The national and international legal regime of bareboat charter registrations

Abstract

Bareboat chartering is topical and, together with second or international registers, represents the latest stage in the evolution and development of ship registration. It involves flagging‐out from the underlying registry into another (flagging‐in); for the duration of the charter the ship is entitled to fly the new flag and is subject to all the rights, obligations, and control of the new register. For the charterers and their countries, it is a way of acquiring tonnage and enlarging their fleets without incurring the expenses involved. For the owners and their countries, it leads to maximization of profits resulting from low operating costs. Bareboat chartering has most of the characteristics and advantages, but none of the negative connotations, of open registry. However, the system has disadvantages, such as the confusions in definitions (e.g., between parallel and dual registry), uncertainties in the security of mortgages and insurance, and probable conflicts of laws. It has been suggested that it is open registry through the back door. This article analyzes the development, nature, and function of bareboat chartering within the context of national practice, international law, and property rights conventions.