Key Participants in Merchant Shipping

The Merchant Shipping Code defines “shipowner” and “ship operator” and clearly distinguishes between them. Under item 24 of paragraph 1a of its Supplementary Provisions, the shipowner is the owner of the vessel entered as such in the ship register. Article 9(3) of the Code provides that a ship operator is a person who operates the ship in their own name, whether they own the ship or use it on another lawful basis.

A “ship manager” is a natural or legal person who, in return for remuneration, undertakes under a contract to manage a ship in the name and on behalf of the ship operator, in accordance with Article 225а of the Merchant Shipping Code.

A “bareboat charterer” is a person who hires a ship for a specified period under a bareboat charter agreement.

Under Article 199а of the Merchant Shipping Code, a bareboat charter is an agreement to hire a ship for a specified period under which the charterer receives full rights of possession and control over the vessel, including the right to appoint its master and crew for the entire charter period.

Article 199г provides that, unless otherwise agreed, the charterer may, within the rights granted by the bareboat charter, enter into contracts in their own name to sub-charter the ship to a third party on bareboat terms for all or part of the charter period. The Code also establishes the charterer’s obligations, which apply to a sub-bareboat charter as well. The ship’s commercial operation is carried out by the charterer in accordance with the charter agreement, and the charterer bears all operating expenses under Article 199ж of the Merchant Shipping Code.

If you need qualified assistance with maritime law, bareboat charters, hiring a ship or related matters, consult an experienced lawyer who works in maritime law.