Yacht Charter APA Explained: A Detailed Guide

Your charter fee covers the yacht and crew, but most charters also involve variable running costs that depend on the itinerary and your onboard preferences. A yacht charter APA (Advanced Provisioning Allowance) is the prepaid onboard expense fund used to cover those trip-specific costs as they arise.

In this guide, we explain what APA is, what it typically covers, how it is calculated, and how the process works from the initial estimate to final reconciliation at the end of your private yacht charter.

How APA Works on a Yacht Charter

Yacht charter APA (short for Advanced Provisioning Allowance) is an additional amount paid before boarding. Once on board, the captain is authorized to use APA funds to pay charter-related expenses as they arise. In practice, APA functions as a working expense account that enables the captain and crew to operate the yacht in line with your itinerary and preferences.

If you are new to the process, our beginner’s guide to booking a yacht charter explains how APA fits into the overall booking and payment timeline.

Why Does APA Exist?

APA exists to keep your charter running smoothly. It allows the crew to pay suppliers, marinas, agents, and other service providers without needing to request payment from you for each individual receipt. In simple terms, APA provides operational cash flow for your specific charter, and it is not an extra charge the yacht “adds” to your bill.

APA vs. Charter Fee

It is essential to understand that APA is not the same as the charter fee, and APA is not a fixed package price. The charter fee covers the yacht and crew, while APA covers variable running costs, which is why it is helpful to understand the full cost structure of a yacht charter.

If your actual expenses are lower than the APA amount, the unused balance is refunded after the charter. If your costs exceed the APA, you will be asked to make a top-up during the charter.

What Is Included in APA (and What Is Not)?

APA typically covers variable costs incurred during the charter based on your itinerary and onboard consumption. On most crewed charters, APA usually covers:

• Fuel for main engines, generators, tenders, and, in some cases, fuel-heavy water toys
• Food and beverages, including special requests
• Berthing, port, marina, pilotage, and anchorage fees
• Cruising permits, customs, and clearance charges (depending on the destination)
• Water, shore power (electricity), waste services, and other port services
• Charter-related communications, when billed as an expense
• Agent fees related to the itinerary (including local clearance support)

APA typically does not cover the charter fee itself, VAT or other sales taxes (where applicable), or crew gratuities (tips). Some destinations and contracts treat local taxes and cruising fees differently, so it is important to review your charter agreement and confirm inclusions with your broker.

For a clearer view of what your agreement says about expenses, deposits, and reconciliation, read our guide to understanding yacht charter contracts.

Calculating APA: The Basics

APA is typically set as a percentage of the base charter fee, as this provides a straightforward estimate of the charter’s variable operating costs.

• For many motor yacht charters, APA is typically 30% to 40% of the charter fee
• Sailing yachts may be estimated at a lower percentage because they often consume less fuel (depending on routing and generator use)

The estimated percentage may increase for reasons such as:

• High-speed itineraries or long cruising distances
• Remote cruising areas with higher logistics costs
• Busy itineraries with frequent marina stops
• Peak-season destinations with higher berthing fees

What Actually Drives APA Spend

The main drivers of actual APA spending are:

• Distance and speed: fuel burn and generator hours
• Destination costs: marina fees, permitting requirements, local provisioning prices
• Guest preferences: premium wines and spirits, specialty provisioning, dietary requirements
• Guest activities: excursions, transfers, instructors, and certain water toy usage

The APA Process: Step-by-Step

Now that you know what APA is and what it typically covers, it helps to understand how the process works in practice. The steps below explain how APA is estimated, how the captain applies it during the charter, and how the final balance is reconciled.

Step 1: Initial Estimate and Preference Planning

Before departure, your broker and the captain align on your itinerary and provisioning preferences. Based on this, the captain provides an APA estimate that reflects anticipated fuel consumption, local fees, and your expected food-and-beverage profile.

Step 2: Payment and Spending Authorization

APA is typically paid in advance with other pre-charter payments, as set out in the charter agreement. Once received, the captain is authorized to use the APA to pay charter-related expenses on your behalf. The captain should demonstrate how APA is used throughout the charter.

Step 3: Spending and Tracking During the Charter

During the charter, the captain pays expenses as they arise. Best practice is to report expenses regularly, so you can monitor the remaining balance and adjust plans early if your itinerary or onboard consumption changes.

Step 4: Top-Up Requests

If the captain expects the remaining APA will not cover the rest of the itinerary, a top-up will be requested. A top-up is not a penalty. It is simply a way to keep the charter expense account funded in line with actual spend.

Step 5: Final Accounting and Settlement

At the end of the charter, the captain prepares a detailed APA statement and provides supporting documentation (invoices and receipts). If your actual expenses are less than the APA deposit, you receive a refund of the unused balance. If expenses exceed the deposit, you settle the difference.

Understanding Your APA Statement

An APA statement should be clear, organized, and auditable. You can expect expenses to be grouped into categories such as Fuel, Food and Beverage, Port Fees, and Agent Fees. Each line item should include:

• Date
• Supplier name
• Description
• Currency
• Exchange rate (if applicable)

If anything is unclear, ask while you are still on board. It is easier to resolve duplicate marina invoices or questions about fuel receipts in real time than weeks after the charter ends.

Budgeting Example Using a Simple Planning Model

Below is a simple model to estimate likely APA spend and identify what you can control early.

Category	Main Cost Drivers	How to Control Costs Early
Fuel	Distance traveled, speed, generator usage	Plan shorter hops, spend more time at anchor
Food and beverages	Brands, wines and spirits, special orders	Share your preference list early and set expectations
Marina and port fees	Destination and season	Mix marinas with anchorages where feasible
Permits and clearances	Country rules and itinerary complexity	Keep routing straightforward where possible
Activities and extras	Guides, events, transfers, instructors	Pre-approve big-ticket items and excursions

If you want tighter control of APA, focus first on itinerary design. A busy route with long legs and high-cost marinas will usually cost more than a relaxed itinerary with shorter distances and more time at anchor.

APA FAQs