boat operating expenses budget
what is APA?
What is APA (Advanced Provisioning Allowance)
Deductions from the APA include:
- fuel for the yacht, tenders and water toys
- berthing fees
- customs charges
- harbour and pilot fees
- divers’ fees where required
- shore-side water and electricity when applicable
- food and beverages
- communication charges
- agent fees and other miscellaneous costs.
The APA is usually 30% of the charter fee (sometimes 35% if the yacht burns a lot of fuel or if you intend to do more than about 4 hours of cruising per day).
The APA covers the cost of fuel, food, wines and liquors, dockage, communications, etc.
Any APA not used will be returned to you at the end of the charter as you leave. On the other hand, if expenses exceed the APA (maybe excessive cruising so high fuel costs, requests of rare liquors, etc.) you will be expected to reimburse the yacht as you leave the charter. This is rare but you need to be aware of this possible expense.
Advance Provisioning Allowance (A.P.A.) in amount of the charter fee (before discount) is to be paid by the Client in addition to the charter fee which includes all fuel and relevant costs for the yacht and its tenders, as well as all harbor, customs, utility and other additional costs for the yacht, crew, client and guests during the entire charter period.
A.P.A. is obligatory in luxury charter .The Client will be advised by the captain, at intervals, as to the disbursement of the A.P.A and will, if the balance remaining becomes insufficient, in light of current expenditure, pay to the captain, a sufficient sum to maintain an adequate credit balance. Prior to disembarkation at the end of the charter period, the captain shall present to the Client a detailed account of expenditures with as many supporting receipts as possible, and the Client will pay to the captain the balance of the expenses or the captain will repay to the Client any balance overpaid, as the case may be. Payment for special requirements or equipment and/or shore transport and/or excursions and/or all other expenses not customarily considered part of the Yacht’s costs may be required to be paid to the captain on board in addition to the charter fee and/or A.P.A.
This is a deposit which is used to cover all expenses not included in the charter rate. Depending on the yacht and contract type, the amount may vary and will be influenced by the provisioning requested, number of guests and duration of the charter. APA amount is normally considered to be 25-30% of the charter fee.
The APA amount is held by the yacht’s Captain in cash. Prior to your embarkation the Captain and the crew will buy fuel and provision the yacht with food & drink as per your requests, the APA will also cover any other expenses relating to your charter (including harbour fees & taxes, fuel for generators, fuel for tenders or motorized water toys, laundry, airport transfers and any other expense not covered in the contract).
Your Captain will ensure that the yacht is suitably fueled and provisioned for your charter from the moment you step on board. He will advise you periodically as to the disbursement of the APA, and can ask you to re-provision if the balance is not big enough to finish the charter.
The APA balance sheets are available at any time for you to check how the money is being spent. At the end of the charter, the captain will produce full accounts and receipts of all expenditure. You will either be refunded any money not used or asked to pay any additional costs not covered by the APA.