Illegal charter crackdown

PascalG

PascalG

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USCG is still cracking down on illegal charters here in SoFl with no less than 8 caught last week end.

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one of these clowns already had a Captain of the Port order against him...

For those not familiar with chartering rules, on boats under 100GT, the limit for uninspected passenger vessel is 6 passengers (12 of over 100GT). Obviously for day charters (party...) the market is for groups over 6 people so owners use bareboat contracts which allow up to 12 plus the charterer. Problem is this come with a number of rules incl that the owner can not be on board, that the charterer picks, hires and pays the captain and crew, and pays all expenses.

If one of these criteria is missing, the bareboat charter is void and all the fines kicks in...
 
Be prepared for the scrutiny to increase. I have always wondered, what rule(s) do you operate under on your International Voyages to the Bahamas with paying passengers on board?
 
I am glad scrutiny is increasing as things are out of control here in Miami. Ride sharing platforms and shady brokers have been part of the problem unfortunately the USCG isn’t addressing the issues. CFR clearly states that fines can be levied against operator, owner and their agents, yet the brokers get away with advertising and selling all inclusive charters for 12 on small boats.

We don’t do charters in Miami and if we were, being over 100GT we wouldn’t have to deal with bareboat contracts anyway. We don’t do charters from Miami to the Bahamas either.

the only charters we do are in the Bahamas, starting and ending in the Bahamas, inspected and licensed by the Bahamian authorities... almost $3000 a year in licensing fees.

it is time for regs to be updated. 30 years ago, there was no demand or market for day charters like there is today. It was either small boat fishing charters on which 6 pax makes sense or larger commercial vessels. Nowadays, it s about recreational vessels mostly above 50/60 feet. It would make a lot of sense for the Uninspected vessel rules to be changed to lower the 100GT bar down to 50 and allow up to 12 pax on UPVs over 50GT. This would not affect safety as captains would have to have a master. Right now on a valid bareboat contract the operator doesn’t have to be licensed as bareboats are not considered “for hire”.
 
Do the Bahamas require a local ownership interest in the boat? Back in the late 70's Pindling started requiring that a Bahamian own a minimum 51% of the vessel in use. $3,000.00 a year is cheap compared to the cost of building and maintaining a USCG Inspected and Certified Vessel. Do the Bahamas require regular inspections at time of haul out, are you required to have an Inspector come aboard and verify repairs, renewals or new installs?
 
Pascal - just had this very discussion w/ USCG SectorNY Marine Inspector Training Officer this week. The Bare Boat charter contracts do not circumvent the 6 pax rule to 12, as is apparently common misunderstanding (his words, not mine.) For a bare boat charter, as soon as the owner specifies a captain or crew, the UPV rules kick in. IF a pax pays for the bare boat and specifies a captain or crew, the UPV rules kick in. In actuality, as soon as money changes hands/pax pay for captain/crew, its UPV and must comply with Sub C.

See NVIC 7-94.

there are many charters listed here in NYC area showing availability for beyond 6 pax - I don't know if they or operating as inspected or non-inspected/UPV. If $$$ is changing hands to pay for a skipper or crew, then it falls under one or the other.
 
LKeith said:
Do the Bahamas require a local ownership interest in the boat? Back in the late 70's Pindling started requiring that a Bahamian own a minimum 51% of the vessel in use. $3,000.00 a year is cheap compared to the cost of building and maintaining a USCG Inspected and Certified Vessel. Do the Bahamas require regular inspections at time of haul out, are you required to have an Inspector come aboard and verify repairs, renewals or new installs?
Click to expand...
None of it. Years ago they recognized that there was a huge market for yacht charters and that by making it fairly easy for foreign vessel to operate they would boost their economy including collecting a 4% tax on charters.

the annual inspection for foreign vessels is similar to a routine USCG boarding.
 
