What is force majeure in a yacht charter contract, and what's the cancellation policy?
Force majeure in a charter agreement covers events genuinely beyond either party's control — such as war, government travel bans or the yacht being requisitioned — and typically allows the charter to be cancelled or rescheduled without the usual cancellation penalties. Ordinary cancellation for personal reasons follows a separate, tightening schedule of deposit forfeiture the closer you get to departure, which is why cancellation insurance is worth considering.
Key facts
- Force majeure clauses cover events like war, government-imposed travel restrictions or natural disaster — not ordinary changes of plan.
- A named storm or hurricane directly threatening the charter dates is sometimes treated separately in the contract from general 'bad weather'.
- Standard cancellation schedules forfeit an increasing percentage of the fee the closer to departure you cancel, regardless of the reason, unless force majeure applies.
- Charter cancellation insurance is designed specifically to cover the gap between force majeure and ordinary cancellation.
What actually counts as force majeure
Force majeure clauses are narrowly written to cover genuinely extraordinary events outside either party's control — war or armed conflict, government travel bans, the yacht being requisitioned by authorities, or a natural disaster affecting the cruising area. It does not extend to a change of mind, illness, or ordinary bad weather that simply makes a particular day less pleasant.
Some contracts specifically address named storms or hurricanes threatening the exact charter dates as a distinct clause, since this sits between ordinary weather (not covered) and a true force majeure event — worth reading carefully if you're chartering during hurricane season.
How the ordinary cancellation schedule works
Outside force majeure, cancelling a confirmed charter follows a schedule in the MYBA agreement that forfeits an increasing share of the charter fee the closer you get to the start date — typically starting around 50% of the deposit at longer notice and rising toward 100% in the final weeks before departure.
This schedule exists because the yacht owner has turned away other bookings for your dates; it applies regardless of your reason for cancelling, which is exactly the gap cancellation insurance is designed to cover.
What to do if you need to cancel or reschedule
Contact your broker as soon as you know you may need to cancel or change dates — sometimes a management company will agree to move your charter to different dates rather than cancel outright, which can avoid the cancellation schedule altogether if the yacht's calendar allows it.
If you have charter cancellation insurance, your broker can help you understand what documentation the claim needs and roughly what proportion of your payment is likely recoverable, though the insurer — not the broker — makes the final decision.
Common questions
Does a hurricane warning let me cancel without penalty?
It depends on the exact contract wording and how directly the storm threatens your specific dates and cruising area — some agreements treat a named storm as force majeure, others don't, which is exactly why it's worth reading this clause before you sign, particularly for Caribbean charters in season.
Can I reschedule instead of cancelling outright?
Often yes, if the yacht has other availability — ask your broker to explore rescheduling before triggering a formal cancellation, since it can avoid the cancellation schedule's forfeiture entirely.
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