7 minute read
Taking on the ‘smart stretch’
Guest Column with Sarah Flavell
Sarah Flavell, communications specialist at Damen Yachting, analyses the benefits of commissioning a purposebuilt support vessel rather than ‘going large’.
Guest Column with Sarah Flavell
Using the term ‘essential’ in the context of buying a superyacht of any size is somewhat debateable – especially to those outside our industry. Therefore, questioning whether someone needs a second purpose-built support vessel or would be better off going bigger with a new custom-build yacht could be construed as pushing the boundaries of necessity. But that’s exactly the point. Supporting an evolving yachting lifestyle has become a necessity, and looking at how best to do that is a genuine issue faced by many owners at some point.
My own view comes from a unique standpoint. At Damen Yachting, we’ve delivered more than 15 purpose-built yacht supports over the past 10 years to clients looking to extend their fleet operations, but we also have clients who have opted instead to build a bigger Amels and even those who have built a custom solution. Different platforms for varying motivations and requirements united by one key element: finding the yachting solution that works to an owner’s exact needs.
I’m always drawn back to a remark once made by one of our Amels captains when he said, “I never understood the purpose of a support vessel until I experienced it first-hand. Once you’ve had one, you can’t understand why you never did.” I suspect this observation is based on the emotion of the experience delivered rather than any financial benefit of taking on the ‘smart stretch’, as we like to call it, which made me think: if you take the emotion out of the equation, where does the real value lie?
To give some context, let’s start with a hypothetical owner of a 60-metre yacht looking to either add a 55-metre yacht support vessel or sell the 60-metre and build an 80-metre-plus. Why? They want more capability, capacity, facility and service – all things a larger build can certainly deliver. So can the support option achieve this more efficiently and economically or does it fall short?
Let’s start with size alone. Bigger isn’t always better. Go for the 80-metre and you’re entering lengthy full-custom build times. Also, those extra 20 metres can come at quite a cost. The running expense alone can be significantly more than it would be by doubling your fleet and meterage with a support yacht. Depending on how you intend to use it, the support vessel can be configured and finished to a more cost-effective standard while still providing all the functionality you need. Operational costs are less and, depending on how you man it, lower certification may be required, therefore saving on salaries.
It’s not just about having more space; it’s also about how you use it. Keeping certain activities and logistics away from the mothership means protecting your luxury real estate on the main yacht, safeguarding value, privacy and personal space. Some owners opt to use the support yacht for tenders and toys (not just for stowage but for all operations and activities), others for hosting parties and events or even as a way of making a distinct personal/private divide such as using the support vessel for hosting guests or as a place of work and research. This separation enables you to store everything you need off the main yacht and take on extra specialised staff or security to increase the service level on the mothership.
Also, size determines flexibility; once you get above a certain size there are limits. Some ports are no longer an option and certain restrictions and requirements (such as pilots, certifications, running costs) need to be considered. Doubling up retains the versatility. You can send the support vessel on ahead and let guests relax on the mothership while the support vessel takes care of setting up the perfect anchorage, beach party and water activities. Then, for guests, you have a turn-up, ready-to-go scenario.
Flexibility is something you can also apply to extending the usage, whether that is being season-ready, using the support yacht to take your own selected containerised goods from the Mediterranean to the Caribbean or keeping the two yachts in different (near or far) locations. You can direct each one to where they are needed. The purpose isn’t just to support your main yacht, it’s to support your yachting lifestyle.
While there’s value in doubling up your location reach, there’s also a benefit of being together. Strength in numbers carries merit when it comes to levels of safety; the support vessel indirectly acts as guarding security and with the space to carry fast boats as well. Then you have the added bonus of privacy. Head towards 80 metres and there are a lot of crew. Stick with the two smaller options and the reduced number of crew per boat means fewer people on board but still plenty of hands on deck for service. You can even accommodate and host overflow guests, younger guests or friends away from the main yacht.
The more I delve into the functionality, flexibility and freedom offered by a support yacht, the more I begin to see exactly what our Amels captain meant. Regardless of whether the value lies in operational benefits, extended use and space, enhanced service, financial savings or lifestyle flexibility, it’s the purpose that renders a support yacht essential. I’m inclined to agree that once you’ve had one, the chances really are that you’ll no longer understand why you never did. SF
THE FINER DETAILS
The ever-growing complexity of superyacht interiors is misleading owners to think that they are ‘expensive’. But there are ways to simplify the process and amplify the value …
Earlier this year, as part of its ongoing research into the optimisation of superyacht ownership, which has culminated in the publication of this report, The Superyacht Agency conducted a multifaceted research project into the role of interior subcontractors in both new-build and refit projects.
While the granular analysis of this niche sector spanned almost 130 pages of internal documentation, one of the overarching findings was worthy of mention in this ownership-focused report.
Owners and their advisory teams may only have purview of the final cost of a project, which, of course, has grown exponentially over the years as both the physical size of the interiors and the complexity of their make-up has grown,. However, the corollary of this ever-greater demand for complexity of design is a corresponding increase in the complexity, and therefore cost, of offsetting structural and operational risk, as well as ensuring that the interior outfitting itself is robust. In simple terms, the more parts introduced to a design, the more noise and vibration needs to be counteracted. And the sum of introducing evermore variables to a project is a greater total cost. In my decade reporting on the superyacht supply chain, this is a phenomenon spreading across the subcontractor landscape, with the expectation of client teams being that the ratio between price and quality should be ever smaller. And the result has been something of a race to the bottom among said subcontractors.
Nowhere is this being more fiercely felt than in the interior outfitting sphere – where the artisanal techniques, skilled labour and costly raw materials make price competitiveness a particular challenge. This journalist has seen a number of market exits over the last decade triggered by myopic pricing wars and the unviable squeezing of margins.
So how can we as an industry collectively tackle this for the mutual benefit of all interested parties?
As with everything outlined in this report, the foundation of any cost-effective project is to appoint the right team, and this is no different when selecting an interior outfitter; as the old adage goes, ‘If you think it’s expensive hiring a professional, try hiring an amateur’. As one of the most artisanal elements of a new-build project, it is important to select a company with a proven track record and a portfolio of work that has stood the test of time. Yacht construction should be undertaken in the context of a vessel’s entire life cycle. And like any other project the residual value the constituent parts of the interior offer should be factored in, in the form of lower running costs, fewer aftersales requirements and ultimately more time enjoying the vessel on the water. But all too often, this is being overlooked in favour of the initial bottom-line figure.
‘Soft’ costs such as experience, custom expertise or an understanding of working with a particular shipyard may first appear as excessive levies on top of the cost of raw materials. And rather than introducing degrees of complexity by appointing multiple stakeholders, the key is to research an interior subcontractor with a demonstrable track record that can assure from the outset what is agreed is also delivered – and with no hidden extras. Ultimately, by looking beyond the binary figure, the true value of this artisanal sector will shine through.
This information is just the tip of the iceberg. If you want to know even more about the market and its performance, we can delve a lot deeper into its nuances. To find out more about our bespoke consultancy and due diligence services, please contact William Mathieson: william@thesuperyachtgroup.com Unrivalled Superyacht Intelligence – your partners for strategic growth
