Depending on where you would like to cruise to in the world, the type of charter contract varies quite considerably. There are different terms within the industry which determine the payment structure. For example, a MYBA (Worldwide Yachting Association, known formerly as Mediterranean Yacht Brokers Association) contract operates under WMT (Western Mediterranean Terms). This is the most commonly used contract especially with larger yachts setting out on a Mediterranean yacht charter.
The charterer pays for food, beverages, fuel and dockage fees as an extra expense plus the base charter fee. This kind of contract is known as a “plus all expenses” contract. Guests can accumulate an additional 25-50% of the base charter fee although this depends on what their food intake is. You can track these particular expenses using an APA (Advance Provisioning Allowance) which is covered in the next section.
Smaller yachts on a Caribbean yacht charter for instance can expect a “mostly all-inclusive” contract. This is known as a Caribbean Terms Inclusive (CTI) contract and is often referred to as Standard Caribbean Terms (SCT). The SCT terms are quite different from the Western Mediterranean terms as they include three meals per day and four hours of cruising each day. All of this is included in the base charter fee.
There are also less frequently used terms like Standard Eastern Mediterranean Terms (SEMT) and Greek Terms (GI) in addition to MYBA or Standard Caribbean terms. Why not read the information on Understanding Charter Contracts? If you’re a little unsure of what is included in the terms of your contract, please contact one of our brokers who will do their utmost to answer any questions you may have.
We use the MYBA (Worldwide Yachting Association) contract that operates under Western Mediterranean Terms (WMT). This is one of the most common contracts which is often described as a “plus all expenses” contract. It requires the charterer to pay for food, fuel, beverages, dockage/berthing fees and communication fees including the base charter fee. These extras accumulate to an additional 25% of the base charter fee depending on consumption.
Caribbean Terms Inclusive (CTI)
A mostly all-inclusive contract, the Caribbean Terms Inclusive (CTI) can be expected on smaller yachts that are on a Caribbean yacht charter. This is sometimes known as Standard Caribbean Terms (SCT). The base charter fee under this contract includes four hours daily cruising and three meals a day. Guests should remember if they wish to exceed a particular cruising speed, use electricity when the vessel is anchored or use jet skis, more fuel will be used which they have to pay for. Some CTI contracts might include certain beverages while others may charge extra for all drinks.
Advance Provisioning Allowance (APA)
The Advance Provisioning Allowance lets charterers manage their expenses via a traceable and clear arrangement by depositing the estimated expenses of fuel, dockage fees and food. The APA accrues to approximately 25% of the base charter fee. This does depend on the requirements and tastes of the entire charter party. For example, a sailing yacht with its lower fuel costs will have a lower expenditure. You can ask for an estimated APA from your broker which is based on your completed preference form.
This APA is payable about one month before the start of your charter and paid to the captain who will make all of the expenditures. He will also keep a record of what has been spent. If required, there’s always the opportunity during the charter to ask for a rundown of accounts from the captain.
If you do exceed the Advance Provisioning Allowance, the captain will ask that you pay additional funds during your charter vacation. When this is the case, remember to keep an additional amount with the yacht company so we can transfer your cash should it be requested. You can pay directly by cash too. If the full amount of the APA isn’t used up, the remaining funds will be given back to you at the end of the charter.