Bareboat charter registration (parallel registration) means that a ship is registered in two registers simultaneously for a specified period of time.
In Denmark, the following is allowed:
- Bareboat charter-in registration of merchant ships, including passenger ships
- Bareboat charter-out registration of all ships from the Register of Shipping (DAS) and the Danish International Register of Shipping (DIS).
Bareboat charter-in means that a ship in a primary/underlying register other than Danish is permitted to fly the Danish flag for a specified period of time.
Bareboat charter-out means that a ship registered in Denmark (primary register) is permitted to fly a flag other than Danish for a specified period of time.
Bareboat charter registration
Bareboat charter-in registration is permitted from all flags. However, the ship must comply with Danish technical requirements, for example as regards asbestos.
Bareboat charter-out registration, on the other hand, is only permitted to countries included on the Danish list of approved bareboat charter-out countries, see below.
Admission of new countries to the bareboat charter-out list may be obtained by (written) application to the Register of Shipping, which decides on the admission of new countries following consultation with the Danish Ships Inspection Council. Countries on the bareboat charter list must comply with various IMO and ILO conventions.
It is a precondition for both bareboat charter-in and bareboat charter-out registration to and from Danish registers that the foreign register consents to the registration of ships on bareboat charter terms.
Bareboat charter-out registration from a Danish register requires the written consents of all holders of recorded and registered interests in the ship.
Ships may be registered as bareboat chartered for an initial period of up to five years. The registration may be extended for one year at a time. The duration of the charter party agreement and the consent of the foreign register must both cover the registration period.
Bareboat charter-in in the Danish ship registers
The following requirements must be met to register a ship as bareboat chartered-in:
- Only merchant ships, including passenger ships, can be registered as bareboat chartered-in
- The ship must not be Danish and must be eligible for joining the Register of Shipping or the Danish International Register of Shipping
- A charter party agreement must have been signed for the lease of the ship.
- The charterer must be Danish or meet the requirements for foreign owners to register a ship in a Danish register.
The following documents must be submitted for registration as bareboat charter-in:
The charterer is responsible for ensuring that the ship has a valid Certificate of Nationality at all times. Further the charterer is responsible for applying for any extension of the bareboat charter registration.
Bareboat charter-out from the Danish registers
All ships from the Register of Shipping (DAS) and the Danish International Register of Shipping (DIS) may be bareboat chartered-out to the following countries:
- All EU and EEA countries
- Isle of Man
- Hong Kong
- Azerbaijan (for navigation in the Caspian Sea in the territory of Azerbaijan)
- Kazakhstan (for navigation in Kazakh territory)
- Marshall Islands
- Brazil (for cabotage services between Brazilian ports).
The following requirements must be met to register a ship as bareboat chartered-out:
- All ships registered in the Register of Shipping (DAS) or the Danish International Register of Shipping (DIS) can be bareboat chartered-out
- A charter party agreement must have been signed for the lease of the ship
- The charterer must not be Danish
- The Register of Shipping suspends the ship’s Danish Certificate of Nationality.
The following documents are required for bareboat charter-out registration:
- Application for registration of a ship in a foreign bareboat charter register (Form S 32)
- Original charter party agreement or extract of charter party agreement
- Proof of authority to sign the charter party agreement on behalf of the registered owner of the ship. For Danish owners, the Register of Shipping will obtain a transcript from the Central Business Register (CVR) showing signing authority rules and authorised officers.
- Proof of authority to sign the charter party agreement on behalf of the bareboat charterer – usually with notarial attestation (and apostille/authentication if outside the EU/EEA) – see document requirements
- Original letter of consent from the foreign register stating that the ship may be registered
- Original consent to change of flag from any holders of recorded and registered interests (mortgages and rights of use)
- Documentation of completed bareboat charter registration in foreign register
- CSR Form 2 for cargo ships over 500 gross tonnage (GT) and passenger ships (Form 2)
Extension of bareboat charter registration
After the initial registration period, the charter party agreement may be extended for up to one year at a time.
The following documents are required for extension of an existing bareboat charter registration:
- Written application for extension signed in accordance with the charterer’s signing authority rules
- If the original charter party agreement has been submitted to the Register of Shipping and concluded for a longer period than the bareboat charter registration period, no further documentation of the charter period is required. If the charter party agreement has expired, original documentation must be submitted covering the extended registration period applied for, for example a rider to the original charter party agreement signed by the charterer and the owner of the ship (the same requirements for signing as for the original charter party, see above). If the letter of consent has expired, the following must be submitted:
- a new original letter of consent from the foreign register stating that the (bareboat charter-in) ship is allowed to fly another flag during the registration period; or
- a letter of consent from the foreign register stating that the (bareboat charter-out) ship may remain in the foreign bareboat charter register. For bareboat charter-out registration: If the original letter of consent from any interest holders has a longer validity than the registered bareboat charter-out period and covers the requested extension, a new letter of consent is not required. Any new interest holders must always provide their consent. Otherwise any interest holders (mortgages and rights of use) must have provided their consent to the extension of the bareboat charter-out registration at the time of registration.
Expiry and deletion of bareboat charter registration before expiry
When a registered bareboat charter-in or bareboat charter-out period expires as planned, the registered parties are not required to do anything. If the agreement is terminated before the expiry date, this must be notified to the Registrar of Shipping as soon as possible and not later than 30 days after the termination, and the right to fly a foreign flag will cease.
If the conditions for bareboat charter-out registration no longer exist – for instance because the charter party agreement is terminated, the legislation of the foreign register no longer allows bareboat charter registration, the ship is lost or scrapped, etc. – the ship will be deleted.
If the conditions for bareboat charter-in registration no longer exist – for instance because the charter party agreement is terminated, the legislation of the foreign register no longer allows bareboat charter registration, the ship is lost or scrapped, etc. – the ship will be deleted.