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What responsibilities does a charterer have under a bareboat charter?

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Under a bareboat charter—also known as a demise charter—the shipowner delivers possession of the vessel to the charterer without providing a crew, stores, insurance, or other provisions.1

Consequently, the charterer assumes extensive responsibilities, effectively functioning as the owner of the vessel for the duration of the agreement. These responsibilities include:2

  • Operational Management: The charterer is responsible for engaging the master and crew.2
  • Maintenance and Supplies: The charterer must arrange for all necessary repairs, supplies, and stores required for the vessel's operation.12
  • General Oversight: Because the charterer takes possession of the ship, they are responsible for the vessel's management and navigation, assuming duties that would otherwise fall to the shipowner under other types of charter parties.2

In exchange for these rights and responsibilities, the charterer pays a specified daily or monthly rate of hire to the shipowner.2