Key takeaways
Clear charter terms prevent costly disputes
Define obligations and liabilities upfront to protect owners and charterers.
Understand the difference between let and hire
Misinterpretation can impact risk allocation and financial responsibility.
Tailored contracts ensure smooth charter operations
Custom clauses help address unique yacht usage and compliance needs.
Authors
The summer superyacht charter season is now in full swing, with thousands of yachts being delivered to charterers for luxury experiences across the waters of the Eastern and Western Mediterranean and their iconic ports.
While most charters proceed smoothly, as ever, the Dispute Resolution Team at Hill Dickinson is ready to assist with any legal issues that arise. Common areas of dispute include cancellations and non-payment, yacht condition, crew and service standards, and onboard conduct.
The vast majority of these charters are governed by English law contracts based on the MYBA (Worldwide Yachting Association) standard terms and conditions. Any negotiated changes, such as bespoke terms from the owner or charterer, are incorporated under the Special Conditions. These standard terms are available exclusively to MYBA members for the benefit of their clients.
Until recently, the MYBA Charter Agreement had remained unchanged since 2017. However, in April 2025, MYBA released a revised version: the MYBA Charter 2025 Terms. This summer, both the 2017 and 2025 versions are in circulation. It’s therefore essential that experienced charterers and owner teams review the contract in use and, where applicable, understand the implications of the updated terms. Key changes in the 2025 version include:
KYC obligations and the mutual exchange of required documentation;
A broad definition of a ‘Sanctioned Party’, with a mutual warranty that neither party (nor any charterer guests) fall within that definition;
Clarified Charterer rights when an owner invokes force majeure due to breakdown or disablement; and
An Entire Agreement clause that excludes prior broker communications from forming part of the contract.
Given the increased regulatory scrutiny on the superyacht sector, particularly regarding anti-money laundering (AML) compliance and international sanctions regimes (which vary across the US, UK, EU, and Monaco), the changes at points 1 and 2 are especially significant.
Hill Dickinson regularly advises clients in the superyacht industry on KYC and sanctions compliance. If you have any issues arising from your superyacht charter contract, we’re here to help.