What Is the Difference Between a Passenger Vessel and an Inspected Passenger Vessel?

I wouldn’t blame you if you thought the difference between passenger vessels and inspected passenger vessels came down to size, because that’s a common misconception. In reality, these vessels have distinct purposes and designs that go far beyond length and tonnage. 

Understanding the differences is crucial for a captain making business decisions. Let’s explore how passenger and inspected passenger vessels differ so that you can determine which boat — and which captain’s license — is right for you.

Key Differences Between a Passenger Vessel and an Inspected Passenger Vessel

Inspected vessels are “built differently.” The boats and crew must both meet advanced requirements to pass inspection and operate commercially.

Licenses and Certifications

To commercially operate an uninspected passenger vessel (UPV), you must have an OUPV/Six-Pack license. This base-level captain’s license only requires 360 days of documented experience (plus some extra paperwork).

However, a captain running an inspected vessel must earn a Master captain’s license, which requires documented boating experience and meeting basic qualifications. 

Inspected vessels must have a Certificate of Inspection (COI). COIs are good for five years and unique to each boat. They dictate where and when you can operate your vessel. For example, you might be restricted to inland waters or daylight hours. Additionally, the COI outlines crew requirements.

Like captains, crew members aboard inspected vessels may be required to have higher levels of training and safety standards. The qualifications will depend on your vessel and COI.   

Capacity

Uninspected and inspected vessels can be any size. The distinction lies in their carrying capacity. You can take a maximum of six paying passengers aboard a UPV. On the other hand, you can take out seven or more passengers on an inspected vessel.

UPVs tend to be smaller, but plenty of inspected boats are compact as well. For example, sea taxis can be as small as 24 feet and still carry 20 people!

Safety Equipment and Standards

All vessels must carry certain safety equipment to meet Coast Guard requirements. However, the extent of this equipment differs between passenger vessels and inspected passenger vessels.

UPVs should have basic gear such as personal flotation devices, fire extinguishers, distress signals, and navigation lights. 

Inspected vessels in many cases need to take it a step further with comprehensive lifesaving and firefighting gear, lifeboats, emergency radios, and even navigational equipment such as a radar.

Regulatory Oversight and Operational Requirements

UPVs have minimal oversight and few restrictions. One of the biggest operational requirements aboard a UPV is staying within passenger limitations. Since only six paying passengers can be aboard at a time, the Coast Guard considers these vessels low risk.

Inspected vessels, on the other hand, can carry as many as 200 or more passengers. On the other hand, some smaller inspected passenger vessels may hold and only be approved to carry as few as seven paying passengers. As a result, the Coast Guard monitors them closely and holds them to much higher standards. Inspected vessels need to undergo periodic inspections, display a COI, and abide by the vessel’s specific operating conditions.  

U.S. Coast Guard Inspection Requirements

So, what sets an inspected vessel apart from a UPV? It depends — the Coast Guard determines inspection requirements based on a vessel’s type, size, passenger capacity, operating area, and construction materials. 

Remember that safety standard requirements depend on the type of inspected vessel. For example, not all vessels are required to have lifeboats on board.

While not necessarily mandated, the following are key safety standards for inspected vehicles:

• Structural integrity standards
• Lifesaving equipment
• Firefighting equipment
• Navigation equipment
• Pollution prevention and adherence to MARPOL protocols
• Crew training and drills
• Accommodation safety
• Health and sanitation

Cost Difference Between a Passenger Vessel and an Inspected Passenger Vessel

When I was running charters, I had a boat that was certified for six paying passengers. I was fortunate in that my business grew quickly. Pretty soon, I had more people wanting to go out on my boat than I had space for.

Since I already had a Master’s license, I decided to look into getting an inspected passenger vessel. After a cost analysis, I realized that it would be cheaper to buy a second UPV! 

Your circumstances may be different. But, if you’re exploring your options, remember that inspected vessels are much more expensive than UPVs.

Here’s a breakdown of the cost implications:

• Upfront costs: Inspected vessels are more expensive because of higher building standards, such as taller bulkheads, thicker materials, and watertight doors.
• Compliance costs: You must meet stringent standards and undergo frequent inspections, which adds up quickly.
• Maintenance costs: Your inspected vessel will have stricter upkeep standards, necessitating frequent tune-ups.
• Insurance premiums: On an inspected vessel, you need more comprehensive coverage than a UPV that carries a lower regulatory burden and less risk.
• Crew training and certification: Some inspected vessels require crew members to have specific, in-depth training, leading to higher costs.
• Safety and emergency equipment: You must have more extensive safety equipment aboard an inspected vessel, which increases upfront, upkeep, and replacement costs.
• Administrative costs: Inspected vessels need a lot of documentation and require detailed compliance management — plus, your records must be impeccable.

After adding up all these additional costs, you may wonder if an inspected vessel is worth the investment. If you’re operating commercially, the ability to take on more passengers can earn you a much higher return than a UPV can offer. Perform your own cost analysis to see what works best for your business.

How an Inspected Vessel Impacts Your Business Model

Meeting inspection requirements will have a big impact on your business model, from basic operations to marketing and branding. Here’s where you’ll see the biggest differences between a passenger vessel and an inspected passenger vessel.

Crew Training and Certification

Certain COIs mandate a particular number of crew members and training qualifications, which can pose recruitment challenges. The talent pool for certified crew members is small, and training a crew yourself increases operational costs. 

However, a competent crew can be an excellent competitive advantage because it guarantees superior safety. My crew members are all licensed captains. My passengers feel safer, and it ensures I have a backup solution in play if I can’t go out on a particular charter.

Environmental Compliance

Once again, meeting stringent environmental standards adds to operating expenses. However, environmental compliance is another way to carve out a name for yourself despite the regulatory risks. Eco-conscious branding goes a long way toward market differentiation.

Investment in Technology and Equipment

Keeping up with compliance, safety, and maintenance requires capital. However, investing in top-of-the-line technology and equipment can boost efficiency and help keep your business afloat.

Insurance and Liability

The higher insurance premiums for inspected vessels can be a burden, but ultimately, it protects you and your business. More comprehensive coverage and enhanced safety measures can reduce liability concerns.

Customer Trust and Loyalty

Inspected vessels and a Master captain’s license can set your business apart from safety and legal standpoints. These key distinctions instill trust in your customers and justify premium pricing.

Market Opportunities

UPVs are great for serving smaller, private trips. Inspected vessels can handle large tour groups, operate sea taxis, and offer more profitable commercial services.

Upgrade to a Master Captain’s License

Now that you understand the difference between a passenger vessel and an inspected passenger vessel, you’re ready to make critical business decisions as a licensed captain. If you’ve decided that an inspected vessel is right for you, upgrade your current Six-Pack license to a Master level with Mariners Learning System today.