SAIL THE BRITISH VIRGIN ISLANDS WITH SUNSAIL CHARTER 'OPTION B' IN THE EAST MEDITERRANEAN A GULET CHARTER IN TURKEY Top European Yacht Chartering Destinations THE DODECANESE ISLANDS - A ONE WEEK CHARTER TO REMEMBER SRI LANKA AND THE MALDIVES: A MATCH MADE IN HEAVEN Mykonos by Catamaran - the Perfect Greek Island Getaway AMAZON RIVER CRUISE: PERU EXPLORE AUSTRALIA'S BEAUTIFUL WHITSUNDAY ISLANDS - A 10-DAY VOYAGE ALPHA YACHTING SPECIAL OFFER - 50% OFF 2021 YACHT CHARTERS & CRUISES IN GREECE SOMNIO COMMISSION THE WORLD'S LARGEST SUPERYACHT (222M LOA) WITH 39 EXCLUSIVE RESIDENCES ANNAPOLIS & THE CHESAPEAKE BAY: AMERICA'S SAILING CAPITAL 63m UTOPIA IV now for Charter GREECE, TURKEY & CROATIA - YACHT CHARTERS & LUXURY CRUISES CHARTERING A SAILING YACHT IN GREECE - FREQUENTLY ASKED QUESTIONS GET THE MOST OUT OF YACHT OWNERSHIP SUPERYACHT 11.11 - A TRULY SPECTACULAR SUPERYACHT CHARTER CHARTER M/Y PAREAKI IN THE CYCLADES SAIL THE BEAUTIFUL SOUTHWEST COAST OF THE UK FIVE SECRET CARIBBEAN DESTINATIONS! 140M+ BRITISH 'NATIONAL FLAGSHIP' TO BE BUILT SPECIAL REPORT: GREECE & TURKEY YACHT CHARTERS top places to visit on a yacht charter from the Solent THE TOP CHARTER DESTINATIONS, BY THE EXPERTS Norway Sailing Adventure to the Fjords and Back YACHT CHARTER CONTRACTS SPECIAL REPORT: UK & IRELAND YACHT CHARTERS & CRUISES EU EXPECTED TO OPEN UP FOR TOURISM THIS SUMMER F1 GRAND PRIX - MIAMI 2022 - YACHT CHARTERS & CRUISES TO BE IN DEMAND THE NORTHWEST PASSAGE - IN THE FOOTSTEPS OF FRANKLIN CHARTER A 'GULET' AND CRUISE THE GREEK ISLANDS THIS SUMMER MAUI JIM - POLARIZEDPLUS2® LENS TECHNOLOGY Vaccinated Britons 'WILL be allowed' to fly on holiday from May 17 Achieve your dream of yacht ownership with Dream Yacht Sales OFF THE BEATEN TRACK IN THE BALEARIC ISLANDS Bahamas Yacht Charters expected to grow 500% in 5 years VENICE TO ATHENS WITH SILVER SHADOW OPV 56 - Combining Military Design With a Luxe Interior SEEK THE SUN ON A SUNSEEKER STAR CLIPPERS TO UNITE IN THE MEDITERRANEAN IN 2022 SAIL THE BRITISH VIRGIN ISLANDS WITH SUNSAIL THIS WINTER EXPLORE THE TURKISH RIVIERA ON 'LUCE DEL MARE' BY-THE-CABIN YACHTING HOLIDAYS IN ST BARTS THE COOLEST BEACH CLUB Cruising the Northwest Passage with Hurtigruten NEW ENGLAND WITH RENAISSANCE DUFOUR 412 Charter the Gulet 'Blue Heaven' this Summer! TURKEY TO REOPEN FOR YACHTING THIS SPRING MIAMI - WHERE CULTURE MEETS THE BEACH CLASSIC BENETTI (35M) FOR SALE FOR €2.6M GREECE TO RE-OPEN FOR YACHT CHARTERS & SAILING HOLIDAYS IN MAY? WINE TASTING ON THE CANAL DU MIDI SUNRAYS FOR SALE OR CHARTER EXPLORE THE FRENCH RIVIERA - FOR A WEEK OR JUST A DAY OYSTER 495 - A new 50 foot bluewater sailing yacht JOURNEY IN ST-TROPEZ - A 1-DAY CELEBRATION WITH DREAM YACHTING TARGETING THE UK MARKET 'GAMECHANGER' READY FOR CHARTERS FOR THOSE WITH THE MOST ADVENTUROUS SPIRIT IRRESISTIBLE! - 32M (105') HARGRAVE FOR SALE & READY FOR THE 2021 SEASON VIEW THE WORLD THROUGH DIFFERENT EYES CORONAVIRUS: LIVE YACHTING UPDATES Yacht Charters in the Era of Social Distancing Silversea Cruises - Information on the commencement of travel LAGOON - FROM IDEA TO REALITY AZIMUT'S MAGELLANO 25 METRI - AT ONE WITH THE SEA FLOTILLA SAILING & KITEBOARDING IN THE BAHAMAS THE YACHT CHARTER SHOW & FORUM ABOARD & ASHORE IN ST. KITTS A 3-Night Adventure Voyage from Dubrovnik WHERE CAN I CHARTER? CROATIA - A 7-DAY SAILING ITINERARY FROM DUBROVNIK SAILING IN THAILAND IS AN EPIC VACATION EXPERIENCE CHARTER A YACHT ON THE FRENCH RIVIERA & CORSICA THINKING ABOUT A SAILING VACATION IN GREECE? DISCOVER UNIQUE DESTINATIONS IN THE CARIBBEAN LATE SUMMER SAILING IN SARDINIA FRENCH POLYNESIA - ONE WEEK BAREBOAT WITH SUNSAIL THE WORLD'S MOST EXCLUSIVE YACHT CHARTER? DISCOVER THE NORFOLK BROADS EXPLORATION NEVER LOOKED SO GOOD OCEANIS 51.1 - AN OCEAN SAILING YACHT FOR CHARTER & SALE EXPLORE MALTA & THE MEDITERRANEAN WITH SUNSEEKER MALTA FROM MARTINIQUE TO MUSTIQUE CRUISE CORSICA & SARDINIA WITH A PRINCESS SAIL & KITEBBOARD IN THE BAHAMAS WITH SUNSAIL CHARTER 'PRIMETIME' IN THE PHILIPPINES NATIONAL PARK EXPLORE THE WORLD WITH THE ROSETTI 171 CRUISING THE STUNNING ADRIATIC - SUNSEEKER STYLE! EMERALD YACHT CRUISES INTRODUCES 50-CABIN 'EMERALD AZZURA' ANTIGUA SAILING WEEK 2020 & DREAM YACHT CHARTER 68M SOARING - NEW TO THE SUPERYACHT CHARTER MARKET EARN YOUR POWER CERTIFICATION CHARTER MANAGEMENT PROGRAMMES WELLNESS YACHT CHARTER TOP THINGS TO DO IN ANTIGUA A WINE TASTING CRUISE IS PERFECT! DISCOVER THE WORLD WITH M/Y CLOUDBREAK ENDEAVOUR 2 IN THE AEOLIAN ISLANDS

