What Is APA?

APA stands for Advance Provisioning Allowance. It is money the charterer pays in advance, separate from the charter fee, so the captain and crew can pay the running expenses of the charter as they happen: fuel, food, drinks, berths, port costs and other agreed items.

APA is not a fee and it is not the owner's profit. It is client money held for charter expenditure, tracked through the charter and reconciled at the end. If less is spent, the balance is returned; if more is needed, a top-up is requested.

Running costs on a charter depend on how you use the yacht: how far you cruise, where you berth, what you eat and drink. These cannot be priced precisely when the contract is signed, so they are kept out of the fixed charter fee and funded by an advance instead.

This keeps the published fee comparable between yachts, and means the charterer pays the actual cost of their own programme rather than a padded all-inclusive price.

A yacht may buy fuel, provisions and berths in several ports within a single week. APA means the captain has funds available before and during the charter, so supplies can be ordered to your preference sheet and paid on time, without waiting for each item to be approved and invoiced.

APA is held on behalf of the charterer for the charter's expenses. It is not commission, not VAT, not a gratuity, not a security deposit and not a yacht purchase deposit. It is also not a spending target: there is no obligation to use it all.

APA is usually set as a percentage of the charter fee, though some yachts quote a fixed amount instead. The actual figure is stated in the yacht's terms and in your contract, and those terms control.

In the Mediterranean market, figures between roughly a quarter and a third of the charter fee are often seen. That is general market context only, not a rule, and Lund does not apply it to any yacht automatically.

No single percentage applies to every yacht. One yacht may ask 25%, another 35%, and some event or expedition programmes ask more. A missing APA figure does not mean zero; it means the APA is to be confirmed for that yacht and those dates.

The percentage reflects the expected cost of operating that yacht for that programme.

APA appears in the charter quote and contract alongside the charter fee, VAT or local taxes, any delivery fee and extras. Gratuity sits outside them all. The full budget picture is covered in the charter cost guide.

Remember that the APA amount is an advance, not your final cost. Final spend is only known when the account is reconciled.

Fuel is often the largest APA item on a motor yacht.

Guest food is bought to your preference sheet. Quantity, quality and specialist products all drive spend: caviar, rare produce or ingredients flown in will raise it. Dietary needs, allergies, children's meals and celebrations are planned the same way.

Wine, champagne, spirits, soft drinks and water are usually bought through APA. Premium and rare bottles can change the total substantially. If you bring your own wine, whether corkage applies depends on the yacht's terms.

Marina berths, port fees, mooring buoys, local dues and pilotage where needed. Premium marinas in peak weeks and event berths cost far more than a quiet harbour. Anchoring usually avoids berth fees, subject to local rules and the captain's judgement.

Not every shoreside expense has to go through APA. Restaurants, beach clubs, taxis, chauffeurs and excursions can be paid from APA if you ask the crew to arrange them, or paid directly by you. Agree the approach before the charter so the account stays clear.

These items are usually outside APA, unless specifically agreed:

Communications and Starlink data beyond the included allowance, laundry, flowers and décor, local permits, fishing licences, drone permissions, customs and clearance formalities, and medical expenses ashore can all appear in the APA account depending on the yacht's terms.

APA does not pay crew salaries, which are the owner's cost. It is not used for broker commission, which is settled from the charter fee under the commission agreement. It is not VAT, which is calculated and paid under the applicable tax rules. It is not gratuity, which is discretionary. It is not a delivery fee and not a damage deposit.

There is no universal fuel-burn figure to plan with. The captain budgets fuel from the yacht's own consumption, the itinerary and the weather. Bad weather may change routes and consumption; the captain has authority over safe navigation, and that can affect spend.

The captain normally manages the APA on board, following the yacht's or management company's accounting process. The funds do not belong to the captain personally. In some programmes a central agent or management company holds the APA and releases funds to the yacht as needed.

Lund coordinates the process for its clients: confirming the APA terms, the payment route and the reporting you will receive.

The captain spends the APA on agreed charter expenses without asking for approval on every coffee or loaf of bread. For large or unusual expenses, good practice is to confirm with the charterer first. You can set a spending cap, ask for approval above a threshold, or ask to be consulted on premium items.

Expenses are recorded in an APA account, usually grouped by category such as fuel, provisions, beverages, berths and shore services. Supporting receipts or invoices are kept where available. You can ask for an interim statement during the charter.

If spending is running ahead of the advance, the captain will show you the account and ask for a top-up. A top-up is not a penalty; it means your programme is costing more than the original advance. The amount and payment route should be confirmed securely before funds are sent.

If you decline a top-up, the crew may need to reduce spending: fewer marina nights, shorter passages or simpler provisioning.

If less is spent than advanced, the unused balance is returned after reconciliation. A refund is not a discount; it is simply your own money that was not needed.

Some charterers ask for the crew gratuity to be paid from the remaining balance. That is a separate, discretionary instruction and is covered in the tipping guide.

APA is usually paid in the charter currency. Expenses in other currencies are converted, and exchange rates and bank charges can affect the final balance. Refund timing depends on reconciliation and bank processing, so no fixed refund date is guaranteed. Any request to refund to a third-party account should be verified before payment.

Payment timing is set by the contract, not by a universal rule. APA is often paid with the final charter balance, but the date and route depend on the agreement. What matters is that funds have cleared before the charter starts so provisioning can begin.

Lund never publishes bank details on its website and never takes APA payment through a guide page or card checkout. Payment instructions come only through confirmed contract documents.

If you receive changed bank details by email or message, treat it as a warning sign: confirm by a known phone number before sending anything.

APA is not a damage fund. Accidental damage, including to water toys, is handled under the contract and insurance, and some yachts take a separate security deposit. Do not assume damage will simply be deducted from APA.

Whether VAT applies to APA expenditure depends on the jurisdiction and the contract; Lund does not infer tax treatment here, and the charter VAT guide covers the principles. Gratuity is discretionary and outside APA. Broker commission is not taken from APA, and APA is not owner profit.

The owner pays the yacht's maintenance, crew salaries, crew food and routine repairs. APA pays for the charterer's consumable use. If a charterer asks for something that creates a cost, such as a special delivery or a specific purchase, that request is charged to APA.

Events such as the Monaco Grand Prix, the Cannes Film Festival or corporate hospitality weeks have their own logistics. Trackside berths, event packages, security staff and catering for large receptions are not assumed to sit inside a standard APA. The relevant event page and your quote set out what applies.

Destination affects how much is spent more than it changes the percentage: a week of prime marinas costs more than a week at anchor. More guests usually mean more provisioning. Children's needs and pets, where the yacht allows them, are planned into the preference sheet. APA is not quoted per person.

Enter the charter fee from your quote and, only if your quote states one, the APA percentage. The planner shows the advance amount. It does not predict your actual spend and will not guess a percentage. For a human estimate, send the details to the Charter & Brokerage Desk.