading: Pacific, Far East, Australia, South America, and other approved wood-chip trades Period: 15 years firm bareboat charter Purchase option: Charterers’ purchase option after year 10 and at expiry Technical management: Charterers to arrange approved technical management, crew, maintenance, and class compliance Form: BARECON-based charterparty with purchase-option rider Commission: 1.25% address commission
Bareboat Charter Order Example 12: Offshore Construction Ship
Offshore contractor seeks long-term bareboat control of a modern offshore construction ship:Requirement: Offshore construction ship or subsea support ship of about 10,000–18,000 DWT Build: 2025 onwards, DP2 or DP3 preferred Equipment: Large deck area, subsea crane, accommodation, ROV support capability, and offshore project equipment subject to final specification Delivery: Shipyard or owner’s nominated delivery port Trading: Offshore wind, subsea construction, cable support, and lawful offshore project work Period: 10 years firm bareboat charter Purchase option: Purchase option after year 7 and at expiry Finance structure: Leasing company or project-finance backed bareboat structure Form: BARECON-based offshore-unit charterparty with project-specific riders Commission: As agreed
Bareboat Charter Order Example 13: Ultramax Bulk Carrier
Charterers require long-term bareboat tonnage:Requirement: Ultramax bulk carrier of about 61,000–64,000 DWT Build: 2025 onwards, modern eco-design Cargoes: Nickel ore only if fully compliant with IMSBC Code requirements and accepted by owners, managers, insurers, and class; other lawful mineral cargoes also considered Delivery: Indonesia/Southeast Asia/Far East range or shipyard delivery Trading area: worldwide non-sanctioned/approved ports Period: 10 years firm bareboat charter Purchase option: Purchase option at year 7 and expiry Safety requirement: Full cargo-compliance procedures, class-approved loading manuals, and technical manager acceptance required Form: BARECON-based charterparty with mineral-cargo safety rider Commission: 1.25% address commission
Bareboat Charter Order Example 14: Kamsarmax Bulk Carrier
South American principals are seeking modern bulk carrier tonnage under a long-term bareboat structure:Requirement: Kamsarmax bulk carrier of about 82,000 DWT Build: 2026 newbuilding or 2025 resale newbuilding Delivery: Far East shipyard, or mutually agreed place Trading area: worldwide lawful trade Period: 12 years firm bareboat charter Purchase option: Purchase option at year 8, year 10, and final expiry Finance structure: Bareboat lease with agreed residual value and possible title transfer at expiry Form: BARECON-based charterparty with purchase-option rider Commission: 2.50% total commission
Bareboat Charter Order Example 15: Self-Propelled Bulk Barge Fleet
Infrastructure group requires modern self-propelled bulk barges under long-term bareboat arrangement:Requirement: Fleet of self-propelled bulk barges Build: 2026 onwards newbuilding preferred Cargoes: Aggregates, stone, construction materials, river sand where lawful, grain, and general bulk cargoes Delivery: Shipyard delivery in Asia or mutually agreed delivery place Trading area: India, Southeast Asia, Middle East, and approved regional trades Period: 10 years firm bareboat charter Purchase option: Purchase option for each unit after year 7 and at expiry Finance structure: Fleet leasing, bareboat hire purchase, or staggered delivery finance structure Form: BARECON-based charterparty adapted for barge or shallow-draft ship operation Commission: 2.50% total commission
Bareboat Charter Order Example 16: Ultramax Bulk Carrier
Charterers seek a long-term bareboat charter for modern worldwide trading:Requirement: Ultramax bulk carrier of about 60,000–64,000 DWT Build: 2026/2027 eco-design ship preferred Gear: Four cranes of about 30–35 metric tons each preferred Cargoes: Steel products, grains, fertilizers, minerals, and other lawful dry bulk cargoes Delivery: Far East shipyard or delivery to be mutually agreed Trading area: worldwide approved trades Period: 10 years firm bareboat charter Purchase option: Charterers’ purchase option after year 7 and at final expiry Form: BARECON 2017 or equivalent bareboat charterparty with long-term purchase-option rider Commission: 2.50% address commission
Why Long-Term Structure Matters in Bareboat Chartering
A bareboat charter transfers a much deeper level of control and responsibility than a normal time charter. The Charterer is not merely employing a ship for cargo movements; the Charterer is taking over the ship as operator, manager, and commercial user for the agreed period. Therefore, the charter period should be consistent with the cost, risk, financing, insurance, maintenance, dry-docking, and residual-value exposure involved.For newbuildings and modern financed ships, a bareboat charter may operate like a lease. The financing owner, leasing company, or special-purpose owner may remain the legal owner while the Charterer operates the ship and pays bareboat hire over a long period. At the end of the agreed period, the Charterer may redeliver the ship, extend the bareboat charter, or acquire the ship under a purchase option if the contract provides for it.
For this reason, professional bareboat orders should avoid short employment wording and old-ship descriptions unless there is a very special commercial reason. A serious bareboat order should instead focus on long-term control, modern ships, financeable specifications, strong counterparties, clear purchase-option terms, and a contract form suitable for bareboat operation.