News & Features

News Feature

YACHT CHARTER CONTRACTS

12 May 2021
CHARTER EYE
All
When you begin planning a luxury yacht charter it is important to be aware of what is included in the cost of booking your dream charter yacht. Although a yacht will have a base charter fee, this may or may not include additional expenses such as food and fuel and this is subject to the terms and conditions within the charter contract. There are various types of charter contracts and which one applies to you will depend on where you wish to cruise.

HIGH SEASON

High season refers to the most popular weeks of the year for yacht charter, whether it’s the winter period in the Caribbean or the height of summer in the Mediterranean, booking in high season requires early planning, determination and a big budget. In addition, planning a yacht charter to coincide with a major event will also be reflected in the price with marine spots for elite events often booking up early. Allow plenty of time when making enquiries to ensure a star studded, well prepared arrival.

LOW SEASON

Low season typically refers to any time outside of the high season periods. Groups of families and friends looking for a relaxing luxury vacation are advised to avoid high season weeks and opt for weeks outside of this time. The busiest periods are of course reflected in the charter costs and can be up to 15 to 30 percent more expensive than typical low season periods. Chartering a few weeks either side of these busy periods can be almost exactly the same, with the weather almost unchanged in some places, with far less crowds.

Take to our detailed destination guides and browse the yachts available in your chosen destination. Some of the most successful superyachts in the industry can be reserved up to a year in advance and as most yacht brokers will warn away from last minute bookings, it is better to book early and have the pick of the bunch rather than miss out at the last moment.

BASE CHARTER FEE

The base charter fee refers to the hire cost of the yacht itself, with all equipment in working order in addition to the cost of food and wages for the crew during the entirety of the charter. This is essentially all the base charter fee covers with additional expenses often applicable on top. The base charter fee will vary from one yacht to another and this may be down to any number of reasons from size and on board amenities to the charter season. For instance, the base rate of a charter yacht may increase in “high season” and reduce during the “low season”. “High season” and “low season” refers to the busiest and slowest periods for yacht charters though this may appear misleading, as these peak times refer to periods of weeks as opposed to full seasons.

