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 (demise ‘out’), and where the underlying registry is outside Bermuda and the ship flies the Bermuda flag (demise ‘in’).
The process is simple and allows a demise charter to be registered for the same period as the charterparty, up to a maximum of 5 years at a time. It may be renewed on as many occasions as necessary.
Ships which for operational reasons, charterer’s requirements or some other cause are required to fly a particular flag can demise ‘out’ and keep their underlying registry in Bermuda, with its sound protections of title and mortgages, while the operational jurisdiction can be moved to suit. The ship would be issued with a Bermuda Certificate of Demise Registry which would show the demise charterparty as the owner and state the identity of the overlying registry.
Alternatively, it may be necessary for title to be registered in a particular jurisdiction but the ship can demise ‘in’ and still fly the Bermuda flag and enjoy the advantages that come from this. The ship would be issued with a Bermuda Certificate of Demise Registry which would show the demise charterparty as the owner and state the identity of the underlying registry.