yacht charter agreement

Bareboat Charters – What you need to know

May 20, 2021

Introduction

Well, it’s that time of year again—fishing season. After months off in a wintery reprieve, it’s time to get back to work and go fishing—and not a moment too soon. Many vessel owners might have had an eye for expansion this season. Perhaps they are looking to build new boat or one of their buddies is looking to sell his boat for a song. Either way, the owner’s fleet is set for expansion. Yet finding enough capital to build or buy a vessel is not easy at all. In fact, it is one of the most ubiquitous problems in the maritime industry today (no access to cheap capital), which is why a bareboat charter is something worth considering.

Bareboat Charter Basics

The underlying intent of a bareboat charter is to maximize the earning capabilities of the vessel so that both parties (the Owner and the Charterer) can make money. In its simplest form, a bareboat charter arises when the Owner leases his or her vessel out to the Charterer for a fixed period of time. Once the Charterer takes position of the vessel, the Charterer becomes entirely responsible for the vessel. This means the Charterer is accountable for the vessel’s crew, fuel, insurance, and any maintenance and repairs the vessel needs. In exchange for the use of the vessel, the Owner will receive a daily, weekly, or monthly stipend (better known as “charter hire”). Once the charter party has expired, the Charterer will redeliver the vessel to the Owner in the same condition as the vessel was originally in upon delivery (ordinary wear and tear excepted). Importantly, in some instances, the charter party will allow for a transfer of ownership in the vessel once the contract has ended, which, by way of analogy, is similar to “rent-to-own” agreement. Indeed, for an Owner, a bareboat charter party can be an effective tool to put an unemployed vessel to work. For a Charterer, a bareboat charter is a great way for a captain or crewmember to buy a boat without jumping through a bank’s traditional financial gauntlet. Either way, a bareboat charter is a win-win. Easy-peezy, right? Well… sort of.

Terms and Conditions

The terms of a bareboat charter party will depend on a number of variables. In most instances, these variables include the purpose of the charter, the bargaining strength of the parties, the length of the charter period, the type of the vessel, and the trade involved. That being said, there are certain terms and conditions that are fundamental to any bareboat charter. For example, all bareboat charters will have specific details about where the vessel can go (“trading warranties”); the type of insurance the Charterer must carry while operating the vessel (“insurance warranties”); and other clauses applicable to the safe operations of the vessel such as crewing standards, permitted cargoes, and indemnity agreements.

In contrast, the vessel’s Owner is most often concerned about non-payment of hire, failure to maintain and/or repair the vessel, and failure to arrange/maintain insurance on the vessel. For Charterers, they are primarily concerned about chartering an unseaworthy vessel. Regardless of the terms and conditions of the bareboat charter, these contracts will provide Owners and Charterers a clear, contractual roadmap that is designed to land at each party’s respective financial destination. No contract, however, is without its own unique issues and bareboat charters are no different. Arguably, the most contested issue between the Owner and the Charterer in a bareboat charter involves the allocation of liability.

Liability – From the Charterers Perspective

Bareboat charters are an attractive alternative to a traditional financial arrangement, but they do come with a price—increased liability. For example, the Charterer, as the de facto owner of the vessel, is now responsible for paying hire to the Owner; responsible for any loss or damage to the vessel; responsible for any ordinary diligence in the care of the vessel; and responsible for any third party liabilities as if they were the Owner. Put differently, a Charterer becomes responsible for collisions, personal injuries (Jones Act claims), pollution damage (OPA 90), and wages to the crew (Maintenance and Cure). Indeed, in contrast to an Owner’s legal exposure, a bareboat Charterer takes on a significant amount of legal liability.

Liability – From the Owners Perspective

Vessel Owners have a favorable opinion of bareboat charters because their liability is significantly reduced. After all, if everything is working correctly, the Charterer should be responsible for nearly all the costs associated with the vessel and the Owner should just be collecting charter hire. Contractually speaking, however, the allocation of liability is never that clear, and a substantial portion of bareboat charters are litigated over whether or not a valid bareboat charter party even existed.

In order to establish a valid bareboat charter, Owners must completely surrender “operational control” of the vessel to the Charterer for the duration of the charter period. Operational control is a legal term of art that means that the Owners must go so far as to relinquish “possession, command and navigation” of the vessel as to be “tantamount to, although just short of, an outright transfer of ownership.” Guzman v. Pichirilo, 1962 AMC 1142 (1962). Legally, this requires three elements: (1) full possession and control of the vessel must be delivered to the Charterer for a specified period of time; (2) the vessel is then directed by its Master, manned by his crew, makes his voyages, and carriers the cargo as he chooses; and (3) the services performed on board the vessel are primarily for the benefit of the Charterer. Put differently, in order to establish a valid bareboat charter agreement, courts will required evidence that the Owner has completely and exclusively relinquished possession, command, and navigation of the vessel to the Charterer.

