IYBA Cruising Contract Charter Panel – Monaco 2019

As you may know, I am on the EU committee of the International Yachting Brokers Association (IYBA) and my role is to ensure we grow the association within the European community.

The IYBA EU committee recently presented a two day event delivering high quality educational opportunities to the membership. This event saw every area of the yachting world get together for an unprecedented educational forum that benefitted everyone.

On day two, I was the moderator at the charter panel and invited 4 panellists from the industry to discuss key charter related issues that are the current hot topic in the industry.  As this event is held once every year, I wanted to ensure I covered all the topics and I had the influence, the right people to answer and of course relevant and useful questions.

This year, we kept our focus on how to protect our industry, protect yacht owners, the destinations, innovations to keep this industry alive and lure a new kind of niche in the market and most importantly what the future holds for us all involved in the yachting world.

One of the most interesting discussions I found were how new and innovative companies such as Cookson Adventure are using new and exciting ways to entice a new crowd towards the yachting holiday experience. Cookson Adventures intertwine fun, excitement and adventure to an otherwise relaxing, lazy day, sophisticated kind of holiday.

Another hot topic was the cruising contract that has been set in place in the French Riviera and how that seems to be a positive move for yacht owners and clients. Our panellist who specialised in this area of the yachting world, explained:

The use of the cruising contract?

This contract, derived from the contract of carriage used for cruise ships is the result of changes in European regulations which define a new possible framework for the commercial use of yachts, with necessary adaptations.

Requirements:

• Must be used as part of a service that offers a cruise with accommodation
• Must start in French waters.
• An itinerary is defined (it can be modified by agreement between the parties in an addendum)
• The price paid by the customer includes the fuel needed to transport (cruise)
• The charter brokers must have a civil liability insurance and a financial guarantee.

Financial advantages:

• The VAT rate applicable on the cruise fee and fuel is 10% in France if the cruise starts in France and stays in France. There is exemption of VAT in case of international cruising.
• Purchase fuel is zero-rated TICPE and VAT (about 0.60cts per liter) in France.

The charter contract remains relevant in the case of static charters (dockside events).
There is a day cruising contract with only two pages, easy to complete and implement:

• No accommodation on board
• Day use
• Inclusive flat price of the fuel

As usual, we saw an amazing turnout and it just makes me feel prouder to be part of this organisation that dedicates itself to improving the industry it represents!