Bareboat charter
Encyclopedia
A bareboat charter is an arrangement for the chartering
or hiring of a ship or boat
, whereby no crew
or provisions are included as part of the agreement; instead, the people who rent
the vessel from the owner are responsible for taking care of such things.
There are legal differences between a bareboat charter and other types of charter arrangement, commonly called time or voyage charters. In a voyage or time charter the charterer charters the ship (or part of it) for a particular voyage or for a set period of time. In these charters the charterer can direct where the ship will go but the owner of the ship retains possession of the ship through its employment of the master and crew. In a bare-boat or demise charter, on the other hand, the owner gives possession of the ship to the charterer and the charterer hires its own master and crew. The bare-boat charterer is sometimes called a "disponent owner". The giving up of possession of the ship by the owner is the defining characteristic of a bare-boat or demise charter.
.
A demise charter is a form of bareboat charter in which the charter period may last for many years; and may end with the charterer acquiring title (ownership) of the ship. In this case, a demise charter is a form of hire-purchase from the owners, who may well have been the shipbuilders. Demise chartering is common for tankers and bulk-carriers.
a bareboat charter is usually for a short period. There are hundreds of bareboat yacht charter brokers or agent companies. These companies offer yacht finding and travel organisation services similar to travel agent only more specialised. Their purpose is to use their experience and networks to locate a client's ideal bareboat in terms of price and location.
Bareboat hire has become increasingly common since the mid-1990s and in particular since the early 2000s. There has been increasing demand for yacht vacations and many experienced and semi-experienced ‘yachties’ now consider it easier and cheaper to hire a bareboat, rather than own their own yacht. While both the international leisure travel industry (particularly outdoor activities based vacations) and the boating industry has both boomed in the last decade, so too has the bareboat charter industry which incorporates both of these pursuits.
In the USA there is an additional legal distinction with regard to bareboat versus for hire, or "skippered" charters. When persons pool their finances to bareboat so that the qualified master among them may skipper for the group, even though he is not ostensibly a paid skipper he now takes on the legal responsibilities of one. This can have far-reaching consequences in the event of negative occurrences at sea.
Chartering (shipping)
Chartering is an activity within the shipping industry. In some cases a charterer may own cargo and employ a shipbroker to find a ship to deliver the cargo for a certain price, called freight rate. Freight rates may be on a per-ton basis over a certain route or alternatively may be expressed in...
or hiring of a ship or boat
Boat
A boat is a watercraft of any size designed to float or plane, to provide passage across water. Usually this water will be inland or in protected coastal areas. However, boats such as the whaleboat were designed to be operated from a ship in an offshore environment. In naval terms, a boat is a...
, whereby no crew
Crew
A crew is a body or a class of people who work at a common activity, generally in a structured or hierarchical organization. A location in which a crew works is called a crewyard or a workyard...
or provisions are included as part of the agreement; instead, the people who rent
Renting
Renting is an agreement where a payment is made for the temporary use of a good, service or property owned by another. A gross lease is when the tenant pays a flat rental amount and the landlord pays for all property charges regularly incurred by the ownership from landowners...
the vessel from the owner are responsible for taking care of such things.
There are legal differences between a bareboat charter and other types of charter arrangement, commonly called time or voyage charters. In a voyage or time charter the charterer charters the ship (or part of it) for a particular voyage or for a set period of time. In these charters the charterer can direct where the ship will go but the owner of the ship retains possession of the ship through its employment of the master and crew. In a bare-boat or demise charter, on the other hand, the owner gives possession of the ship to the charterer and the charterer hires its own master and crew. The bare-boat charterer is sometimes called a "disponent owner". The giving up of possession of the ship by the owner is the defining characteristic of a bare-boat or demise charter.
In shipping
In a bareboat charter no administration or technical maintenance is included as part of the agreement. The charterer obtains possession and full control of the vessel along with the legal and financial responsibility for it. The charterer pays for all operating expenses, including fuel, crew, port expenses and P&I and hull insuranceMarine insurance
Marine insurance covers the loss or damage of ships, cargo, terminals, and any transport or cargo by which property is transferred, acquired, or held between the points of origin and final destination....
.
A demise charter is a form of bareboat charter in which the charter period may last for many years; and may end with the charterer acquiring title (ownership) of the ship. In this case, a demise charter is a form of hire-purchase from the owners, who may well have been the shipbuilders. Demise chartering is common for tankers and bulk-carriers.
In yachting
In yachtingYachting
Yachting refers to recreational sailing or boating, the specific act of sailing or using other water vessels for sporting purposes.-Competitive sailing:...
a bareboat charter is usually for a short period. There are hundreds of bareboat yacht charter brokers or agent companies. These companies offer yacht finding and travel organisation services similar to travel agent only more specialised. Their purpose is to use their experience and networks to locate a client's ideal bareboat in terms of price and location.
Bareboat hire has become increasingly common since the mid-1990s and in particular since the early 2000s. There has been increasing demand for yacht vacations and many experienced and semi-experienced ‘yachties’ now consider it easier and cheaper to hire a bareboat, rather than own their own yacht. While both the international leisure travel industry (particularly outdoor activities based vacations) and the boating industry has both boomed in the last decade, so too has the bareboat charter industry which incorporates both of these pursuits.
In the USA there is an additional legal distinction with regard to bareboat versus for hire, or "skippered" charters. When persons pool their finances to bareboat so that the qualified master among them may skipper for the group, even though he is not ostensibly a paid skipper he now takes on the legal responsibilities of one. This can have far-reaching consequences in the event of negative occurrences at sea.
See also
- Yacht charter broker
- Luxury yachts
- Yacht charterYacht charterYacht chartering is the practice of renting, or chartering, a sailboat or motor yacht and travelling to various coastal or island destinations. This is usually a vacation activity, but it also can be a corporate event....
- Skippered charter
- BareboatingBareboating"Bareboating" is the term used to describe the act of chartering a sailboat that one lives upon, navigates and operates for a vacation. Common "bareboating" locations are the Caribbean, the Mediterranean, and other similar warm weather vacation spots....