A Study On Legal Issues Of Risks To Shipowner Under Bareboat Charter

Bareboat charter is an important mode of ship operation, which always be used as a kind of investment by shipowner, that is, shipowner assigns the right of possession, command and navigation to bareboat charterer with the exception of the right of disposition, and collect hire from bareboat charter which is regarded as investment returns. On the basis of exploring various risks to shipowner under bareboat charter, I propose some countermeasures to against the risks, which aims to protect the shipowner’s interest under the circumstance that shipowner does not occupy and control the vessel.The first chapter is the overview regarding the risks shipowner faces under bareboat charter. This thesis starts with introducing general concept of risks to shipowner under bareboat charter. This chapter explores occurring reasons of the risks shipowner faces under bareboat charter.The second, third, fourth and fifth chapters fully discuss various kinds of risks shipowner faces under bareboat charterparty. Combined with United Nations Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea, the second chapter analyses that shipowner is likely to be alleged as carrier. The third chapter studies the risks to shipowner when bareboat charterer defaults, including non-payment or delay to payment of hire, using the subjected vessel for illegal activities, assigning the rights and obligations stipulated in the charter or subletting the ship under bareboat charter without shipowner’s consent in writing, breaching contracts to third party. The fourth chapter focuses on the risks to shipowner which results from bareboat charterer’s tortious act to third party. This chapter is divided into two parts, that is, the one regarding the risks to shipowner in the collision accident, the other one related with the risks shipowner faces in the marine oil pollution accident. The fifth chapter discusses some other risks to shipowner, such as the risk of maritme lien or possessory lien and the risk occurring when shipowner fails to perform the bareboat charterer.Last chapter lists out some prevention measures in order to achieve the aim to reduce the risks to shipowner under bareboat charterer, such as concluding bareboat charter party provisions which are in shipowner’s favor, requesting bareboat charterer to tender warranty, exercising shipowner’s right of withdrawal of the subjected vessel, a reasonable insurance plan; shipowner’s good performance of bareboat charterparty.