There are many different types of chartering; these include by voyage and time as well as bareboat or skippered. However, whatever type you choose, chartering can expose you to some fairly significant risks if you don’t plan carefully or fail to take the necessary precautions.
If you don’t know what chartering is, this is bound to have gone completely over your head, so allow us to explain:
What Is Chartering?
Basically, chartering just means “hiring out”, but specifically when used in the context of a boat. Some owners might charter their boat on the odd occasional to help allay the running costs. Others may start a business where they regularly charter their boat to turn a profit from their investment.
No matter which course of action you’re thinking of taking, you have to know the rules before dipping your feet into the water. If you don’t want to end up lost at sea (no more water puns, we promise), keep the following things in mind. (Please note: some of the following information may be relevant specifically to those living in the United Kingdom. Please be sure to double check the information below before chartering your yacht.)
Register
Make sure to register your boat on the UK Ship Registry. You’ll need either a part 1 or a part 3 registration; choose the former if you’re going to be chartering overseas at all.
If you’ve already registered it as a boat used for personal pleasure, you’ll have to inform the Ship Registry that this will be changing to commercial use.
Insure
As soon as you’re registered, you should tell your insurance company about your plans to charter. Most standard (read: pleasure) insurance companies will be happy to cover skippered chartering, but if you want bareboat the charterer will have to get it themselves.
If you plan on chartering a lot (like running a business out of it) then you’ll have to change your policy to accommodate commercial use; this will likely run up a higher premium.
Comply
Your vessel must be MCA compliant. Since 1993, all UK-based chartered boats have to comply to the Maritime and Coastguard Agency’s code of practice, which includes construction, equipment and operation regulations.
If your boat doesn’t comply with the code, you’ll have to shell out for new equipment, otherwise you’ll be breaking the law. One example regulation: boats over 13.7 metres long have additional fire safety and lifesaving appliance rules.
Survey
A marine surveyor should be hired to inspect your vessel. If the surveyor finds your boat to be suitable for commercial chartering, you will be eligible for your MCA SCV2 commercial licence.
Check Restrictions
If you’re berthing your vessel in a marina, you should check to see if they hold any restrictions on chartering. Sometimes, chartering will incur higher mooring fees, so you will want to make sure to find out their stance. The marina’s business terms and conditions should give you all the information you need.
International Protection
If you are using bareboat chartering and doing so in international waters, the British Red Ensign protection will not always be applicable to your vessel. The charterer must be either a UK national or a member of the British Red Ensign for this protection to be afforded, so do your research.
Tax
Chartering a yacht in the EU is classed as a supply of services; this means that, for VAT purposes at least, it is a taxable supply. You will have to account to the HMRC for any charter hire inside the waters of the European Union.
Sometimes, depending on the value of your vessel and how much chartering you’re doing, you may be able to take advantage of some tax reliefs via corporate structuring.
Get Licenced
A final, somewhat obvious tip – anyone in charge of the navigation of a chartered boat must be licenced. Make sure you make a copy of the skipper’s licence.
Jamie King is a UK-based freelance blogger. This article was written on behalf of Shipserv, online providers of marine supplies.
Day 5 of the Festival International de Film, and the film of the day is Inside Llewyn Davis. Directed and written by both Ethan Coen and Joel Coen, Inside Llewyn Davis recounts the story of a singer-songwriter who navigating New York’s folk music scene in the 1960s, struggling to make his name. The film stars Justin Timberlake, John Goodman and Carey Mulligan, star of The Great Gatsby which also premiered at the Cannes Film Festival on opening night.
It’s that time of year again, and the 
Top Yachts at the 2013 Palma Yacht Show
Last week, multiple members from our team went to the prestigious Palma de Mallorca Yacht Show. The show is located at the foot of the stunning cathedral and invited brokers to see a host of yachts, ranging from luxury sailing to super yachts. Chartering a luxury yacht in the Balearic Islands provides endless opportunities to snorkel and swim with dolphins, as well as great flexibility. You can wake up in Palma and be in Ibiza or Formentera in just a few hours! Below, you will find the favourite yachts of Nieves Morales, charter manager and Ben Sutton, charter broker from this years show.
The Best Yacht of the Show: TIGER LILY OF LONDON – Pershing 90 – 3 Cabins – Ibiza – Formentera – Palma de Mallorca
TIGER LILY OF LONDON is a stunning Pershing luxury motor yacht, accommodating up to 6 guests in 3 sumptuous cabins. She can take up to 8 guests overnight with her cinema room converting into an extra bed. The quality of the fixtures and fittings on this yacht are second to none, with no expense spared on the maintenance and upkeep. You would think she has just come out of the factory! Her decks are simply superb, with a sunbathing area on the bow, dining area to the aft, as well as a private area on her Flybridge. The deciding factor that made this our favourite luxury charter yacht on show was the crew.
A charter boat can be in great condition and offer the latest toys, but it is the crew who will leave their lasting impression on your experience and memories. Hanns had everything and more that you would look for in a captain. He is extremely experienced, possessing thorough knowledge of the Mediterranean, from Turkey to Spain. Not only was Hanns extremely professional, but he was also charismatic and had a way about him, which ensured that his clients automatically felt at home on board. If you fancy chartering a luxury yacht in Ibiza for a week this summer, look no further than TIGER LILY.
The Family Yacht Charter – ALCOR – Heesen 35m – 6 Cabins – Palma de Mallorca – Ibiza – Formentera
M/Y ALCOR is a prestigious 35m luxury motor yacht from Heesen, accommodating up to 12 guests in 6 cabins. She is a yacht fit for a king, with luxurious accommodation and deck spaces throughout. Whether you want to charter this yacht for a week around Mallorca or are looking to host a luxury cocktail or birthday party, look no further than ALCOR! With 6 cabins, we would recommend gathering your family together for an unforgettable holiday.
Her crew are very diverse, bringing together multiple cultures from Peru, Cuba and Europe to create a unique and memorable charter experience. Get ready for some of the best food, drink, scenery and landscapes aboard ALCOR.
The Classic Yacht Charter – S/Y SEA SHUTTLE – 3 Cabins – Palma de Mallorca – Ibiza – Formentera
S/Y SEA SHUTTLE was born in 1983 and has since successful completed over 50 Atlantic crossings. She is an extremely famous and popular 28m classic Jongert sailing yacht, accommodating up to 7 guests in 3 cabins. She has always been looked after and in 2012, she received a full interior and exterior refit, bringing her in line with the latest and best luxury sailing yachts of today.
This can be illustrated by her stunning tender, which is capable of reaching speeds of 50 knots! Whether you fancy a quick lunch in Ibiza or Formentera, anything is possible on board this sailing yacht. She has a brilliant English captain, who will ensure that every single wish is successful achieved during your boat charter. She also features a Thai chef, who will bring the very best in Asian cuisine, as well as your favourite Mediterranean classics. We look forward to helping you with your enquiries!
Check out our website, www.boatbookings.com, and start searching for your luxury yacht charter in the Balearic Islands for this summer. We have a team of highly skilled professionals who are extremely knowledgeable in their destinations and will be able to help you bring together the yacht, the crew and all the other aspects that make your charter special.
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Tags: Crewed Yachts, Palma Yacht Show, Palma Yacht Show Review
Posted in Classic Yachts, Crewed Charter, Expert Commentary, Heesen, Ibiza, Industry Shows, Jongert, Mallorca, Motor Yachts, Pershing, Sailing Yachts, Spain, Yachting news | No Comments »