How do you compare total charter cost without double-counting APA?
Separate final expenditure from money advanced. Under the expense-based arrangements described by Burgess, the captain accounts for operating expenses, additional funds may be required, and the charterer receives end-of-charter accounts. The quoted APA is therefore a funding requirement, not proof of final expenditure. (burgessyachts.com)
MYBA’s published captain guidance also discusses APA settlement, bank-transfer refunds and provision for exceptional outstanding invoices. Agree the reconciliation and refund process rather than assuming every unused dollar is immediately returned in cash. (myba-association.com)
What belongs in a superyacht charter cost comparison?
Request three separate schedules:
- Expected final expenditure: base fee, applicable tax, delivery, operating consumption, chosen gratuity and included shore-side costs.
- Higher-spend scenario: explicit changes in fuel, provisioning, berthing, transfers and other uncertain items.
- Cash calendar: every advance, balance, deposit, potential top-up and expected refund, with recipient and due date.
Assign each charge to one place. If a cost is funded through APA, do not also count the APA itself as final expenditure. For an inclusive proposal, establish the included quantities and exclusions before adding any allowance.
What does a correctly structured example look like?
Illustration only: one seven-night charter, quoted in USD. All figures below are assumptions, not market estimates. The tax amount is not a statement of any destination’s tax treatment.
| Final-expenditure component | Expected | Higher-spend scenario |
|---|---|---|
| Base charter fee | $150,000 | $150,000 |
| Assumed tax amount | $21,000 | $21,000 |
| Delivery/redelivery | $5,000 | $5,000 |
| Actual operating expenses | $45,000 | $65,000 |
| Buyer-selected discretionary gratuity | $15,000 | $20,000 |
| Flights, transfers, insurance and other agreed trip costs | $19,000 | $24,000 |
| Final expenditure | $255,000 | $285,000 |
Suppose the requested APA is $52,500. Base fee + tax + delivery + APA require $228,500 across the charter payment schedule, before separately payable trip costs and gratuity.
- At $45,000 of reconciled operating expenditure, the illustrative unused APA is $7,500.
- At $65,000, the illustrative additional funding requirement is $12,500.
- Against a $290,000 total-trip ceiling, the higher-spend scenario leaves $5,000 headroom.
The higher-spend scenario is not a contractual cap or a worst-case loss estimate. Cancellation liability, uninsured disruption and extraordinary expenditure belong in the separate exposure review.
For non-dollar quotations, retain the contractual currency and show a dated USD conversion assumption, conversion charges and a buyer-approved exchange-rate sensitivity. Never present an estimated dollar equivalent as a locked settlement amount.
Scoring rule: reward realistic assumptions, financial headroom and accounting controls—not merely the lowest APA percentage.
Sources cited
- burgessyachts.com https://www.burgessyachts.com/en/charter-a-yacht/charter-faqs?utm_source=openai
- myba-association.com https://www.myba-association.com/files/index.cfm?crypt=418013&id=481