Is APA Refundable? Where Your APA Money Goes

Day 5. A week in the Ionian. Ten guests.

The APA was set at 30% of the charter fee. It is the advance for fuel, food, drink and berths.

A guest asks the captain how much is left.

The captain opens the running statement. It lists every fuel stop, every berth, every supermarket run.

Fuel is the biggest line. The generator ran air conditioning in five cabins all night, every night.

Nobody did anything wrong. The unit burns fuel when it runs.

The guest messages the broker. The broker asks the captain for the account and talks the guest through it.

The money is spent on what it was for. Now they can decide what to do with the rest of the week.

The short answer

APA stands for advance provisioning allowance. It is an advance toward costs paid at cost: fuel, food, drink, berths and similar items.
It is not a fee and not a deposit. It is a float that the captain spends on your charter and accounts for.
Under the MYBA charter agreement (2017 version), Clause 8, the captain presents a detailed account of expenditure, with as many supporting receipts as possible, before you disembark.
Any balance is repaid to you. If the APA fell short, you pay the difference.
So “refundable” is the wrong word. Unspent APA comes back. Spent APA has already bought what you used.

Your own contract governs. Clause wording differs between versions and contract forms, so ask your broker to show you the clause.

What APA pays for

The charter fee covers the yacht and the crew. The APA covers what the week consumes.

Fuel for the yacht, the generator and the tender.
Food and drink for the guests.
Berths and port fees.
Similar costs that depend on how you use the yacht.

The MYBA 2017 form says these are paid by the charterer at cost. The captain is also asked to exercise due diligence in spending the APA.

The amount depends on the yacht, the route and the party. Your broker can tell you how the APA usually lands for that yacht, and that is worth asking before you book.

The account, the receipts and the balance

The captain keeps the accounts.

Before you disembark, the captain presents a detailed account of expenditure. Clause 8 asks for as many supporting receipts as possible.

You compare the account against what you remember. Fuel stops, berths, provisioning, any cash spent for you.

Then one of two things happens.

There is money left. It is repaid to you.
There is a shortfall. You pay it.

The 2017 text does not give a number of days for this. The reconciliation is set before disembarkation. If you see a figure such as “30 days” online, it is not in that clause.

If you disagree with a line, say so at the time. Ask for the receipt. Raise it with your broker the same day. A question on the account is much easier to settle while the captain still has the receipts to hand.

A shortfall: how to pay it

Clause 8 says cheques, credit cards and other negotiable instruments are not normally acceptable for settling an APA shortfall.

That surprises people. The captain needs funds that can be used right away.

Two practical ways to avoid an awkward last morning:

Ask your broker how the shortfall is expected to be paid on your yacht.
If the week has been heavy on fuel, ask for the running statement early and top up before the APA is gone.

Why fuel is the line that moves

On a motor yacht, fuel is often the largest line. A few things drive the number.

Speed. A faster cruise burns much more fuel than a slower one over the same distance.
Distance. A route with long hops costs more than one with short ones.
Generator hours. Air conditioning running 24 hours a day is powered by the generator, and the generator burns fuel the whole time.
Tender and toys. Each uses fuel too.

Switching the air conditioning off in the cabins nobody is using, or at anchor in cool evenings, is one of the few levers you control. The captain can tell you how much each choice costs.

Credits for things not delivered

Sometimes something in the contract is not delivered. A water toy on the list that never worked. A crew member missing for part of the week. A charge on the account for a night you did not spend in that berth.

These go on the APA statement as a credit. This is where your broker earns their place. They ask the owner or management for specific credits and for them to show on your APA statement, rather than leaving it as a vague promise.

A credit for something not delivered is not the same as a refund of the charter fee. It is a correction to the account.

What your broker does

Answers the same day and always tells you when you will hear next.
Checks in personally on day 2 of the charter, and can ask the captain for the running APA statement.
Puts any issue to the yacht’s management in writing the same day.
Helps you put a complaint in writing on time so your rights under the contract stay protected.
Pushes the owner for specific fixes, including credits for things not delivered shown on your APA statement.
Keeps separate problems separate. A question on the APA does not hold up a charter issue.
After the charter, chases the APA account and any balance, and keeps you updated until it is closed.

The wider picture is in when a yacht charter goes wrong. How the other payments work is in how your charter money moves. If something is wrong on board, start with the first 24 hours.

Questions people ask

Is APA refundable if I do not spend it?

Unspent APA is repaid to you. Under the MYBA 2017 form, the captain presents the account before disembarkation and any balance is repaid to the charterer.

How long does it take to get my APA balance back?

The MYBA 2017 clause sets the reconciliation before disembarkation and gives no number of days. In practice, your broker chases the account and any balance and keeps you updated until it is closed.

What happens if the APA runs out before the end of the charter?

The captain asks for a top-up. The 2017 form says cheques and credit cards are not normally acceptable for shortfalls, so ask your broker beforehand how it is done on your yacht.

Can I see where the APA has gone during the charter?

Yes. You can ask the captain for the running statement at any time. Your broker can ask for it too, and often does around day 2 or 3 on motor yachts.

Why is the fuel bill so high?

Speed, distance and generator hours. Running air conditioning through the night in several cabins keeps the generator burning fuel all that time. The captain can show you the fuel lines on the statement.

Does the Caribbean work the same way?

Not always. Caribbean contracts use different forms, and many Caribbean charters are priced all-inclusive, so food and drink may already be in the fee. Your broker will show you what your contract includes and what is billed at cost.

Ask to see the account. It is yours.

Planning a charter? Start with our yachts, or see what to have ready before you talk to a broker. More guides like this one are in our Knowledge Base.