Demise Charter
Demise Charter is a synonym for Bareboat Charter. Under a demise, the charterer takes the vessel without crew or provisions, takes possession and effective control, crews and operates the vessel at their own cost, and bears all risk. The legal owner remains the registered owner but the charterer is the de facto operator.
The term "demise" emphasises the legal transfer of control: the ship is "demised" (handed over) to the charterer for the duration. See also Bareboat Charter Party and the BARECON standardised form.
"Demise charter" is another name for a bareboat charter — the fullest form of hire, where the charterer takes the vessel without crew or provisions and runs it entirely at their own cost and risk. The word "demise" points to the legal heart of it: possession and control are handed from owner to charterer for the duration.
Is a demise charter the same as a bareboat charter?
Yes — they are two names for the same arrangement, in which the charterer takes possession of the vessel without crew and operates it as if the owner.
What does "demise" mean in a charter?
It refers to the transfer of possession and control of the vessel from the owner to the charterer for the charter period, while legal ownership stays with the owner.