MASTER-3000-L3.3

Commercial operation, charters and liability

A commercial yacht trades under charter and within a framework of maritime law, and the Master operates at the intersection of commerce and safety. This lesson covers commercial operation, charters and the Master's liabilities.

Charters and commercial operation

A charter yacht operates under the Large Yacht Code and a charter agreement that sets what the ship is hired to do, for whom and where. The Master runs the commercial operation within the vessel's coding and certification — the permitted area, the passenger numbers, the operating limits — and does not let the charter's commercial demands push the ship outside them. The overriding authority under the ISM Code, and the Master's professional judgement, keep safety ahead of the charter when the two conflict.

Liability, seaworthiness and salvage

  • The Master has a duty to keep the ship seaworthy and to operate her lawfully; personal and company liability can follow a failure.
  • Know the basics of salvage (a service to a ship in danger, rewarded) and general average (a shared loss for the common good).
  • Understand the ship's insurance and the Master's role in protecting the owner's interest without compromising safety.
  • Report reportable casualties honestly to the flag State and MAIB, and cooperate with investigations.

WARNING — The charter never overrides safety Commercial demands from a charter must never push the ship outside her coding, her certification or safe practice. The Master's overriding authority and professional judgement keep safety ahead of the charter when they conflict.

NOTE — Seaworthiness is a continuing duty The duty to keep the ship seaworthy runs throughout the voyage, not just at its start. A Master who lets the ship fall below a seaworthy standard exposes themselves and the owner to liability.

Practice questions

5 questions
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recall · core

Commercial demands from a charter must never push the ship: (a) Into port early (b) Outside her coding, certification or safe practice (c) To reduce speed (d) To take on fuel

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recall · core

Salvage is: (a) A type of cargo (b) A service to a ship in danger, which is rewarded (c) A weather system (d) A survey

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recall · core

The duty to keep the ship seaworthy: (a) Applies only at departure (b) Runs throughout the voyage (c) Is the charterer's duty (d) Does not exist

recallcore

recall · core

General average is: (a) A weather average (b) A shared loss incurred for the common good of the venture (c) A crew wage (d) A survey type

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recall · core

Reportable casualties must be reported to the: (a) Charterer only (b) Flag State and MAIB, with cooperation in any investigation (c) Local marina (d) Nobody

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