The Bermuda register accepts demise registry both in cases where the underlying registry is in Bermuda and the ship flies the flag of another state, and the opposite case where the underlying registry is outside Bermuda and the ship flies the Bermuda flag.
The process is simple and a demise charter may be registered for up to 5 years at a time. It may be renewed on as many occasions as necessary for a maximum of 5 years each time.
The process is useful to owners. In the case of a ship which for operational reasons, charterer’s requirements, or some other cause is required to fly a particular flag the underlying registry can stay in Bermuda with its sound protections of title, and mortgages, while the operational jurisdiction can be moved to suit.
In the other case an owner or his bankers may wish title to be registered in a particular jurisdiction but the ship to fly the Bermuda flag and have the advantages that come from this. The ship can be demised “in” to Bermuda. In this case she will be issued with a Bermuda Certificate of Demise Registry which will show the demise charter as the owner and state the identity of the underlying registry.
The demise registry is available between Bermuda and any other flag jurisdiction which accepts the concept. The registrar is able to advise at any time on jurisdictions that are known to be compatible for this, and will approach ones that Bermuda has not dealt with yet.