The Superyacht Owner Report

The Superyacht Owner 218 Report Q3/2023

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A REPORT WORTH READING

Photo © Feadship

Henk de Vries on Feadship’s ‘Roadmap to Zero’

An in-depth report on the future of superyacht ownership

The future trajectory for private deep-sea exploration

Five brokers assess the current state of the brokerage market

EDITOR’S LETTER

REVOLUTION UNDER THE RADAR

As technological development increases at a blistering pace, discerning owners, eager to pave the way for the next generation of future-proof yachts, are discreetly becoming involved at the cutting edge of innovation, says Jack Hogan.

I’

We’re your new home for refit

• A world-class full-service superyacht refit and servicing facility • General maintenance • All types of paint, filler, and teak work • A 180-meter-long floating dock • 720t Travel lift • Major refits and conversion operations • Exceptional location in the safe harbor of Boka Bay • Excellent yachting infrastructure surrounding • Superyacht marina Porto Montenegro is 3 NM away • An active program for captains and crew • Three major international airports close by

BY JACK HOGAN

ve found myself intrigued by a recurring anecdotal observation in recent years – that of the increasing number of yacht owners and prospective clients who discreetly navigate boat shows, conferences and trade shows such as METSTRADE. While the iconic Monaco and Cannes shows continue to draw their linenclad legions, there exists a quieter undercurrent.

Here, clients embark on personal research missions, flying incognito and under the radar. Their goal? To gain an unfiltered glimpse into the possibilities that lie ahead in their yacht-ownership journey.

When I speak to friends who are active captains, their bosses are increasingly carving out time at the season’s end or during the winter yard period for both them and senior crew to venture into the heart of the industry.

Their motivation is not just to look at what boats are on the market, they are also there to dissect the decisionmaking processes before embarking on what might well be the next most significant purchase of their lives.

One owner I worked for took his involvement to an unprecedented level.

While his yacht was under construction halfway across the globe, he embarked on a personal project: rebuilding a section of the hull in his own backyard.

His goal? To forge an intimate, visceral connection with the vessel taking shape.

Yacht builders may sometimes grumble about owners who are keen on overseeing every construction stage.

However, in specific scenarios, especially concerning the future viability of fuel systems, such a meticulous approach may become unavoidable. If an owner

feels that the ‘business as usual’ approach of a shipyard or refit facility might deliver a product that is not future-proofed, wouldn’t it be their prerogative to intervene?

The traditional perception of show season events, primarily of brokers offering dockside yacht tours while technical B2B exchanges happen in Monaco’s halls or at METSTRADE, may need re-evaluation.

We’re right in the middle of a technological revolution that is moving at a dizzying pace. While we witness the unveiling of ground-breaking yachts annually, it’s vital to acknowledge that the seeds for these designs were sown many years earlier. In our dynamic world, some discerning clients, eager to pave the way for the next generation of future-proof yachts, are compelled to become more informed about the cutting edge of innovation.

In an era where yacht ownership is under the microscope, critically examining the tech and the companies that will support this next wave of innovation seems natural. The role of the yacht show, trade event or conference has never been more important. It may seem like we barely blink between each year’s events, but 12 months is a lifetime against the backdrop of rapid innovation.

When we walk the shows this season, let’s assume that the clients are too, but not in the way we traditionally think of. Perhaps this year the most impactful long-term interaction won’t happen on board the biggest yacht on display but between the esoteric individual asking deep and yacht-specific questions of a plucky tech start-up in the sustainability hall. JH

T. +382 (0) 31 340 691 | E. contact@adriatic42.com A. Bijela 85343, Montenegro | W. adriatic42.com

The Superyacht Owner Report ISSUE 218

1

EDITOR’S LETTER

REVOLUTION UNDER THE RADAR

As technological development increases at a blistering pace, discerning owners, eager to pave the way for the next generation of future-proof yachts, are discreetly becoming involved at the cutting edge of innovation, says Jack Hogan.

I’

We’re your new home for refit

• A world-class full-service superyacht refit and servicing facility • General maintenance • All types of paint, filler, and teak work • A 180-meter-long floating dock • 720t Travel lift • Major refits and conversion operations • Exceptional location in the safe harbor of Boka Bay • Excellent yachting infrastructure surrounding • Superyacht marina Porto Montenegro is 3 NM away • An active program for captains and crew • Three major international airports close by

BY JACK HOGAN

ve found myself intrigued by a recurring anecdotal observation in recent years – that of the increasing number of yacht owners and prospective clients who discreetly navigate boat shows, conferences and trade shows such as METSTRADE. While the iconic Monaco and Cannes shows continue to draw their linenclad legions, there exists a quieter undercurrent.

Here, clients embark on personal research missions, flying incognito and under the radar. Their goal? To gain an unfiltered glimpse into the possibilities that lie ahead in their yacht-ownership journey.

When I speak to friends who are active captains, their bosses are increasingly carving out time at the season’s end or during the winter yard period for both them and senior crew to venture into the heart of the industry.

Their motivation is not just to look at what boats are on the market, they are also there to dissect the decisionmaking processes before embarking on what might well be the next most significant purchase of their lives.

One owner I worked for took his involvement to an unprecedented level.

While his yacht was under construction halfway across the globe, he embarked on a personal project: rebuilding a section of the hull in his own backyard.

His goal? To forge an intimate, visceral connection with the vessel taking shape.

Yacht builders may sometimes grumble about owners who are keen on overseeing every construction stage.

However, in specific scenarios, especially concerning the future viability of fuel systems, such a meticulous approach may become unavoidable. If an owner

feels that the ‘business as usual’ approach of a shipyard or refit facility might deliver a product that is not future-proofed, wouldn’t it be their prerogative to intervene?

The traditional perception of show season events, primarily of brokers offering dockside yacht tours while technical B2B exchanges happen in Monaco’s halls or at METSTRADE, may need re-evaluation.

We’re right in the middle of a technological revolution that is moving at a dizzying pace. While we witness the unveiling of ground-breaking yachts annually, it’s vital to acknowledge that the seeds for these designs were sown many years earlier. In our dynamic world, some discerning clients, eager to pave the way for the next generation of future-proof yachts, are compelled to become more informed about the cutting edge of innovation.

In an era where yacht ownership is under the microscope, critically examining the tech and the companies that will support this next wave of innovation seems natural. The role of the yacht show, trade event or conference has never been more important. It may seem like we barely blink between each year’s events, but 12 months is a lifetime against the backdrop of rapid innovation.

When we walk the shows this season, let’s assume that the clients are too, but not in the way we traditionally think of. Perhaps this year the most impactful long-term interaction won’t happen on board the biggest yacht on display but between the esoteric individual asking deep and yacht-specific questions of a plucky tech start-up in the sustainability hall. JH

T. +382 (0) 31 340 691 | E. contact@adriatic42.com A. Bijela 85343, Montenegro | W. adriatic42.com

The Superyacht Owner Report ISSUE 218

1

CONTENTS

Guest columns

CONTENTS

Opinion

The choppy waters of Russian sanctions Paul Dickie, partner at maritime law firm Jaffa & Co, explores the issues faced by the superyacht industry in the context of the sanctions imposed following the invasion of Ukraine and how transactions might change as the situation further develops.

7

Time for our charity to branch out from home Amy Sweeting, director of development and fundraising at UKSA,says it would be in the interests of companies within the superyacht industry to do more to help others less fortunate.

12

Cautious optimism: The lawyer’s view Will MacLachlan, partner at HFW, gives us his take on the current sale and purchase market, and discusses the availability of yacht finance.

15

Assessing the risk factor Reed Smith partner Thor Maalouf and senior associate Romain Farnoux explain the complexities of the contracting stage of constructing a superyacht … and where the responsibilities lie between builders and owners.

18

Yacht protection: It pays to choose wisely In light of rising insurance rates and changes to policy conditions, Michelle van der Merwe, team leader at Pantaenius Yacht Insurance, dissects the current market and the challenges that lie ahead.

21

Features

The vital importance of owner education Martin Redmayne, chairman of The Superyacht Group, lays out a comprehensive set of measures to encourage clients to invest in projects that are future-proofed and adaptable to emerging fuels, energy sources and regulations.

22

The press pushback Editor Jack Hogan says we get stuck into a new show season, we should face up to the fact that it’s time to shake up the superyacht communications ecosystem.

27

Features

The future of ownership Over the past decade, we’ve dedicated a significant amount of time to modelling and forecasting our industry.

A key driver of this analysis is quantifying the true potential of our field based on the number of individuals who could afford to enter the market.

40

Mixed messaging or meaningful change?

Megan Hickling, TSG’s new Sustainability Editor, argues that the superyacht industry should be taking major initiatives that can actually be measured, and show the rest of the world that we’re making sustainability much more of a priority.

75

The Oasis revolution TSG tracks the history of one of the most iconic design innovations to come from Italy … and asks where it’s heading next.

48

Blue Planet III: How we can all help As the third season of this iconic BBC show enters production, observations and footage from the superyacht fleet could prove pivotal to its next evolution.

84

Features Feadship’s ‘Roadmap to Zero’ Feadship’s plan to build carbon-neutral superyachts by 2030 is ambitious and not all that far away. Here, TSG speaks with company CEO Henk de Vries to get his typically frank assessment of its progress and the wider sector’s green ambitions.

29

Reports The pregnant flaws 91 Is it now time to create a culture in which crewmembers feel more secure about their rights regarding pregnancy while working on board? Current crew, management companies and captains lift the lid on their varied experiences.

Triton, trailblazer of the dark oceans Patrick Lahey, CEO and co-founder of Triton Submarines, reflects on a challenging year but remains optimistic about the trajectory of the legitimate market for private deep-sea exploration.

60

Unravelling the Kaos theory The defacing of 100m superyacht Kaos in red and black paint by two climate activists had a certain Carrie-esque shock factor … but does July’s incident indicate that something more sinister is looming?

98

Brokerage readjusts to its ‘old normal’ As data suggests a daunting downturn in activity, representatives from five top yacht sales companies assess the current state of the market following a sluggish start to the year.

105

Photo © Feadship

2

The Superyacht Owner Report ISSUE 218

3

CONTENTS

Guest columns

CONTENTS

Opinion

The choppy waters of Russian sanctions Paul Dickie, partner at maritime law firm Jaffa & Co, explores the issues faced by the superyacht industry in the context of the sanctions imposed following the invasion of Ukraine and how transactions might change as the situation further develops.

7

Time for our charity to branch out from home Amy Sweeting, director of development and fundraising at UKSA,says it would be in the interests of companies within the superyacht industry to do more to help others less fortunate.

12

Cautious optimism: The lawyer’s view Will MacLachlan, partner at HFW, gives us his take on the current sale and purchase market, and discusses the availability of yacht finance.

15

Assessing the risk factor Reed Smith partner Thor Maalouf and senior associate Romain Farnoux explain the complexities of the contracting stage of constructing a superyacht … and where the responsibilities lie between builders and owners.

18

Yacht protection: It pays to choose wisely In light of rising insurance rates and changes to policy conditions, Michelle van der Merwe, team leader at Pantaenius Yacht Insurance, dissects the current market and the challenges that lie ahead.

21

Features

The vital importance of owner education Martin Redmayne, chairman of The Superyacht Group, lays out a comprehensive set of measures to encourage clients to invest in projects that are future-proofed and adaptable to emerging fuels, energy sources and regulations.

22

The press pushback Editor Jack Hogan says we get stuck into a new show season, we should face up to the fact that it’s time to shake up the superyacht communications ecosystem.

27

Features

The future of ownership Over the past decade, we’ve dedicated a significant amount of time to modelling and forecasting our industry.

A key driver of this analysis is quantifying the true potential of our field based on the number of individuals who could afford to enter the market.

40

Mixed messaging or meaningful change?

Megan Hickling, TSG’s new Sustainability Editor, argues that the superyacht industry should be taking major initiatives that can actually be measured, and show the rest of the world that we’re making sustainability much more of a priority.

75

The Oasis revolution TSG tracks the history of one of the most iconic design innovations to come from Italy … and asks where it’s heading next.

48

Blue Planet III: How we can all help As the third season of this iconic BBC show enters production, observations and footage from the superyacht fleet could prove pivotal to its next evolution.

84

Features Feadship’s ‘Roadmap to Zero’ Feadship’s plan to build carbon-neutral superyachts by 2030 is ambitious and not all that far away. Here, TSG speaks with company CEO Henk de Vries to get his typically frank assessment of its progress and the wider sector’s green ambitions.

29

Reports The pregnant flaws 91 Is it now time to create a culture in which crewmembers feel more secure about their rights regarding pregnancy while working on board? Current crew, management companies and captains lift the lid on their varied experiences.

Triton, trailblazer of the dark oceans Patrick Lahey, CEO and co-founder of Triton Submarines, reflects on a challenging year but remains optimistic about the trajectory of the legitimate market for private deep-sea exploration.

60

Unravelling the Kaos theory The defacing of 100m superyacht Kaos in red and black paint by two climate activists had a certain Carrie-esque shock factor … but does July’s incident indicate that something more sinister is looming?

98

Brokerage readjusts to its ‘old normal’ As data suggests a daunting downturn in activity, representatives from five top yacht sales companies assess the current state of the market following a sluggish start to the year.

105

Photo © Feadship

2

The Superyacht Owner Report ISSUE 218

3

The Superyacht Report

ADVERTISING

Front cover: Obsidian © Feadship

The Superyacht Report The Superyacht Report is published four times a year, providing decision-makers and influencers with the most relevant, insightful and respected journalism and market analysis available in our industry today.

Superyachtnews.com/reports/thesuperyachtreport

Q3/2023

For 30 years The Superyacht Report has prided itself on being the superyacht market’s most reliable source of data, information, analysis and expert commentary. Our team of analysts, journalists and external contributors remains unrivalled and we firmly believe that we are the only legitimate source of objective and honest reportage. As the industry continues to grow and evolve, we are forthright in our determination to continue being the market’s most profound business-critical source of information.

Editor-In-Chief Martin H. Redmayne martin@thesuperyachtgroup.com Editor Jack Hogan jackh@thesuperyachtgroup.com News Editor Conor Feasey conor@thesuperyachtgroup.com Italy Editor Dario Schiavo dario@thesuperyachtgroup.com Contributing Author Georgia Tindall

INTELLIGENCE Head of Intelligence Charlotte Gipson charlotteg@thesuperyachtgroup.com Research Analyst Isla Painter isla@thesuperyachtgroup.com Senior Research Analyst Amanda Rogers amanda@thesuperyachtgroup.com Data Analyst Miles Warden miles@thesuperyachtgroup.com

DESIGN & PRODUCTION Production Editor Felicity Salmon felicity@thesuperyachtgroup.com

4

SuperyachtNews Spanning every sector of the superyacht sphere, our news portal is the industry’s only source of independent, thoroughly researched journalism.

Our team of globally respected editors and analysts engage with key decision-makers in every sector to ensure our readers get the most reliable and accurate business-critical news and market analysis.

Superyachtnews.com

The Superyacht Forum Live Over the past 30 years, we have delivered the most important conferences and meetings in the superyacht calendar, resulting in a global network of ‘Events Worth Attending’. Our flagship event, The Superyacht Forum Live, has proved to be the largest and most respected meeting of industry decision-makers.

Superyachtnews.com/thesuperyachtforum

ISSN 2046-4983 The Superyacht Report is published by TRP Magazines Ltd Copyright © TRP Magazines Ltd 2023 All Rights Reserved. TRP Magazines is a division of The Redmayne Publishing Company.

The entire contents are protected by copyright Great Britain and by the Universal Copyright convention.

Material may be reproduced with prior arrangement and with due acknowledgement to TRP Magazines Ltd. Great care has been taken throughout the magazine to be accurate, but the publisher cannot accept any responsibility for any errors or omissions which may occur.

The Superyacht Report is printed sustainably in the UK on a FSC® certified paper from responsible sources using vegetable based inks. The printers of The Superyacht Report are a zero to landfill company with FSC® chain of custody and an ISO 14001 certified environmental management system.

The Superyacht Agency Drawing on the unparalleled depth of knowledge and experience within The Superyacht Group, The Superyacht Agency’s team of brilliant creatives, analysts, event planners, digital experts and marketing consultants combine four cornerstones – Intelligence, Strategy, Creative and Events – to deliver the most effective insights, campaigns, and strategies for our clients.

Superyachtnews.com/intel/

Follow The Superyacht Report and Intelligence content @SuperyachtNews SuperyachtNews Join The Superyacht Group Community By investing in and joining our inclusive community, we can work together to transform and improve our industry. Included in our Essential Membership is a subscription to The Superyacht Report, access to SuperyachtIntel and access to high-impact journalism on SuperyachtNews.

Explore our membership options here: www.superyachtnews.com/shop/p/MH

The Superyacht Owner Report ISSUE 218

YOUR COATING CONSULTANTS With over 20 years of consultancy expertise, WREDE Consulting ensures a seamless newbuild process. Trust us for state-of-theart materials, cutting-edge technology, and unparalleled expertise. Guarantee a flawless finish with WREDE Consulting.

YOUR COATING SOLUTION INFO@WREDE-CONSULTING.COM +49 40 8816745-0 WWW.WREDE-CONSULTING.COM HAMBURG • BREMEN • LA CIOTAT • BARCELONA • PALMA VIAREGGIO • ROTTERDAM • SOUTHAMPTON • SOUTH FLORIDA

WRE-21-00009-Anzeige_TSYR_02.21_106x224mm_RZ_v3.indd 1

5 11:33 04/04/2023

The Superyacht Report

ADVERTISING

Front cover: Obsidian © Feadship

The Superyacht Report The Superyacht Report is published four times a year, providing decision-makers and influencers with the most relevant, insightful and respected journalism and market analysis available in our industry today.

Superyachtnews.com/reports/thesuperyachtreport

Q3/2023

For 30 years The Superyacht Report has prided itself on being the superyacht market’s most reliable source of data, information, analysis and expert commentary. Our team of analysts, journalists and external contributors remains unrivalled and we firmly believe that we are the only legitimate source of objective and honest reportage. As the industry continues to grow and evolve, we are forthright in our determination to continue being the market’s most profound business-critical source of information.

Editor-In-Chief Martin H. Redmayne martin@thesuperyachtgroup.com Editor Jack Hogan jackh@thesuperyachtgroup.com News Editor Conor Feasey conor@thesuperyachtgroup.com Italy Editor Dario Schiavo dario@thesuperyachtgroup.com Contributing Author Georgia Tindall

INTELLIGENCE Head of Intelligence Charlotte Gipson charlotteg@thesuperyachtgroup.com Junior Research Analyst Isla Painter isla@thesuperyachtgroup.com Senior Research Analyst Amanda Rogers amanda@thesuperyachtgroup.com Data Analyst Miles Warden miles@thesuperyachtgroup.com

DESIGN & PRODUCTION Production Editor Felicity Salmon felicity@thesuperyachtgroup.com

4

SuperyachtNews Spanning every sector of the superyacht sphere, our news portal is the industry’s only source of independent, thoroughly researched journalism.

Our team of globally respected editors and analysts engage with key decision-makers in every sector to ensure our readers get the most reliable and accurate business-critical news and market analysis.

Superyachtnews.com

The Superyacht Forum Live Over the past 30 years, we have delivered the most important conferences and meetings in the superyacht calendar, resulting in a global network of ‘Events Worth Attending’. Our flagship event, The Superyacht Forum Live, has proved to be the largest and most respected meeting of industry decision-makers.

Superyachtnews.com/thesuperyachtforum

ISSN 2046-4983 The Superyacht Report is published by TRP Magazines Ltd Copyright © TRP Magazines Ltd 2023 All Rights Reserved. TRP Magazines is a division of The Redmayne Publishing Company.

The entire contents are protected by copyright Great Britain and by the Universal Copyright convention.

Material may be reproduced with prior arrangement and with due acknowledgement to TRP Magazines Ltd. Great care has been taken throughout the magazine to be accurate, but the publisher cannot accept any responsibility for any errors or omissions which may occur.

The Superyacht Report is printed sustainably in the UK on a FSC® certified paper from responsible sources using vegetable based inks. The printers of The Superyacht Report are a zero to landfill company with FSC® chain of custody and an ISO 14001 certified environmental management system.

The Superyacht Agency Drawing on the unparalleled depth of knowledge and experience within The Superyacht Group, The Superyacht Agency’s team of brilliant creatives, analysts, event planners, digital experts and marketing consultants combine four cornerstones – Intelligence, Strategy, Creative and Events – to deliver the most effective insights, campaigns, and strategies for our clients.

Superyachtnews.com/intel/

Follow The Superyacht Report and Intelligence content @SuperyachtNews SuperyachtNews Join The Superyacht Group Community By investing in and joining our inclusive community, we can work together to transform and improve our industry. Included in our Essential Membership is a subscription to The Superyacht Report, access to SuperyachtIntel and access to high-impact journalism on SuperyachtNews.

Explore our membership options here: www.superyachtnews.com/shop/p/MH

The Superyacht Owner Report ISSUE 218

YOUR COATING CONSULTANTS With over 20 years of consultancy expertise, WREDE Consulting ensures a seamless newbuild process. Trust us for state-of-theart materials, cutting-edge technology, and unparalleled expertise. Guarantee a flawless finish with WREDE Consulting.

YOUR COATING SOLUTION INFO@WREDE-CONSULTING.COM +49 40 8816745-0 WWW.WREDE-CONSULTING.COM HAMBURG • BREMEN • LA CIOTAT • BARCELONA • PALMA VIAREGGIO • ROTTERDAM • SOUTHAMPTON • SOUTH FLORIDA

WRE-21-00009-Anzeige_TSYR_02.21_106x224mm_RZ_v3.indd 1

5 11:33 04/04/2023

Guest Column

by Paul Dickie

The choppy waters of Russian sanctions Paul Dickie, partner at maritime law firm Jaffa & Co, explores the issues faced by the superyacht industry in the context of the sanctions imposed following the invasion of Ukraine and how transactions might change as the situation further develops.

The legality of the implementation of sanctions related to Russia has been a focal point in prominent cases such as Phi and Alfa Nero since the invasion of Ukraine last year.

In the broadest sense, sanctions are limitations placed by states against other sovereign states and their institutions, companies, individuals and assets to discourage activity or promote change within the nation concerned. Imposing sanctions just for the sake of it may seem futile and potentially unjust, especially if they impact innocent parties directly.

While the grounds for sanctions are strong due to the illegal invasion, their repercussions extend to the innocent as well as the guilty.

The Superyacht Owner Report ISSUE 218

Eighteen months after the invasion of Ukraine, those affected by sanctions are seeking recourse through the courts in the UK and other countries, with the decisions of government officials being tested according to public-law notions of due process, proportionality, fairness and reasonableness. While each case is unique, the judgments behind these decisions are being dissected for broader application.

Two such cases have recently been heard by the High Court in London.

In one, an individual was sanctioned and had assets frozen on the grounds of association with Russian elites. The other, despite not being sanctioned himself and denying support of the regime, has had his superyacht

detained in London due to his profile and Russian origins.

Beyond the courtroom battles, daily questions arise about dealing with situations involving Russia. These situations fall into categories such as legal entity identification and their connections to Russia, asset ownership or management tied to Russian interests, activity types such as management, crewing, insurance and financial transactions. These categories are subject to specific sanctions from various countries.

Even if an activity doesn’t directly violate applicable sanctions in one country, it might breach another country’s secondary sanctions.

7

Guest Column

by Paul Dickie

The choppy waters of Russian sanctions Paul Dickie, partner at maritime law firm Jaffa & Co, explores the issues faced by the superyacht industry in the context of the sanctions imposed following the invasion of Ukraine and how transactions might change as the situation further develops.

The legality of the implementation of sanctions related to Russia has been a focal point in prominent cases such as Phi and Alfa Nero since the invasion of Ukraine last year.

In the broadest sense, sanctions are limitations placed by states against other sovereign states and their institutions, companies, individuals and assets to discourage activity or promote change within the nation concerned. Imposing sanctions just for the sake of it may seem futile and potentially unjust, especially if they impact innocent parties directly.

While the grounds for sanctions are strong due to the illegal invasion, their repercussions extend to the innocent as well as the guilty.

The Superyacht Owner Report ISSUE 218

Eighteen months after the invasion of Ukraine, those affected by sanctions are seeking recourse through the courts in the UK and other countries, with the decisions of government officials being tested according to public-law notions of due process, proportionality, fairness and reasonableness. While each case is unique, the judgments behind these decisions are being dissected for broader application.

Two such cases have recently been heard by the High Court in London.

In one, an individual was sanctioned and had assets frozen on the grounds of association with Russian elites. The other, despite not being sanctioned himself and denying support of the regime, has had his superyacht

detained in London due to his profile and Russian origins.

Beyond the courtroom battles, daily questions arise about dealing with situations involving Russia. These situations fall into categories such as legal entity identification and their connections to Russia, asset ownership or management tied to Russian interests, activity types such as management, crewing, insurance and financial transactions. These categories are subject to specific sanctions from various countries.

Even if an activity doesn’t directly violate applicable sanctions in one country, it might breach another country’s secondary sanctions.

7

Guest Column

by Paul Dickie

A percentage of the global superyacht fleet is detained or practically unsellable, uncharterable or unmanageable. While each situation demands a unique resolution, many will remain unresolved until sanctions are lifted.

5 6 M This creates complexity because a prohibition imposed by foreign law on executing an English law contract does not necessarily render the contract void.

If both parties have agreed by way of a KYC clause (Know Your Customer) or extended termination provision, the court may give effect to those terms.

This is what happened in the case of Cynergy v Lamesa [2020], where US secondary sanctions amounted to mandatory provisions of law in an international inter-bank loan contract.

Repercussions extend beyond legal considerations. Industry players, including banks and insurers, often make decisions driven by reputational concerns. They might deny payment processing or marine coverage based on perceived risks, even if an activity is legally acceptable. Implementing sanctions within the EU varies due to different approaches adopted

by individual states, despite an overarching EU sanctions framework.

This means that a percentage of the global superyacht fleet is detained or practically unsellable, unchartable or unmanageable. While each situation demands a unique resolution, many will remain unresolved until sanctions are lifted, which could extend beyond the end of the Ukraine conflict. Since the invasion, many assets have been sold, transferred to different ownerships or had changes in management and stakeholder arrangements.

The historical effect of having been previously managed or owned by a sanctioned entity may make it difficult to enable the asset to be operated commercially in the future.

Ultimately, the more dialogue there is between the governments and the owners, the better. There is a

large number of ‘big boats’ whose value is decreasing as they sit in port deteriorating. It may be that such vessels could operate under a licence, such as the one given to Roman Abramovich’s Chelsea FC – where the club could play and supporters attend pending a sale of the club.

If such arrangements are possible with football clubs, why not with yachts?

The obvious answer is that yachts move and might be sailed away, but it isn’t hard to envisage arrangements whereby that risk might be mitigated.

Courts will not typically interfere with ministers’ decisions, but the rulings most open to challenge are those taken hastily in the immediate aftermath of the invasion. As the new laws and sanctions mature, the passage of time will lead to better, more considered procedures for the control of the designation of sanctioned persons and their assets. PD

B L U E II

YOUR YAC H T, DESIGNED, ENGINEERED, CRAFTED for EXPLORATION

YOUR WORLD of DISCOVERY

F T

8

|

I S T A N B U L M O N A C O L A U D E R D A L E

turquoiseyachts.com

Guest Column

by Paul Dickie

A percentage of the global superyacht fleet is detained or practically unsellable, uncharterable or unmanageable. While each situation demands a unique resolution, many will remain unresolved until sanctions are lifted.

5 6 M This creates complexity because a prohibition imposed by foreign law on executing an English law contract does not necessarily render the contract void.

If both parties have agreed by way of a KYC clause (Know Your Customer) or extended termination provision, the court may give effect to those terms.

This is what happened in the case of Cynergy v Lamesa [2020], where US secondary sanctions amounted to mandatory provisions of law in an international inter-bank loan contract.

Repercussions extend beyond legal considerations. Industry players, including banks and insurers, often make decisions driven by reputational concerns. They might deny payment processing or marine coverage based on perceived risks, even if an activity is legally acceptable. Implementing sanctions within the EU varies due to different approaches adopted

by individual states, despite an overarching EU sanctions framework.

This means that a percentage of the global superyacht fleet is detained or practically unsellable, unchartable or unmanageable. While each situation demands a unique resolution, many will remain unresolved until sanctions are lifted, which could extend beyond the end of the Ukraine conflict. Since the invasion, many assets have been sold, transferred to different ownerships or had changes in management and stakeholder arrangements.

The historical effect of having been previously managed or owned by a sanctioned entity may make it difficult to enable the asset to be operated commercially in the future.

Ultimately, the more dialogue there is between the governments and the owners, the better. There is a

large number of ‘big boats’ whose value is decreasing as they sit in port deteriorating. It may be that such vessels could operate under a licence, such as the one given to Roman Abramovich’s Chelsea FC – where the club could play and supporters attend pending a sale of the club.

If such arrangements are possible with football clubs, why not with yachts?

The obvious answer is that yachts move and might be sailed away, but it isn’t hard to envisage arrangements whereby that risk might be mitigated.

Courts will not typically interfere with ministers’ decisions, but the rulings most open to challenge are those taken hastily in the immediate aftermath of the invasion. As the new laws and sanctions mature, the passage of time will lead to better, more considered procedures for the control of the designation of sanctioned persons and their assets. PD

B L U E II

YOUR YAC H T, DESIGNED, ENGINEERED, CRAFTED for EXPLORATION

YOUR WORLD of DISCOVERY

F T

8

|

I S T A N B U L M O N A C O L A U D E R D A L E

turquoiseyachts.com

Guest Column

by Amy Sweeting

Outfitting Outfitting & & Decor Decor for for Luxury Luxury Properties Properties

How working with charities can elevate your business Amy Sweeting, director of development and fundraising, UKSA, says it would be in the interests of companies within the superyacht industry, which has a turnover of billions, to do much more to help others less fortunate from their considerable profits.

I was very excited to start as director of fundraising at UKSA two years ago.

It sounded like a fundraiser’s dream: a charity supporting young people from disadvantaged backgrounds to build skills and provide structured training into employment on superyachts.

I thought the charitable giving must be huge; surely one of the richest and most luxurious industries would want to give back as much as it could to those less fortunate. This was going to be easy …

My career has been spent raising money for worthy causes, leading fundraising teams and capital appeals. I’ve set up award-winning strategic partnerships and built income streams from scratch, raising more than £80 million for charities in my career so far. I’ve gone from standing in the pouring rain dressed as an elephant with a collection tin to being handed a seven-figure cheque.

I should start by saying that there is some good work happening already.

Superyacht Charities organise several events each year to raise money for smaller charities working across the industry. The Edmiston Foundation was set up to address diversity within the superyacht industry and funds UKSA’s work. Superyachts are donated for research and to support charities, and

a few companies work on sustainability and ocean health.

But do you really think we’re doing enough?

I’ve built charity partnerships across a number of industries and seen the incredible benefits that it can have on business. For an industry with a turnover in billions, working with the richest and most influential people in the world, the opportunity for the industry to raise funds, awareness, volunteer time and skills for charities is almost second to none.

Here are some of my thoughts on why the industry would benefit from working with charities: • This is an industry that is subject to a fair amount of negative press. Surely doing positive things with your time, influence and money would make room for more positive brand recognition and increased visibility.

• 70 per cent of younger generations are more likely to spend more money on a brand that supports a cause.

With significant Gen-Z wealth going up without the purchases of superyachts rising with it, maybe this could help business.

• Many owners are philanthropists; linking their passion for superyachts to

their charitable giving could make their relationships with the industry and their crew more positive and meaningful.

• There’s a high turnover within the industry, yet it’s been shown that companies that build social responsibility into their businesses increase staff morale and retention.

Of course, while supporting charities has obvious positive impact, many companies see the benefits a little more directly. It’s an extremely marketable trait for businesses to be openly charitable, and it can make you stand out above the rest. Corporate giving kills two birds with one stone. You can make the world a better place and get more business.

Charitable giving is often seen as one of the most credible ways for companies to demonstrate a genuine connection with communities and build positive public awareness. As an industry that needs to become more accountable, transparent and honest, building philanthropy into your company could be a gamechanger.

Giving back is a win for everyone.

So will you make a pledge to build charitable giving into your company?

Together, we can create a strong and passionate industry we can all be proud of. AS

www.fionasatelier.com info@fionasatelier.com Ph: (+34) 933 157 941 Contact catalogue THE with all the indispensables Contact us us to to get get our THE BOOK, theBOOK first Superyacht Outfitting Guide

12 Sin título-1 Sin Sintítulo-1 título-1 111

19/4/22 16:14 19/4/22 19/4/22 16:14 16:14

Guest Column

by Amy Sweeting

Outfitting Outfitting & & Decor Decor for for Luxury Luxury Properties Properties

How working with charities can elevate your business Amy Sweeting, director of development and fundraising, UKSA, says it would be in the interests of companies within the superyacht industry, which has a turnover of billions, to do much more to help others less fortunate from their considerable profits.

I was very excited to start as director of fundraising at UKSA two years ago.

It sounded like a fundraiser’s dream: a charity supporting young people from disadvantaged backgrounds to build skills and provide structured training into employment on superyachts.

I thought the charitable giving must be huge; surely one of the richest and most luxurious industries would want to give back as much as it could to those less fortunate. This was going to be easy …

My career has been spent raising money for worthy causes, leading fundraising teams and capital appeals. I’ve set up award-winning strategic partnerships and built income streams from scratch, raising more than £80 million for charities in my career so far. I’ve gone from standing in the pouring rain dressed as an elephant with a collection tin to being handed a seven-figure cheque.

I should start by saying that there is some good work happening already.

Superyacht Charities organise several events each year to raise money for smaller charities working across the industry. The Edmiston Foundation was set up to address diversity within the superyacht industry and funds UKSA’s work. Superyachts are donated for research and to support charities, and

a few companies work on sustainability and ocean health.

But do you really think we’re doing enough?

I’ve built charity partnerships across a number of industries and seen the incredible benefits that it can have on business. For an industry with a turnover in billions, working with the richest and most influential people in the world, the opportunity for the industry to raise funds, awareness, volunteer time and skills for charities is almost second to none.

Here are some of my thoughts on why the industry would benefit from working with charities: • This is an industry that is subject to a fair amount of negative press. Surely doing positive things with your time, influence and money would make room for more positive brand recognition and increased visibility.

• 70 per cent of younger generations are more likely to spend more money on a brand that supports a cause.

