Cancellation, damage security deposit, delivery fee, APA and liability are the five charter contract clauses that carry the most weight for final cost and peace of mind — and the ones most often left unread before signing. None of them has a universal number: every contract sets its own terms, and the only safe way to know them is to ask the broker for the clause in writing. Reference, August 2026.
Table of Contents
- Why the charter contract deserves a line-by-line read
- 1. Cancellation and force majeure
- 2. Damage security deposit (not the same thing as the APA)
- 3. Delivery fee and repositioning
- 4. APA reconciliation
- 5. Liability and insurance
- Summary table: the five clauses
- FAQ — Frequently asked questions
Why the Contract Deserves a Line-by-Line Read
Most international charters are built on the standard MYBA (Mediterranean Yacht Brokers Association) agreement, the form used by the association that brings together charter brokers across the Mediterranean and beyond — a format widely adopted precisely to give both sides predictability. But "standard contract" doesn't mean "fixed terms": MYBA sets the document's general structure, while the specific numbers in each clause — the deposit amount, the cancellation timeline, whether the delivery fee is included — are negotiated contract by contract between the broker, the owner and the client. Two people chartering the same yacht can sign agreements with different terms.
That's why the right question is never "how much does this yacht cost to charter," but "how much does this yacht cost to charter with these five clauses specifically settled in writing."
1. Cancellation and Force Majeure
Every charter contract sets out what happens if you cancel the trip, and what happens if the owner (or the vessel's operator) needs to cancel on their end — a serious mechanical failure, say. Contracts typically structure your own cancellation into tiers that get less forgiving the closer you get to boarding, with the initial deposit generally at greater risk than the remaining balance. The exact timing of each tier varies by contract and should be spelled out in writing before signing — don't assume a market standard without confirming it.
The force majeure clause — what counts as an unforeseeable event that waives cancellation penalties, such as a hurricane or a documented medical emergency — also varies from contract to contract. Many clients buy separate trip-cancellation insurance, outside the charter agreement itself, precisely because the standard protection against the unexpected isn't always generous enough to cover the amount at stake.
2. Damage Security Deposit (Not the Same Thing as the APA)
A common confusion is treating the damage security deposit and the APA as the same thing. They aren't. The security deposit is a safety deposit that covers repairs to the vessel if something is damaged during the charter — a broken window, damaged equipment, an unfortunate encounter with a dock. It's returned at the end of the trip if there's no damage, or partially withheld to cover repairs, based on the captain's and owner's assessment.
The APA (Advance Provisioning Allowance), on the other hand, is a separate reserve for the trip's running costs — provisions, drinks, port fees — not for damage to the vessel. Confirming that the contract treats the two as distinct line items, with separate amounts and refund rules, avoids surprises at final settlement.
3. Delivery Fee and Repositioning
If the yacht isn't already positioned at the port where you want to board, someone has to move it there — and that repositioning has a cost in fuel, crew and time. Some contracts fold that cost into the base charter price; others bill it as a separate line item, listed as a delivery fee. The difference between "delivery included" and "delivery billed separately" can represent a meaningful slice of the total budget, especially on itineraries starting far from the yacht's usual base.
Ask specifically whether the quoted price already includes repositioning the vessel to your boarding point, and whether a return delivery is built in or charged separately at the end of the trip too.
4. APA Reconciliation
Beyond existing as a separate item from the security deposit (see clause 2), the APA has its own mechanics worth understanding before signing: you pay an advance estimate, the crew draws on that amount to cover the week's running costs, and after the charter the broker sends a settlement statement — refunding any unused balance or billing the difference if spending exceeded the estimate. The contract should make clear who runs that reconciliation, how long after disembarkation, and what happens if there's a disagreement over any line item on the statement.
5. Liability and Insurance
The charter contract should spell out the vessel's own insurance coverage — third-party liability and hull cover — which is normally already built into the price and is the owner's responsibility to keep current. What the contract may not cover is the guest's personal protection: medical assistance, evacuation or repatriation in a health emergency aboard usually require separate personal travel insurance, outside the charter agreement. It's worth explicitly confirming with the broker what the yacht's insurance covers and what falls outside it — our guide to insurance and liability in international charter covers that distinction in detail.
Summary Table: The Five Clauses
| Clause | What it covers | Question for your broker |
|---|---|---|
| Cancellation and force majeure | Refund if you or the owner cancel | What are the timing tiers, and what counts as force majeure? |
| Damage security deposit | Repairs to the vessel if something is damaged during the charter | What's the deposit amount, and how is it refunded? |
| Delivery fee | Cost of bringing the yacht to your boarding port | Is repositioning included in the base price? |
| APA reconciliation | Settlement of provisions and running costs | Who runs the settlement, how long does it take, and how is a disagreement resolved? |
| Liability and insurance | Vessel coverage for third-party damage and hull | What does the yacht's insurance cover, and what needs personal travel insurance? |
FAQ — Frequently Asked Questions
Does every charter contract use the MYBA form? Most professional international charters use the standard MYBA agreement as a base, but the specific amounts and timelines in each clause are negotiated contract by contract. A contract outside the MYBA standard isn't necessarily a problem, but deserves even more careful review.
Are the damage security deposit and the APA the same thing? No. The security deposit covers repairs to the vessel if something is damaged during the trip. The APA is a separate reserve for running costs such as provisions, drinks and port fees. The contract should treat them as distinct items.
What is a delivery fee? It's the cost of bringing the yacht to the port where you want to board, when the vessel isn't positioned there by default. It may be included in the base charter price or billed as a separate item — the difference should be spelled out in the contract.
Who decides whether damage to the vessel is covered by the deposit? Usually the captain makes the initial damage assessment, and the owner confirms the repair cost before withholding any part of the deposit. The contract should set out how a disagreement over that amount gets resolved.
Do I need travel insurance separate from the charter contract? Generally yes, for personal matters like medical assistance, evacuation or repatriation in a health emergency. The vessel's own insurance covers the yacht and third-party liability, not the guest's personal protection.
What happens if I cancel the trip due to illness? It depends entirely on the force majeure clause set out in the contract and any separate cancellation insurance purchased. There's no universal rule — what counts as a valid reason to waive the penalty should be spelled out in writing.
How does APA settlement work after the charter? The broker typically sends a spending statement days after disembarkation, refunding any unused balance or billing the difference if spending exceeded the advance estimate. The contract should specify the timeline for that settlement.
Is it worth hiring a lawyer to review the contract before signing? For high-value bookings and international itineraries, it's a common and recommended practice, especially for anyone chartering a large yacht for the first time. A lawyer specialized in maritime contracts can quickly spot which of the five clauses is vague or missing.
Talk to Voguer Yachts
To price an international charter with all five clauses explained upfront, Voguer's catalogue lives at voguer.yachts, with more than 500 yachts across more than 50 destinations and 24-hour concierge support. Readers considering a first yacht rental closer to home before the leap to international charter can start at voguer.com.br.
Read also: Delivery Fees and Repositioning: The Line Nobody Explains · APA: What the Advance Provisioning Allowance Is and How Much It Weighs · The MYBA Charter Agreement Explained · Insurance and Liability in International Charter
