GlossaryEN1 min readUpdated: Jun 26, 2026
Bareboat Charter
A bareboat charter is the most extensive form of vessel lease: the shipowner hands over the ship without crew, stores, fuel, or insurance, and the charterer assumes full operational control as if acting as the de facto owner.
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Source: https://www.investopedia.com/terms/b/bareboat-charter.asp
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A bareboat charter is the most extensive form of vessel lease: the shipowner hands over the ship without crew, stores, fuel, or insurance, and the charterer assumes full operational control as if acting as the de facto owner. This means hiring and managing the crew, sourcing fuel and provisions, arranging hull and P&I insurance, and covering all running costs. The shipowner retains legal title and is accountable for the vessel's condition at the point of delivery, but has no involvement in day-to-day operations. Bareboat charters are commonly used by shipping companies or special-purpose vehicles seeking to expand fleet capacity without outright purchase. Unlike a time charter or voyage charter—where the owner retains crewing responsibility—the bareboat arrangement transfers virtually all operational risk to the charterer.
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