212 Yachts Covid Policy

Yacht owner and Captains, see ECPYs guidance for yachts during Covid-19 – best practices to follow onboard – click here

 

Last updated: 23/4/2021

Can I book a yacht now without risk of losing my money?

Yes. We have had numerous clients book yachts for summer in the last couple months. This is thanks to our hard work ensuring that we protect our clients. We have done this by adding a clause to the charter contracts stating that if the charterer cannot travel or charter the yacht due to reasons relating to Covid-19, then they are entitled to a FULL refund. We will try our best to negotiate similar clauses in all of our contracts. Hopefully this will give clients the confidence needed to book, with the security of a full refund should the charter not go ahead. Please get in touch if you would like to know more about this new ‘risk-free’ contract regarding coronavirus and yachts.

Is a Yacht a Safe Place to be While There is Coronavirus?

Yes – it is arguably the safest possible holiday! Yacht chartering provides the perfect opportunity for a secluded getaway. With many people wishing to avoid public spaces, soaking in the sun and admiring the stunning coastlines may well be the perfect way to not only enjoy the tranquillity and luxury service, but to avoid the general public, and in turn avoid Covid-19. Super yacht clients can fly in on a helicopter directly to the super yacht or via a private jet, avoiding the crowds. Crew on board will also be subject to rigorous health measures and tests before your arrival. On board the yacht, with only the family and friends that you select, it is possible to have a luxury, first class service provided, in an extremely hygienic environment.

Coronavirus and yachts

Before examining the primary topic of Coronavirus and Yachts, as an initial statement, it is important to note that the people suffering or experiencing the worst complications are mostly the elderly, and/or are people with underlying health conditions. Such as heart or lung problems. Over 90% of those infected recover easily and quickly. But for those who are susceptible, we must all take extra precautions. It is our duty to stay informed through reliable and reputable governmental sites. 

Those who are ‘young’, fit and healthy have a very real responsibility to not unknowingly spread the virus, inadvertently affecting our neighbours, the sick, and all elderly family members. If we all follow the precautions and safety guidelines, we will mitigate the spread of the virus, and hopefully eradicate it altogether.

“Now that the virus has a foothold in so many countries, the threat of a pandemic has become very real.”— Tedros Adhanom Ghebreyesus, the World Health Organization’s director-general

 

Coronavirus and Yachts

My Experience of the Recent Impact of Covid-19 on the Yachting Industry

My world in the yachting industry has been a roller-coaster over the last year due to Covid-19. It has directly affected client’s desires to travel and hire yachts, and understandably so. They are naturally waiting to make summer plans until more concrete information is available. This has a direct and hard-hitting knock-on effect on my business, my long loyal clients, the yacht owners I represent, my employees and the yachting industry as a whole.

Usually in April, clients wish they had booked sooner (when there were more choices of yachts). Today, nobody wants to commit. Every year since its inception in 2012, 212 Yachts has experienced positive year on year company growth. March and April are traditionally our best financial months, as clients start booking their yachts. However, we have to take this on one day at a time, as every external factor continues to change.

Do Yacht Charter Contracts Cover Covid-19?

Regarding coronavirus and yachts, the current MYBA Yacht Charter Contract does not ‘protect’ the client in a case of a travel ban or a epidemic. However, clauses can potentially be included in new charter contracts. Each special additional clause would be on a case by case booking.

We have been keeping a very close eye on the coronavirus news here at 212 Yachts. We have also been liaising with other professional bodies within the yachting industry, to work on solutions for clients and yacht owners. One of these solutions might be that we are able to add a special clause to all charter contracts. This could allow the charter to be cancelled penalty free should the coronavirus still be problematic by the date of the charter and deemed unsafe. The principal aim is to ensure that clients can safely and confidently make charter plans without the worry that they will lose out from this rather surreal situation that is out of everybody’s control! 

The MYBA

Every luxury yacht available for charter is owned by a separate individual (a company structure). This means that we can’t always foresee what we are up against in case something goes wrong. Thankfully there are trusted charter contracts in place for exactly this reason. Developed over a number of years by top lawyers and MYBA (Med Yachts Brokers Association). These charter contracts are the foundation of luxury yacht charter bookings, especially on commercial yachts. They clearly and fairly lay out the terms and conditions that both a charterer (the client) and an owner (the person/company who owns the yacht being contracted) are subject to and expected to adhere to. For example, when a yacht breaks down the day before a charter (yes the horror, and trust me, when this happens we jump into fight mode working around the clock to find a replacement solution to save our clients holiday) we can confidently refer to the contract for guidance on the resolution.

 

“It’s temporary, but it’s a tornado-like headwind, so it’s going to be powerful for a period of time.” — Rick Rieder, the chief investment officer for global fixed income at BlackRock

What Precautions are Yacht Crew taking to Ensure They do not get Covid-19?

Luxury crewed charter yachts, private or commercial crewed yachts are very possibly already the cleanest places you can find. Part of the luxury service is that yacht interiors are cleaned thoroughly daily. Now with fears of the virus, extra stringent top-to-bottom cleaning takes place on a regular basis to reduce the risk of infection.

It is not just the crew taking personal precautions regarding coronavirus and yachts. Their yacht management companies, charter reps, and yacht owners will be ensuring crew are doing everything possible to avoid cases of infection. All commercial yachts (the majority of luxury crewed travel yachts are registered as commercial and when chartered will be 99% of the time done so with a MYBA charter contract) have strict procedures and protocols to follow regarding coronavirus and yachts. 