Two-Steps/Two-Contracts

Avoiding liability is not as easy as one might think—even with a sophisticated contract. Indeed, in an effort to avoid liability, Owners of fishing vessels sometimes bareboat charter their vessels to their Masters. From there, the Masters proceed to hire their own crews. Yet when things go south, i.e., someone gets hurt or the vessel is damaged, the injured crew members will challenge the validity of the bareboat charter party. This should come as no surprise because, after all, friends rarely sue each other. And, more often than not, the Master of the vessel does not have as deep of pockets as the former vessel owner.

For example, in an effort to double their catch or to simply increase revenue, shipowners will informally charter one of their vessels to a friend who, in turn, subsequently hires their own crew (usually a friend) to work the boat. Following an injury, however, the injured crew member soon realizes that his longtime friend/captain has no financial means of providing the necessary maintenance and cure obligations. As you would expect, the injured crew (and his new attorney) then turn to the shipowner for restitution, and by alleging they were employees of the shipowner, not the charterer, they can effectively tap into the shipowner’s insurance policy. Indeed, these loose crew arrangements are ripe for maritime litigation because the shipowner, not the charterer, will typically have the necessary insurance to pay for a claim, and, as a general rule, injured crew (and their lawyers) tend to follow the money.

The landmark case illustrating the above scenario is Deal v. A.P. Bell Fish Co., 1985 AMC 446 (5th Cir. 1982). The case involved the disappearance of Mr. Richard S. Deal, a deckhand on the F/V MISS IRENE who mysteriously disappeared during a wheelhouse watch while fishing for red Snapper sixty miles off the coast of Louisiana in the Gulf of Mexico. It was believed Mr. Deal fell overboard during his watch while the other two crew members took a short nap.

A short time after the disappearance, Mr. Deal’s wife and minor child sought six-figure recovery from A.P. Bell Fish Company (“AP Bell”); alleging Jones Act and unseaworthiness violations. Initially, however, the District Court dismissed Mrs. Deal’s Jones Act and unseaworthiness claims. The Court reasoned that Captain Creamer (the skipper of the MISS IRENE) had a bareboat charter agreement with AP Bell and therefore he (as the Charterer), not AP Bell (as the Owner), was responsible for Mr. Deal’s death (if at all). Put another way, the District Court reasoned that Captain Creamer’s bareboat charter party with AP Bell made him solely responsible for any injuries that occurred on the MISS IRENE—including the death of Mr. Deal.

To support its decision, the District Court relied heavily on the oral bareboat charter agreement between Captain Creamer and AP Bell. Pursuant to that agreement, the District Court opined that: (1) Captain Creamer had the liberty to hire all crew members and navigate the ship wherever he wished; (2) MISS IRENE’s fuel, ice, and grocery costs were to be taken out of the Captain Creamer’s and his crew’s share of the earnings; and (3) Captain Creamer had agreed to give AP Bell one-third of the vessel’s catch. All in, the District Court felt these three elements were enough prove that Captain Creamer had operational control over the vessel, thus establishing a bareboat charter agreement between Captain Creamer and AP Bell and relieving AP Bell of all legal liability.

The 5th Cir. Court of Appeals, however, disagreed and reversed the District Court’s ruling. In reaching its decision, the 5th Circuit scrutinized the bareboat charter agreement between Captain Creamer and AP Bell and took issue with several key facts. First, the 5th Circuit was not impressed with Captain Creamer’s ability to hire and fire crew members. The 5th Circuit felt that a skippers ability to hire and fire crew members was customary in such instances—regardless of who owned the boat. Second, the 5th Circuit was not impressed with the fact that Captain Creamer was allegedly going to give AP Bell a percentage of his catch. The 5th Circuit felt this agreement was merely illusory since it was oral and had no set duration. Third, the fact that all of MISS IRENE’s repairs were being charged to AP Bell, not Captain Creamer, suggested that AP Bell had more operational control of the vessel than had previously been argued. With that, the 5th Circuit felt there was not enough evidence to establish that Captain Creamer (as the Charterer) had sufficient command, possession, and control of the MISS IRENE. As a result, the 5th Circuit reversed the District Court’s ruling thus holding AP Bell responsible for the death of Mr. Deal. Yet, if the Owner retains operation of the vessel, there will be no shelter from liability.

Bareboat charter agreements can be a great financial alternative, especially for those with a lack of capital. However, the liabilities associated with these arrangements are no joke and Owners need to be careful when deciding to bareboat charter out their vessels too long time captains or crew members—especially without a written contract. As the Deal v. A.P. Bell Fish Co. case illustrates, vessel owners who decide to charter their vessels out can be liable to 3rd parties even though the owners had no formal contract with that party.