Good Grief said:
Pascal - just had this very discussion w/ USCG SectorNY Marine Inspector Training Officer this week. The Bare Boat charter contracts do not circumvent the 6 pax rule to 12, as is apparently common misunderstanding (his words, not mine.) For a bare boat charter, as soon as the owner specifies a captain or crew, the UPV rules kick in. IF a pax pays for the bare boat and specifies a captain or crew, the UPV rules kick in. In actuality, as soon as money changes hands/pax pay for captain/crew, its UPV and must comply with Sub C.

See NVIC 7-94.

there are many charters listed here in NYC area showing availability for beyond 6 pax - I don't know if they or operating as inspected or non-inspected/UPV. If $$$ is changing hands to pay for a skipper or crew, then it falls under one or the other.
Click to expand...
Just to clarify.
Yes, under bareboat rules the owner can NOT specify a captain or crew

but this part of your post is inaccurate :
“IF a pax pays for the bare boat and specifies a captain or crew, the UPV rules kick in.”

Under bareboat the charterer who pays for the charter is allowed to choose (and pay) his own crew.

This poster published by sector Miami summarizes the criteria required for a bareboat charter to be valid. Any deviation makes the bareboat invalid and the vessel is considered to be a UPV. If more than 6 passengers are on board (12 over 100GT) then the fines for violating UPV rules ( inspection, master, drug test, stability letter etc) kick in.

B2A5B18A-5658-4C5E-B963-3666D328E48F.jpeg
 
thanks for that, Pascal! In clarifying my understanding, I got this: the key for 12+1 is the charterer must have the option of hiring capt/crew (that is, the boat owner cannot mandate a specific capt/crew), and charterer maintains the ability to fire that captain/crew (wherein should the capt/crew be discharged, the charter doesn't end); I don't know many boat owners willing to give someone that much control over their boat, though the law apparently allows it.

While boat charter law allows 12+1, I would assume that the capt-for-hire in this situation would need a MMC beyond an OUPV, as an OUPV is limited to 6 pax under 100 tons. . . . So in this case there would be a licensed master on an uninspected vessel.
 
Not just the owners but the insurance company on larger boats. Doesn’t make much sense these days. Again 30 years ago boats were smaller so it worked but now with the average charter boat in the 60/80 range, not only will the insurance company and the owner object to someone not familiar with the boat at the helm but it isn’t the best scenario for the charterer.

while any professional captain and crew can jump from one boat to the next, being familiar with the boat helps giving the guests a better experience. Simple things as launching the toys take twice as long when no familiar with the boat. I ve seen charter boats anchoring nearby and the crew taking 20’ to launch the tender and jet ski. Same packing it in... time is a precious commodity on a 4 to 6 hour charter.

A real bareboat is not a passenger for hire operation so a licensed captain is not needed believe it or not. The entire group is considered private... now, if the guests are paying the charterer it s another story....
 
At this point, I think we're both right, but 2 issues are at play: the vessel, and the master.

So a vessel may fall under UPV for 12+1 under 100 GT under the bare boat charter rule. The BOAT can remain an uninspected vessel.

So 12 pax bare boat charter, and they fall under Recreational vessel rules. (Recreational vessels no longer have 'guests' - all aboard are passengers [pax].)

However, If 12 pax are paying for a captain on that bare boat charter (as a separate 'unrelated-to-the-charter' fee), they now have at least one 'passenger for hire' (46 USC 2101 [21a]), and the skipper better be credentialed for the number of pax! I'd bet there are alot of 30 and under boats that attempt to skirt the rules assuming they chartered a bare boat, and hired their own captain, and poof: 12+1 = OUPV operator . . . IMHO not.

Unless I'm missing something (again!)
 
Uber for boats anyone?

RWS
 
That’s the idea behind services like boat setters and more. Problem is that both the renters and the owners want to go over 6 pax
 
. . . as long as the Capt has the appropriate credential. The poster you provided from the 7th Coast Guard District doesn't mention the word UPV or OUPV.
 
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