Shipping your ship
Transporting your yacht with confidence requires due-diligence on many angles, none so more important than taking a closer look at the small print on the insurance documentation
Transporting a yacht across open seas is a complex process that requires careful planning, legal understanding and risk management. Two critical questions arise for any yacht owner considering this endeavour: who is my contract with and who is protecting me? These questions form the foundation of a secure and transparent transport process. Below, we explore the key considerations and essential elements involved in (super)yacht transport.
UNDERSTANDING THE STAKEHOLDERS
When transporting a yacht, three main entities are involved:
1. The Client (Yacht Owner)
As the primary stakeholder, you must conduct thorough due diligence when selecting a transport company and make sure you fully understand your contract terms.
2. The Transport Company
Responsible for the logistics of moving your yacht safely, including loading, securing, shipping and unloading while adhering to strict safety protocols.
3. The Insurance Company
What risks are covered, such as damage, liability issues and unforeseen events. Standard yacht insurance often excludes transport-related risks, making specialised marine insurance essential.
SAFETY: THE TOP PRIORITY
Owners should evaluate a company’s track record and ensure transparency regarding risks. Key considerations include:
- Risk Assessment: Transport companies should provide detailed information about potential hazards such as rough seas, weather conditions or mechanical failures during loading/unloading.
- Third-Party Liability: Understanding where third-party liability begins and ends is crucial. For example, does liability cover damages caused by external parties during transit? This must be clarified in the contract.
- Track Record: Verify the company’s experience, safety history and financial stability. Check where the company is based and whether it’s a one-man show or part of a larger, financially stable group.
INSURANCE COVERAGE
Yacht transport involves significant financial exposure, making the correct insurance coverage indispensable. Here is what you need to know:
1. All-Risk Transport Insurance
This comprehensive policy covers marine risks such as physical damage during transit, general average contributions, salvage costs and environmental damage from storms or other natural events. Also, check for exclusions that may apply.
2. Liability Protection
Liability insurance protects against claims involving third-party damages or injuries during transportation.
3. Deductibles and Premiums
Deductibles are determined by the yacht’s value and must be clearly outlined in the insurance questionnaire. Additionally, some transport companies include a margin within insurance premiums for added protection. Premiums and deductibles often reflect the quality of coverage and service, always compare the options.
4. Claims Handling
In case of damage or loss, it’s essential to know who will handle claims, whether it’s an internal department within the transport company or an independent broker. Efficient claims handling ensures quick settlements without disputes over liability.
LEGAL CONSIDERATIONS IN CONTRACTS
Contracts govern every aspect of yacht transport, from pricing to liability clauses. Key points to review:
- Transparency in Terms: Ensure clarity on delays, liabilities and additional costs. For example:
Who bears costs if port delays occur? Are there penalties for late delivery? Is liability capped in specific scenarios (e.g., force majeure)? - Privity of Contract: Be aware that contracts between classification societies or flag states often exclude owners from direct rights unless explicitly stated. This can complicate claims if issues arise during transit.
- Bill of Lading / Cargo Receipt: The BL should include clauses extending legal protections under frameworks like COGSA (Carriage of Goods by Sea Act) for on-deck cargo if applicable. Ensure that higher cargo values are declared to increase carrier liability coverage in case of loss or damage. Traditional Bills of Lading are less common in yacht transport due to their legal implications. Many companies prefer simpler cargo receipts.
MANAGING DELAYS AND COSTS
Delays can result from weather, logistical challenges, or port congestion. Key questions to address:
- Who covers extended port stay costs?
- Are there penalties for delays caused by unforeseen circumstances?
- How are additional expenses and storage fees calculated?
Understanding these aspects ensures you’re not caught off guard financially during unexpected situations.
SURVEYORS AND CLAIMS SUPPORT
In case of damage or disputes, surveyors play a crucial role in loss assessment. Owners should confirm whether the transport company provides claims support, whether this is in-house or moved off to a third party company. Liaising with the surveyors and assisting with insurance documentation is a crucial element often overlooked and will be vital in settling claims in a timely manner. This can streamline the claims process significantly and reduce stress during challenging situations.
CHOOSING THE RIGHT TRANSPORT COMPANY
Selecting a reliable transport company ensures safety and minimises risk:
1. Experience and Reputation: Look for companies with proven expertise in superyacht transport and positive client testimonials.
2. Insurance Partnerships: Companies with established insurance relationships often offer better coverage at competitive rates. Review insurance premiums and deductibles, these independent third-party values indicate service quality.
3. Transparent Communication: Ensure that all risks, costs and liabilities are communicated before signing contracts. Transparency builds trust between the client and the service provider.
SEVENSTAR YACHT TRANSPORT: YOUR GO-TO PARTNER
Sevenstar Yacht Transport places a strong emphasis on transparency and reliability. They understand that when it comes to transporting your yacht, you need a company you can count on. That’s why they ensure the utmost care and attention to detail, along with the lowest insurance rates in the industry.
Sevenstar is widely known for its top-quality pre-carriage service. Upon booking, their team of experts keeps you informed and carefully plans and coordinates the transport of your yacht, taking into account factors such as route, weather conditions and any necessary permits or customs clearance.
They offer the highest standards in equipment, with custom-made cradles (Lloyd’s Certified) and lashing systems to ensure safety during loading, transit and unloading. Our engineers work with professional lift and stow plans, maintaining the highest safety standards in the industry.
For a seamless yacht transport experience backed by financial stability, expertise and a proven track record, choose Sevenstar Yacht Transport. ONBOARD spoke with JM Boissevain, CFO of Sevenstar Yacht Transport, to gain insights into the importance of safety, reliability and proper insurance when transporting (super)yachts.
For more details Tel: +31 204488590
or visit www.sevenstar-yacht-transport.com