That being said, having a written bareboat charter in place can easily prevent any miscommunication down the road. In such circumstances, parties conversant with the terms of a standard bareboat charter party are unlikely to be caught off guard by some onerous clause or unforeseeable 3rd party liability claim. As a result, each party and can concentrate on the essential goals of the contract—to go fishing and make some money.

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Yacht Charter Contract

Yacht charter contract explained: key concepts to look for.

Your charter contract is a document between you, the charterer, and the owner of the yacht. This agreement covers all the details of your vacation:

• Ports of Calls
• Your Rights as a Charterers
• All Obligations
• Cancellation Policies
• Payment Structures
• Insurance Details

Charter brokers will help you read through the contract and understand what your obligations are and what to expect. Yet, it’s helpful to understand the basics of what you’re getting into. The three most common types of yacht charter contracts include:

1. Mediterranean Yacht Brokers Association Terms (MYBA)

MYBA terms, which are developed by Mediterranean Yacht Brokers Association, covers many Mediterranean yacht charters . Typically referred to as a “plus all expenses” contract, the MYBA is very comprehensive.

MYBA Terms cover hire of the yacht including all water toys and equipment, wages and food for the crew, and the ship’s laundry. Expenses such and food and beverages for the guests, fuel for the yacht and water toys, berthing fees, communications costs and other additions, though, are paid from an escrow account you set up prior to embarking.

2. Caribbean Terms Inclusive (CTI)

CTI terms are primarily used with small vessels sailing throughout the Caribbean . This type of contract is commonly referred to as the Standard Caribbean Terms, and it’s often described as a “mostly all-inclusive” contract.

Under a contract like this, the basic charter fee includes: use of the yacht, water toys, equipment, crew food and wages, three meals a day for guests onboard and four hours a day worth of fuel. Items like premium beverages, any extra fuel, berthing fees and communications come at an additional cost.

3. Standard Eastern Mediterranean Terms (SEMT)

Used less frequently than the MYBA terms, SEMT contracts are similar to terms used in the Caribbean. A key difference, though, is that just two meals are included, as most guests dine at restaurants most evenings.

Also included in the SEMT terms are items like: water toys, equipment, crew and food wages, and four hours a day of fuel. Additional costs include beverages, extra fuel, communication costs and berthing fees outside of normal cruising grounds.

Why This Is Important : Understanding all the details of your contract protects both you and the yacht owner. So, if you have questions or unsure about details, ask your broker. Yacht brokers have extensive experience with each type of contract, and can help you understand any details. Once you have agreed to the contract terms, your broker will put it all together for you to review and sign.

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Charter Agreement

Bareboat charter agreement example, bareboat charter agreement.

BAREBOAT CHARTER AGREEMENT

(MARINE LEISURE ASSOCIATION)

• The Owner of the Vessel: <Yacht Name> represented by: Hamble Point Yacht Charters, Hamble Point Marina, School Lane, Hamble, SO31 4JD
• The Charterer <Charterer’s Name> Ref: <Reference> of <Charterer’s Address>

DEFINED TERMS

“Vessel”: including all equipment, machinery and gear on board and any inventory signed by the parties

“Charter Period”: from <Charter start time and date> to <Charter end time and date>

“Cruising Limits”: <default 30> nautical mile radius from Hamble Point

“Charter Fee”: the sum of: <Charter fee>

“Advance Payment”: the sum of: <Charter deposit>

“Balance of Payment”: the sum of: <Charter balance> due by: <Balance payment date>

“Security Deposit”: the sum of: <Security deposit>

“Fuel and Accidental Damage Payment”: non-refundable payment covering accidental damage or loss to the vessel and ancilliary equipment and loss or damage to any third party yacht involved in an accident with the Vessel. Includes fuel up to a stated value<

“Owner” and “Charterer”: the persons named above and their respective successors in title.

“Port of Delivery”: Hamble Point Marina

“Port of Redelivery”: Hamble Point Marina

1       Charter and payment

1.1      The Owner shall let on bareboat charter and the Charterer shall hire the Vessel for the Charter Period for the Charter Fee.

1.2      The Advance Payment is paid by way of a deposit to secure the Vessel for the Charter Period and shall be paid to the Owner on the signing of this Agreement.  On payment by the Charterer of the Advance Payment, the Owner agrees not to enter into any other agreement for the charter of the Vessel for the same period.  The Balance Payment shall be paid to the Owner no later than the date stipulated herein.  The Security Deposit and/or Fuel and Accidental Damage Payment shall be paid to the Owner before commencement of the Charter Period.

2      Security Deposit/Fuel and Accidental Damage Payment

2.1      The Owner may retain and apply the Security Deposit in part or in full to cover any liability of the Charterer to the Owner.

