Bareboat Charter

Bareboat Charter is a type of ship leasing in international shipping where the lessor provides the vessel to the lessee without crew, stores, fuel, or insurance, supplying only the ship itself (hull, machinery, equipment). The lessee must arrange its own crew and is responsible for the vessel's operation, maintenance, insurance, and all expenses. It is commonly used in long-term charters, ship financing leases, and when shipowners want to lease the vessel as an asset without bearing operational risks. Notes: Under a bareboat charter, the lessee bears almost all operational risks and responsibilities, must ensure the vessel is seaworthy and complies with relevant regulations; the charter period is usually long (several years), and hire is calculated by tonnage or a fixed amount; unlike time charter and voyage charter, in a bareboat charter the lessor only provides the vessel and does not participate in operational management, while the lessee has control and possession of the vessel. Differences: Time charter involves the lessor providing crew and operational management, voyage charter is charged per voyage, and bareboat charter is similar to a finance lease or dry lease.