Contracts for transporting yachts by sea require an understanding of the risks involved in this very complex operation
There are several circumstances where a yacht or boat must be transported by cargo ship to another location. One of the most common of these is moving from the Mediterranean to Australia, New Zealand, or other exotic places during the winter cruising months, including the Caribbean.
Another situation frequently encountered is where a new build is delivered by the yard and requires transportation to its home port without sailing on its own bottom.
Even when a yacht or boat can handle extended or ocean voyages, owners often prefer to load the yacht on a cargo ship to avoid the sea risks. International agents and brokers offer this kind of service and provide standard contracts.
Because of the complexity of the clauses they contain, the high cost of freight, and the significant liabilities that could arise from them, these contracts should be carefully analyzed, preferably with the advice of an expert maritime lawyer.
It is worth noting that contracts for the carriage of yachts by sea are a sub-section of voyage charter parties and include very similar clauses aimed at limiting the carrier’s liability as much as possible, to the detriment of the yacht owner’s position.
These contracts generally fall into the “carriage of goods by sea” category (known as “voyage charter parties”), which means charterers pay freight charges to the shipowner to have their goods carried from the load to the discharge port.
Usually, these contracts incorporate international conventions known as “The Hague/Visby Rules” which cover carrier liability unless they are expressly excluded.
Owners should deliver yachts with as little fluid on board as possible and a limited amount of fuel, according to the instructions given by the carrier.
The contract typically consists of a first part including the special conditions the parties should complete and a second part including the general terms and conditions of carriage.
The first part consists of numbered boxes to show, among other things:
- the name and details of the agent or broker,
- where and when the contract was signed,
- the name and details of the carrier,
- the name and details of the yacht’s owners,
- the name and details of the carrier ship,
- the date or time frame for shipment,
- the load port, the discharge port,
- the name and main specifications of the yacht to be shipped,
- the position where it will be loaded (on or below deck),
- the freight rate,
- the demurrage charged by the carrier for every day that an owner fails to make the yacht available for loading,
- the name of the yacht owner’s representative at the load and discharge ports,
- a reference to any additional clauses,
- the signature of the carrier and the signature of the yacht owners.
The second part includes a series of clauses laid down by the carrier, which cover the terms and conditions of carriage. These are very complex and mean that the yacht owner has to accept numerous risks and liabilities which should not be under-estimated.
The owner has an implied obligation to provide the carrier with as much information as possible concerning the yacht transportation, which forms an integral part of the carriage contract.
Owners must provide an up-to-date master plan and a detailed docking plan that shows precisely where supports, cribbing, and cradles are to be placed under the hull and the center of gravity, all of which are needed for loading and unloading the yacht.
Owners should deliver yachts with as little liquid on board as possible and a limited amount of fuel, according to the instructions given by the carrier. Indeed, even though a yacht may be accepted as cargo, the owners are wholly liable and have to indemnify the carrier for any damage to the yacht and/or to the cargo ship during loading, unloading, or transit arising from not having provided detailed and accurate information.
It becomes imperative to ensure that the yacht owner knows the type and level of insurance required. For example, will exemplary losses be covered due to damage and repair afterward?
Who are the contracting parties, and is a ‘knock-for-knock’ clause involved? The broker arranging the loading and shipping of the yacht may not be involved in the carriage contract, and clauses allowing delays and diversions can severely impact the expected financial outlay and losses from charter income.
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