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.