With significant Gen-Z wealth going up without the purchases of superyachts rising with it, maybe this could help business.

• Many owners are philanthropists; linking their passion for superyachts to

their charitable giving could make their relationships with the industry and their crew more positive and meaningful.

• There’s a high turnover within the industry, yet it’s been shown that companies that build social responsibility into their businesses increase staff morale and retention.

Of course, while supporting charities has obvious positive impact, many companies see the benefits a little more directly. It’s an extremely marketable trait for businesses to be openly charitable, and it can make you stand out above the rest. Corporate giving kills two birds with one stone. You can make the world a better place and get more business.

Charitable giving is often seen as one of the most credible ways for companies to demonstrate a genuine connection with communities and build positive public awareness. As an industry that needs to become more accountable, transparent and honest, building philanthropy into your company could be a gamechanger.

Giving back is a win for everyone.

So will you make a pledge to build charitable giving into your company?

Together, we can create a strong and passionate industry we can all be proud of. AS

www.fionasatelier.com info@fionasatelier.com Ph: (+34) 933 157 941 Contact catalogue THE with all the indispensables Contact us us to to get get our THE BOOK, theBOOK first Superyacht Outfitting Guide

12 Sin título-1 Sin Sintítulo-1 título-1 111

19/4/22 16:14 19/4/22 19/4/22 16:14 16:14

Guest Column

by Will MacLachlan

Cautious optimism: The lawyer’s view Will MacLachlan, partner in the London office of global law firm HFW and a member of its leading yacht team, gives us his take on the current sale and purchase market, and discusses the availability of yacht finance.

While HFW’s yacht team remains busy and is handling a solid flow of secondhand and new-build deals across the market, it’s clear that the volume of transactions is well down on this time last year.

Demand for yachts ris still strong in certain markets, including the US and Middle East, but relatively few vessels are being listed for sale. This is impacting the deal flow while helping to keep asset prices high. On top of this, there are growing signs of a gap between would-be sellers and buyers, and of European buyers, in particular, exercising caution.

The limited supply of large secondhand yachts and the full new-build order book means those who might wish to move up the ladder risk being without a yacht for a protracted period.

This is an unattractive prospect for many when everyone just wants to be on the water and enjoying the freedom of their yachts.

That said, there are opportunities out there to pick up yachts at a reduced price, either because the sellers wish to cash out quickly before the winter season or the yachts are, for whatever reason, in a distressed state. We are routinely approached by clients asking

ferretti-yachts.com

to be notified of such opportunities.

Of particular note are the various Russian-owned yachts currently circulating on the market. These undoubtedly present good opportunities for some, but with the complex web of sanctions to navigate and the significant penalties available for those who get it wrong – including lawyers, banks and brokers – these deals can be hard to complete even where the required extensive due diligence permits them.

With the fortunes of the yachting industry so closely related to macroeconomic and political events, anything could happen. However, unless there is another seismic event in global markets, we don’t see the current fundamentals changing any time soon.

We continue to see a number of experienced lenders active in the yacht finance market, including geographically focused commercial banks, private banks and alternative financers backed by private equity and private wealth. However, is the cost of finance currently too high? There is no doubt that high interest rates are having an effect, and at the moment the cost of funding is perhaps the biggest challenge facing both financiers and borrowers.

This applies equally to owners who need finance to realise that dream purchase or financiers looking to attract cash-rich owners to the concept of a low-rate loan releasing equity in their yacht to invest elsewhere for higher returns. Historically, this has been an attractive option, but if interest rates are too high it becomes less compelling.

The lower rates offered by private banks are usually tied to an assets-undermanagement requirement, which many owners looking for pure asset finance are not willing to provide.

We are, however, optimistic that there will be an upturn in transactions as interest rates and other geopolitical factors begin to stabilise. On a further positive note, a new source of capital has just been announced in the form of the UK Government’s Shipbuilding Credit Guarantee Scheme, a new finance initiative designed to assist domestic shipbuilding, including yachts. It allows UK Export Finance to provide partial guarantees to lenders, making funding available to new-build and refit and repair projects.

We will be watching how this welcome news is received by the financiers, owners and UK-based yacht builders and ship-repair yards. WM

INFYNITO 90 FLYBRIDGE 500 | 580 | 670 | 720 | 780 | 860 | 920 | 1000 The Superyacht Operations Report ISSUE 217

15

Guest Column

by Will MacLachlan

Cautious optimism: The lawyer’s view Will MacLachlan, partner in the London office of global law firm HFW and a member of its leading yacht team, gives us his take on the current sale and purchase market, and discusses the availability of yacht finance.

While HFW’s yacht team remains busy and is handling a solid flow of secondhand and new-build deals across the market, it’s clear that the volume of transactions is well down on this time last year.

Demand for yachts ris still strong in certain markets, including the US and Middle East, but relatively few vessels are being listed for sale. This is impacting the deal flow while helping to keep asset prices high. On top of this, there are growing signs of a gap between would-be sellers and buyers, and of European buyers, in particular, exercising caution.

The limited supply of large secondhand yachts and the full new-build order book means those who might wish to move up the ladder risk being without a yacht for a protracted period.

This is an unattractive prospect for many when everyone just wants to be on the water and enjoying the freedom of their yachts.

That said, there are opportunities out there to pick up yachts at a reduced price, either because the sellers wish to cash out quickly before the winter season or the yachts are, for whatever reason, in a distressed state. We are routinely approached by clients asking

ferretti-yachts.com

to be notified of such opportunities.

Of particular note are the various Russian-owned yachts currently circulating on the market. These undoubtedly present good opportunities for some, but with the complex web of sanctions to navigate and the significant penalties available for those who get it wrong – including lawyers, banks and brokers – these deals can be hard to complete even where the required extensive due diligence permits them.

With the fortunes of the yachting industry so closely related to macroeconomic and political events, anything could happen. However, unless there is another seismic event in global markets, we don’t see the current fundamentals changing any time soon.

We continue to see a number of experienced lenders active in the yacht finance market, including geographically focused commercial banks, private banks and alternative financers backed by private equity and private wealth. However, is the cost of finance currently too high? There is no doubt that high interest rates are having an effect, and at the moment the cost of funding is perhaps the biggest challenge facing both financiers and borrowers.

This applies equally to owners who need finance to realise that dream purchase or financiers looking to attract cash-rich owners to the concept of a low-rate loan releasing equity in their yacht to invest elsewhere for higher returns. Historically, this has been an attractive option, but if interest rates are too high it becomes less compelling.

The lower rates offered by private banks are usually tied to an assets-undermanagement requirement, which many owners looking for pure asset finance are not willing to provide.

We are, however, optimistic that there will be an upturn in transactions as interest rates and other geopolitical factors begin to stabilise. On a further positive note, a new source of capital has just been announced in the form of the UK Government’s Shipbuilding Credit Guarantee Scheme, a new finance initiative designed to assist domestic shipbuilding, including yachts. It allows UK Export Finance to provide partial guarantees to lenders, making funding available to new-build and refit and repair projects.

We will be watching how this welcome news is received by the financiers, owners and UK-based yacht builders and ship-repair yards. WM

INFYNITO 90 FLYBRIDGE 500 | 580 | 670 | 720 | 780 | 860 | 920 | 1000 The Superyacht Operations Report ISSUE 217

15

THE ULTIMATE SUPERYACHT HOME PORT AND WINTER DESTINATION

The perfect place for superyachts, owners, guests, captains & crew to enjoy the finest things life has to offer. visitdubai.com

DUBAI TOURISM T H E S U P E R YA C H T G U I D E T O D U B A I

The perfect place for superyachts, owners, guests, captains & crew to enjoy the finest things life has to offer.

WELCOME The ultimate winter destination for superyachts looking for a different experience With over a decade of investment in the region’s marina infrastructure, a superyacht-friendly regulatory framework, miles of pristine beaches and water-based lifestyle, significant superyacht services and experienced support, further plans for refit and maintenance facilities and a unique investment and lifestyle destination for the world’s wealthy, Dubai is one of the most exciting destinations for superyachts to call their home port.

Dubai delivers in every way, for owners, guests, captains and crew. The ultimate home port – unique cruising, luxury lifestyle, incredible experiences, desert adventures, investment opportunities, sports, fun and entertainment, wonderful hospitality and an incredibly exciting culture.

Visit Dubai and explore all of the incredible opportunities and make Dubai your superyacht’s home port for the future.

From the moment you arrive by sea or air, there is always a welcoming smile and courteous team who are here to make your stay an incredible experience.

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YACHTING The ideal winter home port for excellent marina infrastructure and service From the new Dubai Harbour, Port Rashid Marina, Dubai Marina and the various islands to the exclusive dockage across the luxury resorts and exclusive beach clubs across the coastline of Dubai, superyachts have access to some of the most incredible berths in the world.

With modern construction and optimised marina layouts, everything about Dubai’s marina infrastructure is about future proofing and building to the highest global standards. The mission is to make sure any superyacht that visits Dubai receives exceptional service, feels safe and secure, and has all of the operational and regulatory aspects seamlessly taken care of.

The unique range of marinas in Dubai have set a new service and operational benchmark, to ensure owners, guests, captains and crew enjoy every day of their stay.

With its unique location in the Arabian Gulf, close to the wonderful cruising grounds of Oman along the Musandam Peninsular, throughout the Indian Ocean, with the myriad of islands and atolls of the Maldives and the Seychelles, Dubai offers the perfect home port for superyachts that plan to try something unique and exciting. Over the next ten years, as the Red Sea becomes a key cruising ground east of the Mediterranean, with the Red Sea Projects, Amaala and NEOM all maturing, it is easy to see how Dubai will become central to the Gulf Region.

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STAY A luxury, lifestyle experience that delivers in every way Nothing compares to Dubai when it comes to the incredible lifestyle and exceptional luxury on offer. From VIP cultural experiences, to the finest retail therapy, from world-leading dining experiences available via private tender, to some of the most vibrant beach clubs and night life, Dubai is like nowhere else in the superyacht arena.

With professional golf, tennis, world-leading live sporting events, international horse racing and polo matches, combined with some of the finest venues and courses on offer, Dubai provides an energetic and exciting destination for all sporting enthusiasts and experts.

No matter how long you and your superyacht stay in Dubai, there is an always-on feeling to the destination, with something for everyone. The unique experience of camel rides and racing, exploring the heritage of falconry, early morning desert safaris, high-octane dune surfing and desert buggies, and just a chilled cultural Bedouin breakfast watching the sun rise or set, there is no place like Dubai for escaping the dynamic heart of an incredible city and being able to experience the vast expanse of desert that surrounds this unique hub.

Hot air balloon rides over miles of sun-kissed desert, private helicopter tours to majestic mountains, VIP luxury barbecues in the heart of the desert for mind-blowing stargazing, and in fact anything you and the guests or crew would like to experience, is available from Dubai. Dubai has an incredibly diverse playground that is not only stunning to experience first-hand from land or air, the culture and unique desert lifestyle will deliver an authentic adventure that you will never forget.

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OWNERS & GUESTS Everyday there’s something incredible happening in Dubai There are three key elements of Dubai that deliver the ultimate superyacht experience and opportunity for owners and their guests: Investment Potential – the fiscal and financial structures and real estate opportunities make Dubai an exciting and rewarding destination for UHNWI’s to relocate their floating assets and investments.

Incredible Lifestyle – the quality of life, the service culture, the retail experiences and the authentic hospitality that Dubai delivers creates one of the most exclusive and enjoyable lifestyles available today.

Everything is possible and nothing is too much trouble.

Insane Itineraries – imagine flying into Dubai, stepping on board within an hour of landing, dining under the stars and setting an overnight course for the unique coast line of Oman, where the rugged coast line provides some of the most exceptional superyacht backdrops.

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CAPTAINS & CREW The perfect place for captains and crew to live and play There are three key elements of Dubai that deliver the ultimate superyacht experience and opportunity for captains and their crew: Incredible Infrastructure – with a unique spectrum of world class marinas across the Dubai coast line, you and your crew will feel safe, secure and given the VIP treatment you expect and require.

Unrivalled Service & Support – over the past decade, the marine industry in Dubai has grown significantly and matured to become a network of experts and experienced mariners who understand the needs and demands of a busy superyacht.

Insane Lifestyle Activities – there’s nowhere else in the superyacht arena that offers you and your crew the opportunity to play golf a few minutes from your berth, have a marina concierge deliver lunch to the dock, go sky diving in the afternoon, dune surfing before the sun sets and return to an exclusive roof top bar for sushi and mojitos before bed time. Working and living in Dubai delivers something exceptional.

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In partnership with:

T H E S U P E R YA C H T G U I D E T O D U B A I

visitdubai.com/en/travel-trade/yachting-in-dubai

THE ULTIMATE SUPERYACHT HOME PORT AND WINTER DESTINATION

The perfect place for superyachts, owners, guests, captains & crew to enjoy the finest things life has to offer. visitdubai.com

Guest Column

by Thor Maalouf and Romain Farnoux

Assessing the risk factor Reed Smith partner Thor Maalouf and senior associate Romain Farnoux explain the complexities of the contracting stage of constructing a superyacht … and where the responsibilities lie between builders and owners.

Superyacht construction has always been a laboratory for innovation, pursuing the highest standards of comfort, luxury and safety – from the use of fibreglass hulls to the general use of stabilisation systems.

As we push for more sustainable superyachts, new and experimental technologies are increasingly being used in construction. Examples include hybrid propulsion, alternative fuels, improved propeller design, hull optimisation, heat pumps and the incorporation of contra-rotating thrusters for propulsion.

To temper this excitement, one can always rely on lawyers to approach innovations and new technologies with circumspection. Indeed, untested or less proven technologies carry a risk of failure, and the allocation of this risk between the shipyard, the owner and any relevant third-party providers needs to be considered during the building contract stage.

The starting point within a yachtbuilding contract is that risk associated with design – going beyond the aesthetic blueprint provided by a design consultant – and built-

18

in technologies, whether new or established, is borne by the shipyard.

It’s common to find a specific term to this effect within the contract to make this abundantly clear. After all, it’s the shipyard’s responsibility to use reasonable skill and care to ensure the yacht meets the agreed specifications.

implied that the builder assumes the risk of this design and, therefore, the contract needs to clarify who bears the risks in that case. Legal challenges may involve, among other things, addressing the builder’s home template contract and the position under the agreed applicable law.

responsibilities for any technology, whether in the shipbuilding contract or in a standalone agreement. It may also be sensible to agree on a development and testing/trials programme for specific items to be carried out by the builder in conjunction with the buyer and relevant supplier.

as possible, minimising the prospect of the finished yacht encountering performance issues that lead to downtime and warranty disputes.

This way, even for new technology items where the buyer has accepted some risk, it will still be clear where the shipyard bears responsibility.

This position reflects the principle that the shipyard’s fundamental commitment to manufacture and sell the yacht usually implies an obligation to ensure the design permits it to operate safely and meet the performance criteria promised in the contract. The yacht is to be built in accordance with the technical specifications detailed in the construction contract, and design and integrated technology are aspects of the workmanship that the yard must fulfil when building the yacht.

Understandably, the builder may even refuse to provide a warranty or other assurance that a particular technology is adequate to meet the buyer’s operational requirements. The builder might limit its obligations to complying with the integration specifications from the technology provider.

This would identify and resolve any design or performance issues as early

Ultimately, taking the time during the initial project planning stage to consider

The situation differs when a technology developed by the buyer or a thirdparty supplier is to be incorporated by the shipyard, particularly if it’s a new innovation which is often the case with new decarbonising technologies, for example.

In such circumstances, it may not be

Without a separate agreement with the technology provider, the risk would then fall on the owner for incidents (which might include damage to other parts of the yacht caused by batteries, for example) or for failing to meet required performance standards related to such technology. One possible alternative might involve a separate warranty by an ad-hoc engineer (or engineers) for specific technology items.

The drafting of the allocation of risk should be very clear regarding the scope of the respective parties’

how risks are to be apportioned, whether additional agreements are necessary and carefully drafting provisions relating to the incorporation of new technologies with specialist technical and legal input will help anticipate and circumvent issues that may arise later in the construction stage. Such occurrences could have a detrimental impact on the project and product for all parties involved. TM & RF

It may be sensible to agree on a development and testing/trials programme for specific items to be carried out by the builder in conjunction with the buyer and relevant supplier. This would identify and resolve any design or performance issues as early as possible ...

The Superyacht Owner Report ISSUE 218

19

Guest Column

by Thor Maalouf and Romain Farnoux

Assessing the risk factor Reed Smith partner Thor Maalouf and senior associate Romain Farnoux explain the complexities of the contracting stage of constructing a superyacht … and where the responsibilities lie between builders and owners.

Superyacht construction has always been a laboratory for innovation, pursuing the highest standards of comfort, luxury and safety – from the use of fibreglass hulls to the general use of stabilisation systems.

As we push for more sustainable superyachts, new and experimental technologies are increasingly being used in construction. Examples include hybrid propulsion, alternative fuels, improved propeller design, hull optimisation, heat pumps and the incorporation of contra-rotating thrusters for propulsion.

To temper this excitement, one can always rely on lawyers to approach innovations and new technologies with circumspection. Indeed, untested or less proven technologies carry a risk of failure, and the allocation of this risk between the shipyard, the owner and any relevant third-party providers needs to be considered during the building contract stage.

The starting point within a yachtbuilding contract is that risk associated with design – going beyond the aesthetic blueprint provided by a design consultant – and built-

18

in technologies, whether new or established, is borne by the shipyard.

It’s common to find a specific term to this effect within the contract to make this abundantly clear. After all, it’s the shipyard’s responsibility to use reasonable skill and care to ensure the yacht meets the agreed specifications.

implied that the builder assumes the risk of this design and, therefore, the contract needs to clarify who bears the risks in that case. Legal challenges may involve, among other things, addressing the builder’s home template contract and the position under the agreed applicable law.

responsibilities for any technology, whether in the shipbuilding contract or in a standalone agreement. It may also be sensible to agree on a development and testing/trials programme for specific items to be carried out by the builder in conjunction with the buyer and relevant supplier.

as possible, minimising the prospect of the finished yacht encountering performance issues that lead to downtime and warranty disputes.

This way, even for new technology items where the buyer has accepted some risk, it will still be clear where the shipyard bears responsibility.

This position reflects the principle that the shipyard’s fundamental commitment to manufacture and sell the yacht usually implies an obligation to ensure the design permits it to operate safely and meet the performance criteria promised in the contract. The yacht is to be built in accordance with the technical specifications detailed in the construction contract, and design and integrated technology are aspects of the workmanship that the yard must fulfil when building the yacht.

Understandably, the builder may even refuse to provide a warranty or other assurance that a particular technology is adequate to meet the buyer’s operational requirements. The builder might limit its obligations to complying with the integration specifications from the technology provider.

This would identify and resolve any design or performance issues as early

Ultimately, taking the time during the initial project planning stage to consider

The situation differs when a technology developed by the buyer or a thirdparty supplier is to be incorporated by the shipyard, particularly if it’s a new innovation which is often the case with new decarbonising technologies, for example.

In such circumstances, it may not be

Without a separate agreement with the technology provider, the risk would then fall on the owner for incidents (which might include damage to other parts of the yacht caused by batteries, for example) or for failing to meet required performance standards related to such technology. One possible alternative might involve a separate warranty by an ad-hoc engineer (or engineers) for specific technology items.

The drafting of the allocation of risk should be very clear regarding the scope of the respective parties’

how risks are to be apportioned, whether additional agreements are necessary and carefully drafting provisions relating to the incorporation of new technologies with specialist technical and legal input will help anticipate and circumvent issues that may arise later in the construction stage. Such occurrences could have a detrimental impact on the project and product for all parties involved. TM & RF

It may be sensible to agree on a development and testing/trials programme for specific items to be carried out by the builder in conjunction with the buyer and relevant supplier. This would identify and resolve any design or performance issues as early as possible ...

The Superyacht Owner Report ISSUE 218

19

Guest Column

by Michelle van der Merwe

Yacht protection: It pays to choose wisely In light of rising insurance rates and changes to policy conditions, Michelle van der Merwe, team leader at Pantaenius Yacht Insurance, dissects the current market and the challenges that lie ahead.

Following the Lloyd’s market changes in 2018/2019 and the subsequent global marine insurance rate increases, there’s the feeling that insurer capacity is growing again, but this is not necessarily the case. It’s more that some markets are pursuing the business they want which, in turn, creates more competition and lowers premiums, giving the impression that there are more options in the market.

However, with lower rates comes some relaxation in policy conditions, which could potentially cause similar setbacks,depending on future claims.

We have yet to see how the softening market will affect things long-term, but we’re all hoping that the premiums remain at a sustainable level to avoid the market difficulties of 2019.

There’s still limited availability of insurer capacity for the larger superyachts worth more than €100m. We continue to emphasise that rather than providing more quote alternatives, instructing two or three different insurance providers can make things more complicated when everyone is approaching the same markets. Insurers prefer to quote to one client-appointed provider, so requesting quotations from more than one broker on the larger yachts won’t give more choice.

The Superyacht Operations Report ISSUE 217

There have been a few big acquisitions in the insurance broker world recently, and movement of key people in some prominent marine insurers, highlighting the continuing importance of building enduring relationships that are hopefully transferable.

These changes can mean that some insurers may no longer wish to write yachts or decide to change their underwriting criteria, which can have a significant impact on a business portfolio. This underlines the importance of having resilient arrangements with top-rated global insurers that can withstand all developments.

The Ukrainian/Russian war continues to influence the market, with many insurers still taking take a hard stance on any Russian-=owned yachts. Detailed ‘know-your-client’ checks, now deeply embedded in all our normal day-to-day administration, have helped to mitigate disruption and stabilise the situation.

The use of lithium-ion batteries is another topic that has been widely commented on this year. Following several yacht fires (not all attributed to lithium-ion batteries), new policy conditions concerning the handling of lithium batteries on board are being implemented in the London insurance

market. We’ll watch with interest to see how the conditions of cover are policed, but if they are introduced as warranties they could have considerable bearing on fire claims.

With new sustainable innovations being applied to yacht design, it’s an exciting time for all of us. From an insurance perspective, we would recommend owners, designers and shipyards openly discuss some of the new pioneering technology with superyacht insurance providers at the earliest opportunity.

We’ve found that sometimes the yacht is almost ready for launch before the topic of insurance is discussed. It can then be challenging to find an insurer willing to take the risk of insuring a new piece of equipment or design without in-depth discussions on the mechanics and materials used, and then the possible costs and consequences in the event of a claim.

Insurance is always adapting along with technology, and it’s vital that owners take the appropriate precautions to protect their yachts. We foresee continuing external world events influencing the market, underlining the need to choose your insurance partner wisely, based on their reputation, security and longevity. MVDM

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Guest Column

by Michelle van der Merwe

Yacht protection: It pays to choose wisely In light of rising insurance rates and changes to policy conditions, Michelle van der Merwe, team leader at Pantaenius Yacht Insurance, dissects the current market and the challenges that lie ahead.

Following the Lloyd’s market changes in 2018/2019 and the subsequent global marine insurance rate increases, there’s the feeling that insurer capacity is growing again, but this is not necessarily the case. It’s more that some markets are pursuing the business they want which, in turn, creates more competition and lowers premiums, giving the impression that there are more options in the market.

However, with lower rates comes some relaxation in policy conditions, which could potentially cause similar setbacks,depending on future claims.

We have yet to see how the softening market will affect things long-term, but we’re all hoping that the premiums remain at a sustainable level to avoid the market difficulties of 2019.

There’s still limited availability of insurer capacity for the larger superyachts worth more than €100m. We continue to emphasise that rather than providing more quote alternatives, instructing two or three different insurance providers can make things more complicated when everyone is approaching the same markets. Insurers prefer to quote to one client-appointed provider, so requesting quotations from more than one broker on the larger yachts won’t give more choice.

The Superyacht Operations Report ISSUE 217

There have been a few big acquisitions in the insurance broker world recently, and movement of key people in some prominent marine insurers, highlighting the continuing importance of building enduring relationships that are hopefully transferable.

These changes can mean that some insurers may no longer wish to write yachts or decide to change their underwriting criteria, which can have a significant impact on a business portfolio. This underlines the importance of having resilient arrangements with top-rated global insurers that can withstand all developments.

The Ukrainian/Russian war continues to influence the market, with many insurers still taking take a hard stance on any Russian-=owned yachts. Detailed ‘know-your-client’ checks, now deeply embedded in all our normal day-to-day administration, have helped to mitigate disruption and stabilise the situation.

The use of lithium-ion batteries is another topic that has been widely commented on this year. Following several yacht fires (not all attributed to lithium-ion batteries), new policy conditions concerning the handling of lithium batteries on board are being implemented in the London insurance

market. We’ll watch with interest to see how the conditions of cover are policed, but if they are introduced as warranties they could have considerable bearing on fire claims.

With new sustainable innovations being applied to yacht design, it’s an exciting time for all of us. From an insurance perspective, we would recommend owners, designers and shipyards openly discuss some of the new pioneering technology with superyacht insurance providers at the earliest opportunity.

We’ve found that sometimes the yacht is almost ready for launch before the topic of insurance is discussed. It can then be challenging to find an insurer willing to take the risk of insuring a new piece of equipment or design without in-depth discussions on the mechanics and materials used, and then the possible costs and consequences in the event of a claim.

Insurance is always adapting along with technology, and it’s vital that owners take the appropriate precautions to protect their yachts. We foresee continuing external world events influencing the market, underlining the need to choose your insurance partner wisely, based on their reputation, security and longevity. MVDM

21

OPINION

by Martin H. Redmayne

THE VITAL IMPORTANCE OF OWNER EDUCATION Martin Redmayne, chairman of The Superyacht Group, lays out a comprehensive set of measures to encourage clients to invest in projects that are futureproofed and adaptable to emerging fuels, energy sources and regulations.

As we step into the yacht show season, it’s always intriguing to observe the unveiling or presentation of new projects, designs and concepts within the market. This is particularly noteworthy in the context of sustainability and environmental impact.

I often find myself wondering whether today’s clients are questioning why current models are still being constructed with high-speed engines and specifications that boast a top speed of 25 knots. Alternatively, is it possible that many owners assume that since they only utilise their yachts for a few weeks each year and operate at maximum speed for only a handful of hours at a time, their impact is inconsequential?

During a recent gathering in Hamburg, which was attended by approximately

22

50 CEOs from the largest companies in the yachting industry, sustainability and our sector’s impact on the ocean took centre stage. One overarching observation emerged: Owners require further education. This education should enable them to be better informed about what they should be investing in, acquiring or implementing in the realm of green and clean technology.

If you were to ask a salesperson engaged in selling these floating assets, “Are today’s owners seeking cleaner and more sustainable projects?” you’d frequently receive the response “Yes, they are inquiring!”. Yet, when the discussion pivots towards the necessary investment and the substantial upfront costs involved, the narrative takes a turn. The client often asks “Is this really necessary?”.

Perhaps the time has come to furnish

owners with more comprehensive information concerning the application of new technologies that wield a significant impact on their superyacht’s footprint. This should encompass not only the capital expenditure (CAPEX) but, more importantly, the operational expenditure (OPEX) as well.

Coupled with the rapidly evolving and shifting regulatory frameworks, as underscored in numerous discussions, the asset they construct or acquire today could quickly become obsolete relatively quickly and, therefore, deemed toxic.

In light of this, I advocate that the industry undertakes the following measures: • Initiate efforts to provide enhanced information regarding the added value of investing in assets that are future-

I often find myself wondering whether today’s clients are questioning why current models are still being constructed with high-speed engines and specifications that boast a top speed of 25 knots. proofed, underpinned by clean energy sources and efficiency.

• Incorporate more informative content within brochures, websites and press materials, aimed at educating owners about the reduced impact their new yacht could have if a particular specification is chosen.

• Elevate the significance of operational costs and energy reduction over the yacht’s lifecycle. Emphasise the advantage of being associated with a smarter yacht project that prioritises sustainability.

The Superyacht Owner Report ISSUE 218

• Explore models and tools that can demonstrate tangible savings and reductions in carbon footprint, thereby validating the value offered by greener yachts.

• Amplify awareness of the actual impact of certain conventional models in terms of fuel consumption and carbon emissions. Additionally, acknowledge that rules and regulations are likely to evolve in the future.

• Highlight and underscore which models boast the most commendable credentials in terms of minimal impact

and consumption. This empowers clients to make fully informed decisions.

Owners deserve a holistic view of potential developments and upcoming trends rather than merely being informed that they could invest more in a greener superyacht if they desire. Instead, they should be advised to invest in projects that are future-proofed and adaptable to emerging fuels, energy sources and regulations. MHR

23

OPINION

by Martin H. Redmayne

THE VITAL IMPORTANCE OF OWNER EDUCATION Martin Redmayne, chairman of The Superyacht Group, lays out a comprehensive set of measures to encourage clients to invest in projects that are futureproofed and adaptable to emerging fuels, energy sources and regulations.

As we step into the yacht show season, it’s always intriguing to observe the unveiling or presentation of new projects, designs and concepts within the market. This is particularly noteworthy in the context of sustainability and environmental impact.

I often find myself wondering whether today’s clients are questioning why current models are still being constructed with high-speed engines and specifications that boast a top speed of 25 knots. Alternatively, is it possible that many owners assume that since they only utilise their yachts for a few weeks each year and operate at maximum speed for only a handful of hours at a time, their impact is inconsequential?

During a recent gathering in Hamburg, which was attended by approximately

22

50 CEOs from the largest companies in the yachting industry, sustainability and our sector’s impact on the ocean took centre stage. One overarching observation emerged: Owners require further education. This education should enable them to be better informed about what they should be investing in, acquiring or implementing in the realm of green and clean technology.

If you were to ask a salesperson engaged in selling these floating assets, “Are today’s owners seeking cleaner and more sustainable projects?” you’d frequently receive the response “Yes, they are inquiring!”. Yet, when the discussion pivots towards the necessary investment and the substantial upfront costs involved, the narrative takes a turn. The client often asks “Is this really necessary?”.

Perhaps the time has come to furnish

owners with more comprehensive information concerning the application of new technologies that wield a significant impact on their superyacht’s footprint. This should encompass not only the capital expenditure (CAPEX) but, more importantly, the operational expenditure (OPEX) as well.

Coupled with the rapidly evolving and shifting regulatory frameworks, as underscored in numerous discussions, the asset they construct or acquire today could quickly become obsolete relatively quickly and, therefore, deemed toxic.

In light of this, I advocate that the industry undertakes the following measures: • Initiate efforts to provide enhanced information regarding the added value of investing in assets that are future-

I often find myself wondering whether today’s clients are questioning why current models are still being constructed with high-speed engines and specifications that boast a top speed of 25 knots. proofed, underpinned by clean energy sources and efficiency.

• Incorporate more informative content within brochures, websites and press materials, aimed at educating owners about the reduced impact their new yacht could have if a particular specification is chosen.

• Elevate the significance of operational costs and energy reduction over the yacht’s lifecycle. Emphasise the advantage of being associated with a smarter yacht project that prioritises sustainability.

The Superyacht Owner Report ISSUE 218

• Explore models and tools that can demonstrate tangible savings and reductions in carbon footprint, thereby validating the value offered by greener yachts.

• Amplify awareness of the actual impact of certain conventional models in terms of fuel consumption and carbon emissions. Additionally, acknowledge that rules and regulations are likely to evolve in the future.

• Highlight and underscore which models boast the most commendable credentials in terms of minimal impact

and consumption. This empowers clients to make fully informed decisions.

Owners deserve a holistic view of potential developments and upcoming trends rather than merely being informed that they could invest more in a greener superyacht if they desire. Instead, they should be advised to invest in projects that are future-proofed and adaptable to emerging fuels, energy sources and regulations. MHR

23

TSF : CONNECT The Superyacht Forum 2023 is a must-attend event for anyone in the superyacht industry, and this year will focus on fostering connections, sharing knowledge, and driving innovation within the industry. Meeting and connecting with the key players in our industry continues to be one of the most important and anticipated aspects of forum.

1 4 .1 1 . 2 3 - 1 6 .1 1 . 2 3 RAI, AMSTERDAM For more information contact our membership concierge on: member@thesuperyachtgroup.com

CO - H O ST E D BY :

H E A D L I N E PA R T N E R S :

T E C H N I C A L PA R T N E R :

S T R AT E G I C PA R T N E R :

TSF : CONNECT The Superyacht Forum 2023 is a must-attend event for anyone in the superyacht industry, and this year will focus on fostering connections, sharing knowledge, and driving innovation within the industry. Meeting and connecting with the key players in our industry continues to be one of the most important and anticipated aspects of forum.

1 4 .1 1 . 2 3 - 1 6 .1 1 . 2 3 RAI, AMSTERDAM For more information contact our membership concierge on: member@thesuperyachtgroup.com

CO - H O ST E D BY :

H E A D L I N E PA R T N E R S :

T E C H N I C A L PA R T N E R :

S T R AT E G I C PA R T N E R :

OPINION

by Jack Hogan

DESIGNED TO BE TIMELESS

THE PRESS PUSHBACK As we get stuck into a new show season, we should face up to the fact that it’s time to shake up the superyacht communications ecosystem.

50 mt

students. Students who know they should attend but also understand that technically they can leave at any moment. The attention of the room alternates between the speaker on stage and the side exit, pondering not the boat on screen but rather which fire door will set off an alarm if opened mid-speech.

It still seems like every major company thinks it needs to hold a press conference, even when it has nothing novel (or interesting) to announce.

The concept of a press conference in the yachting media has been warped to the point that they are now a cross between an investor presentation and a client pitch, all steeped in marketing jargon and often with very little substance.

The press conference talks themselves have become more like wedding receptions, usually playing out like a series of speeches from the bride and groom’s friends – packed with sentimentality and undue compliments, and where the golden rule is that you must not, under any circumstances, say anything upsetting about the company on its special day.

During one such conference, at Cannes, as we approached the two-hour mark and the 237th new model from a semiproduction builder, I felt like I was back in school. Not because I was learning anything, but because I could sense how badly nobody in the room wanted to be there.

Welcome to a new dimension.

Now you can make a Riva truly yours.

40

After a few cabin-fever-induced proclamations during the height of the pandemic that the way we conduct ourselves would be forever changed, we’re back to business as usual. The extravagant parties have returned, the breakfasts are as early as ever and the frequently overlapping press conferences are … long.

These conferences have the feel of a lecture theatre full of mature university

90

Press conferences should fill a shipyard or a brokerage house or whoever with a little more dread, not because it’s a chore and nobody likes public speaking, but because they run the risk of being held to account for promises and claims. It should be the time where we question the use of sustainability jargon that doesn’t hold water, dodgysounding financial reports or sales figures that don’t add up.

