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Fed Charter Regs
USCG charter regulations on all federal waterways. 33 CFR Part 329
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🏛️
Jones Act & Coastwise Trade
The gate that determines if your vessel can legally charter in U.S. waters
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The Jones Act (Merchant Marine Act of 1920) and the Passenger Vessel Services Act (PVSA) reserve U.S. coastwise trade - including charter operations - for vessels that are U.S.-built, U.S.-owned, and U.S.-documented with a coastwise endorsement. This is the fundamental eligibility gate for every charter type. A vessel without coastwise qualification cannot legally carry passengers for hire between U.S. points, even if it meets all other USCG requirements.
🇺🇸 U.S.-Built
All major components of hull & superstructure fabricated in the U.S., vessel assembled entirely in the U.S. (46 CFR §67.97). Rebuilding outside the U.S. can void coastwise status.
👤 U.S.-Owned
Wholly owned by U.S. citizens for coastwise trade purposes (46 USC §55102(b)(1)). Corporations must meet citizenship requirements of 46 USC §12103.
📄 Coastwise Endorsement
COD with coastwise endorsement issued by USCG NVDC (46 USC §12112). Vessels ≥5 NRT must be documented; <5 NRT must still qualify but use state registration.
⛔ Penalties for Violation
PVSA (passengers): $300 per passenger transported and landed (46 USC §55103(b))
Jones Act (merchandise): Forfeiture of merchandise or monetary penalty equal to value of merchandise or cost of transport, whichever is greater (46 USC §55102(c))
Documentation violations: Up to $15,000 civil penalty per violation per day; vessel seizure and forfeiture for operating without proper endorsement (46 USC §12151)
Why this matters for charter vessels: The Jones Act governs merchandise (46 USC §55102). The PVSA governs passengers (46 USC §55103). For charter operations, the PVSA is the controlling statute. A bareboat charter is a special case - the charterer becomes the disponent owner and the vessel may operate as if the charterer owns it, but the vessel still must be coastwise-qualified if it transports passengers (other than bona fide guests) between U.S. points. CBP has ruled that even round-trip excursions that start and end at the same point within U.S. territorial waters constitute coastwise transportation under the PVSA.
⚠️ Foreign-Built Vessels
If your vessel was built outside the United States, it cannot obtain a coastwise endorsement through normal channels (46 USC §12112(a)(2)). This means it cannot legally carry passengers for hire in U.S. coastwise trade - unless it qualifies for a MARAD Small Vessel Waiver (see below). This is one of the most critical compliance checks for any charter operation.
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MARAD Small Vessel Waiver
The path for foreign-built vessels to operate in coastwise trade
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Under 46 USC §12121 and 46 CFR Part 388, the Maritime Administration (MARAD) may waive the U.S.-build requirement for small passenger vessels. This is the only administrative path for a foreign-built vessel to legally carry passengers for hire in U.S. coastwise trade.