2.2      The Fuel and Accidental Damage Option and Security Deposit provisions as detailed in the Booking Form and Charter Agreement shall apply.

2.3      In the case of damage or loss caused by an act of gross negligence, retention of the Security Doposit or payment of a Fuel and Accidental Damage Payment shall not prejudice the right of the Owner to recover any unsatisfied balance of such liability of the Charterer to the Owner.

2.4      Subject to the preceding clauses of this section, the Security Deposit or any balance remaining shall be returned to the Charterer within 14 days after the Redelivery, or, in the event of a dispute, upon the determination of such dispute.

3      Owner’s Obligations

3.1      The Owner shall at the beginning of the Charter Period deliver the Vessel to the Charterer, or his representative, in good and seaworthy condition in compliance with the MCA’s Code of Practice for the Safety of Small Commercial Motor or Sailing Vessels and with the minimum equipment requirements of the Marine Leisure Association (MLA). At a time convenient to the Charterer and the Owner and for a reasonable duration, the Charterer may inspect the Vessel before the start of the Charter Period in the company of a representative of the Owner.  The Owner does not warrant the fitness of the Vessel in all conditions of weather for any particular cruise or passage within the Cruising Limits.  

3.2      The Owner will use all reasonable endeavours to deliver the Vessel to the Charterer in the aforesaid condition at the agreed time and place but in default, whether as a result of a breach of 3.1 or otherwise, his liability shall be limited to a pro rata return of the Charter Fee for each period of 12 hours for which delivery is delayed. If such delay exceeds 25% of the Charter Period, the Charterer shall be at liberty to treat the Charter as cancelled.  The Owner shall thereupon return all sums paid together with reasonable compensation for travel and accommodation costs but shall have no further liability to the Charterer in respect of the curtailment or cancellation of the Charter including without prejudice to the generality of the foregoing liability in respect of consequential or economic loss or loss of use or enjoyment.

3.3      The Owner is not liable under clause 3.2 if such failure is as a result of Acts of God (including fire, flood, earthquake, storm, hurricane or other natural disaster), war, invasion, act of foreign enemies, hostilities (regardless of whether war is declared), civil war, rebellion, revolution, insurrection, military or usurped power or confiscation, terrorist activities, nationalization, government sanction, blockage, embargo, labour dispute, strike, lockout or interruption or failure of electricity or telephone service.  If the Owner asserts this clause as an excuse for failure to perform his obligation, then he must prove that he took reasonable steps to minimize delay or damages caused by foreseeable events, that the party substantially fulfilled all non-excused obligations, and that the Charterer was timely notified of the likelihood or actual occurrence of an event described above.  Where delivery is delayed otherwise than by reason given in this clause, the Owner’s maximum liability, in addition to the return of all sums paid, shall be limited to an amount equal to 50% of the Charter Fee.

4      Insurance and Liabilities

4.1      The Vessel and her equipment shall be insured on the terms of the Institute Yacht Clauses or on comparable terms for her full value with third party damage cover of no less than £2,000,000 subject to a policy deductible no greater than the Security Deposit.

4.2      The Charterer shall indemnify the Owner in respect of any loss or damage to the Vessel or her equipment, or other expense or liability arising out of any act or omission of the Charterer, his servants or agents or any member of his party, which is not for any reason covered by the Vessel’s insurance. 

4.3      The Owner shall have no liability for death or personal injury suffered by the Charterer, his servants, agents or any member of his party unless caused by the Owner’s negligence or wilful default.

4.4      The Charterer shall neither take the Vessel outside the Cruising Limits nor do any other act which may vitiate the Owner’s insurance or prejudice the Owner’s right to claim thereunder.

4.5      In the event of damage to or failure of the Vessel or any other incident involving a third party, the Charterer shall at the earliest opportunity (and in any case within 12 hours) report such occurrence to the Owner or his local agent and shall comply with any reasonable instructions given.  The Charterer shall not accept a tow or take any other action that could lead to a claim for salvage unless in imminent peril and unless a reasonable fee has been agreed for the action to be taken.

4.6      In the event of major damage to the Vessel during the Charter Period involving a claim on the Vessel’s insurance or in the event of a breakdown of gear or machinery rendering the Vessel unseaworthy or unusable, either a pro rata credit will be made for the period during which the Vessel was unseaworthy or unusable or (if the Charterer so elects and subsequent charters of the Yacht permit) the Charter Period will be extended by the period of such enforced unfitness, provided that neither the Charterer nor any member of his party caused or contributed to the damage or breakdown and provided also that the Owner shall not be liable to the Charterer for any other compensation in respect of damage or breakdown whether in respect of consequential or financial loss or otherwise, save where damage or breakdown is caused by the negligence of the Owner and results in death or personal injury.  (Engine breakdown in an auxiliary yacht is not deemed to make the Vessel unfit for use under this Agreement).

