Presentation of the key terms for chartering
It may sound obvious, but as it is mentioned many times in the contract “the charterer” is the principal entity or person named and signatory to the charter contract.
Please note that the charter fee includes the rent of the yacht with its crew. The charter fee covers the rental of the yacht, the crew salaries, insurance, and additional day to day running costs.
Any additional expenses that are particular to the charter such as fuel, provisions for food and drink, port fees, particular entertainment or additions to the yacht such as requested toys are paid separately from the APA .
The APA is the “Advanced Provisioning Allowance “.
The APA consists of a pre-calculated sum of money paid by the charterer in advance to the captain who will use it to pay the charterer’s expenses over and above the rental of the yacht (fuel, food and beverages, entertainment, etc). Under most circumstances this will be organized to be handled by the charter broker to avoid any complications.
At the end of the charter the captain will present the charterer with a detailed sheet listing all the particular charter expenses together with the relevant invoices and reimburse the charterer for the funds that have not been used.
The APA normally averages around 25% of the cost of the yacht charter, but can be more depending on what one orders. Please note that there is no mark up on any goods consumed by the guest. All expenses are at cost price from the goods or service supplier.
▶Insurance and charter problems
As unforeseen events can unfortunately happen we always recommend that you take out a reliable Cancellation and Curtailment policy to protect yourselves against a cancelled or prematurely ended charter. If regrettably, in the very rare circumstances there is a problem with the yacht or your charter we will take it onto ourselves to make sure that the utmost is done to find an immediate solution so that you can still have the maximum enjoyment from your time with minimum disruption.
Costs incurred for the delivery and redelivery of the vessel from its homeport or latest port of call to your chosen embarkation port and from the disembarkation port to the yacht’s home port. Common practice now for most owners is to only charge for the fuel costs.
▶What is MYBA?
MYBA is an acronym for the Mediterranean Yacht Brokers Association. It is a trade association founded in 1984 by a group of prominent yacht brokers (of which Thierry Voisin our chairman was one), with the aim of promoting standards of professionalism and ethics in the yachting industry throughout the Mediterranean, and worldwide. MYBA only endorses membership to brokerages with a proven track record of professional excellence in the yachting industry, thereby offering valuable benefits and safeguards to clients choosing to purchase, sell, build or charter a yacht through a MYBA broker.
The payment for a charter is made in 2 installments.
The first installment constitutes 50% of charter fee and is due upon the signature of the contract and this secures the booking of the yacht charter.
The second installment consists of the remaining 50% plus VAT, a security deposit if it is required along with the APA, and is due no later than one month prior to the charter starts.