U.S. Coast Guard Regulations for Bareboat Charter in Florida
Bareboat chartering is when an individual rents a boat and takes the helm themselves, making it a highly personalized and adventurous experience. In this arrangement, the charterer is entirely responsible for the operation of the boat, from navigating the open waters to anchoring in serene bays. It is generally best suited for experienced sailors with specific sailing expertise and a solid understanding of navigation, as the autonomy of bareboat chartering demands a high level of competence. Since Bareboat chartering requires significant sailing skills, charter operators often provide charterers with the option to hire a captain, which the charterer is required to choose freely. While this is the most common charter arrangement, it comes with high responsibilities for the charterer.
The U.S. Coast Guard Seventh District Headquarters based in Miami in charge of regulatory enforcement in the 1.7 million square miles in and around Florida, Georgia, South Carolina, and Puerto Rico, closely monitors the adherence of boat operators to USCG regulations. To allow our yacht owners and clients to fulfill all Coast Guard requirements, we will explain the bareboat charter regulations.
If our managed boats in Key West are available on a bareboat charter basis, they are subject to the U.S. build requirements as set forth in the Passenger Services Act (46 U.S.C. 55103) or hold a MARAD license. This article will emphasize some of the most pertinent details as published by the U.S. Coast Guard for bareboat charter vessel operation.
A demise charter, oftentimes referred to as bareboat charter, requires a written agreement between the owner of a vessel and a charterer where the charterer has use of the vessel for a defined period of time and is considered the de facto owner. A bareboat charterer may take on legal obligations to the owner of the vessel, the crew, the passengers carried, and others.
Elements of a valid Bareboat Charter:
The charterer must have the option of selecting and paying crew, although the owner may require general levels of proficiency for the crew that is retained based on federal statutes.
The master/crew are paid by the charterer.
All food, fuel, and stores are provided by the charterer.
Insurance is obtained by the charterer.
The charterer is responsible for the safe navigation of the vessel.
The charterer may discharge, for cause, the master or any crew member without referral to the owner
The vessel is surveyed upon its delivery and return.
Any provision that tends to show retention of possession or control of the vessel by the owner, or the owners exclusive operator, would be a contradiction that a valid and legal bareboat charter exists.
Common Bareboat Charter Vessel Errors:
A chartered vessel may NOT carry more than 12 passengers without a Certificate of Inspection (COI).
A chartered vessel may NOT carry more than 12 passengers while moored. A charter vessel is considered to be carrying "passengers" whether moored or underway. This includes a boat bed and breakfast.
The owner of the vessel may NOT be the vessel master or part of the crew. The vessel owner is NOT allowed on board during a bareboat charter.
A bareboat charter contract may not provide or dictate a crew. The charterer must be able to select a crew and have the ability to discharge the crew.
The charterer is not considered a passenger, and there can only be one charterer, even though the vessel may be chartered by several individuals. In this case, one person would be considered the charterer and the rest would be counted as passengers.
Both U.S. flag and foreign vessels may be chartered, however foreign flagged vessels cannot carry passengers for hire between U.S. ports and must be chartered by and/or operate as a recreational vessel. Foreign built vessels owned by U.S. citizens must meet coastwise trade rules before carrying passengers for hire.
Boat Bed and Breakfast Rules:
Using a recreational vessel as a bed and breakfast in which the owner/operator/agent receives consideration for people to remain overnight onboard the vessel is a commercial operation. These vessels are also subject to Coast Guard rules and regulations.
To conduct this operation in accordance with Federal statute, the owner/ operator/agent can:
Operate as a Charter Vessel with no crew provided, limited to 12 passengers, written contract required (bareboat contract). It requires a written bareboat contract if the vessel is foreign built and does not carry a MARAD small passenger vessel waiver.
Operate as an Uninspected Passenger Vessel: less than 100 GRT (can have) up to 6 passengers); greater than 100 GRT (can have) up to 12 passengers. Vessel must be operated by a Master who holds an OUPV Merchant Mariner Credential and Coast Guard safety inspections may be required.
For all of the above limitations, Charisma Sailing specializes in professionally crewed charters to provide the best experience for our clients. Read here about U.S. Coast Guard crewed charter requirements.