5      Charterer’s Obligations

5.1      The Charterer will restrict the navigation of the Vessel to the Cruising Limits and to those areas within the Cruising Limits in which the Vessel (i) is legally entitled to be navigated and (ii) can be safely navigated by the Crew in the prevailing conditions.

5.2      If the Charterer fails to accept delivery of the Vessel within 24 hours of the start of the Charter Period and has not by then notified the Owner of his intention to accept delivery later during the Charter Period, the Owner may treat this Agreement as terminated without prejudice to his rights to recover any unpaid portion of the Charter Fee and to recover damages in respect of any other loss caused to the Owner through the failure of the Charterer to accept delivery of the Vessel.

5.3      The Charterer warrants that he and the Crew have the experience and competence described on the Booking Form and that they are capable of safely handling the Vessel.

5.4      The Charterer will pay all running expenses during the Charter Period (including, but not limited to, the cost of charts other than those supplied, food, laundry charges, water, fuel, bills of health, harbour dues, port dues, pilotage and all other provisions for the Charterer and the Charterer’s party) and to the extent that on redelivery if any consumables other than those expressly included within the Charter Fee have not been restored to their handover levels, the Charterer shall be liable to the Owner for the cost thereof.

5.5      The Charterer shall not sub-charter or part with control of the Vessel without the prior written consent of the Owner.

5.6      The Charterer shall take care of and assume full responsibility for the safety and maintenance of the Vessel and its equipment at all times during the Charter Period including when unattended.  When the Charterer leaves the Vessel unattended, the Charterer shall remain fully responsible therefor and should take all reasonable precautions to secure the Vessel and the equipment and gear on board.

5.7      Where loss or damage is caused to the Vessel the Charterer shall use his best endeavours to obtain the prior approval of the Owner before putting any repairs in hand and will in any event obtain a written estimate for any work likely to cost more than £100.00.

5.8      The Charterer shall not allow the Vessel to dry out or be stranded and shall ensure that the Vessel is moored only at a secure and well-maintained mooring point.  The Charterer shall not anchor the Vessel in a place where anchoring is restricted or that is not suitable for anchoring such a vessel.

5.9      The Charterer shall neither use the Vessel for any purpose other than private pleasure cruising for himself, his crew and his guests, nor race the Vessel without the prior written consent of the Owner. He will not tow any dinghy but will lash it on the deck of the Vessel.

5.10    The Charterer shall limit the number of persons in his party to not more than the number of berths on the Vessel, except by prior agreement with the Owner, such agreement to be contingent on the Charterer’s party not exceeding the number of places on the Vessel licensed by the appropriate authority.

5.11    The Charterer shall observe all applicable rules, regulations and laws whether of customs, harbour or other authorities or otherwise.

5.12    The Charterer shall not allow any animals on board the Vessel without the prior written consent of the Owner.

5.13    The Charterer shall not allow any third parties on board nor undertake any act that could lead to seizure, arrest or distraint.

5.14    The Charterer shall redeliver the Vessel to the Owner at the end of the Charter Period, at the Port of Redelivery or at such other place as may be agreed between the parties, free of indebtedness, in as good, clean and tidy condition as on delivery  (fair wear and tear excepted) and with her inventory complete. If the Charterer  fails so to redeliver the Vessel, he shall be liable for twice the pro rata Charter Fee for every day or part thereof by which redelivery is delayed, unless such delay is caused by the operation of an insured peril or circumstances beyond the Charterer’s reasonable control.  Due to the availability of weather forecasts, abandonment of the Vessel away from the Port of Redelivery due to bad weather does not constitute a circumstance beyond the Charterer’s reasonable control.

5.15    The Charterer’s obligations under this Agreement shall continue until redelivery.

6      Notice of Withdrawal

6.1      Where the Charterer is a Consumer (ie, the Charterer is a natural person and is acting for purposes which are outside his trade, business or profession):

6.1.1       Should the Charterer give written notice to the Owner of his withdrawal from the charter at least two full calendar months before the start of the Charter Period, the Advance Payment shall be forfeit but the Charterer shall have no liability for the Balance of Payment (and if it and/or the Security Deposit or Fuel and Accidental Damage Payment have already been paid, it and/or they shall be refunded).  If the Owner re-charters the Vessel for the Charter Period for no less than the Charter Fee then half the Advance Payment will be refunded.  In such circumstances the Owner shall use all reasonable endeavours to re-charter the Vessel and shall not unreasonably withhold his agreement to re-charter, although charters that may reasonably be considered detrimental to the Vessel, its reputation, or its schedule may be refused.