✓ Eligibility Requirements
U.S. Ownership - Vessel owned by U.S. citizen or organization
3+ Years Old - Built or rebuilt at least 3 years before application
Passengers Only - Intended use is carrying passengers for hire (no cargo, fishing, towing)
≤12 Passengers - Cannot carry more than 12 passengers for hire at a time
USCG Requirements - Must meet all Coast Guard documentation, inspection & manning requirements
No Undue Impact - Waiver must not adversely affect U.S. vessel builders or existing coastwise operators
Application Process1. Verify eligibility (age, ownership, passenger count, build location)
2. Complete Form MA-1023 online or by mail
3. Pay $500 non-refundable application fee (via pay.gov)
4. MARAD publishes Public Notice in the Federal Register for 30-day comment period
5. MARAD evaluates impact on U.S. builders & operators
6. If approved: waiver issued → file for Coastwise Trade Endorsement with USCG NVDC
7. Timeline: typically 60-90 days from application to waiver issuance
⚠ Important Details
Waiver stays with vessel - Transfers to new owner on sale; becomes part of vessel documentation history
Max 2 coasts - Each waiver limited to 2 coasts (e.g., Atlantic + Gulf, Pacific + Lakes). "All coasts" not accepted
Bareboat exception - For bareboat charters, additional passengers beyond the 12-passenger limit may be permitted (guests of charterer, not "for hire")
Revocable for fraud - MARAD can revoke if application contained fraudulent information (46 USC §12121(c))
Not a USCG waiver - Does NOT waive documentation, manning, or inspection requirements. All USCG rules still apply
Sport fishing OK - Sport fishing is permitted as long as fish are not sold commercially
What MARAD Needs From You
• Impact on existing operators: Describe how waiver will (or won't) affect commercial passenger vessel operators in your area - list existing operators if known
• Impact on U.S. shipyards: Explain why no U.S. builder is disadvantaged - MARAD checks if a U.S. shipyard has built similar vessels or has capacity/orders for one
• Geographic specificity: List all states of intended operation (e.g., "California, Washington") - not "all coasts"
• Vessel details: O/N or HIN, build date & place, type, size, tonnage, passenger capacity
📞 Contact MARAD
Office of Cargo & Commercial Sealift
Phone: (202) 366-4610 ext. 5
Email: smallvessels@dot.gov
Mail: 1200 New Jersey Ave SE, Washington, DC 20590
Sources: 46 USC §12121 · 46 CFR Part 388 · 46 USC §55102 · 46 USC §55103 · 46 USC §12112 · 46 USC §12151
6-Pack / OUPV Charter
Captain provided, maximum 6 passengers for hire
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A Six-Pack (OUPV) charter provides a licensed captain for up to 6 passengers. The vessel owner provides the captain and crew. The captain must hold a current USCG OUPV/Six-Pack Merchant Mariner Credential.
✓ Required
• USCG Documentation + coastwise endorsement (if ≥5 NRT)
• OUPV/Six-Pack captain license (MMC)
• Drug testing program (46 CFR Part 16)
• Max 6 passengers for hire (7 total w/ captain)
• State registration (if <5 NRT, no COD)
✗ NOT Required
• COI (Certificate of Inspection)
• Master's license (OUPV sufficient)
• Insurance (USCG does not require)
12-Pack / OUPV (≥100 GRT)
7-12 passengers, uninspected vessel
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For vessels 100 gross tons (GRT) or more, a Master-licensed captain may carry up to 12 passengers for hire. This is still an uninspected vessel operation - no COI required. Per 46 USC §2101(42)(A), vessels ≥100 GRT carrying ≤12 passengers require a Master endorsement, not just OUPV.
✓ Required
• Master's license (MMC) appropriate to tonnage
• Vessel ≥100 GRT (gross registered tons)
• USCG Documentation with coastwise endorsement
• Drug testing program (46 CFR Part 16)
• Max 12 passengers for hire
✗ NOT Required
• Certificate of Inspection (COI) - uninspected vessel
• Insurance (USCG does not require)
• OUPV-only license (Master endorsement required at this tonnage)
COI / Inspected Vessel
7+ passengers for hire (not bareboat), inspected vessel
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Vessels carrying more than 6 passengers for hire must hold a Certificate of Inspection (COI) issued by the USCG. This involves a comprehensive inspection of the vessel, crew qualifications, safety equipment, and operational procedures. The requirements vary significantly by vessel size, route, and service. Important distinction: In a bareboat charter, the charterer + up to 12 guests are not "passengers for hire" - the charterer is the temporary owner. The 6-passenger COI threshold only applies to vessels where passengers are paying for carriage (6-pack, 12-pack, or inspected operations).
