The Federal Maritime Commission Newsroom

Consumer Alert - Warning to Yacht Purchasers

April 11, 2013

The Commission has recently received an increased number of complaints involving the international transport of yachts purchased by individual consumers. Examples of recent complaints include:

Delays in shipping and delivering cargo;
Use of boilerplate contracts that allow the shipping company to wait as long as a year to ship the yacht while requiring the consumer to pay storage fees and a significant penalty should the consumer cancel transportation service; and
Failure of the shipping company to accurately disclose costs and delivery terms of service.

To avoid problems with shipping yachts internationally, consumers should take the following precautions:

Ensure that the shipping company is FMC licensed and bonded. A list of licensed companies is available at: http://www2.fmc.gov/oti/;
Read and understand the shipping company’s written terms and conditions prior to contracting for services; Understand the shipping company’s cancellation policy prior to contracting; and

Ensure that any required delivery windows are specifically provided for in the written contract.
For assistance resolving problems associated with an international yacht shipment to or from the U.S., please contact

the Office of Consumer Affairs & Dispute Resolution Services at 202-523-5807 or complaints@fmc.gov. ​

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Lee,
I have reports which I think are reliable that one of the well known
shipping outfits had a ship seized and the yachts held until the
cargo(the yachts) freight charges were paid for the voyage (within past
6 months). Even though the yacht owners had paid the freight in advance,
to the agent. I understand that the seizure occurred in Florida.
Perhaps someone else on the list knows the details.

About 3 years ago I checked the FMC website and did not find YachtPath
listed as being licensed or bonded. Whether they have been licensed and
bonded, in the past or since, I do not know.

It is my understanding that anyone or firm issuing a bill of lading for
ocean transport has to be licensed and bonded. That taking money for
such is not legal unless that agent is issuing the bill of lading. I am
not aware of any means by which YachtPath or anyone else can take money
and have an exemption to being licensed and bonded. But, the regulations
on all this are not as clear as they could be.

One suggestion is to pay with an American Express Card as they (AE) have
more leverage if there is a problem than any of us peasants.

Mike