6.1.2       Should the Charterer give written notice to the Owner of his withdrawal from the charter within two calendar months of the start of the Charter Period, the Charterer shall remain liable for all payments due to the Owner at the date of the cancellation.  In the event that the Owner is able to re-charter the Vessel for all or part of the Charter Period, the Owner will give credit for the net amount of charter hire arising from the re-charter up to the value of the Balance Payment.  The Operator shall use all reasonable endeavours to re-charter the Vessel and shall not unreasonably withhold his agreement to re-charter, although charters that may reasonably be considered detrimental to the Vessel, its reputation, or its schedule may be refused.

6.1.3       If prior to the commencement of the Charter Period the Owner gives notice to the Charterer of cancellation, the Charterer shall be entitled to repayment without interest of all sums paid by him to the Owner and shall in addition be entitled to a sum equivalent to 50% of the Advance Payment in liquidated damages.

6.2      Where the Charterer is not a Consumer (ie, the Charterer is not a natural person acting for purposes outside his trade, business or profession):

6.2.1       Should the Charterer give notice of cancellation of this Agreement on or at any time before the commencement of the Charter Period, the Charterer shall remain liable for all payments due to the Owner at the date of cancellation. 

6.2.2       Should notice of cancellation be given by the Charterer or should the Charterer fail, after having been given notice, to pay any amount due under this Agreement, the Owner shall be entitled to treat this Agreement as having been repudiated by the Charterer and to retain the full amount of all payments.

6.2.3       In the event that the Owner is able to re-charter the Vessel for all or part of the Charter Period, the Owner will give credit for the net amount of charter hire arising from the re-charter up to the value of the Balance Payment.  The Owner shall use all reasonable endeavours to re-charter the Vessel and shall not unreasonably withhold his agreement to re-charter, although charters that may reasonably be considered detrimental to the Vessel, its reputation, or its schedule may be refused.

6.3      If prior to the date of cancellation, the Vessel has taken on provisions for the Charter or the Owner has incurred other expenses on behalf of the Charterer, then the Charterer shall reimburse these expenses unless all or part can either be refunded by the supplier or transferred to the next charter, in which case such expenses shall be adjusted accordingly.  The Owner shall be under a duty to mitigate these expenses where possible.

7      General

7.1      Prior to handover the Owner may require a sea trial of up to one hour’s duration and if the Owner is not reasonably satisfied as to the ability of the Charterer and his party to handle the Vessel safely he may terminate this Agreement as if the Charterer had given written notice of withdrawal at this time and the provisions of Clause 6.1.2 shall apply. 

7.2      The Owner shall have the right to restrict the Cruising Limits in the light of the experience of the Charterer and members of his party, and/or the actual or anticipated weather conditions.

7.3      If the Charterer fails to comply with any provision of the agreement, the Owner may forthwith terminate the Agreement and resume possession of the Vessel, but without prejudice to the right of the Owner to recover damages in respect of any breach of the Agreement by the Charterer.

7.4      Save as otherwise provided in the terms of business of the Owner, and subject to the statutory rights of the Charterer if contracting as a Consumer, the provisions of the Agreement shall exhaustively and exclusively govern the rights and obligations of the parties.

7.5      This Agreement is subject to English law. In the event of a dispute arising under this Agreement, the parties agree to use reasonable endeavours to resolve such a dispute by negotiation and, if such negotiation fails, to consider referring the dispute to alternative dispute resolution under the dispute resolution procedures adopted from time to time by the British Marine Federation. Save as aforesaid, in the case of a Charterer contracting otherwise than as a Consumer, any dispute arising under this Agreement shall be submitted to the exclusive jurisdiction of the Courts of England and Wales.

7.6      If any provision of this Agreement is held by any court or other competent authority to be void or unenforceable in whole or part, this Agreement shall continue to be valid as to the other provisions thereof and the remainder of the affected provision.

Hamble Point Yacht Charters Registered in England. Registration No. 2429196. Registered Office: 24 Petworth Road, Haslemere, GU27 2HR

WHAT CLIENTS SAY

As a family, including our 4 year old Labrador, we recently chartered a 'bareboat' yacht from Hamble Point Charters for 7 days to cruise the Solent. The company were fantastic from our first enquiry to handing back the boat. The yacht was clean and well presented. A great week and we will happily use them again!

We have just had another wonderful week on a yacht we chartered from Hamble Point Yacht Charters. We have sailed several of their boats, this time it was a lovely 35 foot Bavaria. Chartering from HPYC is always an easy choice for us: the boats are well maintained, support is excellent, and the staff are always super friendly and helpful. On top of that, Hamble Point is such an ideal starting location for sailing around the Solent.

This is truly a 5 * service. The team really looked after us both ashore on arrival and also while at sea. We were a relatively inexperienced crew but always felt the team ashore had our backs. Thoroughly recommended.

