What happens if my APA runs out during the charter?

Answer

If the funds provided through the APA are being exhausted, the charterer may be asked to provide additional funds to cover further authorised expenses.

This can happen when a charter involves more cruising, fuel consumption, provisioning, marina stays or other expenditure than originally anticipated.

The captain or crew should keep the charterer informed about significant expenditure rather than allowing the situation to become an unexpected surprise at the end.

Analysis

APA requirements are estimates, not guarantees. Actual expenditure can change during the charter, particularly when the itinerary changes.

A substantial itinerary change can therefore have financial as well as logistical consequences.

Broker Comment

If your plans change significantly during the charter, we recommend asking for an updated expense estimate. It is much easier to manage the budget while the charter is underway than to discover at the end that considerably more has been spent.