Bareboat Chartering

Under Voyage Chartering arrangements, most of the above responsibilities will become those of the Shipowner, with the exception that usually (but not always) the Charterer retains responsibility for Stevedoring, Cargo Handling and the Insurance of Cargo. Quite often a time chartered vessel is employed on a liner service operated by the time charterer. Some vessels are taken on very long charters for this purpose, while others may be taken for short periods to cover drydocking, repairs or seasonal fluctuations in cargo levels. Charterers usually negotiate the right to temporarily rename the vessel if it is to be employed on a liner service so that its new name can be more easily connected with the route or line it is trading on. Occasionally the parties may even agree to a change of flag as well. Bareboat Chartering. Sometimes termed ‘demise’ chartering, Bareboat chartering arises on those occasions where Shipowners hire out their vessel to a Charterer, who virtually runs the ship as if he were the Shipowner – assuming both the Timecharterer’s rresponsibilities (as defined above) and most, if not all, of the responsibilities of the Shipowner. In return, the Shipowner receives a lower hire payment, commensurate with reduced responsibilities and risks. Strictly defined, ‘demise’ chartering differs from ‘bareboat’ chartering in that it may be agreed between the parties that the Shipowner provides a master and/or officers and/or crew and, perhaps, organises the vessel’s insurance. Demise and Bareboating are in reality finance tools, designed to enable Investors to purchase ships, leaving the operation and management of the ships to Charterers with more expertise in those areas. The Charterers may, in fact, be Shipowners without the financial resources to fund such a purchase directly.