I just wanted to say Thank-you very much for the weekend charter. It was exactly what we were after (albeit cold!) plus Andy was an awesome teacher and great company. We’ll definitely be keen to book again soon!

We had a fabulous four days. Marina is ideally placed for the Solent, boat was in great condition, well equipped and a joy to sail. We were well briefed and the shore side team including the dog very friendly.

We charted one of the sailing yachts for a fantastic weekend cruise in the Solent. The boat was in superb condition and well equipped, the staff was very helpful explaining how things work on the yacht and there was also a video available with all the important information. 10/10 would recommend!

Had a fantastic week chartering Blue Otter, Alex was incredibly helpful and sent loads of information and date checking prior to booking. There was a handover video and both the handover and return were really smooth. The boat was lovely and well maintained and Lee was really helpful in recommending places to visit (and helping identify the steering issue as an autopilot takeover - doh!). Definitely will be back and would fully recommend!

Just back from a lovely week in the Solent. Great service from HPYC from first inquiry through to return handover. Very straightforward to deal with, and the yacht was in excellent condition. We've chartered from many companies in the UK and abroad and the attention to detail (and flawless inventory!) was second to none. Everything about the yacht and equipment had clearly been well looked after and was in immaculate condition. Great service, will use again.

Always very friendly service, and well-maintained yachts. Easy check-in and checkout. Will be back... 

We had a great time and were very happy with everything. Your team were genuinely friendly and were very helpful when we needed it. Is a big contrast to many charter companies I have dealt with in the past.

Watching the sun go down with a glass of bubbly on the deck of a sparkling yacht was unbelievable. What a treat, and a much needed change of scenery in these troubled times. We will be back for sure

Fab service, nothing too much trouble, including my daft questions. I'll be a repeat customer for sure!

We had a great time sailing with Lee for a few days at the beginning of September. Hamble Point Yacht Charters supplied us an impeccable 45 ft Hanse yacht, which was handled with complete mastery by Captain Lee.It was a privilege to sail with Lee, who is clearly a highly skilled professional taking great pride in his work ... but who is also a fantastic character with a great sense of humour and plenty of fun stories to keep the whole family entertained. He balances the serious side of safety and learning about sailing with a whopping dose of amusement and good cheer. We sailed the Solent in some decent seas, visited Bucklers Hard on the banks of the Beaulieu River and learned lots about British nautical history. Our boys started somewhat of a fishing trend catching bass off the back of the boat in Portsmouth and we would love to sail with Lee again in the future.The man truly knows his stuff, maintained the boat impeccably and went to every effort to ensure that we had a great time. Many thanks to “Shippers” and Hamble Point Charters. We’ll be back.

Chartered bareboats with HPYC on numerous occasions most recently in Sept 2020. Always helpful and accommodating. Highly recommend.

We had a fantastic weekend sailing on Loxley B. Boat in super condition and spotlessly clean, Alex. and the team very thorough and always on hand to answer any questions. A great experience. We will be back. Thank you!

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What are the rules for chartering a yacht in the USA?

By Editorial Team |   10 March 2022 2022-03-10

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The USA boasts some of the most diverse cruising grounds in the world, attracting superyachts from far and wide to its glittering shores. If you are keen to discover more about what this amazing country can offer for a yacht charter , there are some important factors to bear in mind first.

In this article:

Types of charters in the US

Crewed charters, bareboat charters, bareboat charter agreements, tax implications for the charterer, need more advice.

There are certain legal fundamentals of chartering a yacht in US waters which you may not be aware of. So, before you go ahead and book your superyacht rental in the United States, here’s what you need to know.

Without getting too bogged down in the legal minutae, simply put, yacht brokers operate two main types of charter agreements in the US; time/voyage (aka crewed or commercial) charter agreements and bareboat/demise charter agreements.

This type of charter agreement is operated for a specific  time or voyage . In general, the following applies;

• The yacht is deemed as being operated commercially
• The owner is considered to be carrying passengers for hire 
• The owner maintains primary possession of the yacht
• One contract agreement 

To legally operate crewed charters in US waters, the yacht must be; 

• US flagged, and
• Hold a coastwise endorsement 

To be eligible for a Coastwise endorsement, the yacht must either have been: 

• Built in the US, or if foreign built;
• Must be granted with a MURAD Waiver.

To be eligible for this waiver, a yacht must be more than 3 years old and owned by a US citizen or US entity (dependant on how it is structured)

Rules for crewed charters

• Can only carry a maximum of 12 passengers
• May not conduct commercial fishing, towing, salvage, or carry cargo for hire

The obvious benefit to crewed charters is that the owner is wholly responsible for the yacht throughout the duration of the charter.

These types of charters are similar to those you would undertake, say in the Mediterranean or Caribbean , in that you are renting a yacht with crew for a specific voyage or length of time.

