What is APA on a yacht charter?

Answer

APA stands for Advance Provisioning Allowance. It is an advance payment used to cover agreed charter expenses incurred during the charter.

Depending on the charter agreement, these expenses can include fuel, food and beverages, port and marina costs, communications and other operational expenses attributable to the charter.

The amount and accounting process are set out in the applicable charter agreement.

Analysis

APA is not normally an additional fee paid to the yacht as profit. It is intended to fund expenses incurred on behalf of the charter.

Actual expenditure can be higher or lower than the amount advanced, with the final account reconciled according to the contract.

Broker’s advice

Think of APA as the operating budget for your particular charter. It is not the same thing as the yacht’s weekly charter fee, and the crew should keep you informed about significant expenditure.