Perhaps it’s too much to suggest that we have the announcements well in advance before a heading into a Whitehall-style media scrum. That said, I’d love an uncomfortable 30 minutes of hard-hitting and well-researched rapidfire questions directed to a squirming board of directors that leads to a slew of stories and shared insights, the kind of stories that would present us as a more serious industry.

This may not be revolutionary, but if you have nothing to say, why have a press conference at all? The approach taken

by Oceanco at MYS 2022 was refreshing: ’No formal press conference, but please come past and see us for a chat’. These one-to-one press catch-ups are both more cost-effective and can also lead to more insightful and unique insights.

These shows, and the MYS in particular, represent the best opportunity for the world’s yachting media to challenge the industry. But I think we often waste this opportunity. If we want to be taken seriously as an industry, and one that is in touch, we can start by shaking up the communications ecosystem. For the media, paraphrasing press releases is easy. Being asked – and asking – the hard questions is not. JH

riva-yacht.com The Superyacht Owner Report ISSUE 218

27

OPINION

by Jack Hogan

DESIGNED TO BE TIMELESS

THE PRESS PUSHBACK As we get stuck into a new show season, we should face up to the fact that it’s time to shake up the superyacht communications ecosystem.

50 mt

students. Students who know they should attend but also understand that technically they can leave at any moment. The attention of the room alternates between the speaker on stage and the side exit, pondering not the boat on screen but rather which fire door will set off an alarm if opened mid-speech.

It still seems like every major company thinks it needs to hold a press conference, even when it has nothing novel (or interesting) to announce.

The concept of a press conference in the yachting media has been warped to the point that they are now a cross between an investor presentation and a client pitch, all steeped in marketing jargon and often with very little substance.

The press conference talks themselves have become more like wedding receptions, usually playing out like a series of speeches from the bride and groom’s friends – packed with sentimentality and undue compliments, and where the golden rule is that you must not, under any circumstances, say anything upsetting about the company on its special day.

During one such conference, at Cannes, as we approached the two-hour mark and the 237th new model from a semiproduction builder, I felt like I was back in school. Not because I was learning anything, but because I could sense how badly nobody in the room wanted to be there.

Welcome to a new dimension.

Now you can make a Riva truly yours.

40

After a few cabin-fever-induced proclamations during the height of the pandemic that the way we conduct ourselves would be forever changed, we’re back to business as usual. The extravagant parties have returned, the breakfasts are as early as ever and the frequently overlapping press conferences are … long.

These conferences have the feel of a lecture theatre full of mature university

90

Press conferences should fill a shipyard or a brokerage house or whoever with a little more dread, not because it’s a chore and nobody likes public speaking, but because they run the risk of being held to account for promises and claims. It should be the time where we question the use of sustainability jargon that doesn’t hold water, dodgysounding financial reports or sales figures that don’t add up.

Perhaps it’s too much to suggest that we have the announcements well in advance before a heading into a Whitehall-style media scrum. That said, I’d love an uncomfortable 30 minutes of hard-hitting and well-researched rapidfire questions directed to a squirming board of directors that leads to a slew of stories and shared insights, the kind of stories that would present us as a more serious industry.

This may not be revolutionary, but if you have nothing to say, why have a press conference at all? The approach taken

by Oceanco at MYS 2022 was refreshing: ’No formal press conference, but please come past and see us for a chat’. These one-to-one press catch-ups are both more cost-effective and can also lead to more insightful and unique insights.

These shows, and the MYS in particular, represent the best opportunity for the world’s yachting media to challenge the industry. But I think we often waste this opportunity. If we want to be taken seriously as an industry, and one that is in touch, we can start by shaking up the communications ecosystem. For the media, paraphrasing press releases is easy. Being asked – and asking – the hard questions is not. JH

riva-yacht.com The Superyacht Owner Report ISSUE 218

27

Dutch shipbuilder's plan for carbon neutrality

FEADSHIP’S ‘ROADMAP TO ZERO’

Feadship’s plan to build carbon-neutral superyachts by 2030 is ambitious and, for a prominent custom yacht builder with long lead times, not all that far away.

Here, TSG speaks with company CEO Henk de Vries to get his typically frank assessment of its progress and the wider sector’s green ambitions.

The Superyacht Owner Report ISSUE 218

29

Dutch shipbuilder's plan for carbon neutrality

FEADSHIP’S ‘ROADMAP TO ZERO’

Feadship’s plan to build carbon-neutral superyachts by 2030 is ambitious and, for a prominent custom yacht builder with long lead times, not all that far away.

Here, TSG speaks with company CEO Henk de Vries to get his typically frank assessment of its progress and the wider sector’s green ambitions.

The Superyacht Owner Report ISSUE 218

29

SAILING TO NEW ROUTES

BY JACK HOGAN

#moreonboard

T

Quick Nautical Equipment is a range of products that includes anchoring systems, thruster systems, the energy range, water heaters, and many other accessories for controlling on-board systems.

QUICK SPA - WWW.QUICKITALY.COM

he timeline for the Dutch shipbuilder started, at least publicly, when the plan for carbon neutrality was announced at The Superyacht Forum 2019. When I meet De Vries in July at an organic cafe adjoining a supermarket on the outskirts of Amsterdam, it seems like a perfect time to take stock of the progress that the shipyard has made.

“I remember thinking then, ‘how do I engage this audience?’,” says De Vries.

“Mentioning the IMO’s goal of reducing shipping emissions by 50 per cent by 2050 caught their attention, mainly because so few in the room were thinking about it at the time. But unlike shipping, we build products that are completely unnecessary, so we’d better start building something that has no impact!”

What De Vries went on to say at the time, somewhat improvised according to him, was that Feadship would go one step further and aim to launch carbon-neutral motoryachts by 2030. “With summers scorching in southern Europe while we sit here, and while the Netherlands and the UK are flooding, we had better be making progress on our promises,” he says.

‘The Roadmap to Zero’ is a catchy title, and it’s easy to overlook how many barriers need to be cleared to realise its ambitions. In a nutshell, as published in greater detail by Feadship, the roadmap takes Feadship’s new builds from conventional diesel to zero-impact fuel cell propulsion in roughly 10 years.

As a journalist, it’s easy to become jaded by the number of ‘blue-sky thinking’ concepts that we see from shipyards and designers. Wildly ambitious and adorned with green innovations that claim incredible efficiencies using unproven or immature technologies, these concepts appear periodically.

Of course, they are reliably never built and, if questioned, the shipyards can simply blame risk-averse owners or a lack of foresight from classification

The Superyacht Owner Report ISSUE 218

Henk de Vries, Feadship director / CEO Koninklijke De Vries Scheepsbouw.

societies, etc. We all move on, and another generation of conventional diesel propulsion is laid down.

But the Roadmap to Zero has real checkpoints and, theoretically, accountability. With the halfway point just over the horizon, it seems a perfect time to look at its progress. Phase One covers 2019-2021 and focuses on IMO Tier IIIcompliant exhaust-gas treatment and waste-heat regeneration. Both are proven and mature technologies that require minimal modification and, in truth, are not the highest bar to clear for a shipyard.

The 84-metre Obsidian is finishing its sea trials as we speak, and De Vries eagerly shows me the clips he filmed while on board earlier in the week. It is, according to him, exceeding all expectations in terms of efficiency. “The guys came back to me and said, ‘We’re a bit fast ...’ and I thought, ‘Oh god, not again’.”

Once considered a glorious benchmark for all large motoryachts, De Vries’s slight frustration about speed was clear.

“We put two big engines in there, like all builders do because everybody is still fixated on top speed. But we have come a long way in terms of through-water and propeller efficiency.

“This is the first boat that I have sold that has been tied to cruising speed and related efficiency.” (Top speed is still in the contract, he reminds me, but it’s refreshing to hear that the focus is changing.)

Aside from its striking exterior lines, the Roadmap to Zero unwinds inside the hull and below the waterline. Obsidian’s propulsion and steering are supplied by two Veth contra-rotating thrusters that deliver both shaft and rudder functions.

These are powered by a direct current (DC) primary electrical power system where four generators are connected to a 4.5MWh battery bank for rapid load response while maintaining an even load on the gensets. The custom generators – two large and two small Cat C32 engines

“Every boat we’ve sold in Aalsmeer, including Obsidian, will feature our newer, cleaner output drive system until 2026.”

31

SAILING TO NEW ROUTES

BY JACK HOGAN

#moreonboard

T

Quick Nautical Equipment is a range of products that includes anchoring systems, thruster systems, the energy range, water heaters, and many other accessories for controlling on-board systems.

QUICK SPA - WWW.QUICKITALY.COM

he timeline for the Dutch shipbuilder started, at least publicly, when the plan for carbon neutrality was announced at The Superyacht Forum 2019. When I meet De Vries in July at an organic cafe adjoining a supermarket on the outskirts of Amsterdam, it seems like a perfect time to take stock of the progress that the shipyard has made.

“I remember thinking then, ‘how do I engage this audience?’,” says De Vries.

“Mentioning the IMO’s goal of reducing shipping emissions by 50 per cent by 2050 caught their attention, mainly because so few in the room were thinking about it at the time. But unlike shipping, we build products that are completely unnecessary, so we’d better start building something that has no impact!”

What De Vries went on to say at the time, somewhat improvised according to him, was that Feadship would go one step further and aim to launch carbon-neutral motoryachts by 2030. “With summers scorching in southern Europe while we sit here, and while the Netherlands and the UK are flooding, we had better be making progress on our promises,” he says.

‘The Roadmap to Zero’ is a catchy title, and it’s easy to overlook how many barriers need to be cleared to realise its ambitions. In a nutshell, as published in greater detail by Feadship, the roadmap takes Feadship’s new builds from conventional diesel to zero-impact fuel cell propulsion in roughly 10 years.

As a journalist, it’s easy to become jaded by the number of ‘blue-sky thinking’ concepts that we see from shipyards and designers. Wildly ambitious and adorned with green innovations that claim incredible efficiencies using unproven or immature technologies, these concepts appear periodically.

Of course, they are reliably never built and, if questioned, the shipyards can simply blame risk-averse owners or a lack of foresight from classification

The Superyacht Owner Report ISSUE 218

Henk de Vries, Feadship director / CEO Koninklijke De Vries Scheepsbouw.

societies, etc. We all move on, and another generation of conventional diesel propulsion is laid down.

But the Roadmap to Zero has real checkpoints and, theoretically, accountability. With the halfway point just over the horizon, it seems a perfect time to look at its progress. Phase One covers 2019-2021 and focuses on IMO Tier IIIcompliant exhaust-gas treatment and waste-heat regeneration. Both are proven and mature technologies that require minimal modification and, in truth, are not the highest bar to clear for a shipyard.

The 84-metre Obsidian is finishing its sea trials as we speak, and De Vries eagerly shows me the clips he filmed while on board earlier in the week. It is, according to him, exceeding all expectations in terms of efficiency. “The guys came back to me and said, ‘We’re a bit fast ...’ and I thought, ‘Oh god, not again’.”

Once considered a glorious benchmark for all large motoryachts, De Vries’s slight frustration about speed was clear.

“We put two big engines in there, like all builders do because everybody is still fixated on top speed. But we have come a long way in terms of through-water and propeller efficiency.

“This is the first boat that I have sold that has been tied to cruising speed and related efficiency.” (Top speed is still in the contract, he reminds me, but it’s refreshing to hear that the focus is changing.)

Aside from its striking exterior lines, the Roadmap to Zero unwinds inside the hull and below the waterline. Obsidian’s propulsion and steering are supplied by two Veth contra-rotating thrusters that deliver both shaft and rudder functions.

These are powered by a direct current (DC) primary electrical power system where four generators are connected to a 4.5MWh battery bank for rapid load response while maintaining an even load on the gensets. The custom generators – two large and two small Cat C32 engines

“Every boat we’ve sold in Aalsmeer, including Obsidian, will feature our newer, cleaner output drive system until 2026.”

31

“Being on board [Obsidian] is like nothing you have experienced.

It is almost completely flat while cruising, there is only the most minimal of disrupted wakes produced and next to no vibration.”

have permanent magnet alternators – to balance the electrical.

De Vries says one of the key briefs for the project was to be more efficient than Feadship’s previous benchmark, the 83.5m Savannah, which launched in 2015.

As well as being an unofficial predecessor of note for Obsidian, Savannah is a key marker of progress on the Roadmap to Zero (before it was officially named as such).

Combining a streamlined hull with Feadship’s first hybrid diesel and electric propulsion system, Savannah achieved a 30 per cent reduction in fuel consumption compared to its peers at the time. It also introduced a DC bus, developed with Schneider Electric, linked to the propulsion and main power systems, which was replicated in future builds.

A DC bus regulates the voltage and frequency across a DC system on board a diesel-electric vessel. Now, using Feadship’s Advanced Electrical Drive (FAED) programme for diesel-electric hybrid power, Obsidian is reported to have 4.5 times larger battery electrical storage capacity than Savannah.

Obsidian has no drive shafts and no rudders. Because the propulsion and steering are supplied by the Veth contrarotating thrusters that deliver both functions, the drag is reduced. Veth’s experience with compact units for ships operating on rivers was seen as a perfect

32

fit for a yacht specified for a relatively shallow draft.

“Being on board is like nothing you have experienced,” says De Vries. “It is almost completely flat while cruising, there is only the most minimal of disrupted wakes produced and next to no vibration.”

Where Savannah and Lonian – which launched in 2018 – operated on 560 volts, the DC system on Obsidian is 1,000 volts.

A total of 560 battery modules are housed in a specialised chilled-room tank deck.

According to Feadship, Obsidian should be able to cruise for 35nm at 10 knots on batteries alone. At anchor, the batteries will provide silent operation for 10 to 15 hours.

According to Bram Jongepier, senior design manager at Feadship De Voogt Naval Architects, by using YETI, Water Revolution Foundation predicts that Obsidian will operate with 27 per cent less total environmental impact than a yacht of similar size when powered by fossil fuel and 60 per cent less when using hydrotreated vegetable oil (HVO).

Mandatory Tier III measures such as exhaust-gas after-treatment, wasteheat generation and DC electric systems for propulsion and hotel loads are now all mature technologies and have been installed on numerous superyachts.

Obsidian straddles both phases one and two of the Roadmap to Zero.

“It’s not HVO-ready, it is HVO-

The Superyacht Owner Report ISSUE 218

33

“Being on board [Obsidian] is like nothing you have experienced.

It is almost completely flat while cruising, there is only the most minimal of disrupted wakes produced and next to no vibration.”

have permanent magnet alternators – to balance the electrical.

De Vries says one of the key briefs for the project was to be more efficient than Feadship’s previous benchmark, the 83.5m Savannah, which launched in 2015.

As well as being an unofficial predecessor of note for Obsidian, Savannah is a key marker of progress on the Roadmap to Zero (before it was officially named as such).

Combining a streamlined hull with Feadship’s first hybrid diesel and electric propulsion system, Savannah achieved a 30 per cent reduction in fuel consumption compared to its peers at the time. It also introduced a DC bus, developed with Schneider Electric, linked to the propulsion and main power systems, which was replicated in future builds.

A DC bus regulates the voltage and frequency across a DC system on board a diesel-electric vessel. Now, using Feadship’s Advanced Electrical Drive (FAED) programme for diesel-electric hybrid power, Obsidian is reported to have 4.5 times larger battery electrical storage capacity than Savannah.

Obsidian has no drive shafts and no rudders. Because the propulsion and steering are supplied by the Veth contrarotating thrusters that deliver both functions, the drag is reduced. Veth’s experience with compact units for ships operating on rivers was seen as a perfect

32

fit for a yacht specified for a relatively shallow draft.

“Being on board is like nothing you have experienced,” says De Vries. “It is almost completely flat while cruising, there is only the most minimal of disrupted wakes produced and next to no vibration.”

Where Savannah and Lonian – which launched in 2018 – operated on 560 volts, the DC system on Obsidian is 1,000 volts.

A total of 560 battery modules are housed in a specialised chilled-room tank deck.

According to Feadship, Obsidian should be able to cruise for 35nm at 10 knots on batteries alone. At anchor, the batteries will provide silent operation for 10 to 15 hours.

According to Bram Jongepier, senior design manager at Feadship De Voogt Naval Architects, by using YETI, Water Revolution Foundation predicts that Obsidian will operate with 27 per cent less total environmental impact than a yacht of similar size when powered by fossil fuel and 60 per cent less when using hydrotreated vegetable oil (HVO).

Mandatory Tier III measures such as exhaust-gas after-treatment, wasteheat generation and DC electric systems for propulsion and hotel loads are now all mature technologies and have been installed on numerous superyachts.

Obsidian straddles both phases one and two of the Roadmap to Zero.

“It’s not HVO-ready, it is HVO-

The Superyacht Owner Report ISSUE 218

33

M/Y Savannah, which achieved a 30 per cent reduction in fuel consumption compared to its peers at the time.

34

fuelled,” says De Vries. “That was part of the deal, that we deliver it fully pressed with HVO and that will be the same for future Feadship launches.”

Being synthetic fuel (HVO) compatible, using high-efficiency batteries and peak shaving with short battery-only operation possible, are key components of phase two in Feadship’s roadmap, the others being hydrogen hybrid compatible for large GT launches and leaving the possibility for fuel-reforming technologies.

HVO, a ‘second-generation’ biofuel, utilises by-products instead of competing with the food and feed chain.

However, critics highlight the irony of shipping a low-carbon fuel such as HVO using carbon-heavy methods. Yet, De Vries points out that although HVO – a clean kerosene by-product – may be in limited supply on shipping industry scales, it could easily service the entire superyacht fleet.

“Every boat we’ve sold in Aalsmeer, including Obsidian, will feature our newer, cleaner output drive system until 2026,” says De Vries. “Starting in 2027, our boats will be equipped with alternative fuel-tank arrangements that are approved by Lloyd’s and Flag. This will allow the use of alternative fuels like methanol.”

“This is the crucial next step for Feadship,” says Giedo Loeff, head of R&D. “The need for a flexible fuel system, meaning it has to work with the fuels of today but also those of tomorrow.”

The fully integrated system that will underpin the next generation of Feadship yachts can store both non-fossil paraffinic fuels (for example, HVO and e-diesel) and alcoholic fuels (such as bio- and e-methanol or ethanol) at full capacity.

“On the new boats, if we take it in stride during the design process, there is hardly any extra cost,” says De Vries.

“Now it is a standing order. All new boats will have a flexible fuel system.”

There is a sacrifice for doing this in terms of energy storage capacity.

Methanol has a lower energy density and requires a double walled tank and piping system since it has a low flashpoint. This has a volume sacrifice, albeit one that is much easier to absorb when you are

The Superyacht Owner Report ISSUE 218

“This is the crucial next step for Feadship – the need for a flexible fuel system, meaning it has to work with the fuels of today but also those of tomorrow.”

building large custom yachts with high internal volumes. Currently these large yachts have a considerable fuel overcapacity.

“My story with clients these days is that when running on methanol fuel they lose around half of the range,” says de Vries. “This would have been a horrible discussion 10 years ago, but the built-in flexibility will still provide the maximum range they are used to when they bunker HVO or diesel. So even a 1,000gt yacht will maintain a transatlantic range without compromising on-board space.

Clients say, ‘OK, so I get it, if I can make the transition we can do it’.”

Feadship’s roadmap is at an intriguing moment. Phase three calls for the integration of fuel cells via methanol reforming, striving for an as yet unproven fully mature and powerdense technology that will give full range and net-zero carbon/zero local impact.

With methanol-ready tanks now Class-approved and due to be integrated in 2027, phase three Feadships then have two directions they can follow. Firstly, the methanol can be fed directly into a methanol combustion engine, which is possible through a refit or replacement, depending on ignition technology, of modern marine diesel engines. This option exposes the limitations of the decreased energy density of methanol compared to diesel because the equivalent tank volume leads to a relatively significant decrease in range.

The second option is to run the methanol through a reformer and to run a hydrogen fuel cell. Several low and higher temperature fuel cells are becoming available that use either external methanol to hydrogen or syngas reforming. The most promising technologies are low and high-temperature proton-exchange membrane fuel cells or so-called solid-oxide fuel cells.

“I’m hoping that by 2025, halfway through our pathway to zero, there will be substantial developments in fuel-cell technology,” says De Vries, who points out that there are already 1,000kW fuel cells in development. “Obsidian is sailing with 3,000kW of power and it goes too fast!” he reminds me.

35

M/Y Savannah, which achieved a 30 per cent reduction in fuel consumption compared to its peers at the time.

34

fuelled,” says De Vries. “That was part of the deal, that we deliver it fully pressed with HVO and that will be the same for future Feadship launches.”

Being synthetic fuel (HVO) compatible, using high-efficiency batteries and peak shaving with short battery-only operation possible, are key components of phase two in Feadship’s roadmap, the others being hydrogen hybrid compatible for large GT launches and leaving the possibility for fuel-reforming technologies.

HVO, a ‘second-generation’ biofuel, utilises by-products instead of competing with the food and feed chain.

However, critics highlight the irony of shipping a low-carbon fuel such as HVO using carbon-heavy methods. Yet, De Vries points out that although HVO – a clean kerosene by-product – may be in limited supply on shipping industry scales, it could easily service the entire superyacht fleet.

“Every boat we’ve sold in Aalsmeer, including Obsidian, will feature our newer, cleaner output drive system until 2026,” says De Vries. “Starting in 2027, our boats will be equipped with alternative fuel-tank arrangements that are approved by Lloyd’s and Flag. This will allow the use of alternative fuels like methanol.”

“This is the crucial next step for Feadship,” says Giedo Loeff, head of R&D. “The need for a flexible fuel system, meaning it has to work with the fuels of today but also those of tomorrow.”

The fully integrated system that will underpin the next generation of Feadship yachts can store both non-fossil paraffinic fuels (for example, HVO and e-diesel) and alcoholic fuels (such as bio- and e-methanol or ethanol) at full capacity.

“On the new boats, if we take it in stride during the design process, there is hardly any extra cost,” says De Vries.

“Now it is a standing order. All new boats will have a flexible fuel system.”

There is a sacrifice for doing this in terms of energy storage capacity.

Methanol has a lower energy density and requires a double walled tank and piping system since it has a low flashpoint. This has a volume sacrifice, albeit one that is much easier to absorb when you are

The Superyacht Owner Report ISSUE 218

“This is the crucial next step for Feadship – the need for a flexible fuel system, meaning it has to work with the fuels of today but also those of tomorrow.”

building large custom yachts with high internal volumes. Currently these large yachts have a considerable fuel overcapacity.

“My story with clients these days is that when running on methanol fuel they lose around half of the range,” says de Vries. “This would have been a horrible discussion 10 years ago, but the built-in flexibility will still provide the maximum range they are used to when they bunker HVO or diesel. So even a 1,000gt yacht will maintain a transatlantic range without compromising on-board space.

Clients say, ‘OK, so I get it, if I can make the transition we can do it’.”

Feadship’s roadmap is at an intriguing moment. Phase three calls for the integration of fuel cells via methanol reforming, striving for an as yet unproven fully mature and powerdense technology that will give full range and net-zero carbon/zero local impact.

With methanol-ready tanks now Class-approved and due to be integrated in 2027, phase three Feadships then have two directions they can follow. Firstly, the methanol can be fed directly into a methanol combustion engine, which is possible through a refit or replacement, depending on ignition technology, of modern marine diesel engines. This option exposes the limitations of the decreased energy density of methanol compared to diesel because the equivalent tank volume leads to a relatively significant decrease in range.

The second option is to run the methanol through a reformer and to run a hydrogen fuel cell. Several low and higher temperature fuel cells are becoming available that use either external methanol to hydrogen or syngas reforming. The most promising technologies are low and high-temperature proton-exchange membrane fuel cells or so-called solid-oxide fuel cells.

“I’m hoping that by 2025, halfway through our pathway to zero, there will be substantial developments in fuel-cell technology,” says De Vries, who points out that there are already 1,000kW fuel cells in development. “Obsidian is sailing with 3,000kW of power and it goes too fast!” he reminds me.

35

Above (left to right): Obsidian’s anchoring system, auxiliary pump room, generator room and battery room.

36

The Superyacht Owner Report ISSUE 218

37

Above (left to right): Obsidian’s anchoring system, auxiliary pump room, generator room and battery room.

36

The Superyacht Owner Report ISSUE 218

37

SPONSORED CONTENT

Keeping cool with Tilse’s superyacht glass The glass specialist’s technical innovations have brought maximum efficiency in thermal distribution to some of the most iconic superyachts to date.

Through the increased efficiencies and with the speedily evolving landscape of non-fossil fuels and fuel cells, the transition to stage three of the roadmap looks less daunting than it did when I first saw the plans.

“By dropping the cruising speed to 12 knots, and incorporating the efficiencies and technologies we have developed on yachts like Obsidian and Savannah, we can get the same range out of this drive train using methanol.”

Superyachts and luxury cars are inextricably linked. We, as an industry have often marvelled at the other’s production efficiencies and market growth. But De Vries points to a divergence in attitudes and opportunity to differentiate that we should seize.

“I find the strategy of Porsche, Audi and BMW incomprehensible. They build fantastically heavy cars with the streamlining of a brick. They have enormously powerful engines that go from 0 to 100 in three seconds, enjoying a top speed of over 200. I’ve driven a lot of them and it’s like driving a tram. They plough through the road instead of on top of it.”

“I’m one of the 300 idiots in the Netherlands who drive a hydrogen

38

Toyota, forever trying to find fuel for it!” adds De Vries. “Not because I love the brand, but because it was a bit of putting your money where your mouth is.” (De Vries also admits to owning a few other cars that aren’t quite so efficient.)

The topic we discussed the most intensely in the two hours over lunch was the efficiency of Obsidian, how it was measured and the way the client was pushing for advancements. While this yacht is not breaking the laws of thermal dynamics (the energy is coming from somewhere) and I am still fully aware that 35nm silent cruising is still a long way from zero emissions, it was an encouraging to have such a futurefocused and frank conversation with one of the industry’s veteran yacht builders.

“I met with some people in the boat-building industry at a conference recently,” concludes De Vries. “I was shocked to hear them talking about implementing a net zero carbon strategy by 2035. This was a serious builder with a long history. All I could think of then was, ‘Look, you are not going to be in business in 2035’.”

Feadship is in a relatively rare position of having a reputation for convention-

defying large (and expensive) custom builds. This gives the yard the flexibility to push the technology forward and implement processes that lead to carbonneutrality.

However, with enough buy-in from owners and support from shipyards, the industry’s imperative – that of zeroimpact yachts – may be attainable within the timelines laid out. The next stages of Feaship’s roadmap will involve more significant deviations from conventional energy generation. All this is to say nothing for the challenge of retrofitting the existing fleet (a topic for another edition).

The case studies along the Roadmap to Zero, such as Obsidian, will be there for all to see. Having Feadship, and De Vries personally, so closely linked to Water Revolution Foundation and the YETI programme will provides a further transparency and accountability to each milestone on the Roadmap to Zero.

The eyes of a more discerning public,and a new generation of owners are looking at our industry. To paraphrase De Vries at the start of our interview, we’d better make good on our commitments. JH All images copyright Feadship

TILSE has completed more than 300 superyacht projects over the past three decades, with the vast majority being one-off or custom builds. During this time, the glass pioneer has led the way in the adaptation of boundarypushing techniques, allowing its glass to become essential in some of the most iconic superyacht designs and projects to date.

The fundamental keys to the German company’s success lie in its innovative practices and technology, one of which is its ability to decrease heat transmission in order to efficiently benefit the yacht’s economy.

“Due to the high quality of the materials used for our glass, we can reduce the thickness of the panels whilst still adhering to all security requirements necessary on board,” says managing director Henning von der Thüsen. “This essentially leads to a dramatic loss in weight, which in turn leads to less fuel consumption. It also reduces the need for air conditioning significantly, again requiring less fuel and energy needing to be spent. It is a practice of efficiency.”

The company offers not only this economic utilisation but also resistance.

TILSE’s FORMGLAS SPEZIAL consists of two or more chemically toughened panels of glass held together with 1.5mm of UV and seawater-resistant resin.

The glass also offers UV absorption for interiors and clothes up to 340nm without any yellowing, with continuous heat resistance from –40°C to 110°C. For yachts heading to the coldest parts of the globe, TILSE has designed

The Superyacht Owner Report ISSUE 218

“Due to the high quality of the materials used for our glass, we can reduce the thickness of the panels whilst still adhering to all security requirements necessary on board.”

MICROCLEAR, a heated glass using FORMGLAS SPEZIAL with a heating foil. This is the solution to prevent icing or steaming up the bridge.

Notably, the firm recently worked on Abeking & Rasmussen’s largest yacht ever launched, 118-metre Livao. The brief for a project of this magnitude is never simple, with the owner and their team voicing incredibly high expectations in the window's quality and design. This presented some challenges, but they were fulfilled by the glass experts.

A striking exterior design is imperative to any superyacht build, so the prominence of a project like Livao called for exceptional innovations from the TILSE team. “With the owner choosing a black hull with high reflection properties, this effect had to be matched with the glass,” says von der Thüsen.

With the curved wide-body windows reaching a massive 5 by 2 metres, the glossy surface partnered with the glass reflects the waves perfectly without distortions. “This is what makes the yacht a real eye-catcher,” he adds.

For von der Thüsen, one of the core strengths of TILSE is that it has the strongest quality criteria in the superyacht glass market. “To ensure this, each window is rigorously checked individually during a Factory Acceptance Test (FAT). All windows on Livao were appreciated by the owners, with their team and glass experts expressing favourable comments on how having TILSE YACHT GLAZING as a full turnkey partner had exceeded their high expectations.”

39

SPONSORED CONTENT

Keeping cool with Tilse’s superyacht glass The glass specialist’s technical innovations have brought maximum efficiency in thermal distribution to some of the most iconic superyachts to date.

Through the increased efficiencies and with the speedily evolving landscape of non-fossil fuels and fuel cells, the transition to stage three of the roadmap looks less daunting than it did when I first saw the plans.

“By dropping the cruising speed to 12 knots, and incorporating the efficiencies and technologies we have developed on yachts like Obsidian and Savannah, we can get the same range out of this drive train using methanol.”

Superyachts and luxury cars are inextricably linked. We, as an industry have often marvelled at the other’s production efficiencies and market growth. But De Vries points to a divergence in attitudes and opportunity to differentiate that we should seize.

“I find the strategy of Porsche, Audi and BMW incomprehensible. They build fantastically heavy cars with the streamlining of a brick. They have enormously powerful engines that go from 0 to 100 in three seconds, enjoying a top speed of over 200. I’ve driven a lot of them and it’s like driving a tram. They plough through the road instead of on top of it.”

“I’m one of the 300 idiots in the Netherlands who drive a hydrogen

38

Toyota, forever trying to find fuel for it!” adds De Vries. “Not because I love the brand, but because it was a bit of putting your money where your mouth is.” (De Vries also admits to owning a few other cars that aren’t quite so efficient.)

The topic we discussed the most intensely in the two hours over lunch was the efficiency of Obsidian, how it was measured and the way the client was pushing for advancements. While this yacht is not breaking the laws of thermal dynamics (the energy is coming from somewhere) and I am still fully aware that 35nm silent cruising is still a long way from zero emissions, it was an encouraging to have such a futurefocused and frank conversation with one of the industry’s veteran yacht builders.

“I met with some people in the boat-building industry at a conference recently,” concludes De Vries. “I was shocked to hear them talking about implementing a net zero carbon strategy by 2035. This was a serious builder with a long history. All I could think of then was, ‘Look, you are not going to be in business in 2035’.”

Feadship is in a relatively rare position of having a reputation for convention-

defying large (and expensive) custom builds. This gives the yard the flexibility to push the technology forward and implement processes that lead to carbonneutrality.

However, with enough buy-in from owners and support from shipyards, the industry’s imperative – that of zeroimpact yachts – may be attainable within the timelines laid out. The next stages of Feaship’s roadmap will involve more significant deviations from conventional energy generation. All this is to say nothing for the challenge of retrofitting the existing fleet (a topic for another edition).

The case studies along the Roadmap to Zero, such as Obsidian, will be there for all to see. Having Feadship, and De Vries personally, so closely linked to Water Revolution Foundation and the YETI programme will provides a further transparency and accountability to each milestone on the Roadmap to Zero.

The eyes of a more discerning public,and a new generation of owners are looking at our industry. To paraphrase De Vries at the start of our interview, we’d better make good on our commitments. JH All images copyright Feadship

TILSE has completed more than 300 superyacht projects over the past three decades, with the vast majority being one-off or custom builds. During this time, the glass pioneer has led the way in the adaptation of boundarypushing techniques, allowing its glass to become essential in some of the most iconic superyacht designs and projects to date.

The fundamental keys to the German company’s success lie in its innovative practices and technology, one of which is its ability to decrease heat transmission in order to efficiently benefit the yacht’s economy.

“Due to the high quality of the materials used for our glass, we can reduce the thickness of the panels whilst still adhering to all security requirements necessary on board,” says managing director Henning von der Thüsen. “This essentially leads to a dramatic loss in weight, which in turn leads to less fuel consumption. It also reduces the need for air conditioning significantly, again requiring less fuel and energy needing to be spent. It is a practice of efficiency.”

The company offers not only this economic utilisation but also resistance.

TILSE’s FORMGLAS SPEZIAL consists of two or more chemically toughened panels of glass held together with 1.5mm of UV and seawater-resistant resin.

The glass also offers UV absorption for interiors and clothes up to 340nm without any yellowing, with continuous heat resistance from –40°C to 110°C. For yachts heading to the coldest parts of the globe, TILSE has designed

The Superyacht Owner Report ISSUE 218

“Due to the high quality of the materials used for our glass, we can reduce the thickness of the panels whilst still adhering to all security requirements necessary on board.”

MICROCLEAR, a heated glass using FORMGLAS SPEZIAL with a heating foil. This is the solution to prevent icing or steaming up the bridge.

Notably, the firm recently worked on Abeking & Rasmussen’s largest yacht ever launched, 118-metre Livao. The brief for a project of this magnitude is never simple, with the owner and their team voicing incredibly high expectations in the window's quality and design. This presented some challenges, but they were fulfilled by the glass experts.

A striking exterior design is imperative to any superyacht build, so the prominence of a project like Livao called for exceptional innovations from the TILSE team. “With the owner choosing a black hull with high reflection properties, this effect had to be matched with the glass,” says von der Thüsen.