All yachts that do not qualify under the commercial charter rules and wish to cruise in US waters are considered bareboat (aka demise) charters. 

This type of charter operates as follows;

• Applies to all foreign-flagged or foreign-built yachts not entitled to a MURAD Waiver
• Permitted to conduct charters in US waters, and between US ports
• The yacht is not legally considered as being used for commercial purposes

Rules for bareboat charters

• The charterer takes over the entire yacht without crew, therefore deemed to be operating as the owner for the duration of the charter
• The charterer is also responsible for the hiring of crew, in which the yacht's owner must have no involvement
• Two separate contracts are drawn up: one for hiring the yacht and one for the crew

In essence, a bareboat charter agreement’s main characteristic is that it places possession of the vessel in the hands of the charter party at the time the charter starts. In legal terms, this means the owner relinquishes “possession, command and navigation of the vessel” as to be “tantamount to, although just short of, an outright transfer of ownership.” 

The owner must also have no involvement in the crew selection, nor any ties to any company selecting the crew, which could be construed as enacting a measure of control over the yacht and thus contravene the rules of this type of charter.

The charterer in effect assumes all responsibility for the vessel and its activities – including an obligation to maintain or repair the yacht and return it in the same condition as it was at the beginning of their charter period. 

They are also responsible for crew selection and their remuneration for the duration of the charter.

Tax may also be due depending on the type of charter. For example, a yacht undertaking a crewed charter originating in Palm Beach, Florida will have no additional tax to pay. However, for a bareboat charter, tax will be liable at 7% of the value of the charter.

There may be other potential duties payable, which can vary from state to state. 

Overall, there are distinct benefits for chartering a US-flagged, or eligible, vessel. However, charterers with their heart set on a foreign-flagged yacht can still enjoy cruising the various destinations in the US, they simply need to understand the laws and what's at stake beforehand.

Planning ahead is key. This is where a good charter broker comes in, especially one with in-depth knowledge of the legal aspects of chartering foreign-flagged yachts in US waters.

If you need any further advice regarding booking a superyacht rental in US waters, then please reach out to a recommended yacht charter broker  who will be more than happy to help.

To compare the complete market, take a look at all luxury yachts available for charter in the USA . 

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Documents and rules of yacht charter

Catamaran isn't more difficult than hire of the car and it can be with a driver and without. If you get accustomed to comfort, of course, vessel charter with crew f for you. You will be surrounded with heat and care, and your safety will be in the most reliable hands. As, our company pays special attention to selection shots, our captains and even sailors have the higher sea education and enormous experience.

If you have a valid skipper license, not below the level of the Day Skipper or International Bareboat Skipper, with a permissible remoteness from the coastal waters 12 miles or more, and you want to operate a catamaran independently, it is necessary to consider the fact that the fleet is our own, and we love each yacht very much, and we seriously have a certain attitude toward the level of knowledge and skills of people which manage them. Therefore you have to send us the copy of the boatswain's license, and also to report if necessary about experience which you have and number of the passable miles. Also we can ask you in practice to confirm the qualification and for example to leave a marine, to pass a little and to come in again. It is a practice of the majority of large European companies. Such approach allows us to contain constantly the catamarans in the ideal state. If your qualification isn`t enough for management of a catamaran, we will provide you with some contacts of the skippers-freelancers or the crew agency.

Also, if you aren't sure of your skills, and you have a license, we can provide you for necessary time a skipper-mentor who will tell you all nuances and will help to accustom quicker with technology of a catamaran management.

S/Y WIND OF CHANGE yacht charter

Overall information

PDF brochure

Yachts by Brook Marine

Yachts charter Brook Marine

€24,000 per week

S/Y Wind of Change  is a beautiful classic  sailing yacht 29m  sloop built by  Brooke Marine  in 1988,  refitted  in 2018.  Her sophisticated  exterior design  and  sailing supremacy  are the work of  Ron Holland Design . She provides stability and seaworthiness while  sailing  offering to all  guests onboard  a supreme  sailing experience . She accommodates up to  6 guests  in 3 elegant  cabins , including one  master , one  VIP  and one  twin cabin , all with  ensuite facilities .   Wind of Change ’s well-equipped  deck  offers ample space for  relaxation ,  sunbathing  and  al fresco dinning  which is ideal for gatherings of family and friends.   During her latest  refit  in 2018 the carpets were removed and the  wooden floors  were restored in all interior areas. All  fabrics  in the saloon and dining area as well as in al fresco dining area are replaced with  RALPH LAUREN . She has new cutlery and  linen, and  brand new water toys are dedicated to guests' fun. Her professional crew consisting of 4 members, a fantastic  sailing team  who ensures an enjoyable and unique sailing experience.