- #CHARTER VESSEL MEANING FULL#
- #CHARTER VESSEL MEANING REGISTRATION#
In flying the Nigerian flag, the bareboat vessel will – for the entire charter period – be a Nigerian vessel that is subject to Nigerian laws as they apply to bareboat chartered-in vessels.Ī vessel's registration in the Ship Registry and special register applies until the end of the charter period, unless it is suspended or terminated earlier in accordance with the regulations. The primary registry will suspend the vessel's right to fly its flag during the charter period (a vessel cannot engage in domestic trade in Nigerian territorial waters while simultaneously flying the flags of two countries). Once registered, a bareboat vessel can fly the Nigerian flag. This requirement was included to prohibit dual registration.
the vessel owner and competent authority of the original jurisdiction consent to the vessel's registration under the regulations. steps have been taken to suspend registration of the vessel in line with the law of the country of original or primary registration and. the certificate of registration or other document issued by the original or primary registry (the registry in the state where the ship was registered by its owner) evidencing such registration and. 
This document evidences the contract between the shipowner and charterer and contains the terms of hire a copy of the certificate of incorporation, Form CAC 2 (statement of share capital) and Form CAC 3 (notice of registered address).evidence of payment of the prescribed fees.The completed form should be accompanied by: (5)Īn application for registration should be made to the Registrar of Ships via the prescribed application form. compliant with all of the requirements for eligibility pertaining to vessel type, licences and permits set forth in the Cabotage Act and the Merchant Shipping Act.
#CHARTER VESSEL MEANING FULL#
under the full control and management of Nigerian citizens or a company that is wholly and beneficially owned by Nigerian citizens free from any trust or obligation in favour of non-Nigerian citizens and. on bareboat charter to a Nigerian citizen for five years or more. registered under the law of a country other than Nigeria. The regulations apply to all vessels that are: Failure to register the vessel in the Ship Registry incurs a minimum fine of N10 million, (3) while failure to register it in the special register incurs a minimum fine of N5 million. (2) While registration in the Ship Registry confers identity on the vessel by entitling it to fly the Nigerian flag, registration in the special register qualifies it to participate in the Nigerian cabotage trade. Under the regulations, a ship that is intended for use in the Nigerian cabotage trade must be registered both in the Nigerian Ship Registry (1) and the special register. The risk decreases with each year.The Coastal and Inland Shipping Cabotage (Bareboat Registration) Regulations 2006 set out guidelines and criteria for the registration of bareboat vessels in the Special Register for Vessels and Ship Owning Companies Engaged in Cabotage, pursuant to the minister of transportation's powers under Sections 22(4) and 46 of the Coastal and Inland Shipping (Cabotage) Act 2003. The approach is also profitable because the charter rates are high enough to soon amortize the investment in a ship and the life of a ship is 20 years and more. To ensure that this always works, there are also insurances that cover the costs in case of a defect or breakdown.įurthermore, there is always the pure steel value as well as the sales value of the ship, which additionally secures the investment. In other words, the shipowner receives fixed income by chartering out his ships and can use this income to cover the running costs of the ship, repairs etc. 
In this way, the rent for the ships is also secured, which flows from the income from transports. The charterer has direct contact with a large number of customers (mostly from the corporate sector) who want to transport goods and therefore charters his ships on a long-term basis to handle the volume of orders.
This ship is usually rented or chartered out to a charterer who has sufficient orders for the transport of goods and cargo. The starting point is the shipowner, who receives sufficient capital for the purchase of a ship by providing a subordinated loan. The procedure is simple and in many cases promises very solid returns. The chartering of ships can also be used for investment.
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