With the curved wide-body windows reaching a massive 5 by 2 metres, the glossy surface partnered with the glass reflects the waves perfectly without distortions. “This is what makes the yacht a real eye-catcher,” he adds.

For von der Thüsen, one of the core strengths of TILSE is that it has the strongest quality criteria in the superyacht glass market. “To ensure this, each window is rigorously checked individually during a Factory Acceptance Test (FAT). All windows on Livao were appreciated by the owners, with their team and glass experts expressing favourable comments on how having TILSE YACHT GLAZING as a full turnkey partner had exceeded their high expectations.”

39

Can superyachting be a platform for change?

W

The Future of Ownership

BY MARTIN H. REDMAYNE

Over the past decade, we’ve dedicated a significant amount of time to modelling and forecasting our industry. A key driver of this analysis is quantifying the true potential of our field based on the number of individuals who could afford to enter the market.

40

hen we take the current market scope and size into consideration, we’re currently building approximately 160 superyachts annually, ranging from 30m to more than 150m. Many of these are intended for existing experienced owners, while some are actively for sale, built on speculation, and others cater to first-time buyers who are starting their journey with various sizes of new constructions.

With a superyacht fleet comprising more than 5,500 yachts measuring over 30m – of which 25 per cent were built before 1990 – we quickly realise that the modern market, developed over the past 30 years, consists of around 4,500 yachts, including those set to be delivered in 2023 and 2024.

We estimate that this fleet is owned by approximately 3,700-plus individuals if one takes into account owners who possess two or more superyachts.

Essentially, the market is primarily supported by a small group of passionate individuals who consistently invest in the superyacht lifestyle.

When reviewing the age and demographic of experienced owners who have undertaken new projects throughout their lives, we find ourselves entering a phase where mortality becomes a factor. In recent years, we’ve witnessed the passing of well-known and respected owners, along with their expertise and passion. Simultaneously, a new generation of owners has entered the market, becoming captivated by the process. They build serial projects, expanding their personal fleets to include two, three or more new projects or second-hand upgrades.

This trend suggests new owners are gradually replacing old ones as they fully immerse themselves in our unique industry. However, this raises a critical question when we delve deeper into the numbers: What does the future of ownership hold?

The Superyacht Owner Report ISSUE 218

Superyachts represent a significant expense with minimal financial returns or asset appreciation ... a tipping point may be reached that Are we satisfied with the current challenges the growth trajectories?

If we continue on our current course and deliver according to the existing order status quo and book, the market will enjoy a healthy future. Some stakeholders prefer main- potentially alters taining the status quo and are content with the current state of affairs. Analysing our growth curves. market behaviour and growth curves, by The statistics provided here, along with the charts embedded in this report, demonstrate the current growth and long-term potential of our industry based on the patterns and behaviour of our typical customer base.

However, as we explore the real potential and consider the number of UHNWIs with the wealth and capability to enter our market (current estimates place this figure at 450,000 worldwide), we must pose additional questions such as ‘Are we content with the current growth trajectories?’, ‘Why aren’t more people buying yachts?’ and ‘Could there be alternative opportunities for our industry?’

Let’s attempt to answer these questions …

2030 and even further into 2050, our fleet is projected to expand significantly (see 2030 and 2050 forecast charts overleaf).

As project sizes and scopes increase, technology and innovation drive the next generation of ventures, and labour and raw-material costs rise in line with market forces and geopolitical factors, it’s foreseeable that not only will our market expand, but its value and revenues will also increase.

However, although clients continue to invest in new assets and enjoy constructing novel and exciting ventures, the rising costs of new builds and capacity constraints raise questions about whether this trajectory is sustainable. After all, we do create some of the most expensive toys, assets and floating real estate on the planet.

41

Can superyachting be a platform for change?

W

The Future of Ownership

BY MARTIN H. REDMAYNE

Over the past decade, we’ve dedicated a significant amount of time to modelling and forecasting our industry. A key driver of this analysis is quantifying the true potential of our field based on the number of individuals who could afford to enter the market.

40

hen we take the current market scope and size into consideration, we’re currently building approximately 160 superyachts annually, ranging from 30m to more than 150m. Many of these are intended for existing experienced owners, while some are actively for sale, built on speculation, and others cater to first-time buyers who are starting their journey with various sizes of new constructions.

With a superyacht fleet comprising more than 5,500 yachts measuring over 30m – of which 25 per cent were built before 1990 – we quickly realise that the modern market, developed over the past 30 years, consists of around 4,500 yachts, including those set to be delivered in 2023 and 2024.

We estimate that this fleet is owned by approximately 3,700-plus individuals if one takes into account owners who possess two or more superyachts.

Essentially, the market is primarily supported by a small group of passionate individuals who consistently invest in the superyacht lifestyle.

When reviewing the age and demographic of experienced owners who have undertaken new projects throughout their lives, we find ourselves entering a phase where mortality becomes a factor. In recent years, we’ve witnessed the passing of well-known and respected owners, along with their expertise and passion. Simultaneously, a new generation of owners has entered the market, becoming captivated by the process. They build serial projects, expanding their personal fleets to include two, three or more new projects or second-hand upgrades.

This trend suggests new owners are gradually replacing old ones as they fully immerse themselves in our unique industry. However, this raises a critical question when we delve deeper into the numbers: What does the future of ownership hold?

The Superyacht Owner Report ISSUE 218

Superyachts represent a significant expense with minimal financial returns or asset appreciation ... a tipping point may be reached that Are we satisfied with the current challenges the growth trajectories?

If we continue on our current course and deliver according to the existing order status quo and book, the market will enjoy a healthy future. Some stakeholders prefer main- potentially alters taining the status quo and are content with the current state of affairs. Analysing our growth curves. market behaviour and growth curves, by The statistics provided here, along with the charts embedded in this report, demonstrate the current growth and long-term potential of our industry based on the patterns and behaviour of our typical customer base.

However, as we explore the real potential and consider the number of UHNWIs with the wealth and capability to enter our market (current estimates place this figure at 450,000 worldwide), we must pose additional questions such as ‘Are we content with the current growth trajectories?’, ‘Why aren’t more people buying yachts?’ and ‘Could there be alternative opportunities for our industry?’

Let’s attempt to answer these questions …

2030 and even further into 2050, our fleet is projected to expand significantly (see 2030 and 2050 forecast charts overleaf).

As project sizes and scopes increase, technology and innovation drive the next generation of ventures, and labour and raw-material costs rise in line with market forces and geopolitical factors, it’s foreseeable that not only will our market expand, but its value and revenues will also increase.

However, although clients continue to invest in new assets and enjoy constructing novel and exciting ventures, the rising costs of new builds and capacity constraints raise questions about whether this trajectory is sustainable. After all, we do create some of the most expensive toys, assets and floating real estate on the planet.

41

Source

superyachtnews.com/intel

1990 – 2020 Fleet: 4,346 Total Cumulative Fleet by 2020: 5,762

2020 – 2050 Forecasted Fleet: 4,398

Total Cumulative Forecasted Fleet: 10,160 The superyacht fleet forecast 2020-2050

T H E A L L- N E W P R I N C E S S Y 8 0 E X P E R I E N C E T H E E X C E P T I O N A L®

19902000 30-40m

20012010

20202030

20302040 40-60m

20102020

60-90m

40-60m

20402050

90m+

If our current new-build capacity is approximately more than 160 new superyachts per annum, and if we need to find several hundred buyers each year to secure their build slots across over 40 primary shipyards, with investments ranging from €20 million to €250 million, it may seem like a straightforward task when considering the potential market. But we need to add a few caveats to the question.

The term ‘we’ doesn’t solely refer to the industry, shipyards or advisors; buyers, owners and investors must also be considered. Are they content with the growth curve? This is a question we’re starting to focus on because we need to ensure that current and future customers are willing to continue investing in our niche and perhaps explore ways to transform it into a more serious industry for the future.

The more investable and stable our industry becomes, the more owners and fellow UHNWIs might perceive it as an intriguing opportunity. As previously highlighted, superyachts represent a significant expense with minimal financial returns or asset appreciation.

Furthermore, when considering the time spent on board compared to the invest-

30-40m

ment and operational costs, a tipping point may be reached that challenges the status quo and potentially alters our growth curves.

If we add into the equation the next generation of yachts featuring alternative fuels, sustainability and green innovation, we must ask how relevant our industry will be in the coming decade and how much these factors will impact our market’s trajectory. We’re concerned that as we transition to the next phase of our industry and encounter an increasing number of rules, regulations and barriers, some clients, and certainly future clients, might conclude that ownership isn’t the most rational approach.

Why aren’t more people purchasing yachts?

Various opinions, theories and principles have been explored to answer this question. Put simply, we remain a relatively young industry, and during the Covid period we gained heightened visibility as some of the safest, most private and secure forms of real estate on the planet. Consequently, we witnessed an influx of first-time buyers into the market. Nevertheless, this is a modest

60-90m 90m+

increase when compared to the true potential.

So we must consider this question and delve into the actual answers.

The reasons why there are not more first-time buyers range from simple constraints such as insufficient time to fully enjoy or explore the market, capital intensiveness, some family members not enjoying sea travel and even horror stories or unfavourable experiences shared by acquaintances who own yachts.

However, it’s more likely that those who can afford to buy choose not to due to limited exposure to our niche.

The current market trajectory appears satisfactory, as is evident from order books, charter bookings and transaction announcements. The market seems to be in relatively good health, but this has led certain sectors to become complacent, no longer actively cultivating and nurturing new customers given the flow of new inquiries.

Is there an alternative opportunity for our industry?

In exploring opportunities, we must also acknowledge potential threats.

This matter will be discussed in depth

V I S I T U S AT C A N N E S YAC H T I N G F E S T I VA L 1 2 T H –17 T H S E P T E M B E R 2 02 3 P R I N C E S S YAC H T S . C O M

42

Source

superyachtnews.com/intel

1990 – 2020 Fleet: 4,346 Total Cumulative Fleet by 2020: 5,762

2020 – 2050 Forecasted Fleet: 4,398

Total Cumulative Forecasted Fleet: 10,160 The superyacht fleet forecast 2020-2050

T H E A L L- N E W P R I N C E S S Y 8 0 E X P E R I E N C E T H E E X C E P T I O N A L®

19902000 30-40m

20012010

20202030

20302040 40-60m

20102020

60-90m

40-60m

20402050

90m+

If our current new-build capacity is approximately more than 160 new superyachts per annum, and if we need to find several hundred buyers each year to secure their build slots across over 40 primary shipyards, with investments ranging from €20 million to €250 million, it may seem like a straightforward task when considering the potential market. But we need to add a few caveats to the question.

The term ‘we’ doesn’t solely refer to the industry, shipyards or advisors; buyers, owners and investors must also be considered. Are they content with the growth curve? This is a question we’re starting to focus on because we need to ensure that current and future customers are willing to continue investing in our niche and perhaps explore ways to transform it into a more serious industry for the future.

The more investable and stable our industry becomes, the more owners and fellow UHNWIs might perceive it as an intriguing opportunity. As previously highlighted, superyachts represent a significant expense with minimal financial returns or asset appreciation.

Furthermore, when considering the time spent on board compared to the invest-

30-40m

ment and operational costs, a tipping point may be reached that challenges the status quo and potentially alters our growth curves.

If we add into the equation the next generation of yachts featuring alternative fuels, sustainability and green innovation, we must ask how relevant our industry will be in the coming decade and how much these factors will impact our market’s trajectory. We’re concerned that as we transition to the next phase of our industry and encounter an increasing number of rules, regulations and barriers, some clients, and certainly future clients, might conclude that ownership isn’t the most rational approach.

Why aren’t more people purchasing yachts?

Various opinions, theories and principles have been explored to answer this question. Put simply, we remain a relatively young industry, and during the Covid period we gained heightened visibility as some of the safest, most private and secure forms of real estate on the planet. Consequently, we witnessed an influx of first-time buyers into the market. Nevertheless, this is a modest

60-90m 90m+

increase when compared to the true potential.

So we must consider this question and delve into the actual answers.

The reasons why there are not more first-time buyers range from simple constraints such as insufficient time to fully enjoy or explore the market, capital intensiveness, some family members not enjoying sea travel and even horror stories or unfavourable experiences shared by acquaintances who own yachts.

However, it’s more likely that those who can afford to buy choose not to due to limited exposure to our niche.

The current market trajectory appears satisfactory, as is evident from order books, charter bookings and transaction announcements. The market seems to be in relatively good health, but this has led certain sectors to become complacent, no longer actively cultivating and nurturing new customers given the flow of new inquiries.

Is there an alternative opportunity for our industry?

In exploring opportunities, we must also acknowledge potential threats.

This matter will be discussed in depth

V I S I T U S AT C A N N E S YAC H T I N G F E S T I VA L 1 2 T H –17 T H S E P T E M B E R 2 02 3 P R I N C E S S YAC H T S . C O M

42

THE FUTURE OF OWNERSHIP

Superyacht fleet history and forecasted growth segmented by LOA(m)

Billionaire population forecast

Level of individual net worth needed to join the top one per cent in particular regions ($m)

Deliveries

3,372 2,629

300

2,087 Monaco

262

Australia

245

250

229

232 202

200

178 181

179

189 161

150

137 109

148 144

143

153 158

161

151 153

164

174

165 166 165 166

169

165 164 167 167

118

100

50

0

12.4 5.5

New Zealand

5.2

US

5.1

Singapore

3.5

France

3.5

Hong Kong SAR

3.4

UK

3.3

Italy

2.6

Spain

2.5

Japan

1.7

UAE

1.8

Saudi Arabia

2005

2010

2015

2020

2025

at The Superyacht Forum in Amsterdam in November. Currently, our industry faces high-profile attacks from nongovernmental organisations (NGOs) or protest groups that campaign against ‘the haves and have-nots’, highlighting the potential environmental impact that superyachts might generate.

The issue of wealth inequality and societal pressure is gaining momentum.

Despite some in the industry ignoring these concerns and asserting that superyachts have a notably positive impact, it’s important to acknowledge that negative rhetoric and climaterelated criticisms are likely to increase.

Superyachts, due to their visibility and extended periods spent in ports awaiting travel instructions, are susceptible targets. Consequently, we can anticipate escalating threats to our industry, regardless of our efforts to embrace green practices and alternative

2019

744,812 579,625 402,421

2017

Source: Frank Knight 2023

2000

2018

UHNWI population forecast

0.74

2018

2019

Source: Frank Knight 2023

2030 2031

Source: Knight Frank 2023

44

2017

Top 10 countries for UHNWI growth in 2021-22 fuels. As we encounter more rules, regulations and barriers, certain clients, particularly the next generation, might conclude that superyacht ownership is not the most viable option.

All these considerations beg the question: Is there an alternative opportunity and, if so, what does it entail?

As we recognise, we construct some of the most intricate and complex toys worldwide. However, given the nature of our clientele, time spent on board is typically limited to days or weeks, with some yachts only actively hosting guests for less than 10 weeks per year.

Consequently, numerous dormant assets are situated in marinas or ports globally, undergoing maintenance and preparation for the occasional owner visit. Compared to the private jet industry, we differ significantly. Yet a discernible trend emerges, one we expect to define our future.

To make our industry more investible and stable, we have to explore how we can make these floating assets work harder and not sit idle in various berths around the world. Just as private jets have become expensive to own and have garnered a stigma of excess when used for short domestic flights with only a few passengers on board, we anticipate a comparable trend within our industry.

More next-generation owners may realise that owning an asset 100 per cent for only 10 per cent of the year raises pertinent questions that could destabilise the market. Although superyachts are traditionally used in conventional summer and winter locations during favourable weather conditions, trends are shifting and new regions are emerging – extending the yachting season to 10 months. However, few owners can utilise their superyacht for such an extended period.

Canada

6.0%

Turkey

6.2%

Singapore

6.9%

Indonesia

9.0%

Malaysia

9.4%

Saudi Arabia

10.4%

Nigeria

10,7% 11.2%

Brazil

13.9%

Tanzania

18.1%

UAE Source: Frank Knight 2023

The Superyacht Owner Report ISSUE 218

45

THE FUTURE OF OWNERSHIP

Superyacht fleet history and forecasted growth segmented by LOA(m)

Billionaire population forecast

Level of individual net worth needed to join the top one per cent in particular regions ($m)

Deliveries

3,372 2,629

300

2,087 Monaco

262

Australia

245

250

229

232 202

200

178 181

179

189 161

150

137 109

148 144

143

153 158

161

151 153

164

174

165 166 165 166

169

165 164 167 167

118

100

50

0

12.4 5.5

New Zealand

5.2

US

5.1

Singapore

3.5

France

3.5

Hong Kong SAR

3.4

UK

3.3

Italy

2.6

Spain

2.5

Japan

1.7

UAE

1.8

Saudi Arabia

2005

2010

2015

2020

2025

at The Superyacht Forum in Amsterdam in November. Currently, our industry faces high-profile attacks from nongovernmental organisations (NGOs) or protest groups that campaign against ‘the haves and have-nots’, highlighting the potential environmental impact that superyachts might generate.

The issue of wealth inequality and societal pressure is gaining momentum.

Despite some in the industry ignoring these concerns and asserting that superyachts have a notably positive impact, it’s important to acknowledge that negative rhetoric and climaterelated criticisms are likely to increase.

Superyachts, due to their visibility and extended periods spent in ports awaiting travel instructions, are susceptible targets. Consequently, we can anticipate escalating threats to our industry, regardless of our efforts to embrace green practices and alternative

2019

744,812 579,625 402,421

2017

2018

2019

Source: Knight Frank 2023

Source: Knight Frank 2023

2000

2018

UHNWI population forecast

0.74

2030 2031

Source: Frank Knight 2023

44

2017

Top 10 countries for UHNWI growth in 2021-22 fuels. As we encounter more rules, regulations and barriers, certain clients, particularly the next generation, might conclude that superyacht ownership is not the most viable option.

All these considerations beg the question: Is there an alternative opportunity and, if so, what does it entail?

As we recognise, we construct some of the most intricate and complex toys worldwide. However, given the nature of our clientele, time spent on board is typically limited to days or weeks, with some yachts only actively hosting guests for less than 10 weeks per year.

Consequently, numerous dormant assets are situated in marinas or ports globally, undergoing maintenance and preparation for the occasional owner visit. Compared to the private jet industry, we differ significantly. Yet a discernible trend emerges, one we expect to define our future.

To make our industry more investible and stable, we have to explore how we can make these floating assets work harder and not sit idle in various berths around the world. Just as private jets have become expensive to own and have garnered a stigma of excess when used for short domestic flights with only a few passengers on board, we anticipate a comparable trend within our industry.

More next-generation owners may realise that owning an asset 100 per cent for only 10 per cent of the year raises pertinent questions that could destabilise the market. Although superyachts are traditionally used in conventional summer and winter locations during favourable weather conditions, trends are shifting and new regions are emerging – extending the yachting season to 10 months. However, few owners can utilise their superyacht for such an extended period.

Canada

6.0%

Turkey

6.2%

Singapore

6.9%

Indonesia

9.0%

Malaysia

9.4%

Saudi Arabia

10.4%

Nigeria

10,7% 11.2%

Brazil

13.9%

Tanzania

18.1%

UAE

Source: Knight Frank 2023

The Superyacht Owner Report ISSUE 218

45

Can we afford not to?

Today, no one makes money out of owning a superyacht and they generate very limited impact on the planet, but the perception among the ill-informed is absolutely the opposite.

If owners or investors were presented with an alternative scenario, where a superyacht could be used for 75 per cent of the year, accommodating multiple users, owners or guests who pay for specific times on board, this could lead to significant transformations in our industry. The potential shift may involve more assets entering fleet ownership or business models focused on increased activity, revenues and access through fractional ownership, charter models and co-ownership programmes.

Such approaches could prove more logical and astute for buyers who recognise that the traditional capital expenditure versus operating expenditure equation is no longer sustainable in the future.

What lies ahead for ownership?

In essence, the future is promising. Over the short term (the next five years), we anticipate a continuation of current trends, with more buyers stepping forward to secure various assets and build slots. There are minimal indications of the market slowing down or demand decreasing. However, we must consider geopolitical factors, dramatic climate shifts, wealth inequality and alternative investments, lifestyles and appealing opportunities that might attract our customers.

Geopolitics: On a daily basis, scenarios worldwide impact various financial markets, encompassing events such as the Russian-Ukrainian war,

46

Chinese economic stability, tensions in the South China Sea, raw-material demands across manufacturing sectors and efforts to control supply chains.

Oil prices and the push for alternative energy sources add further complexities.

Political landscapes see the rise of protests and demonstrations against energy-intensive projects. These developments make headlines and can result in financial instability.

Dramatic climate shifts: Annual discussions highlight the impact of climate change on our lives. This summer, the Mediterranean experienced heatwaves and unpredictable weather patterns. Severe climate events elsewhere in the world draw attention from governments and activists. If regional governments enforce restrictions on energy-intensive asset-cruising patterns, it might limit and further regulate future cruising destinations.

Wealth inequality: A few years ago at Davos, Oxfam delivered a significant report addressing wealth inequality.

This issue drew the attention of global leaders, suggesting that addressing the world’s top one per cent is crucial to solving various global problems.

As discussions around this topic gain traction, our customer base could become a target for taxation or negative media coverage. Consequently, UHNWIs might reconsider their lifestyle and profile.

Obviously, it’s not all doom and gloom. There’s a very simple opportunity

Let’s preserve what inspired our passion

to protect, defend and grow our industry by making sure every owner and potential owner understands the responsibility of having a high-profile floating asset in order to ensure that the media, negative observers, governments and the various NGOs fully understand the value and contribution of superyachts.

Today, no one makes money out of owning a superyacht and they generate very limited impact on the planet, but the perception among the ill-informed is absolutely the opposite. By shifting the narrative, changing asset-usage practices and demonstrating that superyachts can deliver positive impacts on the ocean and our planet, the future of ownership could become one of the most significant investments an UHNWI can make.

Investing in technology, research and development, science, philanthropy, design, engineering, manufacturing, future fuels, energy and new materials all contribute to the contemporary intelligent investor landscape.

If owners, buyers and investors are inspired to adopt the same principles through their next superyacht, our industry’s image can be transformed, and these stakeholders might generate more positive impacts on their investments by reducing their asset’s environmental footprint. Perhaps the focus should shift from superyacht ownership to investing in the future and utilising new superyachts as platforms for change. MHR

REFIT FOR THE FUTURE!

C

M

Y

CM

MY

CY

CMY

K

Discover our solutions to drive sustainability and improve value

Can we afford not to?

Today, no one makes money out of owning a superyacht and they generate very limited impact on the planet, but the perception among the ill-informed is absolutely the opposite.

If owners or investors were presented with an alternative scenario, where a superyacht could be used for 75 per cent of the year, accommodating multiple users, owners or guests who pay for specific times on board, this could lead to significant transformations in our industry. The potential shift may involve more assets entering fleet ownership or business models focused on increased activity, revenues and access through fractional ownership, charter models and co-ownership programmes.

Such approaches could prove more logical and astute for buyers who recognise that the traditional capital expenditure versus operating expenditure equation is no longer sustainable in the future.

What lies ahead for ownership?

In essence, the future is promising. Over the short term (the next five years), we anticipate a continuation of current trends, with more buyers stepping forward to secure various assets and build slots. There are minimal indications of the market slowing down or demand decreasing. However, we must consider geopolitical factors, dramatic climate shifts, wealth inequality and alternative investments, lifestyles and appealing opportunities that might attract our customers.

Geopolitics: On a daily basis, scenarios worldwide impact various financial markets, encompassing events such as the Russian-Ukrainian war,

46

Chinese economic stability, tensions in the South China Sea, raw-material demands across manufacturing sectors and efforts to control supply chains.

Oil prices and the push for alternative energy sources add further complexities.

Political landscapes see the rise of protests and demonstrations against energy-intensive projects. These developments make headlines and can result in financial instability.

Dramatic climate shifts: Annual discussions highlight the impact of climate change on our lives. This summer, the Mediterranean experienced heatwaves and unpredictable weather patterns. Severe climate events elsewhere in the world draw attention from governments and activists. If regional governments enforce restrictions on energy-intensive asset-cruising patterns, it might limit and further regulate future cruising destinations.

Wealth inequality: A few years ago at Davos, Oxfam delivered a significant report addressing wealth inequality.

This issue drew the attention of global leaders, suggesting that addressing the world’s top one per cent is crucial to solving various global problems.

As discussions around this topic gain traction, our customer base could become a target for taxation or negative media coverage. Consequently, UHNWIs might reconsider their lifestyle and profile.

Obviously, it’s not all doom and gloom. There’s a very simple opportunity

Let’s preserve what inspired our passion

to protect, defend and grow our industry by making sure every owner and potential owner understands the responsibility of having a high-profile floating asset in order to ensure that the media, negative observers, governments and the various NGOs fully understand the value and contribution of superyachts.

Today, no one makes money out of owning a superyacht and they generate very limited impact on the planet, but the perception among the ill-informed is absolutely the opposite. By shifting the narrative, changing asset-usage practices and demonstrating that superyachts can deliver positive impacts on the ocean and our planet, the future of ownership could become one of the most significant investments an UHNWI can make.

Investing in technology, research and development, science, philanthropy, design, engineering, manufacturing, future fuels, energy and new materials all contribute to the contemporary intelligent investor landscape.

If owners, buyers and investors are inspired to adopt the same principles through their next superyacht, our industry’s image can be transformed, and these stakeholders might generate more positive impacts on their investments by reducing their asset’s environmental footprint. Perhaps the focus should shift from superyacht ownership to investing in the future and utilising new superyachts as platforms for change. MHR

REFIT FOR THE FUTURE!

C

M

Y

CM

MY

CY

CMY

K

Discover our solutions to drive sustainability and improve value

Evolution of the open aft deck

The Oasis revolution

BY DARIO SCHIAVO

TSG tracks the history of one of the most iconic design innovations to come from Italy … and asks where it’s heading next.

Benetti Oasis 34m.

48

The Superyacht Owner Report ISSUE 218

49

Evolution of the open aft deck

The Oasis revolution

BY DARIO SCHIAVO

TSG tracks the history of one of the most iconic design innovations to come from Italy … and asks where it’s heading next.

Benetti Oasis 34m.

48

The Superyacht Owner Report ISSUE 218

49

50

Luca Bassani, founder and chief designer of Wally, who invented the travelling island Wally Why.

27-metre Wally sailing yacht Tiketitan – an early example of the Open Deck.

Zeus, delivered to its Mexican owner Emilio Azcarraga in 1991 by Blohm+Voss.

Even back then, it proposed a stern emptied of volumes for the use of guests and tenders while underway, providing a clear view of the sea.

Scrolling further up the timeline, in 1998 another irrefutable early example of the open deck can be found in the 27-metre Wally sailing yacht Tiketitan, where for the first time a boat was made liveable even in the stern area at sea level.

In Tiketitan, the contact with the sea becomes crucial, one of the characteristic features of the current Oasis Deck.

Bassani’s genius, perhaps too far ahead of its time, ‘emptied’ the stern to create an overwater terrace overlooked by the salon that was no longer amidships – as was typical at the time – but in an unusual set-back position. It was the first step towards modern beach clubs. In 2012, this concept was further reinterpreted in the Wallyace displacement line, with the owner’s suite and aft VIP cabins opening on to the terrace.

The 82-metre motoryacht Alfa Nero, delivered in 2007, featured the first infinity pool positioned on the aft deck.

Introduced by Nuvolari Lenard for Oceanco, the aim of the project was to create a new way of enjoying the aft deck because they had realised that with the increasing size of superyachts, owners and guests were getting further and further away from the sea. This led to negative reactions, with the impression Photo: Guy Gurney

C

all it al fresco, the open aft deck or the Oasis Deck … the name doesn’t matter but the fact is that the new open stern with pool and wings that can be opened has become one of the biggest innovations in yacht design of the past 30 years – rather like the introduction of the iPhone by Apple. It’s not known who first came up with this concept; it was more a process of evolution – of the design lines, the way the yacht was used and the type of clientele.

Looking back through the storied history of yacht design, one of the first exercises in style of this kind dates back to Wally in 1998. The reasons for the success of the open stern are multiple and it appears this trend may last for at least another decade. Designers are already working to understand the natural evolution of a revolution that has reshaped the market, espousing, almost by accident, the post-Covid yacht owners’ briefs to have a happy and safe floating island to spend time with family or close friends.

When speaking of Wally and the island, we have to mention the Wally Why, with the visionary Luca Bassani, founder and chief designer of Wally, in collaboration with Hermes fashion house, anticipating the trend and inventing a travelling island in 2009 with complete freedom.

It was design that laid the foundations of many of the features we find today in modern yachts: comfort, privacy, space, independence and sustainability, all with elegance and refinement. The Wally Why had anticipated almost all the essentials of today’s yachts – a 38-metre stern that is totally open, terraces, plenty of solar panels and the need to isolate itself as much as possible from the outside world.

However, it’s also true that the first evidence of this evolution goes as far back as 1954 with Christina O, one of the most iconic motoryachts ever launched and best known for its grandiose interior and unparalleled level of luxury services.

Born as a Canadian frigate during World War II, Christina O was purchased by Greek tycoon Aristotle Onassis, who transformed it into the most luxurious private yacht of the era. It hosted a large number of illustrious guests, from Winston Churchill and Frank Sinatra to John F. Kennedy and Marilyn Monroe.

Another nautical cult example was the iconic Eco motoryacht (featured in The Superyacht Report, issue 175), now

of being on a small cruise ship rather than a large luxury yacht.

The same philosophy was adopted in 2017 on Chantal Ma Vie, a 54-metre royal-blue hull motoryacht designed by naval architect De Voogt and built by Feadship in 1993. This yacht underwent an extensive refit that included an 11-foot transom extension and the installation of a luxury spa pool very close to the sea.

Coming to the present day, there are many boats or projects of all sizes that incorporate the Oasis Deck philosophy. To name just a few of the most important ones: Wally Why 200, Oasis 34 and 40 metres by Benetti, Bilgin Yachts’ 80-metre Tatiana, Overmarine’s Mangusta 104 REV, Maiora 30 Walkaround by Next Yacht, Ferretti 1000 Epic, Admiral’s 75-metre Kensho, Baglietto’s 40-metre Attitude, Sanlorenzo’s SD118 and Cantiere delle Marche’s Acala.

To better understand why yachts with open sterns are so successful, and what the evolution might be of this true ‘game changer’ of nautical design, we spoke with four Italian designers who work

The Superyacht Owner Report ISSUE 218

extensively with international shipyards: Giorgio Cassetta, Luca Dini, Cristiano Gatto and Francesco Paszkowski.

“That kind of shape brings us psychologically closer to the sea and to the pure enjoyment and pure pleasure of being at sea,” says Cassetta. “Those who were not previously interested have found in that kind of design an innovation very similar to their beach houses in the Hamptons, to their beach clubs, to the places where they go to the seaside with friends instead of thinking of the yacht as an enclosed, tall, separate element with that connotation of safety given by the large enclosed sterns, as motoryachts have been for so many years.

“So, I think the strength of these types of solutions lies in their great immediacy of communication of ‘here you relax!’. As with all things, there is also the other side of the coin. From a functional point of view there are negative points regarding boats with an open stern.”

Dini feels the same way. “I think this

54-metre Feadship Chantal Ma Vie, refitted to include a transom extension and a luxury spa pool close to the sea.

51

50

Luca Bassani, founder and chief designer of Wally, who invented the travelling island Wally Why.

27-metre Wally sailing yacht Tiketitan – an early example of the Open Deck.

Zeus, delivered to its Mexican owner Emilio Azcarraga in 1991 by Blohm+Voss.

Even back then, it proposed a stern emptied of volumes for the use of guests and tenders while underway, providing a clear view of the sea.

Scrolling further up the timeline, in 1998 another irrefutable early example of the open deck can be found in the 27-metre Wally sailing yacht Tiketitan, where for the first time a boat was made liveable even in the stern area at sea level.

In Tiketitan, the contact with the sea becomes crucial, one of the characteristic features of the current Oasis Deck.

Bassani’s genius, perhaps too far ahead of its time, ‘emptied’ the stern to create an overwater terrace overlooked by the salon that was no longer amidships – as was typical at the time – but in an unusual set-back position. It was the first step towards modern beach clubs. In 2012, this concept was further reinterpreted in the Wallyace displacement line, with the owner’s suite and aft VIP cabins opening on to the terrace.

The 82-metre motoryacht Alfa Nero, delivered in 2007, featured the first infinity pool positioned on the aft deck.

Introduced by Nuvolari Lenard for Oceanco, the aim of the project was to create a new way of enjoying the aft deck because they had realised that with the increasing size of superyachts, owners and guests were getting further and further away from the sea. This led to negative reactions, with the impression Photo: Guy Gurney

C

all it al fresco, the open aft deck or the Oasis Deck … the name doesn’t matter but the fact is that the new open stern with pool and wings that can be opened has become one of the biggest innovations in yacht design of the past 30 years – rather like the introduction of the iPhone by Apple. It’s not known who first came up with this concept; it was more a process of evolution – of the design lines, the way the yacht was used and the type of clientele.

Looking back through the storied history of yacht design, one of the first exercises in style of this kind dates back to Wally in 1998. The reasons for the success of the open stern are multiple and it appears this trend may last for at least another decade. Designers are already working to understand the natural evolution of a revolution that has reshaped the market, espousing, almost by accident, the post-Covid yacht owners’ briefs to have a happy and safe floating island to spend time with family or close friends.

When speaking of Wally and the island, we have to mention the Wally Why, with the visionary Luca Bassani, founder and chief designer of Wally, in collaboration with Hermes fashion house, anticipating the trend and inventing a travelling island in 2009 with complete freedom.

It was design that laid the foundations of many of the features we find today in modern yachts: comfort, privacy, space, independence and sustainability, all with elegance and refinement. The Wally Why had anticipated almost all the essentials of today’s yachts – a 38-metre stern that is totally open, terraces, plenty of solar panels and the need to isolate itself as much as possible from the outside world.

However, it’s also true that the first evidence of this evolution goes as far back as 1954 with Christina O, one of the most iconic motoryachts ever launched and best known for its grandiose interior and unparalleled level of luxury services.

Born as a Canadian frigate during World War II, Christina O was purchased by Greek tycoon Aristotle Onassis, who transformed it into the most luxurious private yacht of the era. It hosted a large number of illustrious guests, from Winston Churchill and Frank Sinatra to John F. Kennedy and Marilyn Monroe.

