Putting The Art in Charter
Are you planning on putting out your yacht for charter? Do you need a Yacht Charter Management Service? We have compiled a guide to assist you in navigating these tricky waters. From yacht registration to charter location, insurance to qualifications, there is much to consider when taking this important step. Setting up your yacht for charter entails putting your trust in other people to manage your yacht as if it were their own. Here at 212, we are experts in marketing yachts for charter, charter contracts and managing the booking process, and our clients ( end charter users and yacht owners) always come first. If you have any queries, don’t hesitate to get in contact.
When looking for a professional company to provide Yacht Charter Management and marketing, you should consider the following factors:
- Reputation: Look for a company with a good reputation in the industry, with positive reviews and testimonials from past clients.
- Experience: Choose a company with a track record of success and extensive experience in yacht charter management and marketing.
- Marketing expertise: Ensure that the company has a strong marketing team that can effectively promote and market your yacht to potential charter clients.
- Communication and transparency: Look for a company that communicates openly and transparently with you, providing regular updates on the status of your yacht and any charter bookings.
- Fees and commissions: Understand the company’s fee structure and commission rates, ensuring that they are reasonable.
- Personalized service: Choose a company that provides personalized service and tailors their approach to meet your specific needs and goals.
- Professionalism: Ensure that the company operates with a high degree of professionalism, adhering to industry standards and best practices. At minimum ensure they are MYBA members.
Yacht Flag Registration
To qualify for charter, a vessel must be registered as a commercial yacht. It is required by law that a vessel be registered in a country, it must comply with the flag’s specific code, as well as any international codes that may apply. Vessel registration means that the yacht will gain the nationality of the chosen flag. The yacht-owning company will also need to assign a classification society in order to manage certification and surveys. Within the EU, sometimes the best option for a charter vessel is to be registered as a commercial yacht. But depening on how often the yacht owner will use the yacht personally, and his or hers personal residency and tax status, it might be better to stay private. It is important to remember that chartering in the wrong jurisdiction can create VAT liability. While it may sound daunting, our experts in yacht charter management will be at hand to help you through this process. When it comes to flag and yacht registraion using specialist yachting legal advisors is worth every Dollar.
Charter Locations – where will your yacht be available for yacht charter?
Think about exactly where it is you would like your yacht to be available for charter. Where would you and your family like the yacht to be based for your own personal use?
Will the location you base your yacht attract highend crew, or scare them away?
You can essentially choose from most worldwide locations. There are however certain national laws (e.g. US and Greece), that prohibit charters unless the vessel carries the national flag. It is vitally important to be cognisant of such stipulations as these, as they may have a big impact on the chartering capabilities of your vessel.
Here at 212 Yachts we are a Yacht Charter Management company based on the French Riviera, however we manage yachts and charters all around the world, from Croatia to the Caribbean and from Asia to America. Our team are also experienced at sea as well as on the administrative side of things. We have senior charter brokers who were once yacht captains and carry with them vast experience and knowledge of the chartering industry. So if you are unsure of the right location, get in touch with us.
VAT and Chartering in the EU
Points to ponder when offering your vessel for charter within the EU.
- If for some reason the yacht is not in free circulation within the EU, then the yacht should be imported through a formal process
- It might be necessary for the company that owns the yacht to be registered for VAT, and also to submit quarterly returns
- The VAT that is charged on the charter fee (in the EU) will not be reclaimable
- The owners must appoint a fiscal rep in each EU country where a charter begins to manage VAT. The agent will carry the responsibility of paying VAT to each appropriate government.
- If the yacht is registered as a commercial vessel, then the yacht owner must then charter the yacht at market rates every time they wish to use it, and accordingly, pay the appropriate VAT fee. There are certain exceptions to this rule, whereby a yacht is registered in such a way that it can temporarily switch back to being a pleasure craft
Maritime Labour Convention (MLC)
What is the MLC? The Maritime Labour Convention was introduced in 2006, and serves to safeguard the rights of seafarers around the world. There are several MLC requirements to be met by yachts that choose to charter commercially. For one, there is the use of authorised SEA’s (seafarer employment agreements) for all crew, put in place to protect the rights of crew members. There must also be access to health insurance and medical care for crew during their employment.
It’s possible that the yacht’s insurance may need to be upgraded to incorporate further P&I coverage. Medical insurance for all personnel, including both permanent and temporary crew, must be provided by the yacht owner. This must cover personal injury and illness. If, due to a work-related incident, a crew member becomes incapacitated, the owner/employer must pay full remuneration until they recover.
Temporary Total Disablement insurance, sometimes known as “loss of income protection” or “sick pay” insurance, can cover the majority of this responsibility. You must remember to notify your insurer if the status of the yacht changes.
Yacht Crew and crew Qualifications
To work on a commercial vessel, the crew may need to earn additional marine certifications. As a minimum, STCW Basic Safety Training and medical fitness certificates will be required. To be employed on board a commercial yacht, crew having a certificate of competency may need to receive an additional endorsement from the flag state.
What makes a ‘good charter yacht’ ?
The yacht charter market is competitive, and rightly so. For a yacht to do well in the yacht charter market, it needs to tick most of the below points (and alot more):
- Comfort and luxury: The yacht should provide comfortable and luxurious accommodations for guests, including well-appointed cabins, spacious common areas, and high-end amenities, and toys.
- Safety and reliability: The yacht should be well-maintained and equipped with the latest safety features to ensure the safety of guests and crew.
- Performance: The yacht should be able to cruise at a comfortable speed and handle a variety of weather conditions.
- Crew: The crew should be professional, experienced, and hospitable, providing excellent service to guests and ensuring their comfort and safety.
- Entertainment and activities: The yacht should offer a variety of entertainment options and activities for guests, such as water sports equipment, onboard entertainment systems, and organized excursions for example.
- Flexibility and customization for charter guests: The yacht crew should be able to accommodate the specific needs and preferences of the charter group, including customized itineraries, menus, and activities.
- Repeat business and word of mouth – the yachting industry is small and people talk, bad or good. Successful charter yachts build a good reputation over years.
Chartering your yacht for the first time is a lengthy procedure due to the numerous intricate factors that must be considered. We recommend that you remain patient, surround yourself with the pros. It may take a few months for everything to be set up. Once set up legally, move onto the fun steps with a yacht charter marketing company (such as 212 Yachts) to start generating business.