Demise charter

Also called a bareboat charter, the demise charter transfers full possession and control of the ship to the charterer for the period, without crew, stores, or insurance from the owner. The charterer mans, maintains, insures, and operates the vessel as if owner, pays a daily hire, and bears the running costs and most liabilities. The standard form is BIMCO BARECON 2017. Demise charters underpin many ship-finance structures, including Japanese operating leases and sale-and-leaseback deals.