Another nautical cult example was the iconic Eco motoryacht (featured in The Superyacht Report, issue 175), now

of being on a small cruise ship rather than a large luxury yacht.

The same philosophy was adopted in 2017 on Chantal Ma Vie, a 54-metre royal-blue hull motoryacht designed by naval architect De Voogt and built by Feadship in 1993. This yacht underwent an extensive refit that included an 11-foot transom extension and the installation of a luxury spa pool very close to the sea.

Coming to the present day, there are many boats or projects of all sizes that incorporate the Oasis Deck philosophy. To name just a few of the most important ones: Wally Why 200, Oasis 34 and 40 metres by Benetti, Bilgin Yachts’ 80-metre Tatiana, Overmarine’s Mangusta 104 REV, Maiora 30 Walkaround by Next Yacht, Ferretti 1000 Epic, Admiral’s 75-metre Kensho, Baglietto’s 40-metre Attitude, Sanlorenzo’s SD118 and Cantiere delle Marche’s Acala.

To better understand why yachts with open sterns are so successful, and what the evolution might be of this true ‘game changer’ of nautical design, we spoke with four Italian designers who work

The Superyacht Owner Report ISSUE 218

extensively with international shipyards: Giorgio Cassetta, Luca Dini, Cristiano Gatto and Francesco Paszkowski.

“That kind of shape brings us psychologically closer to the sea and to the pure enjoyment and pure pleasure of being at sea,” says Cassetta. “Those who were not previously interested have found in that kind of design an innovation very similar to their beach houses in the Hamptons, to their beach clubs, to the places where they go to the seaside with friends instead of thinking of the yacht as an enclosed, tall, separate element with that connotation of safety given by the large enclosed sterns, as motoryachts have been for so many years.

“So, I think the strength of these types of solutions lies in their great immediacy of communication of ‘here you relax!’. As with all things, there is also the other side of the coin. From a functional point of view there are negative points regarding boats with an open stern.”

Dini feels the same way. “I think this

54-metre Feadship Chantal Ma Vie, refitted to include a transom extension and a luxury spa pool close to the sea.

51

“Today, the owner demands and wants direct contact with the sea and the outside environment ... so that there is more contact with the water. I would call it a pieds dans l’eau approach.”

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Left: Designer Luca Dini. Below: Mangusta Oceano 50.

is yet another message that design can give in yachting,” he says. “After so many years of thinking about building palaces on the sea – the antithesis of contact with the sea – it is now some time since we started to open up to the outside, starting with side balconies, which has been the trend over last 10 years.

“Today, the owner demands and wants direct contact with the sea and the outside environment, even going so far as to sacrifice the old beach clubs [another real revolution of the past 20 years], transforming them so that there is more contact with the water. I would call it a pieds dans l’eau approach. The desire, especially after the Covid period, is to get back to being with friends and family rather than just having a yacht as a status symbol.

“It’s important to enjoy those few days of leisure with your loved ones as best you can. I am pleased that the boat is becoming a boat again and not just something to show off.”

Gatto’s approach is also very similar. “People have begun to have a greater connection with nature, with watersports, with the idea of being on a boat to feel good, enjoying a spa and a gym, all with contact with nature, and only a boat stern can give you all this,” he says. “So the stern platforms got bigger, initially with rubber sausages which, let’s face it, were not really in style.”

The 50-metre M/Y Home by Heesen, delivered in 2017, had this concept.

Gatto adds, “There was the very large beach club, the tender garage is not aft

52

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“Today, the owner demands and wants direct contact with the sea and the outside environment ... so that there is more contact with the water. I would call it a pieds dans l’eau approach.”

ADVERTISING

Search Crew | Jobs | Training

Left: Designer Luca Dini. Below: Mangusta Oceano 50.

is yet another message that design can give in yachting,” he says. “After so many years of thinking about building palaces on the sea – the antithesis of contact with the sea – it is now some time since we started to open up to the outside, starting with side balconies, which has been the trend over last 10 years.

“Today, the owner demands and wants direct contact with the sea and the outside environment, even going so far as to sacrifice the old beach clubs [another real revolution of the past 20 years], transforming them so that there is more contact with the water. I would call it a pieds dans l’eau approach. The desire, especially after the Covid period, is to get back to being with friends and family rather than just having a yacht as a status symbol.

“It’s important to enjoy those few days of leisure with your loved ones as best you can. I am pleased that the boat is becoming a boat again and not just something to show off.”

Gatto’s approach is also very similar. “People have begun to have a greater connection with nature, with watersports, with the idea of being on a boat to feel good, enjoying a spa and a gym, all with contact with nature, and only a boat stern can give you all this,” he says. “So the stern platforms got bigger, initially with rubber sausages which, let’s face it, were not really in style.”

The 50-metre M/Y Home by Heesen, delivered in 2017, had this concept.

Gatto adds, “There was the very large beach club, the tender garage is not aft

52

ADVERTISING

A Voly Group Product

Yacht Project Management Software with an Interactive GA for Faster Completion The global market leader in yacht project management technology offers a total solution for captains, crew, owners and managers to streamline communication and manage yacht works faster.

Book a Demo pinpointworks.com

Sanlorenzo – open stern.

B.Century 75M, designed by Giorgio Cassetta.

“You always have your own piece of paradise on board the boat and no longer feel like you’re inside the belly of the whale.”

54

but forward in front of the wheelhouse, leaving a lot of area dedicated to enjoyment and contact with nature and water. So you always have your own piece of paradise on board the boat and no longer feel like you’re inside the belly of the whale.

“From a technical point of view, wings are the cross and delight of this period. They are beautiful, they give the possibility to emphasise the beach club more, but they can give problems.

Evolution of the Oasis Deck, everyone agrees, will last much longer and folddown platforms will disappear.”

Cassetta is sceptical about folddown platforms. “I don't like things that move because they are a harbinger of problems,” he says. “We talk about when they will give problems not if they will give problems. On the other side of the coin, it is true that by now certain mechanisms are perfectly constructed, even the most sophisticated ones.”

Cassetta adds, “As far as evolution is concerned, I believe that the guests’ relationship with the sea will not go backwards in the sense that for years yachts were symbols of power, status symbols, where business meetings were held [by] noble families. Now the wealth is much more polarised, even for very large yachts.

“Until 30 years ago the megayacht of the King of Spain was 35 metres. Now, a vessel of that length is called a small yacht. With more and more people being able to afford big boats, it has become

The Superyacht Owner Report ISSUE 218

55

Sanlorenzo – open stern.

B.Century 75M, designed by Giorgio Cassetta.

“You always have your own piece of paradise on board the boat and no longer feel like you’re inside the belly of the whale.”

54

but forward in front of the wheelhouse, leaving a lot of area dedicated to enjoyment and contact with nature and water. So you always have your own piece of paradise on board the boat and no longer feel like you’re inside the belly of the whale.

“From a technical point of view, wings are the cross and delight of this period. They are beautiful, they give the possibility to emphasise the beach club more, but they can give problems.

Evolution of the Oasis Deck, everyone agrees, will last much longer and folddown platforms will disappear.”

Cassetta is sceptical about folddown platforms. “I don't like things that move because they are a harbinger of problems,” he says. “We talk about when they will give problems not if they will give problems. On the other side of the coin, it is true that by now certain mechanisms are perfectly constructed, even the most sophisticated ones.”

Cassetta adds, “As far as evolution is concerned, I believe that the guests’ relationship with the sea will not go backwards in the sense that for years yachts were symbols of power, status symbols, where business meetings were held [by] noble families. Now the wealth is much more polarised, even for very large yachts.

“Until 30 years ago the megayacht of the King of Spain was 35 metres. Now, a vessel of that length is called a small yacht. With more and more people being able to afford big boats, it has become

The Superyacht Owner Report ISSUE 218

55

Photo: Gilles Martin Raget

Photo: © Giuliano Sargentini

Below: Kensho.

Bottom: Wally Why 200.

56

more normal to own a yacht. Owners now want less standard, more informal boats, no longer floating palaces. The important thing is that they now feel less at risk of not being able to resell them because they are less classic.

“The relationship with the sea will be increasingly in demand, not only at the stern, but also for the contact with the sea achieved through the windows.”

Gatto anticipates an expansion of the concept. “We have already seen the windows become structural by expanding over a good surface area of the hull,” he says. “Recently, seating areas have been created where the sofa looks towards a glass pane positioned more or less at the height of the water line, making it possible to practically snorkel while sitting inside the yacht.”

Paszkowski is adamant about the limited future of mechanical openings: “In my opinion, all kinematics, as I myself first introduced balconies on yachts, have too high production costs, to which high maintenance costs must be added. Many yards, including Sanlorenzo, continue to produce yachts with this solution because owners keep asking for them. It also depends on the size of the yachts because proportions have a big influence. I hope to come up with something different. Every time there is an innovation, you stimulate the market to come up with more.”

Dini also has no doubt about the use of balconies. “They’re going to disappear because they’re a big complication, and there’s also a safety issue. They are not used much. I believe much more in those recessed in the superstructure, even if only to smoke a cigar.”

“Recently, seating areas have been created where the sofa looks towards a glass pane positioned more or less at the height of the water line, making it possible to practically snorkel while sitting inside the yacht.”

Cristiano Gatto.

Moving towards the bow “I don’t expect the beach club to move towards the bow,” says Cassetta. “The nature of the boat is not made for liveable areas in the bow [wind, waves, spray, technical areas] although, about 15 years ago, I tried to develop a 90-metre [yacht] with the beach club amidships. But it is unnatural. At anchor it works, but at sea not so much.”

Dini also remains convinced that the bow is a purely technical area. “I don't think this kind of solution can be adopted at the bow because it is a technical area.

In our latest projects we tend to put the tenders at the bow, otherwise they would occupy a fundamental liveable

The Superyacht Owner Report ISSUE 218

57

Photo: Gilles Martin Raget

Photo: © Giuliano Sargentini

Below: Kensho.

Bottom: Wally Why 200.

56

more normal to own a yacht. Owners now want less standard, more informal boats, no longer floating palaces. The important thing is that they now feel less at risk of not being able to resell them because they are less classic.

“The relationship with the sea will be increasingly in demand, not only at the stern, but also for the contact with the sea achieved through the windows.”

Gatto anticipates an expansion of the concept. “We have already seen the windows become structural by expanding over a good surface area of the hull,” he says. “Recently, seating areas have been created where the sofa looks towards a glass pane positioned more or less at the height of the water line, making it possible to practically snorkel while sitting inside the yacht.”

Paszkowski is adamant about the limited future of mechanical openings: “In my opinion, all kinematics, as I myself first introduced balconies on yachts, have too high production costs, to which high maintenance costs must be added. Many yards, including Sanlorenzo, continue to produce yachts with this solution because owners keep asking for them. It also depends on the size of the yachts because proportions have a big influence. I hope to come up with something different. Every time there is an innovation, you stimulate the market to come up with more.”

Dini also has no doubt about the use of balconies. “They’re going to disappear because they’re a big complication, and there’s also a safety issue. They are not used much. I believe much more in those recessed in the superstructure, even if only to smoke a cigar.”

“Recently, seating areas have been created where the sofa looks towards a glass pane positioned more or less at the height of the water line, making it possible to practically snorkel while sitting inside the yacht.”

Cristiano Gatto.

Moving towards the bow “I don’t expect the beach club to move towards the bow,” says Cassetta. “The nature of the boat is not made for liveable areas in the bow [wind, waves, spray, technical areas] although, about 15 years ago, I tried to develop a 90-metre [yacht] with the beach club amidships. But it is unnatural. At anchor it works, but at sea not so much.”

Dini also remains convinced that the bow is a purely technical area. “I don't think this kind of solution can be adopted at the bow because it is a technical area.

In our latest projects we tend to put the tenders at the bow, otherwise they would occupy a fundamental liveable

The Superyacht Owner Report ISSUE 218

57

PARTNER CONTENT

Method among the maddening crowds

Francesco Paszkowski.

Photo: Giovanni Malgarini

Suzy Chisholm, co-founder of Swiss Ocean Tech, explains how the ancient art of anchoring needs to be reconfigured to continue to sustainably enjoy an increasingly congested space.

space at the stern. We tend to hide them in the bow, which is hardly used by guests, freeing up the stern. In the bow, therefore, there are only the toys and tenders.”

Paszkwoski, on the other hand, is convinced that the bow will be further developed. “The bow is an area that is being rediscovered and that the market is paying more attention to. It is a very exciting world to discover, certainly bearing in mind that the dynamics of form and use limit it a great deal.”

Gatto adds, “In the latest projects we have gone so far as to put spaces even in the middle of the ship, putting the dining area transversal to the ship, with the possibility of opening up two terraces overlooking the sea, preferably at night for candlelight dinners.”

Deck revolution and new technologies “There will be an increasing reduction in volumes,” says Dini. “GTs will be reduced and, therefore, so will the cost of the boat, which has reached unrealistic levels. Yachts nowadays cost a lot. It is true that we faced an increase in price, but it is important to reduce volumes by increasing enclosed parts and large openings. The main deck saloon for 50to 70-metre yachts is used very little.

Instead of the saloon, another more intelligent solution is advisable.”

Gatto suggests working more with shapes ”to transform the air-conditioning

58

“The bow is an area that is being rediscovered ... it is a very exciting world to discover, certainly bearing in mind that the dynamics of form and use limit it a great deal.”

panels so that they become aesthetic and practical objects at the same time”.

PPaszkwoski, meanwhile, is focused on the technology. “With Baglietto, we are starting a product with hydrogen engines, so we will need a lot of solar panels, which will become an element that contributes to the function of hydrogen, and then we will need a lot of surfaces dedicated to solar panels, so the shapes will change in relation to this. I think we are talking about another revolution.”

Cassetta, too, is convinced about new technologies related to yacht propulsion. “These will allow a different redistribution of interior volumes, and thus think of yachts that have a lower deck in direct communication with the water and a different distribution of living spaces on board. The shapes and proportions of the spaces in direct contact with the sea will change.”

At this point, what is clear is that yacht design is an ever-changing project.

A yacht is no longer just a status symbol or a floating office, but is increasingly becoming a source of inspiration not only for those who live it but also, and above all, for those who think, create and build it. Today it is the stern that stimulates the senses, tomorrow who knows. We remain watching, confident that the world of yachting will be able to surprise us for a very long time to come because boats are not objects but essential components of a lifestyle. DS

According to The Superyacht Agency, our global waters are home to more than 9,000 superyachts, each longer than 24 metres. Most seek their own secluded harbour, paradise or preferred spot, primarily during the sunniest months.

This burgeoning number diminishes once-enjoyed freedoms, even before considering vessels shorter than 24 metres, of which there are approximately 30 million. With increasing regulations in the Western Hemisphere, the golden age of unbridled yachting seems a distant memory. Finding an unfrequented spot, while ensuring safety and flexibility, has become a significant challenge.

A story I heard recently illustrates this point. A 48-metre superyacht hoped to anchor in a secluded bay in the Mediterranean. Upon arrival late one evening, two other boats had already settled.

Attempts to persuade these boat owners to relocate using the allure of fine wine were unsuccessful. As night fell, and the winds picked up, one boat’s anchor began AnchorGuardian offers sensor fusion and advanced algorithms to monitor a ship’s anchor position and absolute movements.

The Superyacht Owner Report ISSUE 218

to drag, leading to a night filled with risks and restless hours.

The unpredictability of weather, coupled with varying skills among seafarers, is unsettling even for seasoned captains. While tools offer valuable insights into safe spots, nature’s unpredictability can necessitate swift alterations to plans. The consequences are severe; damage to superyachts, or injuries, can be both financially and emotionally devastating.

The growing number of vessels also leads to congested marinas. As boats grow in size, berths suitable for superyachts become scarcer. Progressive marinas are now offering sustainable moorings, which both protect the seabed and also provide some degree of privacy.

In the Mediterranean, anchoring within 30 to 40 metres of the shore, where Posidonia meadows are located, can result in fines starting at €15,000.

Research indicates that anchors from yachts exceeding 24 metres cause

significant damage to these ecosystems.

Balancing the influx of seafarers with environmental conservation is a tall order. Clearly, the era of the free-spirited sailor is evolving.

However, there are alternatives for yacht owners; whether it’s exploring lesser-known destinations, reserving moorings in advance or harnessing technology to support busy crews, the emerging challenges can be tackled effectively.

Innovations such as AnchorGuardian, a cutting-edge system, deliver real-time data during the anchoring process, minimising risks of groundings, collisions and ecological damage. While anchoring remains a time-honoured skill, its modernisation is certainly welcome.

As the captain of a 42-metre superyacht succinctly puts it: “I am interested in anything that will shift my anchoring from reactive to proactive.” Proactive anchoring places control firmly in the captain's hands, rather than being merely a reactive measure.

AnchorGuardian is the world’s first system using sensor fusion and advanced algorithms to monitor a ship’s anchor position and absolute movements.

This tech offers captains and crews intelligence throughout the anchoring procedure in real time.

The system streams continuous data to a bridge terminal, keeping crews informed about anchor hold, minimising drag risks by offering immediate, failsafe anchor dragging alarms with sub-metre accuracy, and predicting anchor hold.

Undeniably, our seas are busier and the landscape of yachting has grown more complex. However, with an open mind and the adoption of innovative solutions, the cherished yachting lifestyle can continue to thrive.

59

PARTNER CONTENT

Method among the maddening crowds

Francesco Paszkowski.

Photo: Giovanni Malgarini

Suzy Chisholm, co-founder of Swiss Ocean Tech, explains how the ancient art of anchoring needs to be reconfigured to continue to sustainably enjoy an increasingly congested space.

space at the stern. We tend to hide them in the bow, which is hardly used by guests, freeing up the stern. In the bow, therefore, there are only the toys and tenders.”

Paszkwoski, on the other hand, is convinced that the bow will be further developed. “The bow is an area that is being rediscovered and that the market is paying more attention to. It is a very exciting world to discover, certainly bearing in mind that the dynamics of form and use limit it a great deal.”

Gatto adds, “In the latest projects we have gone so far as to put spaces even in the middle of the ship, putting the dining area transversal to the ship, with the possibility of opening up two terraces overlooking the sea, preferably at night for candlelight dinners.”

Deck revolution and new technologies “There will be an increasing reduction in volumes,” says Dini. “GTs will be reduced and, therefore, so will the cost of the boat, which has reached unrealistic levels. Yachts nowadays cost a lot. It is true that we faced an increase in price, but it is important to reduce volumes by increasing enclosed parts and large openings. The main deck saloon for 50to 70-metre yachts is used very little.

Instead of the saloon, another more intelligent solution is advisable.”

Gatto suggests working more with shapes ”to transform the air-conditioning

58

“The bow is an area that is being rediscovered ... it is a very exciting world to discover, certainly bearing in mind that the dynamics of form and use limit it a great deal.”

panels so that they become aesthetic and practical objects at the same time”.

PPaszkwoski, meanwhile, is focused on the technology. “With Baglietto, we are starting a product with hydrogen engines, so we will need a lot of solar panels, which will become an element that contributes to the function of hydrogen, and then we will need a lot of surfaces dedicated to solar panels, so the shapes will change in relation to this. I think we are talking about another revolution.”

Cassetta, too, is convinced about new technologies related to yacht propulsion. “These will allow a different redistribution of interior volumes, and thus think of yachts that have a lower deck in direct communication with the water and a different distribution of living spaces on board. The shapes and proportions of the spaces in direct contact with the sea will change.”

At this point, what is clear is that yacht design is an ever-changing project.

A yacht is no longer just a status symbol or a floating office, but is increasingly becoming a source of inspiration not only for those who live it but also, and above all, for those who think, create and build it. Today it is the stern that stimulates the senses, tomorrow who knows. We remain watching, confident that the world of yachting will be able to surprise us for a very long time to come because boats are not objects but essential components of a lifestyle. DS

According to The Superyacht Agency, our global waters are home to more than 9,000 superyachts, each longer than 24 metres. Most seek their own secluded harbour, paradise or preferred spot, primarily during the sunniest months.

This burgeoning number diminishes once-enjoyed freedoms, even before considering vessels shorter than 24 metres, of which there are approximately 30 million. With increasing regulations in the Western Hemisphere, the golden age of unbridled yachting seems a distant memory. Finding an unfrequented spot, while ensuring safety and flexibility, has become a significant challenge.

A story I heard recently illustrates this point. A 48-metre superyacht hoped to anchor in a secluded bay in the Mediterranean. Upon arrival late one evening, two other boats had already settled.

Attempts to persuade these boat owners to relocate using the allure of fine wine were unsuccessful. As night fell, and the winds picked up, one boat’s anchor began AnchorGuardian offers sensor fusion and advanced algorithms to monitor a ship’s anchor position and absolute movements.

The Superyacht Owner Report ISSUE 218

to drag, leading to a night filled with risks and restless hours.

The unpredictability of weather, coupled with varying skills among seafarers, is unsettling even for seasoned captains. While tools offer valuable insights into safe spots, nature’s unpredictability can necessitate swift alterations to plans. The consequences are severe; damage to superyachts, or injuries, can be both financially and emotionally devastating.

The growing number of vessels also leads to congested marinas. As boats grow in size, berths suitable for superyachts become scarcer. Progressive marinas are now offering sustainable moorings, which both protect the seabed and also provide some degree of privacy.

In the Mediterranean, anchoring within 30 to 40 metres of the shore, where Posidonia meadows are located, can result in fines starting at €15,000.

Research indicates that anchors from yachts exceeding 24 metres cause

significant damage to these ecosystems.

Balancing the influx of seafarers with environmental conservation is a tall order. Clearly, the era of the free-spirited sailor is evolving.

However, there are alternatives for yacht owners; whether it’s exploring lesser-known destinations, reserving moorings in advance or harnessing technology to support busy crews, the emerging challenges can be tackled effectively.

Innovations such as AnchorGuardian, a cutting-edge system, deliver real-time data during the anchoring process, minimising risks of groundings, collisions and ecological damage. While anchoring remains a time-honoured skill, its modernisation is certainly welcome.

As the captain of a 42-metre superyacht succinctly puts it: “I am interested in anything that will shift my anchoring from reactive to proactive.” Proactive anchoring places control firmly in the captain's hands, rather than being merely a reactive measure.

AnchorGuardian is the world’s first system using sensor fusion and advanced algorithms to monitor a ship’s anchor position and absolute movements.

This tech offers captains and crews intelligence throughout the anchoring procedure in real time.

The system streams continuous data to a bridge terminal, keeping crews informed about anchor hold, minimising drag risks by offering immediate, failsafe anchor dragging alarms with sub-metre accuracy, and predicting anchor hold.

Undeniably, our seas are busier and the landscape of yachting has grown more complex. However, with an open mind and the adoption of innovative solutions, the cherished yachting lifestyle can continue to thrive.

59

In-depth look at private submersibles

Photo: © Triton Submarines

Triton, trailblazer of the dark oceans Patrick Lahey, CEO and co-founder of Triton Submarines, reflects on a challenging year but remains optimistic about the trajectory of the legitimate market for private deep-sea exploration.

BY JACK HOGAN

60

The Superyacht Owner Report ISSUE 218

61

In-depth look at private submersibles

Photo: © Triton Submarines

Triton, trailblazer of the dark oceans Patrick Lahey, CEO and co-founder of Triton Submarines, reflects on a challenging year but remains optimistic about the trajectory of the legitimate market for private deep-sea exploration.

BY JACK HOGAN

60

The Superyacht Owner Report ISSUE 218

61

Previous page: Triton 3300/6 and support vessel. Right (top to bottom): Triton 36000/2 being lowered into the water from the DSSV Pressure Drop, and Triton 3300/6 semisubmerged and under water.

P

rivate submersibles have been an intriguing part of the superyacht story, viewed by some as the pinnacle of what is possible when private capital meets exploratory ambition, and by others as the ultimate overindulgence for elite adventurers. Although the total representation of full ocean-going subs across the fleet is relatively small, their influence in the marine environment has punched well above their weight.

While they have been favourites of the yachting press and have contributed to some landmark documentaries and expeditions, it’s fair to say that not many outside the industry thought too deeply about the world of private submersibles until June this year. The media frenzy that followed the Titan disaster was intense as the attention of the world was transfixed on the North Atlantic.

At first, it seemed like the worst-case scenario for the exploration submersible industry, but if one looks beyond what was a terrible, yet wholly avoidable tragedy, the future looks bright.

“Although the OceanGate tragedy has cast a dark shadow over our industry, the public has become aware of the stark difference between the thoughtfully designed and carefully engineered products created by legitimate manufacturers of certified or classed submersibles and the abomination created by OceanGate, which should never have carried a human being,” says Patrick Lahey, CEO and co-founder of Triton Submarines.

It was through the dogged determination of the highly experienced stakeholders in this field, such as Triton, EYOS Expeditions and none other than filmmaker James Cameron that a more informed narrative took hold and a wider appreciation of the field seemed to permeate through.

Hearing media outlets such as CNN and The Guardian examine the finer points of classification societies and pressure boundaries was due to the direct and informed interviews and information-sharing from the industry’s key players.

62

As Lahey and many others from across the submersibles sector have pointed out, the safety record for deep-sea exploration is exemplary. No classed and certified submersible has been involved in an accident of any kind in more than five decades, a perfect operational track record, underscoring the vital distinction between the OceanGate sub and the type of vessels Triton and other top players in the field are producing.

“The OceanGate monstrosity was built without the benefit of any sort of oversight or peer review and as such was unfit for human occupancy,” says Lahey.

“The difference between the vehicles that people in the legitimate sector of our industry produce, which go through a very arduous, very time-consuming, necessarily thorough, and expensive accreditation process, is vast. There’s just no comparison between them.

“It was encouraging for me, as someone who has devoted his entire adult life to the creation of these wonderful machines that take people into the deep sea and allow them to enjoy extraordinary experiences, to see the media begin to understand the stark difference between classed and certified submersibles and the experimental craft built by OceanGate.”

Groundbreaking is an overused cliché in our industry, but it seems a fitting description of the engineering and calculated boundary-pushing pioneered

by Triton.

It has been 63 years since Don Walsh and Jacques Piccard made the first manned descent to the bottom of the Mariana Trench, a point known as the Challenger Deep, in the Italian-built bathyscaphe Trieste. Reaching this point, nearly 11km down, was not replicated until James Cameron returned in 2012.

Notably, both of these subs made only one dive to full ocean depth before being retired from service.

Triton redefined what was considered possible when it built the reusable TRITON 36000/2, the world’s first and only manned submersible that is certified to full ocean depth. In 2019, Victor

“I often say that every sub Triton builds is like a Swiss army knife and has the capacity to support a whole range of systems.”

Vescovo then became the first person to reach the deepest point in all five oceans, including the Challenger Deep, using his TRITON 36000/2.

Where do you go as a company when you have been to the most technically hostile environment over and over? Once you have gone that deep, the subsequent innovations may not be as headlinegrabbing, but actually they are plentiful, as Lahey explains.

One of the most exciting and challenging projects underway at Triton involves a fully transparent pressure boundary. Rated to 4,000 metres, an immersive transparent acrylic hull will be both a monumental engineering feat and a significant driver of user experience.

Triton’s principal design engineer John Ramsay says, “After you have created something that’s gone to 11,000 metres, and you then realise what is possible with a spherical pressure hull, it opens up the thought process.”

After a significant innovation in materials, Ramsay explains the fascinating limiting factor for this pressure boundary: eventually, the amount of acrylic needed to withstand the pressure has a higher volume than the interior space of the sphere itself.

“When you look back at the history of acrylic subs, they have all followed these principles,” adds Ramsay. “But as technology advances, so do the materials and our ability to analyse complex shapes and structures with analytical software.

“That’s an example of truly transformative technology, and these innovations exist all over a new submarine.

Being able to incorporate them into underwater vehicles is continually making them even safer and enhancing the user’s experience.”

Keeping these innovations simple and safe is also vital on a yacht. Without the time or often the crew to dedicate as much attention to an underwater vehicle, simplicity and reliability are critical.

Lahey says, “You don’t want to build something that is a source of frustration for the people who own it.”

Another transformative piece of tech-

The Superyacht Owner Report ISSUE 218

Photo: Richard Varcoe

Photo: © Triton Submarines

Photo: © Triton Submarines

63

Previous page: Triton 3300/6 and support vessel. Right (top to bottom): Triton 36000/2 being lowered into the water from the DSSV Pressure Drop, and Triton 3300/6 semisubmerged and under water.

P

rivate submersibles have been an intriguing part of the superyacht story, viewed by some as the pinnacle of what is possible when private capital meets exploratory ambition, and by others as the ultimate overindulgence for elite adventurers. Although the total representation of full ocean-going subs across the fleet is relatively small, their influence in the marine environment has punched well above their weight.

While they have been favourites of the yachting press and have contributed to some landmark documentaries and expeditions, it’s fair to say that not many outside the industry thought too deeply about the world of private submersibles until June this year. The media frenzy that followed the Titan disaster was intense as the attention of the world was transfixed on the North Atlantic.

At first, it seemed like the worst-case scenario for the exploration submersible industry, but if one looks beyond what was a terrible, yet wholly avoidable tragedy, the future looks bright.

“Although the OceanGate tragedy has cast a dark shadow over our industry, the public has become aware of the stark difference between the thoughtfully designed and carefully engineered products created by legitimate manufacturers of certified or classed submersibles and the abomination created by OceanGate, which should never have carried a human being,” says Patrick Lahey, CEO and co-founder of Triton Submarines.

It was through the dogged determination of the highly experienced stakeholders in this field, such as Triton, EYOS Expeditions and none other than filmmaker James Cameron that a more informed narrative took hold and a wider appreciation of the field seemed to permeate through.

Hearing media outlets such as CNN and The Guardian examine the finer points of classification societies and pressure boundaries was due to the direct and informed interviews and information-sharing from the industry’s key players.

62

As Lahey and many others from across the submersibles sector have pointed out, the safety record for deep-sea exploration is exemplary. No classed and certified submersible has been involved in an accident of any kind in more than five decades, a perfect operational track record, underscoring the vital distinction between the OceanGate sub and the type of vessels Triton and other top players in the field are producing.

“The OceanGate monstrosity was built without the benefit of any sort of oversight or peer review and as such was unfit for human occupancy,” says Lahey.

“The difference between the vehicles that people in the legitimate sector of our industry produce, which go through a very arduous, very time-consuming, necessarily thorough, and expensive accreditation process, is vast. There’s just no comparison between them.

“It was encouraging for me, as someone who has devoted his entire adult life to the creation of these wonderful machines that take people into the deep sea and allow them to enjoy extraordinary experiences, to see the media begin to understand the stark difference between classed and certified submersibles and the experimental craft built by OceanGate.”

Groundbreaking is an overused cliché in our industry, but it seems a fitting description of the engineering and calculated boundary-pushing pioneered

by Triton.

It has been 63 years since Don Walsh and Jacques Piccard made the first manned descent to the bottom of the Mariana Trench, a point known as the Challenger Deep, in the Italian-built bathyscaphe Trieste. Reaching this point, nearly 11km down, was not replicated until James Cameron returned in 2012.

Notably, both of these subs made only one dive to full ocean depth before being retired from service.

Triton redefined what was considered possible when it built the reusable TRITON 36000/2, the world’s first and only manned submersible that is certified to full ocean depth. In 2019, Victor

“I often say that every sub Triton builds is like a Swiss army knife and has the capacity to support a whole range of systems.”

Vescovo then became the first person to reach the deepest point in all five oceans, including the Challenger Deep, using his TRITON 36000/2.

Where do you go as a company when you have been to the most technically hostile environment over and over? Once you have gone that deep, the subsequent innovations may not be as headlinegrabbing, but actually they are plentiful, as Lahey explains.

One of the most exciting and challenging projects underway at Triton involves a fully transparent pressure boundary. Rated to 4,000 metres, an immersive transparent acrylic hull will be both a monumental engineering feat and a significant driver of user experience.

Triton’s principal design engineer John Ramsay says, “After you have created something that’s gone to 11,000 metres, and you then realise what is possible with a spherical pressure hull, it opens up the thought process.”

After a significant innovation in materials, Ramsay explains the fascinating limiting factor for this pressure boundary: eventually, the amount of acrylic needed to withstand the pressure has a higher volume than the interior space of the sphere itself.

“When you look back at the history of acrylic subs, they have all followed these principles,” adds Ramsay. “But as technology advances, so do the materials and our ability to analyse complex shapes and structures with analytical software.

“That’s an example of truly transformative technology, and these innovations exist all over a new submarine.

Being able to incorporate them into underwater vehicles is continually making them even safer and enhancing the user’s experience.”

Keeping these innovations simple and safe is also vital on a yacht. Without the time or often the crew to dedicate as much attention to an underwater vehicle, simplicity and reliability are critical.

Lahey says, “You don’t want to build something that is a source of frustration for the people who own it.”

Another transformative piece of tech-

The Superyacht Owner Report ISSUE 218

Photo: Richard Varcoe

Photo: © Triton Submarines

Photo: © Triton Submarines

63

Clockwise ( from left): Triton 1000/2 and jelly fish, Antarctica; TRITON 3300/3 twins diving and twin TRITON 3300/3 at wreck.

Photo: © Nick Verola & Triton Submarines

Photo: © Triton Submarines

64

Photo: © Triton Submarines

Photo: © Nick Verola & Triton Submarines

The Superyacht Owner Report ISSUE 218

nology, albeit on a smaller scale, is that of lighting. When I first learned to scuba dive 20 years ago, what was considered the cutting edge of underwater lighting now feels archaic. Preparing for a night dive or even a shallow, moderate visibility dive in the day required some fairly cumbersome technology.

I’m sure that divers of a certain generation can recall the oversized pistolgrip hand cannons they had to carry – arranged with a double stack of D-cell batteries, precariously set out and sealed, all to power a temperamental halogen bulb with the output roughly equivalent to candles on a toddler’s birthday cake, and with about the same operational window.

Today’s torches are small and sleek rechargeable LED units sealed in milled aluminium. Producing a blinding and adjustable beam, they illuminate the water column in unprecedented detail.

This is amplified in the world of private manned, deep-sea exploration. The depths explored by Triton subs are bathed in permanent and total darkness, and having effective illumination is the key to the whole experience.

The entire operation is underscored by its energy-storage capabilities, and therefore the evolving technology of batteries is pivotal to the safe operation of underwater vehicles. Today’s batteries require significantly less maintenance and provide a much longer operational window.

“I often say that every sub Triton builds is like a Swiss army knife and has the capacity to support a whole range of systems,” says Lahey. “It’s really up to the owner to decide what they want to do with their sub. The tools we can equip the sub with are really limited only by your imagination.”

