This article https://danil-hristich.com/en/bareboat-charter-general-guide/ addresses the fundamental questions about bareboat charters:

1. What is a bareboat charter?
2. Is a bareboat charter a lease agreement or a contract of carriage?
3. What are the duties and responsibilities of the shipowner and the charterer under a bareboat charter?
4. How does a bareboat charter differ from other types of charters?

The Nature of a Bareboat Charter

In shipping, charters are typically categorized into three types:

1. Bareboat (demise) charter
2. Time charter
3. Voyage charter

However, English legal doctrine often simplifies this into two categories:

1. Bareboat charters
2. Other charters (including voyage and time charters)

Purpose of This Division

A bareboat charter is essentially a lease or hire contract where the ownership and use of the vessel are fully transferred from the shipowner to the charterer. The charterer effectively becomes the vessel's operator for the duration of the contract. In a bareboat charter, the shipowner leases the vessel without the crew and master, and receives a hire fee in return.

Conversely, a time charter or voyage charter functions more like a service contract for the carriage of goods. The shipowner remains the operator of the vessel, providing the crew and master, while the charterer receives transportation services.

Bareboat charters are often used for financial arrangements rather than cargo transport. For example, a bank might finance the purchase of a vessel and retain ownership until the loan is repaid, leasing the vessel to the customer under a bareboat charter during this period.

Legal Classification of Bareboat Charters

Ukrainian legislators do not have a unified approach to classifying a bareboat charter as either a lease or a carriage contract. However, some indirect indicators in various legal acts (such as the Merchant Shipping Code and the Ship Arrest Convention 1952) suggest that a bareboat charter is more akin to a lease contract.

Duties and Responsibilities of the Parties

The shipowner's main obligation under a bareboat charter is to deliver the vessel in the agreed condition. The charterer assumes responsibility for navigation, repairs, operation, and insurance.

In terms of liability, since the charterer hires the crew and master, they are responsible for their actions or inactions. The shipowner may still be liable for torts (non-contractual wrongdoings), such as injuries caused by known but unaddressed defects in the vessel. Generally, the charterer is liable to third parties and often provides the shipowner with a guarantee against such claims.

Complex Liability Situations

Complications can arise when claims are made against the vessel itself (in rem), such as in the event of a collision. While the charterer is formally liable, the shipowner may also be involved due to the direct claim against their vessel.

Other Features of a Bareboat Charter

Additional characteristics of a bareboat charter include:

• The shipowner cannot exercise a lien over the cargo in case of non-payment of hire, as they do not have possession of the vessel.
• The charterer acts as the carrier under bills of lading, not the shipowner, since the master is hired by and acts on behalf of the charterer.
• If the charterer has multiple vessels, a claim against one vessel may lead to the arrest of another vessel hired under a bareboat charter. This is not possible under voyage or time charters.