Bareboat Charter

A Bareboat Charter (Demise Charter) is the most extensive form of vessel hire: the charterer takes the vessel "bare" — without crew, provisions, stores, bunkers or any operational support. The charterer must crew, fuel, victual, insure, maintain and operate the vessel at their own cost and risk. In effect, the charterer becomes the temporary owner-operator while the legal owner is paid a daily hire.

Bareboat charters typically run for years (often 5-15), and are frequently used as financing instruments — a financial institution buys the vessel and bareboat-charters it to the operating company, who pays hire that economically resembles loan repayments. At the end, ownership may transfer to the charterer ("bareboat charter with purchase option" or BBCHP).

The standardised form is BARECON (Bareboat Charter Party).