Definition
In a bareboat or demise charter the owner hands over the hull and the charterer becomes the operator: it appoints the master and crew, maintains the ship, buys everything she consumes and pays hire to the owner, who is in effect a financier. It is common in ship finance and in arrangements where the ship flies a different flag for the period.
The standard form is BARECON. BARECON 2017 replaced the 2001 edition and, among other changes, made the owner's duty to deliver the ship seaworthy absolute rather than one of due diligence, gave the charterer an option to extend, added a three-banking-day grace period for late hire, made owner and charterer co-assured under the hull and machinery cover, added anti-corruption and sanctions clauses, and moved purchase options into Part IV.[1]
For suppliers and agents the bareboat charterer is the customer: it — not the registered owner — orders stores, spares, bunkers and services, and its name should be on the order and the invoice.
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Sources
- [1] Watson Farley & Williams — BARECON 2017: the timely revision of an industry standard — https://wfw.com/articles/barecon-2017-the-timely-revision-of-an-industry-standard
A working definition for buyers, not legal advice — the contract, the convention text and your club or class have the last word.