What is the APA on a yacht charter?

Short answer

The Advance Provisioning Allowance (APA) is an advance payment, usually calculated as a percentage of the charter fee, used to cover agreed charter expenses such as fuel, food, beverages, port fees and other costs incurred during the charter.

Answer

The APA, or Advance Provisioning Allowance, is an amount paid in advance of the charter to cover many of the running expenses incurred during the voyage.

Depending on the charter contract and yacht, these expenses can include fuel, food and beverages, marina and port charges, communications and other agreed operating costs.

The APA is not normally an additional fee retained by the yacht owner. It is effectively a working fund from which authorised charter expenses are paid.

The amount required varies according to the yacht, itinerary, cruising distance, fuel consumption, provisioning preferences, marina usage and destination.

At the end of the charter, the captain or crew normally provides an accounting of expenditure. If the actual expenditure exceeds the APA, the charterer may be required to pay the difference. If less is spent, the applicable balance is generally returned or otherwise dealt with in accordance with the charter contract.

Broker insight

APA should not be thought of as a second charter fee. It is better understood as a budget for the variable involving extensive cruising, frequent marina stays and significant fuel consumption may generate considerably higher expenses costs of operating your particular charter.