Bareboat charter
BBC
Meaning
A bareboat charter leases the ship itself; the charterer supplies the crew, runs and maintains it, and is treated almost as the owner for the term.
Also written as Demise charter
Bareboat charter explained
Under a bareboat charter the registered owner provides only the ship. The charterer appoints the crew, manages technical operation, insures the ship and bears all running costs, usually for several years. It is often used as a financing structure.
Bareboat charters are typically on BIMCO's BARECON form and frequently include a purchase option or obligation at the end.
Related terms
Time charter
A time charter hires the ship for a period at a daily rate; the charterer directs its employment and pays for voyage costs like bunkers and port fees.
Voyage charter
A voyage charter is a contract to carry a cargo between named ports for a freight payment, with the owner running the ship and paying its costs.