⚠ COI Requirements
• Certificate of Inspection (COI)
• Licensed Master (tonnage-appropriate)
• Crew per COI manning requirements
• Safety equipment per 46 CFR Subchapter T/K
• Stability letter & hull inspection
• Drug testing for all crew (46 CFR 16)
• USCG documentation with coastwise endorsement
• Annual reinspection
Bareboat Charter
Charterer = temporary owner (disponent owner)
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In a bareboat charter, the charterer takes full possession, command, and control of the vessel as if they were the owner. The charterer becomes the disponent owner for the duration of the charter. They select and pay the crew, provide all provisions, and bear full legal responsibility.
✓ Required
• Vessel <5 NRT: State registration
• Vessel ≥5 NRT: USCG Documentation with coastwise endorsement
• Written bareboat charter agreement
• Charterer assumes all legal obligations
• Max 13 passengers (1 paying + 12 guests)
✗ NOT Required
• Captain's license
• Drug testing program
• COI (Certificate of Inspection)
• Insurance (USCG does not require)
⚠ Key Rule: The owner may recommend operators but cannot assign them. The primary charterer must be given the option to choose their own operator. If the owner dictates crew selection, the bareboat charter may be invalidated per USCG (46 USC §2101, MSIB 01-19).
🛡️
Insurance & Financial Responsibility
What the USCG actually requires - and what they don't
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✅ Key Takeaway: Insurance is NOT a USCG compliance gate for bareboat or 6-Pack operations
The USCG has no minimum insurance requirement for uninspected vessels (bareboat charters and 6-Pack/OUPV). Insurance is an owner business decision, not a regulatory requirement. However, COI/inspected vessels carrying 7+ passengers must demonstrate financial responsibility under 46 USC §44103.
USCG Insurance Requirements by Charter Type
| Charter Type | USCG Req? | Details |
|---|---|---|
| Bareboat | NO | Charterer assumes all liability as disponent owner. Owner's policy typically excludes charterer operations. Charterer should obtain their own hull & liability coverage. |
| 6-Pack / OUPV | NO | No USCG insurance mandate. Most harbors, marinas, and charter platforms (GetMyBoat, Boatsetter) require proof of liability insurance as a condition of doing business - but that's private, not federal. |
| 12-Pack UPV ≥100 GRT uninspected |
NO | No USCG insurance mandate. 46 USC §44103 financial responsibility applies to inspected vessels (Subchapter T), not uninspected vessels. Same practical advice as 6-Pack: marinas and platforms will likely require it. |
| COI / Inspected 7+ passengers |
YES | 46 USC §44103 - Owner/charterer must establish financial responsibility for death/injury to passengers. Scaled by passenger accommodations: $20K for the first 500, $15K for 501-1,000, $10K for 1,001-1,500, $5K for 1,500+. Filed via CG-5304. |
🔴 46 USC §44103 - Financial Responsibility (COI Vessels Only)
Who it applies to: Owners and charterers of inspected passenger vessels - vessels carrying 7+ passengers for hire that require a Certificate of Inspection under Subchapter T or K.
What it requires: Proof of financial responsibility (insurance or surety bond) for passenger death/injury. Minimum amounts scale with passenger capacity:
1-500 passengers: $20,000 per passenger
501-1,000: $15,000 per passenger
1,001-1,500: $10,000 per passenger
1,500+: $5,000 per passenger
How it's filed: Form CG-5304 (Certificate of Financial Responsibility) submitted to the USCG National Vessel Documentation Center.
What it covers: Death or injury to passengers. Does NOT cover hull damage, third-party property, or environmental liability (separate policies needed).
⚠️ Practical Insurance Guidance (Not USCG - Private Requirements)
Even though the USCG doesn't require insurance for bareboat, 6-Pack, or 12-Pack operations, you'll almost certainly need it anyway for these reasons:
• Marinas often require liability insurance as a condition of slip rental
• Charter platforms (GetMyBoat, Boatsetter, Airbnb) require proof of insurance to list your vessel
• Mortgage holders typically require hull & liability coverage as a loan condition
• Bareboat charterers should carry their own liability policy - the owner's policy usually excludes charter operations
• P&I clubs and marine insurers offer charter-specific policies (hull, P&I, passenger liability, pollution)
Typical coverage levels for charter vessels: $1M-$2M general liability, hull at agreed value, passenger medical payments, and pollution coverage (33 CFR liability).
