Difference between time charter and bareboat charter
Answers
Under a time charter or a voyage charter a vessel and its crew are hired for a voyage from a load port to a discharge port. The owner is paid by the charterer on a lump-sum or per-ton basis. While the owner pays for the port costs (except stevedoring) and the fuel costs.
A bareboat charter is also referred to as a demise charter. Under this the owner of the ship gives its possession to a charterer who hires his own crew and master.
A time charter refers to a ship that has been hired by a person for carrying out a trade for a specific period of time. Although the vessel belongs to the person who bought it, the other factors are determined by the hirer. These include where the vessel must sail to and the associated ports. The fuel expenses, commissions and port charges are borne by the hirer. He also pays hire charges to the owner.
A bareboat charter involves a hire agreement where there is no mention about the technical maintenance or administration. The charterer is responsible for hull insurance and all other expenses associated with the operation of the charter such as crew, port, and fuel. This charter is also called demise charter, and is primarily used for bulk carriers and tankers.