ABSTRACT
This chapter focuses on a number of legal issues arising out of the financing arrangements related to the acquisition of newbuilding vessels under the Bimco Barecon 2001 Standard Bareboat Charter, a form which is widely used in the shipping industry. Under such a financing charter party, the charterers bear the obligation to pay hire throughout the stipulated charter party period, which covers either all of the financier's capital paid to the shipyard under the terms of the shipbuilding contract plus their profit, or part of it if also combined with a lump sum deposit. The cornerstone of financing bareboat charter parties of new builds is the shipbuilding contract between the shipyard and the buyers. It governs the respective rights and duties not only of the shipbuilders and the buyers under the shipbuilding contract but also, to a great extent, of the parties to the bareboat charter party. Delivery arrangements reflect the nature of the bareboat charter party of new building vessels as merely a financing tool.