⚓ Bareboat Charter Insurance (Special Rules)
In a bareboat charter, the charterer becomes the disponent owner - they assume full legal and operational responsibility (46 CFR §68.105). This creates specific insurance dynamics:
• Owner's policy typically excludes charterer operations - the charterer needs their own coverage
• Most bareboat charter agreements include a hold harmless agreement - charterer indemnifies the owner
• Owner may recommend captains but cannot dictate crew selection - doing so invalidates the bareboat charter per USCG (MSIB 01-19)
• Owner may require crew qualifications (e.g., valid MMC) - this is permitted and does not invalidate the charter
• Charterer insurance should cover: hull damage, third-party liability, passenger injury, medical payments, and pollution liability
🏛️ Local Rental Regs
State & local requirements for renting vessels - livery permits, insurance mandates, age restrictions, and education requirements.
Safety Compliance
USCG safety requirements by vessel type - what the Coast Guard checks.
Documents
Agreements, entity documents, licenses, insurance, and financial records.
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Agreements
Charter agreements, templates, and executed contracts
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Upload templates, generate charter paperwork, and track executed contracts. All your agreement workflow in one place.
📄 Agreement Templates
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📋 Executed Agreements
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Formation & Entity
LLC formation, EIN, operating agreements, bylaws, business licenses, DBA registrations
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Your business entity's foundational documents - articles of organization, EIN confirmation, operating agreements, and state registrations that establish your company's legal standing.
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Licensing, Permits & Registrations
Captain's licenses, state business permits, harbormaster permits, federal authorizations
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Business licenses, permits, and regulatory authorizations your company needs to operate — captain credentials, state business permits, and federal authorizations.
⚓ Vessel Licenses & Registrations
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Insurance & Liability
General liability, umbrella, workers' comp, charter policies, business property
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Business insurance policies that protect your company — general liability, workers' comp, umbrella coverage, and charter-specific policies.
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My Credentials
Licenses, certifications, and professional credentials
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Upload scans or photos of your licenses and certifications. These also appear on your Crew Network profile card.
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Sea Service Hours
Track your time on the water for license upgrades and credentials
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Log days underway, vessel tonnage, and waterway experience — the building blocks of your professional maritime résumé. Sea service records verify your hours for USCG license applications and renewals.
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Coming Soon
We're building an interactive sea service log that connects to your charters and crew assignments — automatically tracking days, tonnage, and waterways. Stay tuned.
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Financial & Tax
Tax returns, bank statements, financial statements, P&L records
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Financial records for tax compliance, loan applications, and business planning. Keep your books organized and accessible.
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Contracts & Leases
Management agreements, captain/crew contracts, charter agreements, office leases
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Active contracts and lease agreements — management agreements, captain/crew contracts, charter agreement templates, and office leases.
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Other Documents
Anything that doesn't fit the categories above
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Miscellaneous business documents - correspondence, certifications, franchise agreements, or anything else you need to keep on file.
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ℹ️ About AboveDeck
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AboveDeck
Keep your fleet on the water and above board.
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📋 Legal
AboveDeck provides charter operations management tools. We do not operate charters, employ captains, or broker vessel rentals. All charter agreements are between vessel owners/operators and their guests.
AboveDeck is not a transportation carrier, maritime broker, or insurance provider. Users are responsible for compliance with all applicable USCG regulations, state laws, and local ordinances.
⚠️ Alpha Notice
You're using an early version of AboveDeck. Features may change, and some functionality is still in development. Data you enter is saved, but the interface and workflows may evolve.
Invitations are currently limited to platform administrators. New accounts can only be created via invite from an existing admin.
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