We use MYBA
In our work, we use MYBA contracts, agreements established by the Mediterranean Yacht Brokers Association. Their contract is based on Western Mediterranean Terms (WMT). It is likely the most popular agreement form, especially for charters on larger yachts that embark on the Mediterranean. This type of arrangement is comprehended as a “plus all expenses” contract since it requires the charterer to pay for fuel, meals, drinks, dockage fees, and the standard charter charge. The MYBA Terms cover the hiring of the yacht and all water toys and equipment. In addition, the crew’s salary, food, and the yacht’s laundry are covered.
On the other hand, food and refreshments for the visitors, gasoline for the yacht and water toys, berthing fees, communications charges, and other extras are paid from an escrow account you set up before leaving. Additional costs can go from 25% to 30% of the regular charter charge; however, this varies depending on what is requested. An Advance Provisioning Allowance (APA), which we shall discuss in the following section, is usually used to cover these costs.
APA (Advance Provisioning Allowance)
Regardless of the charter contract, passengers should be aware of the Advance Provisioning Allowance (commonly referred to as APA).
The APA was created to help charterers manage their costs transparent and trackable. An APA is a means to put down a portion of your charter’s projected spending amount to cover fuel, meals, dockage fees, and other considerations like special equipment. The APA typically amounts to about 25% to 30% of the base charter cost. However, this varies depending on the charter parties’ preferences and requirements; it might be less or more than this estimate. The APA is due around one month before boarding the charter vessel and is sent to the Captain.
After the APA has been paid to the Captain, it will be kept as a type of bank account from which the Captain may make purchases while keeping track of what has been spent.
Guests can request a breakdown of costs from the Captain at any time throughout the yacht hire to keep track of spending. Should passengers exceed the APA, the Captain will require any excess funds to be paid during the charter. It’s a bright idea to have a second account with your charter broker onshore so the charter broker can release more funds to the Captain on the charterers’ order if the APA becomes dangerously short at any point. Cash can be used if necessary; however, some people prefer the convenience of an onshore account. After disembarking, transactions can be examined by the “head” charterer and Captain, with any residual cash returned to the charterer.
Mediterranean Yacht Brokers Association
Mediterranean Yacht Brokers Association (MYBA) is an international association that brings together the best experts within the luxury yacht charter industry from all over the world, involved in all levels of the luxury charter. This worldwide association, founded in 1984, represents the authority and prestige in the yachting industry to which everyone aspires. With the primary mission of promoting mutual support and encouragement of professional development to achieve the highest professional and moral standards, MYBA strives to encourage its members to make continuous progress at every business level. Consequently, obtaining an MYBA membership means excellent success because it confirms successful business and works ethics. It also opens new doors to the world of the luxury charter.
Booking contracts and Croatian standard contract
- In 15 years of our presence in the Croatian yacht charter market, we have worked with most types of contracts within the yachting industry. Depending on your or your agency’s preferences, we can mutually decide which arrangement would be most suitable for your situation.
- In most situations, Croatian standard contracts are used for bookings on boats whose charter costs are less than 20.000 EUR per week. Included in the charter fee are the crew’s wages, as well as fuel for their main engines up to four hours of sailing each day, gasoline for their generators 24 hours a day, all of the crew’s meals and accommodation on board, as well as full linens and towels, yacht insurance, onboard customer service, sojourn taxes, and use of some of the yacht’s recreational equipment during their stay. Food and beverages, custom duties, and charter permit if chartered outside of Croatia, port and marina fees, and use of water toys are not included in the price. This contract protects both you and the boat owner.
Charter brokers
Charter brokers will be at your disposal to assist you through the contract and help you understand your responsibilities and expectations. So, if you have any doubts or questions, ask for their advice. The type of charter agreement we will use for your charter depends on different factors, mostly on your cruising destination and the type of vessel you are chartering. Within the yacht charter market, several basic contracts are often utilized. We advise you to read your agreement carefully to understand all the conditions. Then, contact your broker if you have any questions or need clarification on any specifics detail. Your broker will arrange everything for you to inspect and sign once you agree to the charter conditions.
- Please be aware that Value Added Tax may be imposed on the total charter Fee and delivery expenses for charters in EU waters due to European Union tax regulations. In addition, local taxes may apply in other countries, and our brokers will inform you of current prices based on your preferred cruise location and itinerary.
- It’s vital to remember that the gasoline spent by jet skis and tenders will also apply to the charterer when calculating fuel charges. Furthermore, while moored outside the marina, the generators used to generate energy use gasoline. Fuel expenses are also affected by the distance and cruising speed, so keep these considerations in mind. Dockage costs can range from 500 euros to several thousand euros, depending on the location and if you want to dock during a particular event.
- Upon signing the Charter Agreement, a deposit of 50% of the charter price has to be paid immediately. Usually, 45 days before the charter starts, the remaining 50% of the charter cost must be covered with an Advance Provisioning Allowance, taxes, delivery/redelivery fees, and other extra agreed-upon charges.
- Although it is common practice for a charterer who has experienced an accommodating crew’s courteous and attentive service to give a tip, gratuities are optional. Crew gratuities are typically in the range of 10% to 15% of the charter charge; however, they can adjust according to your level of satisfaction.
- Drug usage is strictly banned in ALL charter contracts, and this situation can result in the termination of the charter without any refund to the client.
- Safety is also discussed in the contracts. The skipper will always try his best to fulfill all client requests but reserves the right to make final decisions to safeguard the boat, crew, and guests.
- Yachts in Croatia mainly operate on a Saturday-to-Saturday basis, especially during the high season.
