The realities of bareboat chartering

Abstract

There is a growing problem in the commercial passenger vessel industry associated with the use of private yachts and uninspected vessels being chartered for the purpose of carrying passengers for hire. Owners and agents of these vessels are inducing businesses and private parties to sign "bareboat charter agreements" which in theory transfer the ownership and control of the vessel to the charterer. Many of these private parties and corporations then utilize these vessels for business purposes. They risk violations of federal regulations as well as other local regulations if more than six passengers are on board on the vessel. The National Association of Passenger Vessel Owners, a group whose members operate U.S. Coast Guard inspected passenger vessels which allow them to carry passengers for hire in accordance with regulations are concerned for the well-being of charterers and passengers who may unknowingly or unintentionally use a vessel not licensed for the intended purpose of the charter. NAPVO supports a position of public awareness, self-regulation, and increased enforcement activity of the regulatory agencies responsible for vessel charter activities.