Some of the precautions the Yachting industry are currently employing include:

Ports and Marinas are making all yachts provide full crew information regarding the crew on board, their recent travel, their health and to declare all movements, before entering port.

Many yachts are planning on having crew checked for fevers / symptoms etc. at least weekly, or before each charter by an independent doctor (this is a request which can be made and potentially added to a charter contract on a case by case basis).

All large commercial yachts will have records of all people coming on board, so that any potential concerns can be traced

Crew will be monitored if they are returning from travels and may have encountered the virus. We have already heard cases from super yachts where yacht owners are insisting some crew members returning from holidays, even with no symptoms, are put into a quarantine for 14 days before boarding the yacht.

I want to book a yacht for a corporate event but am concerned the event will be cancelled due to Coronavirus?

This is a very real concern. After all, corporate clients renting yachts for events, are doing so to have a presence at the event, to host meetings on board, entertain clients etc. Therefore, in order to justify hiring a yacht you need the event to take place. We have seen MIPIM (a large property event in Cannes), LIONS Festival, the Monaco Grand Prix, the Cannes Film Festival postponed, and other global events cancelled. Corporations are taking a substantial financial hit. By not being refunded the charter fee, losing money on flights, travel arrangements, etc. It is therefore no surprise that corporate event bookings are tedious and being treated very cautiously. Understandably so as corporations struggle with the risk of losing money. We do however try to safeguard against clients suffering financial loss as best we can and always negotiate termination cases as best we can on their behalf.

What happened last year when events were cancelled?

Last year, we negotiated several contracts for our clients chartering during the Cannes LIONS, the Cannes Film Festival and the Monaco Grand Prix. These included a clause to mitigate financial loss in the event of the corporate event being cancelled due to the Coronavirus. The clause specifically addresses the situation and our client’s concerns, in an effort to protect them in the unfortunate case that the corporate event is cancelled. Please inquire with us for further information.

Is there a clause in the yacht charter contract that protects me in case of cancellation of the yacht due to Covid-19?

The current MYBA (Med Yacht Brokers Association) charter contract, which is recognised globally as the most reliable and trustworthy yacht charter contract, does not cater for a case like cancellation due to a pandemic, nor specifically the Corona Virus. It has never had to. However since the coronavirus has had a direct knock on affect to clients wishing to book a yacht, yachting companies are coming together and scrambling with lawyers to find a suitable and ‘fair’ clause to add to the contract covering coronavirus and yachts. With the aim to protect both the yacht charter clients and also the yacht owner and his crew. It will be based on a case by case basis as each yacht owner is different.

What if I book my luxury yacht and travel restrictions mean I cannot get to the yacht?

I am pleased to say that the majority of yacht owners are allowing for special clauses in the contract used to solve or mitigate risks regarding coronavirus and yachts. As always with luxury yachts, each yacht has a different and unique owner. This yacht owner has to accept the suggested clause, and we will negotiate hard on our clients behalf for this. Therefore it is paramount that the yacht charter broker / agent you are working with, truly has your best interests at heart.

An example of a clause which both a client and a yacht owner have agreed upon:

In the event that the charterer or vessel is prevented from travelling to the port of embarkation due to travel restrictions in regards to the COVID-19 virus, the charter will either be moved to a mutually agreeable port or postponed to mutually agreeable dates. Full funds will be transferred to the owning company as per the original agreement.  The owner and charterer will have 14 days following postponement to agree new dates and ports which may then be altered by mutual consent / addendum if required. 

The Charterer shall be entitled to cancel this Agreement  no later than 3 weeks before the charter begins and to immediate repayment without interest of all payments made by him under the terms of this Agreement. No penalty will be required and paid, nor by the Charterer neither by the Owner; the Broker and the Stakeholder shall not be entitled to commissions”.

 

The Use of Private Jets During Corona Virus to Get to Yachts

It seems that private jets will sooner be in a much more positive position to get clients to and from yachts. We are seeing a number of clients turning to private jets in order to fly into a location. 212 Yachts is partnered with global private jet businesses to accommodate such requests. We are also keeping a close eye on the possibilities to move yachts to different destinations where there are less travel restrictions (and currently in most cases, less cases of virus). For a quote and / or more information on the use of private jets as a means to reach your yacht, please contact us.

Is there an insurance for yacht charter cancellation and Coronavirus?

For private yacht charters there is not currently a known insurance which specifically covers charter cancellation due specifically to covid-19. I have seen a number of companies advertise insurance for coronavirus and yachts in the last few weeks (trying to take advantage of worrying times). But to my disappointment, these current covers would be worthless, and are being pulled from the market.

Other questions?

Here at 212 we are remaining hopeful about a summer season. We all know how those family holidays will be treasured and appreciated after having to keep apart to stay safe during this difficult time. Please pop us an email at info@212-yachts.com or call the 212 Yachts team for any further questions regarding coronavirus and yachts.

 

 

Jenny Caird

Written by

Jenny Caird, originally from Ireland, is the founder and CEO of 212 Yachts (and charter expert), applying her passion for customer service, with incredible client satisfaction, to create an ambitious, highly reputable and respected business. Whatever your query is, Jenny offers solutions with a smile. With her motivation and dedication to ensuring the yacht owners and clients 212 Yachts work with are 'wowed', Jenny and her team add the extra degree in yachting.


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