Bareboat Charter

Under a bareboat or demise charter the charterer takes full possession and control of an unmanned, unfurnished ship, hires the crew, and becomes the disponent owner for the charter period. Because possession passes, the demise charterer carries the operational liabilities an owner would otherwise bear, and the ship can be arrested for the charterer’s debts. Bareboat registration in a second flag state, common in ship finance, lets a vessel fly the charterer’s flag while the underlying ownership stays in the primary register.