So does Lahey feel that Triton has an obligation to encourage its clients to maximise the scientific and exploratory capabilities of its vehicles beyond their user experience? “Often, both we and our clients don’t know what direction their journey will take once they experience the deep sea. A great example of this is Ray Dalio and the OceanX programme.”

Rebuilt and converted at Damen, the 87-metre OceanXplorer is widely regarded as the most advanced private exploration vessel on the water. Dalio’s predecessor yacht, Alucia, was one of the first private deep-sea exploration vessels, famous

65

Clockwise ( from left): Triton 1000/2 and jelly fish, Antarctica; TRITON 3300/3 twins diving and twin TRITON 3300/3 at wreck.

Photo: © Nick Verola & Triton Submarines

Photo: © Triton Submarines

64

Photo: © Triton Submarines

Photo: © Nick Verola & Triton Submarines

The Superyacht Owner Report ISSUE 218

nology, albeit on a smaller scale, is that of lighting. When I first learned to scuba dive 20 years ago, what was considered the cutting edge of underwater lighting now feels archaic. Preparing for a night dive or even a shallow, moderate visibility dive in the day required some fairly cumbersome technology.

I’m sure that divers of a certain generation can recall the oversized pistolgrip hand cannons they had to carry – arranged with a double stack of D-cell batteries, precariously set out and sealed, all to power a temperamental halogen bulb with the output roughly equivalent to candles on a toddler’s birthday cake, and with about the same operational window.

Today’s torches are small and sleek rechargeable LED units sealed in milled aluminium. Producing a blinding and adjustable beam, they illuminate the water column in unprecedented detail.

This is amplified in the world of private manned, deep-sea exploration. The depths explored by Triton subs are bathed in permanent and total darkness, and having effective illumination is the key to the whole experience.

The entire operation is underscored by its energy-storage capabilities, and therefore the evolving technology of batteries is pivotal to the safe operation of underwater vehicles. Today’s batteries require significantly less maintenance and provide a much longer operational window.

“I often say that every sub Triton builds is like a Swiss army knife and has the capacity to support a whole range of systems,” says Lahey. “It’s really up to the owner to decide what they want to do with their sub. The tools we can equip the sub with are really limited only by your imagination.”

So does Lahey feel that Triton has an obligation to encourage its clients to maximise the scientific and exploratory capabilities of its vehicles beyond their user experience? “Often, both we and our clients don’t know what direction their journey will take once they experience the deep sea. A great example of this is Ray Dalio and the OceanX programme.”

Rebuilt and converted at Damen, the 87-metre OceanXplorer is widely regarded as the most advanced private exploration vessel on the water. Dalio’s predecessor yacht, Alucia, was one of the first private deep-sea exploration vessels, famous

65

“I’ve been going to sea for my whole adult life, and when I went inside this boat, I was inspired.

The OceanXplorer gives you hope for humanity, and we’re fortunate there are people like Ray Dalio in the world.”

Patrick Lahey, CEO and co-founder of Triton Submarines.

Photo: © Reeve Jolliffe

66

for its involvement in the filming of the BBC’s Blue Planet II. “I don’t think Ray would mind me saying this, but when he bought his first subs from us 12 years ago, I don’t think he had any idea of the trajectory he was on,” says Lahey. “But he went right out of the gate and filmed these two extraordinary documentaries, which included the first ever footage of the giant squid in its natural environment, and that created even more interest and excitement in human-occupied vehicles and the things they could do.

“Mr Dalio now has two of our subs on board what I consider to be the most advanced ocean exploration and science vessel that the world has ever seen. I’ve been going to sea for my whole adult life, and when I went inside this boat, I was inspired. The OceanXplorer gives you hope for humanity, and we’re fortunate there are people like Ray Dalio in the world.”

Lahey adds, “Isn't it wonderful that I don’t think if you were to ask Ray Dalio 12 years ago what he had planned, he would have had any idea it would lead to where they are today and the things that they’re contemplating in the future.”

“That’s powerful stuff. I think back to myself and how much Jacques Cousteau’s documentaries meant to me in the 1970s. There is no doubt they changed the trajectory of my life and they encouraged me to consider that an oceanic career was my calling. I expect these new documentaries will have a similar impact on the next generation.”

The preoccupation with the unexplored nature of the deep sea provides a rich canvas for storytelling. In so much of the world’s oceans, any foray below a few hundred metres is almost certain to be witnessing something that nobody has seen before, and that, as Lahey puts it, is the hook.

Lahey concludes by stressing the need, now more than ever, to tell the stories of the underwater world. Many of his clients have broken the boundaries of exploration, but so many of their feats remain unknown in the public consciousness.

As the next generation of immersive and safe subs enters the fleet, it’s vital that we communicate the crucial role that private underwater vehicles and exploration are playing – and will play – in the quest to understand the underwater world and our role in its future. JH

Some Refit, We Lusben

“I’ve been going to sea for my whole adult life, and when I went inside this boat, I was inspired.

The OceanXplorer gives you hope for humanity, and we’re fortunate there are people like Ray Dalio in the world.”

Patrick Lahey, CEO and co-founder of Triton Submarines.

Photo: © Reeve Jolliffe

66

for its involvement in the filming of the BBC’s Blue Planet II. “I don’t think Ray would mind me saying this, but when he bought his first subs from us 12 years ago, I don’t think he had any idea of the trajectory he was on,” says Lahey. “But he went right out of the gate and filmed these two extraordinary documentaries, which included the first ever footage of the giant squid in its natural environment, and that created even more interest and excitement in human-occupied vehicles and the things they could do.

“Mr Dalio now has two of our subs on board what I consider to be the most advanced ocean exploration and science vessel that the world has ever seen. I’ve been going to sea for my whole adult life, and when I went inside this boat, I was inspired. The OceanXplorer gives you hope for humanity, and we’re fortunate there are people like Ray Dalio in the world.”

Lahey adds, “Isn't it wonderful that I don’t think if you were to ask Ray Dalio 12 years ago what he had planned, he would have had any idea it would lead to where they are today and the things that they’re contemplating in the future.”

“That’s powerful stuff. I think back to myself and how much Jacques Cousteau’s documentaries meant to me in the 1970s. There is no doubt they changed the trajectory of my life and they encouraged me to consider that an oceanic career was my calling. I expect these new documentaries will have a similar impact on the next generation.”

The preoccupation with the unexplored nature of the deep sea provides a rich canvas for storytelling. In so much of the world’s oceans, any foray below a few hundred metres is almost certain to be witnessing something that nobody has seen before, and that, as Lahey puts it, is the hook.

Lahey concludes by stressing the need, now more than ever, to tell the stories of the underwater world. Many of his clients have broken the boundaries of exploration, but so many of their feats remain unknown in the public consciousness.

As the next generation of immersive and safe subs enters the fleet, it’s vital that we communicate the crucial role that private underwater vehicles and exploration are playing – and will play – in the quest to understand the underwater world and our role in its future. JH

Some Refit, We Lusben

IGY MARINAS PROVIDES OVER 300 SUPERYACHT BERTHS 50M+ GLOBALLY

IGY TRIDENT The world’s most exclusive dockage membership club for superyacht owners Market research conducted by the Superyacht Agency, a market leading consultancy, has identified that in the next five years the demand for superyacht berths over 50m will increase dramatically, creating an alarming shortage of premium superyacht berthing access during high seasons in both the Mediterranean and the Caribbean.

83% of the superyacht respondents said they had to pay for a premium berth in the right location and in some cases were turned away due to lack of space.

IGY Marinas has created a unique membership programme that provides owners, captains, and their managers GUARANTEED PREMIUM BERTHING AT ANYTIME across the IGY global network of exclusive and professionally managed superyacht marinas.

SUPERYACHT BERTHS OVER 50M | MARINA AND LOCATION

24 - MIAMI, FL - YACHT HAVEN GRANDE MIAMI AT ISLAND GARDENS 6 - BROOKFIELD PLACE, NY - NORTH COVE MARINA 14 - PORTLAND, ME - FORE POINTS MARINA 9 - SARDINIA, ITALY - IGY PORTISCO MARINA 32 - SARDINIA, ITALY - MARINA DI PORTO CERVO 24 - IBIZA, SPAIN - IGY IBIZA MARINA 23 - MÁLAGA, SPAIN - IGY MÁLAGA MARINA 10 - CANNES, FRANCE - IGY VIEUX-PORT DE CANNES 10 - SÈTE, FRANCE - IGY SÈTE MARINA 40 - SIMPSON BAY, ST. MAARTEN - YACHT CLUB ISLE DE SOL 10 - SIMPSON BAY, ST. MAARTEN - SIMPSON BAY MARINA 46 - ST. THOMAS, USVI - YACHT HAVEN GRANDE 20 - RODNEY BAY, ST. LUCIA - RODNEY BAY MARINA 6 - PROVIDENCIALES, TURKS & CAICOS - BLUE HAVEN MARINA 15 - MEXICO - MARINA CABO SAN LUCAS 5 - PANAMA - RED FROG BEACH ISLAND MARINA 9 - GOLFO DULCE, COSTA RICA - MARINA BAHIA GOLFITO

IGY Trident Club delivers certainty, confidence, and a sense of community for superyacht owners who want to enjoy yachting at the very highest level.

TO REQUEST AN IGY TRIDENT MEMBERSHIP APPLICATION VISIT: IGYTRIDENT.COM OR CONTACT CONCIERGE@IGYTRIDENT.COM

IGY MARINAS PROVIDES OVER 300 SUPERYACHT BERTHS 50M+ GLOBALLY

IGY TRIDENT The world’s most exclusive dockage membership club for superyacht owners Market research conducted by the Superyacht Agency, a market leading consultancy, has identified that in the next five years the demand for superyacht berths over 50m will increase dramatically, creating an alarming shortage of premium superyacht berthing access during high seasons in both the Mediterranean and the Caribbean.

83% of the superyacht respondents said they had to pay for a premium berth in the right location and in some cases were turned away due to lack of space.

IGY Marinas has created a unique membership programme that provides owners, captains, and their managers GUARANTEED PREMIUM BERTHING AT ANYTIME across the IGY global network of exclusive and professionally managed superyacht marinas.

SUPERYACHT BERTHS OVER 50M | MARINA AND LOCATION

24 - MIAMI, FL - YACHT HAVEN GRANDE MIAMI AT ISLAND GARDENS 6 - BROOKFIELD PLACE, NY - NORTH COVE MARINA 14 - PORTLAND, ME - FORE POINTS MARINA 9 - SARDINIA, ITALY - IGY PORTISCO MARINA 32 - SARDINIA, ITALY - MARINA DI PORTO CERVO 24 - IBIZA, SPAIN - IGY IBIZA MARINA 23 - MÁLAGA, SPAIN - IGY MÁLAGA MARINA 10 - CANNES, FRANCE - IGY VIEUX-PORT DE CANNES 10 - SÈTE, FRANCE - IGY SÈTE MARINA 40 - SIMPSON BAY, ST. MAARTEN - YACHT CLUB ISLE DE SOL 10 - SIMPSON BAY, ST. MAARTEN - SIMPSON BAY MARINA 46 - ST. THOMAS, USVI - YACHT HAVEN GRANDE 20 - RODNEY BAY, ST. LUCIA - RODNEY BAY MARINA 6 - PROVIDENCIALES, TURKS & CAICOS - BLUE HAVEN MARINA 15 - MEXICO - MARINA CABO SAN LUCAS 5 - PANAMA - RED FROG BEACH ISLAND MARINA 9 - GOLFO DULCE, COSTA RICA - MARINA BAHIA GOLFITO

IGY Trident Club delivers certainty, confidence, and a sense of community for superyacht owners who want to enjoy yachting at the very highest level.

TO REQUEST AN IGY TRIDENT MEMBERSHIP APPLICATION VISIT: IGYTRIDENT.COM OR CONTACT CONCIERGE@IGYTRIDENT.COM

www.portadriano.com

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Putting words into action

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MIXED MESSAGING OR MEANINGFUL CHANGE?

Visit Port Adriano Quai Albert 1er - AL 28 28 SEP - 1 OCT

BY MEGAN HICKLING

Megan Hickling, TSG’s new Sustainability Editor, argues that the superyacht industry should be taking major initiatives that can actually be measured, and show the rest of the world that we’re making sustainability much more of a priority … www.ocibar.com The Superyacht Owner Report ISSUE 218

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www.portadriano.com

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Putting words into action

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MIXED MESSAGING OR MEANINGFUL CHANGE?

Visit Port Adriano Quai Albert 1er - AL 28 28 SEP - 1 OCT

BY MEGAN HICKLING

Megan Hickling, TSG’s new Sustainability Editor, argues that the superyacht industry should be taking major initiatives that can actually be measured, and show the rest of the world that we’re making sustainability much more of a priority … www.ocibar.com The Superyacht Owner Report ISSUE 218

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aving lived in Southampton for most of my life, I’ve been surrounded by the yachting and shipping industries, and this led me, along with my scientific interest, to complete a BEng in Ship Science at the University of Southampton. After this, I was a graduate naval architecture intern at Lateral Naval Architects before and during Covid.

While most of my education up to that point had come from an engineering focus, throughout I was continually drawn in my studies to what we can do to progress sustainability. After the worst of Covid, I studied an MSc in Corporate Environmental Management at the University of Surrey within their internationally acclaimed Centre for Environment and Sustainability, which recently celebrated its 30-year anniversary.

In this postgraduate programme, I studied the following topics: sustainable development, life-cycle thinking and assessment, ecological economics, environmental management systems, environmental science, corporate social and environmental responsibility, and environmental law.

This education has given me a solid basis of knowledge on the multifaceted aspects of managing our environmental, social and economic impacts for the better. I have some understanding of the superyacht industry and how it functions, even at a more technical level. However, its interactions with ESG (environmental, social and governance) in a wider marine context have been harder to cohesively comprehend.

Drawing on this knowledge, I hope to be able to inform and give some thought and insights from a somewhat outsider perspective.

When I see any of the now numerous climate protests against our industry, I can sympathise with both sides – why

72

the protestors feel the need to do this, and also how we, as an industry, don’t see ourselves as the bad guys they think we are.

To be critical, I think that overall there’s been too much talk and not enough action. There seems to be, justifiably, a lot of focus on how to reduce the impact of yachts through alternative fuels and efficiencies. However, there’s a whole range of actions that every single organisation in every sector could be doing to reduce daily impact and, as the saying goes, ‘every little helps’.

The conversation is growing because of the demand for answers from a discerning public. By and large, the solutions and their reception have been good, albeit from within the industry.

However, there are still likely to be complex issues waiting on the horizon.

I think the recent protests highlight a great issue of not projecting a positive image to those outside of the industry, transparency and spreading the good that we are doing as an industry.

There seems to be some hesitancy to create more overarching top-down commitments, such as the IMO GHG emissions regulations, probably because people want to focus on other elements they perceive to be more commercially viable, and the organisational demand to get the right important people in a room to discuss this and achieve an end result is challenging. It also begs the question of who would be involved and have the power to set these regulations.

The Class societies have voluntary notations, for example, but none are compulsory.

The ground-breaking lawsuit filed against Dutch national air carrier KLM

by Fossielvrij Netherlands and Reclame Fossielvrij, with the support of the environmental law charity Client Earth, caught my eye.

The superyacht industry also grapples

There is a whole range of actions that every single organisation in every sector could be doing to reduce daily impact, and, as the saying goes, every little helps. with this mismatch between messaging and actions regarding environmental impact reduction. While initiatives for ‘greener’ designs and technologies exist, many of these efforts don’t actually reduce environmental impact. As the industry continues to expand, building bigger, faster and consuming more, it risks put being under similar scrutiny to KLM. The claim suggests that KLM’s advertising, particularly the phrase ‘fly responsibly’, misinformed the public about the company’s commitment to reducing its contribution to climate change, especially considering its simultaneous plans for air-traffic growth.

The case also takes issue with KLM’s carbon offset marketing, which implies that customers can mitigate their flight’s impact by supporting reforestation projects or contributing to the airline’s biofuel purchasing costs.

I’ve seen that our industry abounds with green marketing, similar to KLM’s biofuel claims, which often falls short of driving meaningful change. This could be ineffective or uncertified offsetting or

The Superyacht Owner Report ISSUE 218

marketing hybrid propulsion systems as ‘green’.

As environmental deadlines such as the Paris Agreement loom, resentment towards the imbalance between actions and words will grow. This will be amplified if companies present a green image while continuing to expand polluting businesses.

On a more positive note, the alternative fuel discussion seems to be turning into action. There is greener fuel in tanks and, subsequently, emissions are taken out of the atmosphere. Knowledge and attitudes towards sustainability are becoming more encompassing, with many being able to ask the challenging questions to encourage change.

While regulations, legislation and policies are pivotal in driving change, it’s equally important for industry members to proactively take steps beyond what’s legally mandated to improve their environmental footprint.

Such proactive measures offer a sense of control over their impacts on the overwhelming issue of climate

A ground-breaking lawsuit was filed against KLM by Fossielvrij Netherlands and Reclame Fossielvrij, with the support of the environmental law charity Client Earth for Dutch national air carrier’s ‘greenwashing’,

73

H

aving lived in Southampton for most of my life, I’ve been surrounded by the yachting and shipping industries, and this led me, along with my scientific interest, to complete a BEng in Ship Science at the University of Southampton. After this, I was a graduate naval architecture intern at Lateral Naval Architects before and during Covid.

While most of my education up to that point had come from an engineering focus, throughout I was continually drawn in my studies to what we can do to progress sustainability. After the worst of Covid, I studied an MSc in Corporate Environmental Management at the University of Surrey within their internationally acclaimed Centre for Environment and Sustainability, which recently celebrated its 30-year anniversary.

In this postgraduate programme, I studied the following topics: sustainable development, life-cycle thinking and assessment, ecological economics, environmental management systems, environmental science, corporate social and environmental responsibility, and environmental law.

This education has given me a solid basis of knowledge on the multifaceted aspects of managing our environmental, social and economic impacts for the better. I have some understanding of the superyacht industry and how it functions, even at a more technical level. However, its interactions with ESG (environmental, social and governance) in a wider marine context have been harder to cohesively comprehend.

Drawing on this knowledge, I hope to be able to inform and give some thought and insights from a somewhat outsider perspective.

When I see any of the now numerous climate protests against our industry, I can sympathise with both sides – why

72

the protestors feel the need to do this, and also how we, as an industry, don’t see ourselves as the bad guys they think we are.

To be critical, I think that overall there’s been too much talk and not enough action. There seems to be, justifiably, a lot of focus on how to reduce the impact of yachts through alternative fuels and efficiencies. However, there’s a whole range of actions that every single organisation in every sector could be doing to reduce daily impact and, as the saying goes, ‘every little helps’.

The conversation is growing because of the demand for answers from a discerning public. By and large, the solutions and their reception have been good, albeit from within the industry.

However, there are still likely to be complex issues waiting on the horizon.

I think the recent protests highlight a great issue of not projecting a positive image to those outside of the industry, transparency and spreading the good that we are doing as an industry.

There seems to be some hesitancy to create more overarching top-down commitments, such as the IMO GHG emissions regulations, probably because people want to focus on other elements they perceive to be more commercially viable, and the organisational demand to get the right important people in a room to discuss this and achieve an end result is challenging. It also begs the question of who would be involved and have the power to set these regulations.

The Class societies have voluntary notations, for example, but none are compulsory.

The ground-breaking lawsuit filed against Dutch national air carrier KLM

by Fossielvrij Netherlands and Reclame Fossielvrij, with the support of the environmental law charity Client Earth, caught my eye.

The superyacht industry also grapples

There is a whole range of actions that every single organisation in every sector could be doing to reduce daily impact, and, as the saying goes, every little helps. with this mismatch between messaging and actions regarding environmental impact reduction. While initiatives for ‘greener’ designs and technologies exist, many of these efforts don’t actually reduce environmental impact. As the industry continues to expand, building bigger, faster and consuming more, it risks put being under similar scrutiny to KLM. The claim suggests that KLM’s advertising, particularly the phrase ‘fly responsibly’, misinformed the public about the company’s commitment to reducing its contribution to climate change, especially considering its simultaneous plans for air-traffic growth.

The case also takes issue with KLM’s carbon offset marketing, which implies that customers can mitigate their flight’s impact by supporting reforestation projects or contributing to the airline’s biofuel purchasing costs.

I’ve seen that our industry abounds with green marketing, similar to KLM’s biofuel claims, which often falls short of driving meaningful change. This could be ineffective or uncertified offsetting or

The Superyacht Owner Report ISSUE 218

marketing hybrid propulsion systems as ‘green’.

As environmental deadlines such as the Paris Agreement loom, resentment towards the imbalance between actions and words will grow. This will be amplified if companies present a green image while continuing to expand polluting businesses.

On a more positive note, the alternative fuel discussion seems to be turning into action. There is greener fuel in tanks and, subsequently, emissions are taken out of the atmosphere. Knowledge and attitudes towards sustainability are becoming more encompassing, with many being able to ask the challenging questions to encourage change.

While regulations, legislation and policies are pivotal in driving change, it’s equally important for industry members to proactively take steps beyond what’s legally mandated to improve their environmental footprint.

Such proactive measures offer a sense of control over their impacts on the overwhelming issue of climate

A ground-breaking lawsuit was filed against KLM by Fossielvrij Netherlands and Reclame Fossielvrij, with the support of the environmental law charity Client Earth for Dutch national air carrier’s ‘greenwashing’,

73

© Guillaume Plisson

Crafting Visions.

For generations, we have been realizing the most extraordinary living spaces with dedication and expertise. On water and on land.

As a leading international partner in interior+ outfitting, we turn visions for living into reality – for both indoor and outdoor areas.

We are crafting visions.

74

listgc.at

The time is now to put egos and pride to one side, and make the conversation turn into visible meaningful action and change at all levels of our industry,

change, especially for those who feel a commitment to the planet’s preservation.

However, the effectiveness of individual actions can be limited unless they are widely shared. Without proper communication, many might remain in the dark about actionable steps they can take in their daily operations.

Many of the discussions in the superyacht sphere centre on propulsion systems. While transitioning to alternative propulsion and fuels will make the most significant difference, the hotel load, which accounts for a substantial portion of energy consumption, also presents opportunities for environmental improvement that can be acted on right now.

One example on a smaller scale is that it is up to the crew to turn lights off when leaving a room, as well as systemic changes such as installing energy-efficient light bulbs. Scale up this thinking to even more impactful changes such as adjusting the air conditioning in non-guest spaces, and aggregate impacts can be significant.

Water Revolution Foundation is set to release a comprehensive set of eco guidelines to infom crewmembers about ‘eco-friendlier’ on-board practices. These guidelines, stemming from requests within the superyacht industry and collaborative efforts, aren’t rigid rules but rather sources of information and inspiration. They emphasise the necessity of collective action to usher in meaningful change, and I see this as a positive incremental step that gives a wider sense of engagement.

The concept of life-cycle thinking is another vital development that will underpin sustainable development.

By taking a comprehensive approach that examines the entire journey of a

© Guillaume Plisson

Crafting Visions.

For generations, we have been realizing the most extraordinary living spaces with dedication and expertise. On water and on land.

As a leading international partner in interior+ outfitting, we turn visions for living into reality – for both indoor and outdoor areas.

We are crafting visions.

74

listgc.at

The time is now to put egos and pride to one side, and make the conversation turn into visible meaningful action and change at all levels of our industry,

change, especially for those who feel a commitment to the planet’s preservation.

However, the effectiveness of individual actions can be limited unless they are widely shared. Without proper communication, many might remain in the dark about actionable steps they can take in their daily operations.

Many of the discussions in the superyacht sphere centre on propulsion systems. While transitioning to alternative propulsion and fuels will make the most significant difference, the hotel load, which accounts for a substantial portion of energy consumption, also presents opportunities for environmental improvement that can be acted on right now.

One example on a smaller scale is that it is up to the crew to turn lights off when leaving a room, as well as systemic changes such as installing energy-efficient light bulbs. Scale up this thinking to even more impactful changes such as adjusting the air conditioning in non-guest spaces, and aggregate impacts can be significant.

Water Revolution Foundation is set to release a comprehensive set of eco guidelines to infom crewmembers about ‘eco-friendlier’ on-board practices. These guidelines, stemming from requests within the superyacht industry and collaborative efforts, aren’t rigid rules but rather sources of information and inspiration. They emphasise the necessity of collective action to usher in meaningful change, and I see this as a positive incremental step that gives a wider sense of engagement.

The concept of life-cycle thinking is another vital development that will underpin sustainable development.

By taking a comprehensive approach that examines the entire journey of a

VISIT US AT

product or service – from raw material extraction and production to its use and ultimate disposal – we can deepen our understanding of our impacts.

In our race towards green transition, while some options may appear to be straightforward sustainable choices, they can harbour latent impacts that negate their perceived advantages.

Much depends on how these choices are implemented.

Take methanol and hydrogen as fuel sources. When produced and processed with renewable power, they can yield considerable savings due to minimal emissions. However, if fossil fuel-derived power is used for their production the advantages significantly diminish.

The complexity of sustainable choices and the fear of unintended consequences may deter some from acting. Instead of this paralysis, a more pragmatic approach is to employ lifecycle thinking, tailoring solutions to individual cases. Such discernment can pave the way for impactful collective actions in our green transition journey.

The eco-friendly choices we make often hinge on broader considerations than merely assessing whether option A is superior to option B. The answer usually starts with ‘it depends’. For instance, while batteries pose environmental challenges during production, their overall impact depends on optimising their usage phase to counterbalance and surpass this initial environmental debt.

And finally, there has been increasing transparency of the actions being taken by those within the industry. For example, the numerous reports by shipyards and announcements of non-compulsory actions other organisations are taking that have come across my desk and filled the, admittedly niche, industry newsfeeds.

76

Amico & Co and MB92 are just two of several industry players who have shared their sustainability reports recently.

These reports detail their approach to sustainability across various metrics.

They, as with many in the industry, have a history of voluntary reporting.

In recent years, the voluntary publication of these reports has increased but is still behind other industries. This is partly due to the growing importance of substantial sustainability actions. The EU’s compulsory Corporate Sustainability Reporting Directive (CSRD), which came into effect in January this year, is also likely to be a significant driver of this trend.

This directive is one of many growing sustainability requirements for businesses, geared towards achieving netzero goals by 2050.

Overall, I think the industry is making similar progress to other industries, but it is behind in many areas.

That progress may be slow, but it seems to be moving in the right direction.

However, we should be making more major changes and savings that we can measure, monitor and then project to the rest of the word to show that we, along with everyone else, are making sustainability more of a priority.

The time is now to put egos and pride to one side, and make the conversation turn into visible meaningful action and change at all levels of our industry, really show our intent to be a meaningful part of sustainable development, rather than fall behind while we bicker about the whos and whats. Let’s get behind those actions that are improving our industry. We’ve been shown by others example that we could be facing increasing consequences if we don’t. MH

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YOUR VISION IS OUR MISSION.

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product or service – from raw material extraction and production to its use and ultimate disposal – we can deepen our understanding of our impacts.

In our race towards green transition, while some options may appear to be straightforward sustainable choices, they can harbour latent impacts that negate their perceived advantages.

Much depends on how these choices are implemented.

Take methanol and hydrogen as fuel sources. When produced and processed with renewable power, they can yield considerable savings due to minimal emissions. However, if fossil fuel-derived power is used for their production the advantages significantly diminish.

The complexity of sustainable choices and the fear of unintended consequences may deter some from acting. Instead of this paralysis, a more pragmatic approach is to employ lifecycle thinking, tailoring solutions to individual cases. Such discernment can pave the way for impactful collective actions in our green transition journey.

The eco-friendly choices we make often hinge on broader considerations than merely assessing whether option A is superior to option B. The answer usually starts with ‘it depends’. For instance, while batteries pose environmental challenges during production, their overall impact depends on optimising their usage phase to counterbalance and surpass this initial environmental debt.

And finally, there has been increasing transparency of the actions being taken by those within the industry. For example, the numerous reports by shipyards and announcements of non-compulsory actions other organisations are taking that have come across my desk and filled the, admittedly niche, industry newsfeeds.

76

Amico & Co and MB92 are just two of several industry players who have shared their sustainability reports recently.

These reports detail their approach to sustainability across various metrics.

They, as with many in the industry, have a history of voluntary reporting.

In recent years, the voluntary publication of these reports has increased but is still behind other industries. This is partly due to the growing importance of substantial sustainability actions. The EU’s compulsory Corporate Sustainability Reporting Directive (CSRD), which came into effect in January this year, is also likely to be a significant driver of this trend.

This directive is one of many growing sustainability requirements for businesses, geared towards achieving netzero goals by 2050.

Overall, I think the industry is making similar progress to other industries, but it is behind in many areas.

That progress may be slow, but it seems to be moving in the right direction.

However, we should be making more major changes and savings that we can measure, monitor and then project to the rest of the word to show that we, along with everyone else, are making sustainability more of a priority.

The time is now to put egos and pride to one side, and make the conversation turn into visible meaningful action and change at all levels of our industry, really show our intent to be a meaningful part of sustainable development, rather than fall behind while we bicker about the whos and whats. Let’s get behind those actions that are improving our industry. We’ve been shown by others example that we could be facing increasing consequences if we don’t. MH

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THE ENERGY-CARRIER CONUNDRUM Estimated high and low prices for fuels in 2050

Our mission towards intelligent ownership

Price (US$/GJ)

High

Estimated maturation timelines for energy converters, on-board CCS technologies and corresponding safety regulations for on-board use

Low

60 Methanol

2-stroke engine ü 4-stroke engine Boiler Fuel cell Regulations for on-board use

50 40

ü

Ammonia

2-stroke engine 4-stroke engine Boiler Fuel cell Regulations for on-board use

30 20

4-stroke engine Fuel cell Regulations for on-board use

0 VLSFO/ MGO

HFO

LNG

LPG

BioLNG

Biomethanol

BioMGO

Blue LH2

Blue ammonia

e-LNG e-MGO

ee amm- methonia anol

CCS

e LH2

© DNV Maritime Forecast to 2050, 2022 edition

HFO

e-MGO bio-MGO VLSFO/MGO

e-LNG bio-LNG LNG

LPG

e-methanol bio-methanol

ü

IMO ambitions scenario 7

Decarbonisation by 2050 scenario 19 CO2 emissions (MtCO2)

CO emissions (MtCO2)

ü

DF LNG ICE

ü ü

DF methanol ICE

ü

DF ammonia ICE

ü

DF hydrogen ICE

ü

ü

1,200

1,200

1,000

1,000

800

800

ü

600

ü ü

400

200

ü

Ammonia FC

600

400

ü

Hydrogen FC

0

ü

2022

Battery EM

200 2026

ü

Key: Dual fuel (DF), electric motor (EM), fuel cell (FC), internal combustion engine (ICE), liquefied natural gas (LNG), liquefied petroleum gas (LPG), mono fuel (MF)

2030

Retrofit

2036

2042

2046

$0m-$5m

Fuel

ü Drop in

2034

Shipping emissions reduction contribution by measure type compared with a baseline with current carbon intensity

blue ammonia blue hydrogen e-hydrogen Electricity from grid e-ammonia

ü

DF LPG ICE

2030

ü On-board technology available (TRL 9) ü High safety regulatory maturity

2

MF ICE

The Superyacht Group is expanding our advisory model to encompass owners, potential owners, future buyers, family offices and advisors within a more structured strategy … and offering research, analysis, opinions and ideas to guide clients towards intelligent decisions, devoid of bias.

2026

© DNV Maritime Forecast to 2050, 2022 edition

Engine

MF ICE with scrubber

ü ü

ü

2022 Validation (TRL 4) Low safety regulatory maturity

The energy converters, fuel options and transitions allowed in the GHG pathway model Fuel cell and fuel system

ü

ü

CCS technology Regulations for on-board use

The prices shown include both production and distribution costs and have been taken as a global mean average of all regions.

Fossil-fuel prices do not include carbon price.

ü

ü ü

Hydrogen

10

ü

ü

Speed reduction

Units sold

2022

Energy efficiency

2026

Logistics

2030

2036

Baseline

2042

2046

2050

CO2 emissions

Estimated worth

125

$0m-$5m

© DNV Maritime $1.4B Forecast to 2050, 2022 edition

Average estimated

© DNV Maritime Forecast to 2050, 2022 edition

sale price: $3m

Units sold

$1.2B

100

Estimated worth

125

75

64

sale price: $3m

$1.2B

100

$0.8B

75

64

$0.8B

$0.4B 25

'13

'14

The data highlights how many 30m-plus sole CA deals were completed between 2012-2019, breaking down the total sales figures into various sectors that have been determined by their final asking prices, to highlight the size of Lead Yacht’s potential pool of business for any given year. In 2019 for example, there were 203 sole CA brokerage deals completed, of which only 78 vessels meet Lead Yacht’s value criteria. Perhaps unsurprisingly, of these 78 deals, the majority were in Lead Yacht’s lowest acceptable sector, of between $10-20m in value, with the number of deals falling as prices increased.

Our research highlights which brokerage houses have engaged in the most sole CA sales over $10m between 2015 and 2019. It is clear from the graph that Burgess and Fraser have outperformed their nearest competitors by quite some distance over the five-year period highlighted. It should also be noted that, of the top performing brokerage houses represented on the graph, only Worth Avenue and Northrop & Johnson have no technical/fleet manager operations. That being said, N&J was recently acquired by the owners of Fraser Yachts and it is feasible that their services will become complementary to one another’s.

If Lead Yacht hopes to benefit from greater direct business with the management community, it would do well to engage in a period of education and relationship building with those full service brokerage houses that typically engage with the most high-value superyacht deals, namely Burgess and Fraser Yachts, after which the same courtesy could be rolled out to those businesses that have a lesser but still significant footprint in the high-value superyacht sales markets.

However, in isolation, unitary sales figures, average values and combined estimated worth are of little value, except to affirm that the majority of market activity is to be found at the lowest value end of the superyacht market. What is of far greater interest is which businesses account for the greatest proportion of second-hand sales, with estimated values of $10m and higher. Assuming that Lead Yacht has no desire to drastically alter its business model, increased market share will most likely come down to Lead Yacht’s ability to engage with and/ or educate those businesses that operate within its target market.