Aside from seasons and events, yachts of the same size may also differ in price and this may be down to a vast difference in on board amenities. A yacht which boasts an on board cinema or lavish water toys may have a higher base rate compared with a yacht of minimal amenities of the same size. If it is unclear as to why two yachts of the same size are vastly different in price, ask your yacht broker to explain what the differences are. Once you are clear on what the base price is and why, it is important to discover what costs will be applicable on top and this is dependent on the type of charter contract used.

CONTRACTS

The type of charter contract applicable to your charter will depend on where in the world you are cruising, as there are various terms within the industry which dictate how the payment structure is determined. For instance, a MYBA (Worldwide Yachting Association, formerly known as Mediterranean Yacht Brokers Association) contract operates under Western Mediterranean Terms (WMT) and is arguably the most commonly used, particularly with large yachts embarking on a Mediterranean yacht charter. This contract is often referred to as a “plus all expenses” contract and requires that the charterer pay for fuel, food, beverages and dockage fees as an additional expense outside of the base charter fee. Typically, guests can accumulate an additional 25% to 50% of the base charter fee though this is dependent on what is consumed. These expenses can be tracked through the use of an Advance Provisioning Allowance (APA) which we will cover in the next section.

Alternatively, smaller yachts on a Caribbean yacht charter can expect a “mostly all-inclusive” contract known as Caribbean Terms Inclusive (CTI) sometimes referred to as Standard Caribbean Terms (SCT). The Standard Caribbean Terms greatly differ from Western Mediterranean Terms, as the Caribbean terms include three meals a day in addition to four hours cruising per day which is included in the base charter fee.

In addition to the commonly used MYBA terms and Standard Caribbean Terms, there are also less frequently used terms such as Standard Eastern Mediterranean Terms (SEMT) and Greek Terms (GI).

ADVANCE PROVISIONING ALLOWANCE (APA)

Irrespective of the charter contract it is important for guests to be aware of the Advance Provisioning Allowance (APA). The APA was designed to enable charterers to manage their expenses through a clear and trackable arrangement. An APA is a way to deposit the estimated expense amount of your charter to cover costs such as fuel, food and dockage fees. Typically, the APA accrues to approximately 25% to 30% of the base charter fee, though this does of course depends on the charter parties tastes and requirements and could be far less or far greater than this estimation. For instance, charter guests who intend to regularly dine on caviar and vintage wine can expect to pay more, whereas guests on board a sailing yacht charter can expect to save on fuel costs. Charterers can request an estimated APA amount from the yacht broker based on their on board expectations.

The APA is to be paid approximately one month prior to boarding the charter yacht and is paid directly to the Captain of the yacht. Once the APA has been paid to the captain it will then be retained as a bank account of sorts, from which the captain can make expenditures whilst keeping a record of what has been spent. At any point during the yacht charter guests can request a rundown of accounts from the captain as a way of keeping track of expenditures. The captain will request that any additional funds are paid during the charter should guests exceed the APA. It is therefore a good idea to keep an additional account with your yacht broker on shore, as should the APA become critically low at any time the yacht broker can release additional funds to the captain on the charterers command. Cash can be used if necessary though an on shore account may be deemed as hassle free to some.

It is important to remember that food and fuel for example, are charged at cost without mark up to the charterer and upon disembarking, transactions can be reviewed by the “head” charterer and Captain with any remaining funds to be paid back to the charterer.

FUEL & DOCKAGE FEES

It is important to remember that whilst considering fuel costs, the fuel consumed when using jet-skis and tenders will also apply to the charterer. In addition, whilst docked at a marina the generators used in order to produce electricity will also use fuel. The distance travelled and speed of cruising also affects fuel costs and it is important to bear these factors in mind. Dockage fees may vary from very little to large sums and this is dependent again upon the location and whether you wish to dock during a special event such as the Monaco Grand Prix.

INSURANCE

Although insurance costs are not directly connected to the charter costs as such, it is useful to bear in mind should you with to take out Charterers Liability Insurance or Cancellation and Curtailment cover. You can read more information regarding insurance in our How to Book and Plan a Yacht Charter article.

SUMMARY

No request is too large or detail too small on a yacht charter. It is important to understand the entire payment structure to ensure no unpleasant surprises arise and it is often prudent to keep an escrow account with your broker on shore in order to control charter costs without having to carry cash on board.

For further advice & assistance, please contact us at: enquire@chartereye.com