ILLEGAL CHARTERS IN U.S. WATERS

• It is common practice to purchase a vessel and run charters to offset some of the costs. Charter operations of all types can be successful if set up properly, but all state and federal regulations must be closely followed. In particular, the US Coast Guard has recently made a concerted effort to crack down on illegal charters operated throughout the country in violation of the Passenger Vessel Safety Act. Generally, there are two types of charters, each of which have their own applicable rules and regulations.

TIME-AND-VOYAGE

The first type is a time-and-voyage—or crewed—charter, which is what you would typically find