'15

'16

'17

391 NUMBER OF $10M+ SUPERYACHTS DELIVERED OVER THE LAST 5 YEARS

0 0

2012 2012

'13 '13

'14 '14

'15 '15

'16

'17

Units sold '17 '18 '17 '18

'16 '16

100 100 100 100

50

75 75 75 75

25

50 50 50 50

0

25 25

2012

25 25 2012 2012

'13 '13

'14 '14

2012 2012

'13 '13

'14 '14

'15 '15

'16 '16

'15 '15

'16 '16

'17 '17

'18 '18

'17 '17

'18 '18

Units sold $5m-$10m Units sold 125 125

Units Units sold sold

50 50 25

2012 2012

2012 2012

'13

'13 '13

'14

'14 '14

'15

'15 '15

'16

'16 '16

'17

'13 '13

'18

'14 '14 '19

'17 Units '17 sold'18 '18

$0.2B $0.4B $0.4B '15 '15 $0.0B $0.2B $0.2B

0

$0.6B $0.6B $450m $0.4B $0.4B

0

$0.2B $0.2B

Estimated 20122012 '13 '13 worth '14 '14 '15 '15 '16 '16 '17 '17 '18 '18 '19 '19

Units sold

$5m-$10m

$10m-$20m

$1.0B

Units sold 125

sale price: $14.2m

$1.2B

75

0

'18 '18

'19 '19

2012 0

2012

$40m+

Estimated worth

$10m-$20m

Estimated worth $1.4B

Average estimated sale price: $7.4m

$1.0B $1.0B

$1.0B $1.2B $1.0B

sale price: $14.2m

$0.8B $1.0B $0.8B

$0.6B $0.6B

sale price: $83.6m

$0.4B $0.6B $0.4B

$0.0B $0.0B

$0.2B $0.4B $0.2B

13

'14

'15 '15

$1.4B

$0.6B $0.8B $0.6B

Average aestimated

$0.2B $0.2B

'14

'16 '16

'15

'17 '17

'18 '18

'19

© T H E S U P E R Y A C H T A G E N C Y $0.0B | 11

'16

'17

'18

'19

Estimated worth

$1.2B

$1.4B

Average estimated

$1.0B

sale price: $14.2m

$1.2B

$0.8B

$1.0B

$1.0B $0.6B

75

$0.8B

$0.8B

$0.4B 50

25

25

0

$0.6B

50

$0.6B

$0.2B

$0.4B

$0.4B 2012

'14 $0.2B'15

'13

0

E

arlier this year, we came across a scenario where a client/owner was presented with a particular yacht for sale. We’ve omitted the specific transaction details but suffice to say that the yacht was substandard in numerous aspects.

Initially, the brochure, online images, specifications and generic information portrayed the yacht positively and ticked so many of the boxes. The yacht’s size and technical specifications, appealing interior styling and suitable price point seemed ideal. The buyer’s advisor persuaded them to make a substantial offer, including a non-refundable deposit to take the yacht off the market.

Subsequent to a buyer’s survey and technical inspection, a comprehensive report was shared with the buyer and their advisor. However, this report was far from positive, highlighting

80

'13

'14

'15

'16

'17

'18

'19

$0.0B '18

'19

2012

'13

$0.2B

0

$0.0B 2012

BY MARTIN H. REDMAYNE

'16

25 '17

$10m-$20m

$0.0B $0.2B $0.0B

'19

$10m-$20m

125

100

$1.4B Estimated worth $1.25B $1.2B $1.4B $1.2B

Average estimated

$0.8B $0.8B

'13 '13

Average estimated Units sold sale price: $7.4m

$1.4B

50

13

50 25 25 '17 '17 25 0

$1.2B $1.2B

$0.4B $0.4B

75 50 50

'16 '16

$1.4B $1.4B

Estimated 2012 '13 worth '14

Estimated worth

75

Estimated worth Estimated worth

$20m - $40m $1.2B

125 Units sold 125

$0.0B $0.0B

'19 '19

100 Average estimated

100

$0.0B $0.0B

$1.4B$20m-$40m $0m-$5m

Average estimated Units sold sale price: $28.3m Units sold

$5m-$10m

$10m-$20m 125

125

$0.8B $0.8B

61

$1.4B Estimated worth $1.4B Average estimated Average estimated Estimated worth price: $1.4B salesale price: $3m$28.3m $1.2B $1.2B Average estimated 100 $1.4B 125 $0.8B 100 sale price: $7.4m Average estimated $1.2B $1.0B $1.0B 100 €531m sale price: $14.2m $1.2B $0.6B $1.0B 75 $1.0B $1.0B 100 $0.8B 75 $0.8B $0.8B $0.8B $1.0B $0.4B 75 $0.8B €531m $0.8B $0.8B $537m 61 $0.6B $0.6B 18 $0.6B 50 $0.6B 75 50 $0.8B $0.2B 39 $0.6B $0.6B $0.6B $0.4B $0.4B 50 $0.4B $0.4B $537m $0.6B $450m $0.0B 18 25 50 $0.4B 25 $0.4B $0.4B $0.2B '13 '14 $0.2B'15 '16 '17 '18 '19 39 $0.2B $0.2B $0.4B 25 $0.2B $0.2B $0.2B $0.0B $0.0B 250 0 $0.0B $0.0B $0.2B 2012 '13 '14 '15 '16 '17 '18 '19 '19 2012 '13 '14 '15 '16 '17 '18 '19 '19 $0.0B $0.0B $40m+ 0 $0.0B $0m-$5m '19 '19 2012 '13 '14 '15 '16 '17 '18 '19 $0.0B 0 Estimated worth 2012Estimated '13 '14 '15$5m-$10m '16 '17 '18 '19 worth $40m+

39

0 0

2012 0 0

$1.0B $1.0B

$537m $0.4B $0.6B $0.6B

25 25 0

$1.2B $1.2B

75 75

$0.6B $0.8B $0.8B

25 25

$1.4B $1.4B

Average Average estimated estimated

$10m-$20m $10m-$20m

125

'19

Estimated worth Estimated worth

$5m - $10m

Units sold $1.25B Estimated worth Average estimated Units sold $1.4Bsale price: $3m125 Average estimated Estimated worth 100 125 Units sold Estimated worth 100 sale price: $7.4m $1.2B $1.4B $1.4B 125 100 Average estimated Average 75 estimated 100 $1.0B 75 $14.2m sale sale price: price: $14.2m $1.2B $1.2B 100 75 Average aestimated $0.8B 50 $1.0B 75 $83.6m $1.0B sale price: 50

Units sold

'18

50 50

$0.0B $0.0B

'19 '19

$10m-$20m $0m-$5m125

'17

$0.0B 25 25 $0.2B $0.2B $174m$20m-$40m

Estimated worth Estimated worth 100 $1.4B Estimated Estimated worth worth $1.4B Average estimated Average estimated $1.4B $1.4B sale price: sale price: $3m $14.2m $1.2B Average estimated Average75 estimated $1.2B sale sale price: price: $7.4m $7.4m $1.2B $1.2B $1.0B $1.0B

125 125

0 0

'19

$5m-$10m $10m - $20m $5m-$10m

Units sold Units sold Units sold 125 125Units sold

0 0

'18

'16

100 100

$0.6B $0.8B $0.8B $450m $0.4B $0.6B $0.6B $0.2B $0.4B $0.4B

'15

'15

$5m-$10m $0m-$5m

sale sale price: price: $3m $7.4m

$0.8B $1.0B $1.0B

61

64

'14

'14

125 125

$1.0B $1.2B $1.2B

50 75 75

75 75 50

© THE SUPERYACHT AGENCY

$1.4B $1.4B

25 50 50

'13

'13

Units soldsold Units

sale price: $7.4m Estimated worth $1.2B

Average Average estimated estimated sale sale price: price: $3m $3m

2012

$0.0B 2012

75 100 100

0 25 25

$0.2B $174m

0

$1.4B

Average estimated $0m - $5m Estimated worth

100 125 125

100 100 75

|

25

'19

Estimated worth Sales segmented by estimated worth

$0m-$5m $0m-$5m

125 125 100

10

'18

$5m-$10m

Units Units sold sold

Unlike the new-build sector, where the vast majority of deliveries meet Lead Yacht’s $10m value requirement, the brokerage sector is far more diverse. Where the new-build sector has largely homogenised in terms of its designs and technologies, the second-hand brokerage market boasts a great diversity of product of various ages, qualities and, importantly, values. Where one might struggle to find a superyacht for under $10m in the new-build market, the majority of second-hand projects have final asking prices of less than $10m.

$0.4B

$0.0B 2012

Units sold 125

$0.6B

50

$0.2B $174m

0

ANALYSIS OF THE SUPERYACHT BROKERAGE MARKET

101

$1.0B

$0.6B

50

$1.4B

Average estimated

$1.0B

The Superyacht New Build Report I S S UE 2 1 6

100

0

2050

$0.0B

Units sold

'14

'15

'16

'17

'18

'19

Estimated worth

125

$1.4B

Average estimated sale price: $14.2m

$1.2B

100

$1.0B

significant flaws and faults with the yacht. Astonishingly, the advisor managed to convince the buyer that these issues were fixable and not major – mere cosmetic repairs. Consequently, the buyer proceeded as planned.

Simultaneously, the buyer’s family office/private wealth manager also received the survey report and was alarmed by the documented facts and the surveyor’s direct recommendation against purchasing the yacht because the identified issues rendered it unsafe and unhealthy.

Discreetly, the private wealth manager reached out to our team to seek an independent assessment of the yacht and the survey report. The aim was to obtain further insights into the yacht’s value and potential challenges, including an estimate of the investment required to bring it back to operational standards.

Through a series of emails, calls and discussions regarding the reported issues and the estimated investment necessary to rectify them – including addressing maintenance deficiencies and eliminating harmful cultures in freshwater and fuel tanks, and addressing a substandard lazarette opening with rudimentary welding – the client eventually decided to withdraw from the deal.

They opted to re-evaluate their purchasing journey and continue exploring the market for the right yacht, accompanied by the appropriate advice, introductions and insights that ensure their expectations were met. They aimed for full transparency and intelligent due diligence rather than solely relying on an advisor primarily motivated by fees and commissions linked to the transaction value.

Over the past decade, our consultancy team at The Superyacht Agency has been approached by various owners, their family offices or lawyers to provide impartial opinions on a range of matters. These include, as highlighted earlier, independent assessments of prepurchase survey reports, analysis and projections for charter models, validation of acquisition targets, benchmarking of operational budgets and even the exploration of crew salary models for optimisation.

It appears that two considerations are at play: Are owners receiving impartial and objective advice and, more importantly, do they know who to approach when seeking an independent perspective on their investment in the superyacht lifestyle?

Beyond our consistent flow of consultancy projects with shipyards,

The Superyacht Owner Report ISSUE 218

key subcontractors, business leaders, market investors, marina developers and infrastructure teams, we’re expanding our advisory model to encompass owners, potential owners, future buyers, family offices and advisors within a more structured strategy.

With more than 30 years of experience in the industry, we’ve scrutinised and comprehended the numerous facets and layers of ownership. As a result, we’ve developed a business model that enables owners to pose both straightforward and intricate queries. Our model offers research, analysis, opinions and ideas designed to guide buyers, owners or investors towards intelligent decisions, devoid of bias.

Our approach mirrors that of lawyers or accountants, with fees calculated based on hours or days, without any incentives, commissions or rewards from

75

$0.8B

any involved parties. We rely solely on fees paid by the principal for the advice provided by our team. The objective is to serve as an owner’s consultant, working exclusively for the owner and no one else.

Regardless of the amount invested in yachting, it’s prudent to take the time to contemplate and explore options with due diligence, incorporating thirdparty perspectives from individuals working exclusively for the buyer on a professional fee basis, similar to how a lawyer functions in a business deal or acquisition.

We’re not here to slow down a transaction or spoil the fun of asset purchase, but rather to add an element of independence that offers buyers or owners enhanced clarity in their decisions. To better understand what we provide or how we work, please contact martin@thesuperyachtagency.com. $0.6B

50

$0.4B

25

$0.2B

0

$0.0B

2012

'13

'14

'15

'16

'17

'18

'19

81

THE ENERGY-CARRIER CONUNDRUM Estimated high and low prices for fuels in 2050

Our mission towards intelligent ownership

Price (US$/GJ)

High

Estimated maturation timelines for energy converters, on-board CCS technologies and corresponding safety regulations for on-board use

Low

60 Methanol

2-stroke engine ü 4-stroke engine Boiler Fuel cell Regulations for on-board use

50 40

ü

Ammonia

2-stroke engine 4-stroke engine Boiler Fuel cell Regulations for on-board use

30 20

4-stroke engine Fuel cell Regulations for on-board use

0 VLSFO/ MGO

HFO

LNG

LPG

BioLNG

Biomethanol

BioMGO

Blue LH2

Blue ammonia

e-LNG e-MGO

ee amm- methonia anol

CCS

e LH2

© DNV Maritime Forecast to 2050, 2022 edition

HFO

e-MGO bio-MGO VLSFO/MGO

e-LNG bio-LNG LNG

LPG

e-methanol bio-methanol

ü

IMO ambitions scenario 7

Decarbonisation by 2050 scenario 19 CO2 emissions (MtCO2)

CO emissions (MtCO2)

ü

DF LNG ICE

ü ü

DF methanol ICE

ü

DF ammonia ICE

ü

DF hydrogen ICE

ü

ü

1,200

1,200

1,000

1,000

800

800

ü

600

ü ü

400

200

ü

Ammonia FC

600

400

ü

Hydrogen FC

0

ü

2022

Battery EM

200 2026

ü

Key: Dual fuel (DF), electric motor (EM), fuel cell (FC), internal combustion engine (ICE), liquefied natural gas (LNG), liquefied petroleum gas (LPG), mono fuel (MF)

2030

Retrofit

2036

2042

2046

$0m-$5m

Fuel

ü Drop in

2034

Shipping emissions reduction contribution by measure type compared with a baseline with current carbon intensity

blue ammonia blue hydrogen e-hydrogen Electricity from grid e-ammonia

ü

DF LPG ICE

2030

ü On-board technology available (TRL 9) ü High safety regulatory maturity

2

MF ICE

The Superyacht Group is expanding our advisory model to encompass owners, potential owners, future buyers, family offices and advisors within a more structured strategy … and offering research, analysis, opinions and ideas to guide clients towards intelligent decisions, devoid of bias.

2026

© DNV Maritime Forecast to 2050, 2022 edition

Engine

MF ICE with scrubber

ü ü

ü

2022 Validation (TRL 4) Low safety regulatory maturity

The energy converters, fuel options and transitions allowed in the GHG pathway model Fuel cell and fuel system

ü

ü

CCS technology Regulations for on-board use

The prices shown include both production and distribution costs and have been taken as a global mean average of all regions.

Fossil-fuel prices do not include carbon price.

ü

ü ü

Hydrogen

10

ü

ü

Speed reduction

Units sold

2022

Energy efficiency

2026

Logistics

2030

2036

Baseline

2042

2046

2050

CO2 emissions

Estimated worth

125

$0m-$5m

© DNV Maritime $1.4B Forecast to 2050, 2022 edition

Average estimated

© DNV Maritime Forecast to 2050, 2022 edition

sale price: $3m

Units sold

$1.2B

100

Estimated worth

125

75

64

sale price: $3m

$1.2B

100

$0.8B

75

64

$0.8B

$0.4B 25

'13

'14

The data highlights how many 30m-plus sole CA deals were completed between 2012-2019, breaking down the total sales figures into various sectors that have been determined by their final asking prices, to highlight the size of Lead Yacht’s potential pool of business for any given year. In 2019 for example, there were 203 sole CA brokerage deals completed, of which only 78 vessels meet Lead Yacht’s value criteria. Perhaps unsurprisingly, of these 78 deals, the majority were in Lead Yacht’s lowest acceptable sector, of between $10-20m in value, with the number of deals falling as prices increased.

Our research highlights which brokerage houses have engaged in the most sole CA sales over $10m between 2015 and 2019. It is clear from the graph that Burgess and Fraser have outperformed their nearest competitors by quite some distance over the five-year period highlighted. It should also be noted that, of the top performing brokerage houses represented on the graph, only Worth Avenue and Northrop & Johnson have no technical/fleet manager operations. That being said, N&J was recently acquired by the owners of Fraser Yachts and it is feasible that their services will become complementary to one another’s.

If Lead Yacht hopes to benefit from greater direct business with the management community, it would do well to engage in a period of education and relationship building with those full service brokerage houses that typically engage with the most high-value superyacht deals, namely Burgess and Fraser Yachts, after which the same courtesy could be rolled out to those businesses that have a lesser but still significant footprint in the high-value superyacht sales markets.

However, in isolation, unitary sales figures, average values and combined estimated worth are of little value, except to affirm that the majority of market activity is to be found at the lowest value end of the superyacht market. What is of far greater interest is which businesses account for the greatest proportion of second-hand sales, with estimated values of $10m and higher. Assuming that Lead Yacht has no desire to drastically alter its business model, increased market share will most likely come down to Lead Yacht’s ability to engage with and/ or educate those businesses that operate within its target market.

'15

'16

'17

391 NUMBER OF $10M+ SUPERYACHTS DELIVERED OVER THE LAST 5 YEARS

0 0

2012 2012

'13 '13

'14 '14

'15 '15

'16

'17

Units sold '17 '18 '17 '18

'16 '16

100 100 100 100

50

75 75 75 75

25

50 50 50 50

0

25 25

2012

25 25 2012 2012

'13 '13

'14 '14

2012 2012

'13 '13

'14 '14

'15 '15

'16 '16

'15 '15

'16 '16

'17 '17

'18 '18

'17 '17

'18 '18

Units sold $5m-$10m Units sold 125 125

Units Units sold sold

50 50 25

2012 2012

2012 2012

'13

'13 '13

'14

'14 '14

'15

'15 '15

'16

'16 '16

'17

'13 '13

'18

'14 '14 '19

'17 Units '17 sold'18 '18

$0.2B $0.4B $0.4B '15 '15 $0.0B $0.2B $0.2B

0

$0.6B $0.6B $450m $0.4B $0.4B

0

$0.2B $0.2B

Estimated 20122012 '13 '13 worth '14 '14 '15 '15 '16 '16 '17 '17 '18 '18 '19 '19

Units sold

$5m-$10m

$10m-$20m

$1.0B

Units sold 125

sale price: $14.2m

$1.2B

75

0

'18 '18

'19 '19

2012 0

2012

$40m+

Estimated worth

$10m-$20m

Estimated worth $1.4B

Average estimated sale price: $7.4m

$1.0B $1.0B

$1.0B $1.2B $1.0B

sale price: $14.2m

$0.8B $1.0B $0.8B

$0.6B $0.6B

sale price: $83.6m

$0.4B $0.6B $0.4B

$0.0B $0.0B

$0.2B $0.4B $0.2B

13

'14

'15 '15

$1.4B

$0.6B $0.8B $0.6B

Average aestimated

$0.2B $0.2B

'14

'16 '16

'15

'17 '17

'18 '18

'19

© T H E S U P E R Y A C H T A G E N C Y $0.0B | 11

'16

'17

'18

'19

Estimated worth

$1.2B

$1.4B

Average estimated

$1.0B

sale price: $14.2m

$1.2B

$0.8B

$1.0B

$1.0B $0.6B

75

$0.8B

$0.8B

$0.4B 50

25

25

0

$0.6B

50

$0.6B

$0.2B

$0.4B

$0.4B 2012

'14 $0.2B'15

'13

0

E

arlier this year, we came across a scenario where a client/owner was presented with a particular yacht for sale. We’ve omitted the specific transaction details but suffice to say that the yacht was substandard in numerous aspects.

Initially, the brochure, online images, specifications and generic information portrayed the yacht positively and ticked so many of the boxes. The yacht’s size and technical specifications, appealing interior styling and suitable price point seemed ideal. The buyer’s advisor persuaded them to make a substantial offer, including a non-refundable deposit to take the yacht off the market.

Subsequent to a buyer’s survey and technical inspection, a comprehensive report was shared with the buyer and their advisor. However, this report was far from positive, highlighting

80

'13

'14

'15

'16

'17

'18

'19

$0.0B '18

'19

2012

'13

$0.2B

0

$0.0B 2012

BY MARTIN H. REDMAYNE

'16

25 '17

$10m-$20m

$0.0B $0.2B $0.0B

'19

$10m-$20m

125

100

$1.4B Estimated worth $1.25B $1.2B $1.4B $1.2B

Average estimated

$0.8B $0.8B

'13 '13

Average estimated Units sold sale price: $7.4m

$1.4B

50

13

50 25 25 '17 '17 25 0

$1.2B $1.2B

$0.4B $0.4B

75 50 50

'16 '16

$1.4B $1.4B

Estimated 2012 '13 worth '14

Estimated worth

75

Estimated worth Estimated worth

$20m - $40m $1.2B

125 Units sold 125

$0.0B $0.0B

'19 '19

100 Average estimated

100

$0.0B $0.0B

$1.4B$20m-$40m $0m-$5m

Average estimated Units sold sale price: $28.3m Units sold

$5m-$10m

$10m-$20m 125

125

$0.8B $0.8B

61

$1.4B Estimated worth $1.4B Average estimated Average estimated Estimated worth price: $1.4B salesale price: $3m$28.3m $1.2B $1.2B Average estimated 100 $1.4B 125 $0.8B 100 sale price: $7.4m Average estimated $1.2B $1.0B $1.0B 100 €531m sale price: $14.2m $1.2B $0.6B $1.0B 75 $1.0B $1.0B 100 $0.8B 75 $0.8B $0.8B $0.8B $1.0B $0.4B 75 $0.8B €531m $0.8B $0.8B $537m 61 $0.6B $0.6B 18 $0.6B 50 $0.6B 75 50 $0.8B $0.2B 39 $0.6B $0.6B $0.6B $0.4B $0.4B 50 $0.4B $0.4B $537m $0.6B $450m $0.0B 18 25 50 $0.4B 25 $0.4B $0.4B $0.2B '13 '14 $0.2B'15 '16 '17 '18 '19 39 $0.2B $0.2B $0.4B 25 $0.2B $0.2B $0.2B $0.0B $0.0B 250 0 $0.0B $0.0B $0.2B 2012 '13 '14 '15 '16 '17 '18 '19 '19 2012 '13 '14 '15 '16 '17 '18 '19 '19 $0.0B $0.0B $40m+ 0 $0.0B $0m-$5m '19 '19 2012 '13 '14 '15 '16 '17 '18 '19 $0.0B 0 Estimated worth 2012Estimated '13 '14 '15$5m-$10m '16 '17 '18 '19 worth $40m+

39

0 0

2012 0 0

$1.0B $1.0B

$537m $0.4B $0.6B $0.6B

25 25 0

$1.2B $1.2B

75 75

$0.6B $0.8B $0.8B

25 25

$1.4B $1.4B

Average Average estimated estimated

$10m-$20m $10m-$20m

125

'19

Estimated worth Estimated worth

$5m - $10m

Units sold $1.25B Estimated worth Average estimated Units sold $1.4Bsale price: $3m125 Average estimated Estimated worth 100 125 Units sold Estimated worth 100 sale price: $7.4m $1.2B $1.4B $1.4B 125 100 Average estimated Average 75 estimated 100 $1.0B 75 $14.2m sale sale price: price: $14.2m $1.2B $1.2B 100 75 Average aestimated $0.8B 50 $1.0B 75 $83.6m $1.0B sale price: 50

Units sold

'18

50 50

$0.0B $0.0B

'19 '19

$10m-$20m $0m-$5m125

'17

$0.0B 25 25 $0.2B $0.2B $174m$20m-$40m

Estimated worth Estimated worth 100 $1.4B Estimated Estimated worth worth $1.4B Average estimated Average estimated $1.4B $1.4B sale price: sale price: $3m $14.2m $1.2B Average estimated Average75 estimated $1.2B sale sale price: price: $7.4m $7.4m $1.2B $1.2B $1.0B $1.0B

125 125

0 0

'19

$5m-$10m $10m - $20m $5m-$10m

Units sold Units sold Units sold 125 125Units sold

0 0

'18

'16

100 100

$0.6B $0.8B $0.8B $450m $0.4B $0.6B $0.6B $0.2B $0.4B $0.4B

'15

'15

$5m-$10m $0m-$5m

sale sale price: price: $3m $7.4m

$0.8B $1.0B $1.0B

61

64

'14

'14

125 125

$1.0B $1.2B $1.2B

50 75 75

75 75 50

© THE SUPERYACHT AGENCY

$1.4B $1.4B

25 50 50

'13

'13

Units soldsold Units

sale price: $7.4m Estimated worth $1.2B

Average Average estimated estimated sale sale price: price: $3m $3m

2012

$0.0B 2012

75 100 100

0 25 25

$0.2B $174m

0

$1.4B

Average estimated $0m - $5m Estimated worth

100 125 125

100 100 75

|

25

'19

Estimated worth Sales segmented by estimated worth

$0m-$5m $0m-$5m

125 125 100

10

'18

$5m-$10m

Units Units sold sold

Unlike the new-build sector, where the vast majority of deliveries meet Lead Yacht’s $10m value requirement, the brokerage sector is far more diverse. Where the new-build sector has largely homogenised in terms of its designs and technologies, the second-hand brokerage market boasts a great diversity of product of various ages, qualities and, importantly, values. Where one might struggle to find a superyacht for under $10m in the new-build market, the majority of second-hand projects have final asking prices of less than $10m.

$0.4B

$0.0B 2012

Units sold 125

$0.6B

50

$0.2B $174m

0

ANALYSIS OF THE SUPERYACHT BROKERAGE MARKET

101

$1.0B

$0.6B

50

$1.4B

Average estimated

$1.0B

The Superyacht New Build Report I S S UE 2 1 6

100

0

2050

$0.0B

Units sold

'14

'15

'16

'17

'18

'19

Estimated worth

125

$1.4B

Average estimated sale price: $14.2m

$1.2B

100

$1.0B

significant flaws and faults with the yacht. Astonishingly, the advisor managed to convince the buyer that these issues were fixable and not major – mere cosmetic repairs. Consequently, the buyer proceeded as planned.

Simultaneously, the buyer’s family office/private wealth manager also received the survey report and was alarmed by the documented facts and the surveyor’s direct recommendation against purchasing the yacht because the identified issues rendered it unsafe and unhealthy.

Discreetly, the private wealth manager reached out to our team to seek an independent assessment of the yacht and the survey report. The aim was to obtain further insights into the yacht’s value and potential challenges, including an estimate of the investment required to bring it back to operational standards.

Through a series of emails, calls and discussions regarding the reported issues and the estimated investment necessary to rectify them – including addressing maintenance deficiencies and eliminating harmful cultures in freshwater and fuel tanks, and addressing a substandard lazarette opening with rudimentary welding – the client eventually decided to withdraw from the deal.

They opted to re-evaluate their purchasing journey and continue exploring the market for the right yacht, accompanied by the appropriate advice, introductions and insights that ensure their expectations were met. They aimed for full transparency and intelligent due diligence rather than solely relying on an advisor primarily motivated by fees and commissions linked to the transaction value.

Over the past decade, our consultancy team at The Superyacht Agency has been approached by various owners, their family offices or lawyers to provide impartial opinions on a range of matters. These include, as highlighted earlier, independent assessments of prepurchase survey reports, analysis and projections for charter models, validation of acquisition targets, benchmarking of operational budgets and even the exploration of crew salary models for optimisation.

It appears that two considerations are at play: Are owners receiving impartial and objective advice and, more importantly, do they know who to approach when seeking an independent perspective on their investment in the superyacht lifestyle?

Beyond our consistent flow of consultancy projects with shipyards,

The Superyacht Owner Report ISSUE 218

key subcontractors, business leaders, market investors, marina developers and infrastructure teams, we’re expanding our advisory model to encompass owners, potential owners, future buyers, family offices and advisors within a more structured strategy.

With more than 30 years of experience in the industry, we’ve scrutinised and comprehended the numerous facets and layers of ownership. As a result, we’ve developed a business model that enables owners to pose both straightforward and intricate queries. Our model offers research, analysis, opinions and ideas designed to guide buyers, owners or investors towards intelligent decisions, devoid of bias.

Our approach mirrors that of lawyers or accountants, with fees calculated based on hours or days, without any incentives, commissions or rewards from

75

$0.8B

any involved parties. We rely solely on fees paid by the principal for the advice provided by our team. The objective is to serve as an owner’s consultant, working exclusively for the owner and no one else.

Regardless of the amount invested in yachting, it’s prudent to take the time to contemplate and explore options with due diligence, incorporating thirdparty perspectives from individuals working exclusively for the buyer on a professional fee basis, similar to how a lawyer functions in a business deal or acquisition.

We’re not here to slow down a transaction or spoil the fun of asset purchase, but rather to add an element of independence that offers buyers or owners enhanced clarity in their decisions. To better understand what we provide or how we work, please contact martin@thesuperyachtagency.com. $0.6B

50

$0.4B

25

$0.2B

0

$0.0B

2012

'13

'14

'15

'16

'17

'18

'19

81

PARTNER CONTENT

Reinventing the deal

Olivier Blanchet, Head of Jet & Yacht Finance Services, BNP Paribas, explains how the global banking system can help drive the changes necessary to ensure a positive future for the yachting industry.

Climate change is forcing many sectors to reinvent themselves, and the yachting industry is no exception. Indeed, it’s facing one of its greatest challenges.

The new constraints in terms of finance and corporate reporting related to CO2 emissions represent a structural rethinking. They also present an opportunity to promote the efforts made to decarbonise the sector and upgrade the business models in the maritime industry.

“The window to take urgent climate action is closing rapidly,” warned António Guterres, United Nations SecretaryGeneral, in 2022. High-net-worth individuals (HNWIs) and developed countries find themselves in the midst of public scrutiny; they have the legal power and the financial means to make the appropriate changes, and the pressure will continue to increase.

Eco-activists are more organised, well advised and are increasingly successful in raising funds for their cause. If nothing changes, developed countries and HNWIs will be seen as responsible, increasing the perception gap between rich and poor.

The risk of disappearance is high, not just for industries, but also for entire ecosystems. ‘Sector transformation at full speed’ remains the key phrase. Today, the current trajectory doesn’t allow us to limit global warming to 1.5 degrees as determined during COP 21, and the world is more likely on course for a figure of more than four degrees. This is why public authorities have decided to speed up and leverage the banking system, helping them channel the money, the credits, and the investments to decarbonise the economy at full pace.

82

The winners will be those proactive in implementing what public authorities aim to achieve.

In this regard, the Net-Zero Banking Alliance, signed by BNP Paribas, along with 120 other banks representing 40 per cent of the global banking world, is a commitment to achieve carbon neutrality by 2050.

Net-zero, as defined by the Intergovernmental Panel on Climate Change (IPCC), is the balance achieved when greenhouse gas emissions are offset by their removal from the atmosphere, aiming to limit global warming to an increase of 1.5°C. Considering the figures published for each country and sector, the yachting industry will have to reduce its CO2 emissions by 80 per cent before 2050, based on the figures published in 2019.

European and UK public authorities have defined certain rules to report and communicate the efforts made by financial and non-financial companies.

They apply to all companies with more than 250 employees, €40 million of revenues and a €20 million total balance sheet. If a company meets two of these three criteria, it has an obligation to report.

A corporate sustainability due diligence directive proposed in February 2022 fosters further sustainable and responsible corporate behaviour, and will also be enforced in the coming years.

One of the immediate operational actions to be taken is the need to calculate the energy efficiency of any vessel above 400gt, benchmarked against a ship index. This has been

mandatory since 1 January 2023, under the Marpol VI regulations. The (super) yachting industry can easily adapt this norm on a voluntary basis.

In 2022, BNP Paribas published its first Climate Analytics and Alignment Report, describing how the group will achieve its trajectory towards net-zero and begin applying this approach to its most carbon-intensive sectors. By 2024, the aviation and maritime sectors will be integrated into this approach, increasing our selectivity.

The procedure used is the PACTA methodology, a free, open-source tool that measures the alignment of financial portfolios with various climate scenarios consistent with the Paris Agreement.

It was developed for COP21 with the support of the Greenhouse Gas Protocol and the International Organization for Standardization.

There are three types of emissions: direct emissions, which are easy to define and related to a company’s industrial processes; indirect emissions, those being the emissions of a company’s providers/suppliers (electricity suppliers, transport of spare parts); and indirect emissions occurring in the value chain, including both upstream and downstream, classified into 15 categories.

For example, shipyards have a distribution of CO2 emissions mainly represented by indirect emissions: those of suppliers and subcontractors and ones coming from the output of the yachts and superyachts themselves. BNP Paribas selects future emissions scenarios, sets a target to reduce financed emissions, and then determines how to reduce the carbon intensity of our portfolios.

This means, for instance, that we will reduce our finance advance ratio on secondhand vessels over five years old without significant upgrades or refits.

We strongly believe that the current evolution will impact the secondhand value of existing yachts and will influence the advance ratios that banks will provide in terms of financing. For example, we promote the yachts and superyachts that have better efficiency in terms of GT per nautical mile. We also focus only on yacht managers who have adopted an ISO 14064 and ISO 50001 approach, just like the shipyards.

In other words, nowadays, financial institutions incorporate non-financial

The Superyacht Owner Report ISSUE 218

Olivier Blanchet

In the near future, yacht owners could be viewed as the guardian angels of the oceans, going beyond merely decarbonising their assets. This could transform a reputational constraint into a significant opportunity.

criteria into how they structure financing transactions. They are more selective, considering the yacht itself, technical yacht managers and shipyards in their evaluations.

Shipyards have a duty of care to communicate their CO2 emissions and commit to a net-zero carbon objective by 2050, setting intermediary targets for themselves and extending this scope to their providers and products.

BNP Paribas Jet & Yacht finance has defined its methodology in four steps: • Define the assessment framework and consider the direct emissions in the assets we finance.

• Collect data from the captains and yacht managers. BNP Paribas has a duty to collect relevant CO2 emissions from its clients, weigh them against loan exposure, calculate a carbon-intensity ratio at the portfolio level and compare these ratios with decarbonisation trajectories set by the IMO for 2050.

• Define and align our CO2 trajectory in accordance with the bank strategy and IPCC recommendations.

• Refine our credit policy to improve the carbon intensity of our portfolio. We aim to increase our due diligence on yacht managers to reduce the environmental footprint. Additionally, we plan to finetune our loan documentation to integrate environmental constraints such as on hazardous substances, spill prevention, control plans, crew training and wastemanagement systems.

The best way to maintain a constructive dialogue with the public and regulators is to provide facts and disclose progress, which must be endorsed by a recognised sustainability watchdog, to contribute to improving the image of the yachting industry.

