You charter FAQs answered

IT’S YOUR FIRST YACHT CHARTER AND YOU DON’T KNOW WHAT TO BEGIN WITH? YOU WONDER WHAT TIP IS AGREEABLE? WHAT THINGS SHOULD BE TAKEN? CAN YOU AFFORD THAT CERTAIN CHARTER? GET THE ANSWERS TO ALL OF YOUR QUESTIONS.

A professional and experienced charter broker is able to solve all problems which may arise while choosing and preparing a personalized yacht charter. Your broker will choose the right yacht matching your budget and give some advice considering your preferences and wishes. Minding all the details, the broker will make sure your charter is prepared perfectly.

 

HOW MUCH WILL THE CHARTER COST?

A flexible pricing system allows the charterer to pay only for items and service used. It will be profitable in some cases. For example, if you’re travelling in areas where shore side attractions are concentrated, your yacht is likely to reduce fuel consumption because it won’t cover long distances. Drifting in the sea all night or staying at anchor also affects the amount of fuel used and its cost. Some charterers prefer to have all meals aboard the yacht while others like dining ashore, so they will pay different provision fees. So we avoid using an “all included” fee for marina, food, beverages, and fuel charges and instead let charterers pay only for items they have used during their journey.

Understand that the total sum in the final bill includes the itinerary and location, as well as marina and fuel charges, along with payment for beverages and food. Consider all the cost factors before you book a charter and encounter extra charges. After the travel finishes, such extra charges are reviewed by the captain and the head charterer who gets all relevant receipts.

When signing a charter contract, you pay a 50% deposit and, no later than 30 days before the beginning of the charter, you pay the remaining 50% for the provisioning fee and any applicable taxes. Don’t forget that apart from the quoted fee, you must consider the gratuity for your crew members.

WHAT TIP IS IT CUSTOMARY TO LEAVE?

As a rule, the standard gratuity for the captain and the crew is from 10% -20% of the charter fee. You can increase or reduce the amount according to your level of satisfaction with the crew. You have the option of A) leaving the gratuity with the charter broker before the trip begins, who will distribute the sum to the Captain for distribution on your behalf at the charter’s conclusion; or B) leave a cash gratuity with the Captain, for distribution among the crew at the charter’s conclusion.

WHAT DOES A CHARTER CONTRACT CONTAIN?

Different charter companies may use different types of contracts:

  • For yachts chartering in the Mediterranean, it is usually a standard MYBA agreement created by the worldwide group “Mediterranean Yacht Brokers Association.” This document is adopted by the AYCA (American Yacht Charter Association) and is considered to be the base fare for hiring a charter yacht with a crew. It includes WMT (“Western Mediterranean Terms”) and must be signed by four parties – the proprietor, the head charterer, the broker, and the yacht’s central agent (stakeholder).
  • For charters in U.S. waters, it is common to sign a contract called the Bareboat Demise Agreement with a separate Yacht Services Agreement attached which is subsidized by FYBA (the AYCA and Florida Yacht Brokers Association).
  • For smaller sized yachts travelling in Turkish water the SEMT (Standard Eastern Mediterranean

Terms) is used. It is a form of WMT that’s a bit more inclusive – with food supply for the crew, dockage and calculating the fuel from five hours a day.

  • For vessels smaller than 35 m (115’) chartering in the Caribbean, the CT (Caribbean Terms) is signed. Its rate includes fuel, beverages, and food.

The contract document is intended to clearly define and protect the obligations and rights of both parties. It minimizes the risks on both the owner and the charterer, which is why the slightest details are considered.

IS IT NECESSARY TO HAVE CHARTER INSURANCE?

You cannot predict the misfortune you may meet during your charter vacation, so it is necessary to have insurance. Make sure it is attached to the contract. A typical insurance policy covers:

  • Personal accidents
  • Loss of possessions
  • Guests for third party liability

 

WHAT CAN I PUT IN THE PROVISIONS LIST?

To meet all your wishes and to make your vacation the most exciting experience of your life, the crew must be made aware of your preferences including your and your family members’ diet, your favorite drinks, sports you are doing, and so on. Will you have any celebrations aboard? If yes, what party style would you choose? Inform your broker with all the pertinent information so the crew will be able to plan everything beforehand.

 

YACHT RENTAL COST

Charter payment of most vessels is determined by the MYBA (Mediterranean Yacht Brokers Association) payment terms

WMT (Western Mediterranean Terms)

The most often-used charter rules for the Mediterranean.

  • Direct rental cost
  • Crew service (crew meals are excluded)
  • Yacht insurance

To be paid separately by a client: fuel and onboard floating crafts, buffet service, docking and other marine taxes, laundry, telecommunication services, special equipment rent, a vessel delivery to a port of departure (in case a region is different), and other expenses during stops for berthing.

EMT (Eastern Mediterranean Terms)

Yacht rental cost includes:

  • Direct rental cost
  • Crew service
  • Yacht insurance
  • Crew meals
  • Fuel for main motors operation at the rate of 4 working hours a day
  • Docking and mooring taxes, tax on marine energy (toll for the canal is excluded)
  • Process water

To be paid separately by a client: fuel and onboard floating crafts, buffet service, docking and other marine taxes which are out of the standard heading, laundry, telecommunication services, special equipment rent, a vessel delivery to a port of departure (in case a region is different), and other expenses during stops for berthing.

CT (Caribbean Terms)

Cost includes all points specified in WMT and EMT, adding three meals daily for passengers. Some ship owners include alcoholic beverages and soft drinks in the yacht charter cost. To be paid separately by a client: docking and other marine taxes, laundry, telecommunication services, special equipment rent, a vessel delivery to a port of departure (in case a region is different), and other expenses during stops for berthing.

APA (Advanced Provisioning Allowance)

According to charter regulations, which exclude fuel costs and passenger meal expenses, there is the APA (Advanced Provisioning Allowance), and the deposit for covering extra charges which are beyond the contract. This kind of deposit equals 5 to 30% of a yacht charter cost. This sum is handed to the captain and upon the trip’s conclusion, the difference between the initial cost and what was spent is held back onboard or via bank transfer. In case the deposit is off before the trip begins, a captain informs a client that amount of the deposit should be increased in advance. Upon the trip’s end, the captain reports on the expenditures made during the cruise.

APA cost calculation:

  • 20 to 30% in addition to WMT charter cost (Western Mediterranean Terms)
  • 10 to 15% in addition to EMT charter cost (Eastern Mediterranean Terms)
  • 5% in addition to charter cost (Caribbean Terms, inclusive)

All charter costs should be added to the local VAT tax (it differs according to a region)

 

YACHT CHARTER RULES

Is it Possible to Accommodate More Than 12 Passengers at Once?

In case there are more than 12 passengers on board a yacht, and there is no special certificate for transportation of more than 12 persons, international voyage rules don’t allow a vessel to leave a harbor. Nevertheless, it is still possible to stay in a port and hold an event at the highest level owing to the fine cuisine of your chief cook.

Smoking on board a yacht

Smoking on board a yacht is forbidden. Passengers are seldom or never allowed to smoke in enclosed compartments.

Animals onboard

Animals are seldom or never allowed on board a yacht. In most cases ship owners don’t want the risks or probable consequences of the animals’ presence onboard. There are also customs and veterinary restrictions, which are applicable to many marine spaces of different states’ jurisdictions.

Documents to be taken onboard during a voyage

All passengers are required to have valid foreign travel passports with all necessary visas, depending on a voyage itinerary and list of states to visit.

Tips are essential for the charter business culture and amount to 10-15% of a charter cost.

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