Advanced Provisioning Allowance (APA)
Advance provisioning allowance. This is the amount prepaid to cover the cost of food, beverages, liquor, and a portion of the fuel for the charter. If underused, the remaining amount is refunded upon disembarkation. If overused, the difference is due upon disembarkation. The APA does not include fuel for the motorized water crafts or extra fuel required to resume an itinerary following any sailing route changes due to inclement weather/sea conditions or client-initiated changes. The APA does NOT constitute an all-inclusive charter and additional funds may be required to cover fuel costs for actual itinerary executed (see section on Fuel Supplement). The APA also does not cover any extra requirements for sailing into international waters (for applicable itineraries only). NOTE: The APA is in USD currency and must be included in the overall total cost of the charter. Payment of the APA will be direct by the charterer to the yacht charter manager and can be paid by credit card (3.5% charterer's bank fee additional applies) or by wire transfer (minimal fee, bank details to be provided with yacht charter agreement). The APA is converted to local currency EURO at time of receipt of cleared funds of 2nd Payment Installment. (for applicable charters with Euro currency requirements). Charters in the Caribbean are also subject to Euro currency depending upon destination.
What is an APA Escrow Account
An APA Escrow account provides the ability for the yacht charter specialist to:
Reduce stress on the charterer and closeout the account from any overages
Pay out authorized crew gratuity so that the charterer does not need to carry large sums of money
Yacht Charter manager has ability to pay other activities requested by the charterer such as tours, rental cars and other activities.
When is the APA converted to the local currency?
The APA remains in the currency provided until time of the charterer’s charter where it will be converted and delivered to the Captain for the preliminary Captain’s APA account. The APA Escrow remains in the currency provided and converted to the local currency only if required.
What happens to my APA and APA Escrow if underused?
All funds are returned to the client when the charter has been completed and all accounts have been paid. The Yacht Charter Manager provides an account closeout and provides all un-used funds back to the client via a wire transfer.
Absolutely! Your Yacht Charter Manager first closeout out the account of all expenditures together with the Captain and will advise of remaining funds in the account. The converted funds with the Captain can be the funds to apply towards discretionary crew gratuity.
Can I use any unused converted APA funds for crew gratuity?
Sample APA Escrow
Below is a sample APA Escrow Account that all clients receive with their Welcome Aboard Documents. In the sample below the charterer has opted to not have any APA back up in Escrow therefore any overages and/or crew gratuity must be paid in Cash prior to disembarkation. Yacht charter vessels do not have the ability to accept credit card for overage payment. If the yacht charter manager closes out account overage with a credit card a 3.5% credit card fee will apply.
Crew Gratuity Guidelines Table
A crew gratuity guidelines table is provided within the APA Escrow Account document to assist the charterer to understand customary, recommended crew gratuity. The table is provided for information purposes only and not obligatory.
APA MANAGEMENT PROCESS: APA Management and Account Close Out will be handled by Endless Blue for and on behalf of the Charterer with the Captain in the following manner:
Any potential APA usage overage from Captain’s preliminary account at Mid-Point Charter APA consumption review will initiate a release of additional funds from APA Escrow balance to maintain a positive APA balance until the end of the charter. All expenses with accompanying receipts are logged in the Captain’s log and reviewed with Endless Blue prior to sign off from the Charterer prior to disembarkation.
If an APA release of Escrow Reserves at time of Mid-Point APA review is insufficient to maintain a positive APA balance with the Captain, a charge to the Charterer’s credit card will occur (3.5% credit card fee applies) or a wire transfer must be initiated from the Charterer directly to Endless Blue to replenish APA reserves. Alternatively charterer must provide cash to Captain directly prior to disembarkation.
An immediate charge to the Charterer’s credit card or additional wire transfer initiation from Charterer will occur ONLY in the event where there is no cash reserves in APA Escrow account with Endless Blue or Cash with Charterer on hand. Captain must demonstrate insufficient funds at Mid-Point APA review to maintain a positive APA until end of charter.
Any under usage of APA from Preliminary Captain’s Account (Euro for applicable regions only) may apply towards crew gratuity, fuel or other services requested. If there are no additional discretionary costs or additional services to be settled, the remaining funds are provided via wire transfer or cash to charterer prior to disembarkation.
Remaining amounts in USD Escrow Reserve not used shall be delivered via wire transfer to Charterer from Endless Blue in the currency received or released for crew gratuity based on Charterer’s instructions of percentage amount listed below.
Crew Gratuity is sourced first from any remaining APA from Captain’s preliminary account (in local currency). Should remaining Captain’s preliminary account be insufficient to equate to the total percentage or dollar figure requested from the Charterer to leave for crew gratuity, remaining USD Escrow will be converted to local currency to achieve total sum requested from Charterer. Crew gratuity is based on CHARTER VALUE only and not on total Charter costs. Reference figures below are for reference purposes only.
The account shall be considered closed when all outstanding expenses have been settled with the yacht’s management and all surplus APA or APA Escrow funds have been applied to the charter or returned to Charter Client.