We strongly believe there is a significant opportunity for yacht owners today. In the near future, they could be viewed as the guardian angels of the oceans, going beyond merely decarbonising their assets. This could transform what is currently a reputational constraint into a significant opportunity.

In other words, let’s create a sustainable use value attached to the yacht and its owner. The demands of the new UHNWI generation will undoubtedly move in this direction. The interior outfitting, the nature of the sea toys and the type of entertainment on board are set to evolve in the coming years.

83

PARTNER CONTENT

Reinventing the deal

Olivier Blanchet, Head of Jet & Yacht Finance Services, BNP Paribas, explains how the global banking system can help drive the changes necessary to ensure a positive future for the yachting industry.

Climate change is forcing many sectors to reinvent themselves, and the yachting industry is no exception. Indeed, it’s facing one of its greatest challenges.

The new constraints in terms of finance and corporate reporting related to CO2 emissions represent a structural rethinking. They also present an opportunity to promote the efforts made to decarbonise the sector and upgrade the business models in the maritime industry.

“The window to take urgent climate action is closing rapidly,” warned António Guterres, United Nations SecretaryGeneral, in 2022. High-net-worth individuals (HNWIs) and developed countries find themselves in the midst of public scrutiny; they have the legal power and the financial means to make the appropriate changes, and the pressure will continue to increase.

Eco-activists are more organised, well advised and are increasingly successful in raising funds for their cause. If nothing changes, developed countries and HNWIs will be seen as responsible, increasing the perception gap between rich and poor.

The risk of disappearance is high, not just for industries, but also for entire ecosystems. ‘Sector transformation at full speed’ remains the key phrase. Today, the current trajectory doesn’t allow us to limit global warming to 1.5 degrees as determined during COP 21, and the world is more likely on course for a figure of more than four degrees. This is why public authorities have decided to speed up and leverage the banking system, helping them channel the money, the credits, and the investments to decarbonise the economy at full pace.

82

The winners will be those proactive in implementing what public authorities aim to achieve.

In this regard, the Net-Zero Banking Alliance, signed by BNP Paribas, along with 120 other banks representing 40 per cent of the global banking world, is a commitment to achieve carbon neutrality by 2050.

Net-zero, as defined by the Intergovernmental Panel on Climate Change (IPCC), is the balance achieved when greenhouse gas emissions are offset by their removal from the atmosphere, aiming to limit global warming to an increase of 1.5°C. Considering the figures published for each country and sector, the yachting industry will have to reduce its CO2 emissions by 80 per cent before 2050, based on the figures published in 2019.

European and UK public authorities have defined certain rules to report and communicate the efforts made by financial and non-financial companies.

They apply to all companies with more than 250 employees, €40 million of revenues and a €20 million total balance sheet. If a company meets two of these three criteria, it has an obligation to report.

A corporate sustainability due diligence directive proposed in February 2022 fosters further sustainable and responsible corporate behaviour, and will also be enforced in the coming years.

One of the immediate operational actions to be taken is the need to calculate the energy efficiency of any vessel above 400gt, benchmarked against a ship index. This has been

mandatory since 1 January 2023, under the Marpol VI regulations. The (super) yachting industry can easily adapt this norm on a voluntary basis.

In 2022, BNP Paribas published its first Climate Analytics and Alignment Report, describing how the group will achieve its trajectory towards net-zero and begin applying this approach to its most carbon-intensive sectors. By 2024, the aviation and maritime sectors will be integrated into this approach, increasing our selectivity.

The procedure used is the PACTA methodology, a free, open-source tool that measures the alignment of financial portfolios with various climate scenarios consistent with the Paris Agreement.

It was developed for COP21 with the support of the Greenhouse Gas Protocol and the International Organization for Standardization.

There are three types of emissions: direct emissions, which are easy to define and related to a company’s industrial processes; indirect emissions, those being the emissions of a company’s providers/suppliers (electricity suppliers, transport of spare parts); and indirect emissions occurring in the value chain, including both upstream and downstream, classified into 15 categories.

For example, shipyards have a distribution of CO2 emissions mainly represented by indirect emissions: those of suppliers and subcontractors and ones coming from the output of the yachts and superyachts themselves. BNP Paribas selects future emissions scenarios, sets a target to reduce financed emissions, and then determines how to reduce the carbon intensity of our portfolios.

This means, for instance, that we will reduce our finance advance ratio on secondhand vessels over five years old without significant upgrades or refits.

We strongly believe that the current evolution will impact the secondhand value of existing yachts and will influence the advance ratios that banks will provide in terms of financing. For example, we promote the yachts and superyachts that have better efficiency in terms of GT per nautical mile. We also focus only on yacht managers who have adopted an ISO 14064 and ISO 50001 approach, just like the shipyards.

In other words, nowadays, financial institutions incorporate non-financial

The Superyacht Owner Report ISSUE 218

Olivier Blanchet

In the near future, yacht owners could be viewed as the guardian angels of the oceans, going beyond merely decarbonising their assets. This could transform a reputational constraint into a significant opportunity.

criteria into how they structure financing transactions. They are more selective, considering the yacht itself, technical yacht managers and shipyards in their evaluations.

Shipyards have a duty of care to communicate their CO2 emissions and commit to a net-zero carbon objective by 2050, setting intermediary targets for themselves and extending this scope to their providers and products.

BNP Paribas Jet & Yacht finance has defined its methodology in four steps: • Define the assessment framework and consider the direct emissions in the assets we finance.

• Collect data from the captains and yacht managers. BNP Paribas has a duty to collect relevant CO2 emissions from its clients, weigh them against loan exposure, calculate a carbon-intensity ratio at the portfolio level and compare these ratios with decarbonisation trajectories set by the IMO for 2050.

• Define and align our CO2 trajectory in accordance with the bank strategy and IPCC recommendations.

• Refine our credit policy to improve the carbon intensity of our portfolio. We aim to increase our due diligence on yacht managers to reduce the environmental footprint. Additionally, we plan to finetune our loan documentation to integrate environmental constraints such as on hazardous substances, spill prevention, control plans, crew training and wastemanagement systems.

The best way to maintain a constructive dialogue with the public and regulators is to provide facts and disclose progress, which must be endorsed by a recognised sustainability watchdog, to contribute to improving the image of the yachting industry.

We strongly believe there is a significant opportunity for yacht owners today. In the near future, they could be viewed as the guardian angels of the oceans, going beyond merely decarbonising their assets. This could transform what is currently a reputational constraint into a significant opportunity.

In other words, let’s create a sustainable use value attached to the yacht and its owner. The demands of the new UHNWI generation will undoubtedly move in this direction. The interior outfitting, the nature of the sea toys and the type of entertainment on board are set to evolve in the coming years.

83

The industry's role in the Blue Planet

Blue Planet III: How we can all help

BY JACK HOGAN

As the third season of this iconic BBC show enters production, observations and footage from the superyacht fleet could prove pivotal to its next evolution.

84

The Superyacht Owner Report ISSUE 218

85

The industry's role in the Blue Planet

Blue Planet III: How we can all help

BY JACK HOGAN

As the third season of this iconic BBC show enters production, observations and footage from the superyacht fleet could prove pivotal to its next evolution.

84

The Superyacht Owner Report ISSUE 218

85

M

ore than two decades have passed since the airing of the first season of the BBC documentary series Blue Planet. For an oceanobsessed 14-year-old like myself, and for generations of budding explorers, it was a transformative experience. Both the original series and its successor, Blue Planet II, redefined nature filmmaking, immersing audiences in the unseen corners of the ocean with unprecedented detail.

As the BBC production team gathers inspiration for the highly anticipated third season, James Brickell, series producer for Blue Planet III, spoke to TSG about the series’s mission, the unexpected observations that have led to some of its most memorable moments and the potential role the superyacht fleet can play in shaping the next instalment.

The production team has publicly called for footage and observations of marine animal behaviour, and Brickell explains that as unique narratives from scientists and citizen observers with compelling stories were an integral part of the last season, they are also poised to underpin the next evolution of wildlife documentary filmmaking.

“We are currently on the lookout

for captivating and unusual animal behaviours from the marine world, and we would love your help. Some memorable BBC nature sequences began as observations by wildlife enthusiasts from across the globe,” says Brickell.

The third series will delve into the five major underwater habitats: the tropical seas, temperate seas, Polar seas, high seas and deep seas, while the sixth episode will explore how the seas are changing. The superyacht fleet is dispersed throughout these regions, presenting owners, guests and crew with the opportunity to share their experiences.

“For this season, we are interested in both underwater and coastal stories, animal moments that could feature anything from fish to marine mammals, invertebrates to seabirds, even land animals which interact with the ocean in some way,” adds Brickell. “We are looking for visually impressive and novel animal behaviours – whether that’s a fascinating courtship display, a clever feeding technique, impressive aggregations or unusual species interactions.”

About 15 years ago, Brickell and the BBC pioneered a wildlife show that utilised user-generated content for the first time. With technological advance-

“People often recount events or sightings they don’t fully comprehend.

We follow up on these leads, which can result in us documenting unusual events.”

Photo: Jack Hogan

86

Opposite: Iguanas, Cocos islands. Right: Booby, Galapagos.

Below: Adélie penguins in the Antarctica.

Photo: Jack Hogan

ments and increasing access to highresolution cameras, submersibles and drones, the potential for this approach has grown exponentially – nowhere more so than on board today’s superyacht fleet.

“As a filmmaker, I draw inspiration from dive guides, boat owners, fishermen and sometimes even casual barside stories,” says Brickell. “People often recount events or sightings they don’t fully comprehend. We follow up on these leads, which can result in us documenting unusual events.

“The unpredictability of the sea means that what we film one week could be entirely different the next. That is the allure of working on a show like this, but it also presents a challenge for us to find the most compelling footage.”

Few observers are as ideally positioned to contribute to this endeavour as the far-reaching superyacht fleet.

Equipped with state-of-the-art technology, these yachts and their observant guests and crew are more engaged and connected than ever before. Many yachts have witnessed extraordinary examples of marine behaviour, but these often go no further than the memories and hard drives of guests and crew.

Sometimes, as Brickell explains, untrained observers may not recognise the significance of what they have seen.

He recalls an encounter in Queensland, Australia, where local tour operators reported sightings of lemon sharks breaching and seemingly working together to herd baitfish – a behaviour previously unknown to science.

The team visited the location and filmed the sharks, resulting in both an astonishing shot for the Barrier Reef TV

The Superyacht Owner Report ISSUE 218

87

M

ore than two decades have passed since the airing of the first season of the BBC documentary series Blue Planet. For an oceanobsessed 14-year-old like myself, and for generations of budding explorers, it was a transformative experience. Both the original series and its successor, Blue Planet II, redefined nature filmmaking, immersing audiences in the unseen corners of the ocean with unprecedented detail.

As the BBC production team gathers inspiration for the highly anticipated third season, James Brickell, series producer for Blue Planet III, spoke to TSG about the series’s mission, the unexpected observations that have led to some of its most memorable moments and the potential role the superyacht fleet can play in shaping the next instalment.

The production team has publicly called for footage and observations of marine animal behaviour, and Brickell explains that as unique narratives from scientists and citizen observers with compelling stories were an integral part of the last season, they are also poised to underpin the next evolution of wildlife documentary filmmaking.

“We are currently on the lookout

for captivating and unusual animal behaviours from the marine world, and we would love your help. Some memorable BBC nature sequences began as observations by wildlife enthusiasts from across the globe,” says Brickell.

The third series will delve into the five major underwater habitats: the tropical seas, temperate seas, Polar seas, high seas and deep seas, while the sixth episode will explore how the seas are changing. The superyacht fleet is dispersed throughout these regions, presenting owners, guests and crew with the opportunity to share their experiences.

“For this season, we are interested in both underwater and coastal stories, animal moments that could feature anything from fish to marine mammals, invertebrates to seabirds, even land animals which interact with the ocean in some way,” adds Brickell. “We are looking for visually impressive and novel animal behaviours – whether that’s a fascinating courtship display, a clever feeding technique, impressive aggregations or unusual species interactions.”

About 15 years ago, Brickell and the BBC pioneered a wildlife show that utilised user-generated content for the first time. With technological advance-

“People often recount events or sightings they don’t fully comprehend.

We follow up on these leads, which can result in us documenting unusual events.”

Photo: Jack Hogan

86

Opposite: Iguanas, Cocos islands. Right: Booby, Galapagos.

Below: Adélie penguins in the Antarctica.

Photo: Jack Hogan

ments and increasing access to highresolution cameras, submersibles and drones, the potential for this approach has grown exponentially – nowhere more so than on board today’s superyacht fleet.

“As a filmmaker, I draw inspiration from dive guides, boat owners, fishermen and sometimes even casual barside stories,” says Brickell. “People often recount events or sightings they don’t fully comprehend. We follow up on these leads, which can result in us documenting unusual events.

“The unpredictability of the sea means that what we film one week could be entirely different the next. That is the allure of working on a show like this, but it also presents a challenge for us to find the most compelling footage.”

Few observers are as ideally positioned to contribute to this endeavour as the far-reaching superyacht fleet.

Equipped with state-of-the-art technology, these yachts and their observant guests and crew are more engaged and connected than ever before. Many yachts have witnessed extraordinary examples of marine behaviour, but these often go no further than the memories and hard drives of guests and crew.

Sometimes, as Brickell explains, untrained observers may not recognise the significance of what they have seen.

He recalls an encounter in Queensland, Australia, where local tour operators reported sightings of lemon sharks breaching and seemingly working together to herd baitfish – a behaviour previously unknown to science.

The team visited the location and filmed the sharks, resulting in both an astonishing shot for the Barrier Reef TV

The Superyacht Owner Report ISSUE 218

87

M/V Alucia.

series and a scientific breakthrough.

While filming, a yacht owner offered their vessel when the team faced logistical issues, enabling filming to continue after some necessary minor modifications to the vessel and its tenders.

Much of Blue Planet, and wildlife documentary filmmaking in general, unfolds at the intersection of ecosystems and human influences. The superyacht fleet finds itself at this nexus. With more than 6,000 vessels in the active fleet and tens of thousands of increasingly environmentally conscious crew and owners, there is a real opportunity to make a significant impact.

The superyacht fleet was a key contributor in terms of logistical support to the second season of Blue Planet, when the 56-metre exploration vessel Alucia played a pivotal role, allowing the series to be filmed in Antarctica during the austral summer of 2016/17. With coordination and assistance from EYOS Expeditions, and with a Triton 3300/3 submersible on board, its filming under

88

“Everyone carries a camera nowadays and that’s revolutionising how we document marine life.”

the ice sheet made for some of the most iconic footage from the series.

“The oceans and ecosystems are changing, and the human impact is undeniable,” says Brickell. “The new season will not shy away from this.

The stories we aim to tell aren’t just about discovering new species and environments, they are also about how humanity is impacting the marine ecosystem and [how] technology is transforming our access to the marine world.

Everyone carries a camera nowadays and that’s revolutionising how we document marine life.”

With its potential to influence our understanding of the oceans, Blue Planet III is set to captivate millions of viewers worldwide, creating a definitive legacy for marine exploration and conservation. JH Please email submissions@ thesuperyachtgroup.com if you have any experiences to share with the Blue Planet production team.

M/V Alucia.

series and a scientific breakthrough.

While filming, a yacht owner offered their vessel when the team faced logistical issues, enabling filming to continue after some necessary minor modifications to the vessel and its tenders.

Much of Blue Planet, and wildlife documentary filmmaking in general, unfolds at the intersection of ecosystems and human influences. The superyacht fleet finds itself at this nexus. With more than 6,000 vessels in the active fleet and tens of thousands of increasingly environmentally conscious crew and owners, there is a real opportunity to make a significant impact.

The superyacht fleet was a key contributor in terms of logistical support to the second season of Blue Planet, when the 56-metre exploration vessel Alucia played a pivotal role, allowing the series to be filmed in Antarctica during the austral summer of 2016/17. With coordination and assistance from EYOS Expeditions, and with a Triton 3300/3 submersible on board, its filming under

88

“Everyone carries a camera nowadays and that’s revolutionising how we document marine life.”

the ice sheet made for some of the most iconic footage from the series.

“The oceans and ecosystems are changing, and the human impact is undeniable,” says Brickell. “The new season will not shy away from this.

The stories we aim to tell aren’t just about discovering new species and environments, they are also about how humanity is impacting the marine ecosystem and [how] technology is transforming our access to the marine world.

Everyone carries a camera nowadays and that’s revolutionising how we document marine life.”

With its potential to influence our understanding of the oceans, Blue Planet III is set to captivate millions of viewers worldwide, creating a definitive legacy for marine exploration and conservation. JH Please email submissions@ thesuperyachtgroup.com if you have any experiences to share with the Blue Planet production team.

GET ONBOARD WITH OFF THE CHART COLOR

Scrutinising maternity policies

The pregnant flaws

BY GEORGIA TINDALE

Is it now time to create a culture in which crewmembers feel more secure about their rights regarding pregnancy while working on board?

Here, current crew, management companies and captains lift the lid on their varied experiences.

H

Everything you love about Awlcraft 2000, including tried and trusted application characteristics and repairability, but now enhanced with our next generation color platform. Awlcraft 3000 gives you deeper, more vibrant colors and a long lasting, high gloss finish to turn heads.

Hospital

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The Superyacht Owner Report ISSUE 218

91

GET ONBOARD WITH OFF THE CHART COLOR

Scrutinising maternity policies

The pregnant flaws

BY GEORGIA TINDALE

Is it now time to create a culture in which crewmembers feel more secure about their rights regarding pregnancy while working on board?

Here, current crew, management companies and captains lift the lid on their varied experiences.

H

Everything you love about Awlcraft 2000, including tried and trusted application characteristics and repairability, but now enhanced with our next generation color platform. Awlcraft 3000 gives you deeper, more vibrant colors and a long lasting, high gloss finish to turn heads.

Hospital

Maternity

GET ONBOARD WITH AWLCRAFT 3000

awlgrip.com

The Superyacht Owner Report ISSUE 218

91

Some names have been changed to protect speakers’ identities.

P

icture the scene: You are a 24-yearold junior stewardess working on board your first 45-metre motoryacht in the Mediterranean. You’ve just finished a gruelling 12-hour day on charter and you’re more than ready to wind down for the evening. You can feel the mid-season madness kicking in, and there’s only so much more time you can spend cleaning, folding and arranging before you start to thoroughly lose the plot.

You’ve been feeling a little off and tired for the past few weeks, so, on a whim, you take the white test that you had packed with you into the bathroom. The result? A clear blue line.

It’s unmistakeably positive. You are pregnant. Panic sets in, a million thoughts rush through your head all at once – the main one being “How am I going to break this news to the captain and rest of the crew? Is my career in yachting over before it has really begun?”.

A safety risk?

When one delves into the question of what happens in practice to pregnant crewmembers on board, the answer isn’t straightforward because it depends on the approach of each individual boat. When asked, crew have shared numerous stories of stewardesses being kicked off their boats as soon as they inform the captain of their pregnancies.

They can be viewed primarily as an onboard health-and-safety risk and as a burden for the rest of the crew, who must pick up the slack when the pregnant crewmember is no longer deemed ‘fit enough’ to carry out their tasks.

In one particularly harrowing example, former crewmember Amelia

92

tells of her experience of going through a miscarriage while employed as crew: “I was working on board with my partner at the time. I could feel something was not right and did some pregnancy tests. I turned out to be pregnant, but at a very early stage. This was not planned, and the boat was still unaware at this stage.

“We had to process it ourselves first as we hadn’t been together that long yet and weren’t sure if we wanted to keep it [the baby]. That decision was made for us when, a week later, I started to be in a lot of pain. I told the chief stew and captain what was happening and decided to get off the boat for a few nights.

“I consulted a doctor and was told to go home and get checked properly and rest. So I did and took sick leave from the boat. It was mid-season, so this caused issues for the programme, but they quickly found a girl to replace me and all was well.”

However, when Amelia looked to return to work, her ordeal continued.

“Once I had recovered and was given the green light from the doctor to go back to the boat, I was told they preferred to keep the new girl. I didn’t take it personally until I got told that it was because it had been a pregnancy and they couldn’t risk me being with my boyfriend on that boat.

“On top of that, management refused to pay me out my notice period. They tried to force me to sign an amendment to my contract, which I refused. I had to get the help of [yachting trade union] Nautilus International to get my final month’s pay. This took them two-and-ahalf years.”

As for the support Amelia received

from the captain and crew on board, it was entirely lacking.

“I got no support at all from my captain – the management company just took all the decisions. I do not work for that management company, and neither does my husband, who still works in the industry. I have become a lot stronger because of this experience and put my health and self-worth before any boat.”

Calmer waters In contrast, when chief stewardess Hannah informed her boat about her pregnancy, her experiences were much more positive.

“I fell pregnant in November 2020 while working on a private boat. I worked right up to my delivery date, by choice.

My captain said I could work whatever hours worked for me and take days off when I felt I needed to. I was lucky and had an uncomplicated, easy pregnancy.

Therefore, I felt fit to work until the very end. I worked the Friday, and gave birth on Monday.”

Furthermore, in stark contrast to Amelia’s experiences, Hannah’s captain was flexible in adapting the role to her needs post-birth.

“I assisted the captain in finding my replacement. I worked from home when it suited me. I started back again when I was ready, which was six weeks after the birth. After finding my replacement, I continued to assist the captain with recruiting. I’m two years postpartum and still help out when needed. Overall, I was wholeheartedly supported by the captain, owners and crew and feel very lucky to have had such a positive experience.”

Economic issues When approaching the topic of pregnancy from outside of yachting, one might assume that maternity and/ or paternity leave would be factored into crew contracts by management companies, but this doesn’t appear to be current practice in the industry.

Although the majority of the larger management companies declined to give specifics when we invited them to outline their policies in this area, one possible rationale for this can be found in the need to manage the needs of the owners.

Rick Thomas, president of the Fort Lauderdale-based management company JMS Yachting USA, explains, “If we were to have a quiet conversation with our owners and say ‘We want maternity benefits for all of our interior staff’, their first reaction is going to be ‘Why? That makes no sense’ because from their perspective, as soon as she goes on these maternity benefits, she’s going to have her baby and, realistically, not come back.

“The angst for owners is that these are people that have invested thousands of dollars into getting crew into these programmes, only for them to leave after a few months. This is just one example of the transitory crew culture in our industry.”

However, when an owner has a particularly strong relationship with a crewmember, exceptions can be made.

Thomas says, “I am aware of one couple who were a husband-wife captain and chief stewardess team. She got pregnant and her boss was so happy, so supportive and so pro-family that he let her stay on board.

“He even gave her a stateroom so

The Superyacht Owner Report ISSUE 218

“The angst for owners is that these are people that have invested thousands of dollars into getting crew into these programmes, only for them to leave after a few months. This is just one example of the transitory crew culture in our industry.”

they could have a place to have the baby – they had nanny service and everything, and then she was given as much maternity leave as she wanted afterwards. It’s rare, but it does happen.”

It’s life, not a problem Frank, an operations manager from a well-known yacht-management company, explains that successfully addressing this complex issue is about balancing everyone’s best interests – the pregnant crewmember and their family, the other crew and the owner themselves. “We don’t look upon this as a difficult situation, it is an unusual situation, but it is life, and life is going to happen.”

He adds, “There is the health aspect to be taken into account, meaning that we make a risk assessment in which we look at what role this crewmember fulfils, see if they are healthy and determine if there are medical facilities accessible nearby.

“We also need to look at where in the season the birth will fall and the size of the remaining crew. In this way we can factor in the crewmember’s work, the impact it will have on the rest of the crew and the medical support and supervision that may be needed.

"Medical appointments and scans can be done, roles can be adjusted, but if the crewmember is not going to be able to fulfil their role sufficiently it may well overload the other crew. There may be very different conclusions to the assessment. You need to look at all of these factors, and then have an open, kind and frank conversation with the individual where you reach a mutually beneficial outcome.”

93

Some names have been changed to protect speakers’ identities.

P

icture the scene: You are a 24-yearold junior stewardess working on board your first 45-metre motoryacht in the Mediterranean. You’ve just finished a gruelling 12-hour day on charter and you’re more than ready to wind down for the evening. You can feel the mid-season madness kicking in, and there’s only so much more time you can spend cleaning, folding and arranging before you start to thoroughly lose the plot.

You’ve been feeling a little off and tired for the past few weeks, so, on a whim, you take the white test that you had packed with you into the bathroom. The result? A clear blue line.

It’s unmistakeably positive. You are pregnant. Panic sets in, a million thoughts rush through your head all at once – the main one being “How am I going to break this news to the captain and rest of the crew? Is my career in yachting over before it has really begun?”.

A safety risk?

When one delves into the question of what happens in practice to pregnant crewmembers on board, the answer isn’t straightforward because it depends on the approach of each individual boat. When asked, crew have shared numerous stories of stewardesses being kicked off their boats as soon as they inform the captain of their pregnancies.

They can be viewed primarily as an onboard health-and-safety risk and as a burden for the rest of the crew, who must pick up the slack when the pregnant crewmember is no longer deemed ‘fit enough’ to carry out their tasks.

In one particularly harrowing example, former crewmember Amelia

92

tells of her experience of going through a miscarriage while employed as crew: “I was working on board with my partner at the time. I could feel something was not right and did some pregnancy tests. I turned out to be pregnant, but at a very early stage. This was not planned, and the boat was still unaware at this stage.

“We had to process it ourselves first as we hadn’t been together that long yet and weren’t sure if we wanted to keep it [the baby]. That decision was made for us when, a week later, I started to be in a lot of pain. I told the chief stew and captain what was happening and decided to get off the boat for a few nights.

“I consulted a doctor and was told to go home and get checked properly and rest. So I did and took sick leave from the boat. It was mid-season, so this caused issues for the programme, but they quickly found a girl to replace me and all was well.”

However, when Amelia looked to return to work, her ordeal continued.

“Once I had recovered and was given the green light from the doctor to go back to the boat, I was told they preferred to keep the new girl. I didn’t take it personally until I got told that it was because it had been a pregnancy and they couldn’t risk me being with my boyfriend on that boat.

“On top of that, management refused to pay me out my notice period. They tried to force me to sign an amendment to my contract, which I refused. I had to get the help of [yachting trade union] Nautilus International to get my final month’s pay. This took them two-and-ahalf years.”

As for the support Amelia received

from the captain and crew on board, it was entirely lacking.

“I got no support at all from my captain – the management company just took all the decisions. I do not work for that management company, and neither does my husband, who still works in the industry. I have become a lot stronger because of this experience and put my health and self-worth before any boat.”

Calmer waters In contrast, when chief stewardess Hannah informed her boat about her pregnancy, her experiences were much more positive.

“I fell pregnant in November 2020 while working on a private boat. I worked right up to my delivery date, by choice.

My captain said I could work whatever hours worked for me and take days off when I felt I needed to. I was lucky and had an uncomplicated, easy pregnancy.

Therefore, I felt fit to work until the very end. I worked the Friday, and gave birth on Monday.”

Furthermore, in stark contrast to Amelia’s experiences, Hannah’s captain was flexible in adapting the role to her needs post-birth.

“I assisted the captain in finding my replacement. I worked from home when it suited me. I started back again when I was ready, which was six weeks after the birth. After finding my replacement, I continued to assist the captain with recruiting. I’m two years postpartum and still help out when needed. Overall, I was wholeheartedly supported by the captain, owners and crew and feel very lucky to have had such a positive experience.”

Economic issues When approaching the topic of pregnancy from outside of yachting, one might assume that maternity and/ or paternity leave would be factored into crew contracts by management companies, but this doesn’t appear to be current practice in the industry.

Although the majority of the larger management companies declined to give specifics when we invited them to outline their policies in this area, one possible rationale for this can be found in the need to manage the needs of the owners.

Rick Thomas, president of the Fort Lauderdale-based management company JMS Yachting USA, explains, “If we were to have a quiet conversation with our owners and say ‘We want maternity benefits for all of our interior staff’, their first reaction is going to be ‘Why? That makes no sense’ because from their perspective, as soon as she goes on these maternity benefits, she’s going to have her baby and, realistically, not come back.

“The angst for owners is that these are people that have invested thousands of dollars into getting crew into these programmes, only for them to leave after a few months. This is just one example of the transitory crew culture in our industry.”

However, when an owner has a particularly strong relationship with a crewmember, exceptions can be made.

Thomas says, “I am aware of one couple who were a husband-wife captain and chief stewardess team. She got pregnant and her boss was so happy, so supportive and so pro-family that he let her stay on board.

“He even gave her a stateroom so

The Superyacht Owner Report ISSUE 218

“The angst for owners is that these are people that have invested thousands of dollars into getting crew into these programmes, only for them to leave after a few months. This is just one example of the transitory crew culture in our industry.”

they could have a place to have the baby – they had nanny service and everything, and then she was given as much maternity leave as she wanted afterwards. It’s rare, but it does happen.”

It’s life, not a problem Frank, an operations manager from a well-known yacht-management company, explains that successfully addressing this complex issue is about balancing everyone’s best interests – the pregnant crewmember and their family, the other crew and the owner themselves. “We don’t look upon this as a difficult situation, it is an unusual situation, but it is life, and life is going to happen.”

He adds, “There is the health aspect to be taken into account, meaning that we make a risk assessment in which we look at what role this crewmember fulfils, see if they are healthy and determine if there are medical facilities accessible nearby.

“We also need to look at where in the season the birth will fall and the size of the remaining crew. In this way we can factor in the crewmember’s work, the impact it will have on the rest of the crew and the medical support and supervision that may be needed.

"Medical appointments and scans can be done, roles can be adjusted, but if the crewmember is not going to be able to fulfil their role sufficiently it may well overload the other crew. There may be very different conclusions to the assessment. You need to look at all of these factors, and then have an open, kind and frank conversation with the individual where you reach a mutually beneficial outcome.”

93

PARTNER CONTENT

If we were to create a culture in which crew feel more secure and valued, with their rights around pregnancy and maternity/paternity leave secured, surely this could pay dividends where crew retention is concerned.

Rethinking the chicken and egg With its gruelling working hours and long stints away from home, it’s certainly no secret that yachting is not an industry that, on paper, lends itself to successfully balancing work and family life. In Frank’s estimation, fewer than one per cent of those in the industry who leave to have a baby will return to a boat-based role, with many opting to work in shore-based businesses that are more amenable to achieving this balance.

That said, the point about the transitory nature of current crew employment culture is worth reflecting on when it comes to the question of pregnancy in yachting. If we were to create a culture in which crew feel more secure and valued, with their rights around pregnancy and maternity/ paternity leave secured, surely this could pay dividends where crew retention is concerned, with an increased likelihood that crew will see a long-term future for themselves in the industry.

Captain Kelly Gordon, currently driving the 33-metre Pershing Andiamo II, thinks this prospect isn’t too idealistic. It could just take a bit of

94

creative thinking from the industry which already factors in many senior crewmembers working on a rotational basis, often to accommodate family pressures.

Gordon says, “If I could design a pregnancy-friendly programme, it would offer that when the boat is going to a remote area, and the individual is concerned about accessing medical care, they could go on leave and have a freelance person fill in for them, but does not take their position.

“This kind of flexibility and consideration should just be part of the contracts for everyone, regardless of gender, so that people know the maternity/paternity policies of each boat before they take on a role. They can then plan their families, and their future careers, with their eyes wide open.” GT If you have been affected by any of the issues raised in this article, please reach out to: • Yacht Crew Help • The Crew Mess • Nautilus International • www.iasp.info/crisis-centres-helplines/

Elevating maritime excellence: a new chapter unfolds at Palma Superyacht Village From its stunning location at Moll Vell in the heart of Palma de Mallorca to its record-breaking numbers, the Palma Superyacht Village (PSV) and the 39th Palma International Boat Show (PIBS) 2023 have set an unparalleled benchmark in maritime excellence.

It’s not just the numbers that tell the tale; the quality, innovation and sheer vibrancy of the event have also marked it as a milestone in the yachting calendar.

This year, PSV boasted a line-up of 59 superyachts and 12 tenders, attracting 32,000 visitors and 271 exhibiting companies. Notably, 30 international brokerage houses made a strong presence alongside five tender exhibitors. “Of the about 70 yachts that attended the PSV, several sales and good charter bookings were confirmed,” noted Arne Ploch, managing director of Palma Superyacht Village.

Another highlight was the inaugural Yachting Ventures Innovation Corner.

Twelve start-ups from nine countries showcased their revolutionary technologies, reflecting a palpable appetite for change. Well-attended panel discussions explored future trends, including digitalisation and green technologies.

“Being a part of this event meant diving into a maritime haven where meaningful connections were as abundant as the stunning exhibits,” said Thomas Merlier of Ocean Independence. He elaborated, “It's not just a place for sealing deals; it's where the pulse of the yachting industry beats.”

Sean McCarter of Northrop & Johnson added, “We had five sailing yachts in the Palma Show. All of the sellers recognise Palma as the premier sailing yacht show in the Mediterranean. We were very pleased with the quality and number of real buyers. So much so, we had one 35m under offer within the first day of the show!”

Adding to the glamour was Ahab – The Party, held at the Tree House venue with panoramic views of the show area.

This invitation-only event on the eve of PIBS welcomed yacht owners, brokers, captains and industry insiders, setting the tone for the spectacular days that followed.

“What began as a show for local brokers has now attracted houses from the US, UK, South of France and Italy,” Arne Ploch commented. He added that the timing of PIBS offers an alluring prospect. “Clients can sign a contract right after the show in May, and a month later be on the water enjoying their new vessel during the Mediterranean season.”

The venue’s strategic location further elevated the experience. “In the heart of Palma, surrounded by amenities, luxury

hotels and world-class restaurants, clients are flying in from all over Europe and beyond,” said Ploch.

Plans are underway to maximise the exhibition space. “Most, if not all, exhibitors want to return next year,” Ploch articulated, anticipating an even grander showcase for 2024.

The 2023 edition has unequivocally proven that the Palma Superyacht Village is not merely a local event but also a driving force shaping the future of the maritime industry, both locally and internationally. To wrap up PSV’s 2023 chapter, Ploch extends a heartfelt thank you to the attendees from over 40 nations. He confidently stated, “While this year was unprecedented, we’re already setting our sights even higher for 2024 and the show’s 40th edition.

We’ll see you next year in Palma!”

PARTNER CONTENT

If we were to create a culture in which crew feel more secure and valued, with their rights around pregnancy and maternity/paternity leave secured, surely this could pay dividends where crew retention is concerned.

Rethinking the chicken and egg With its gruelling working hours and long stints away from home, it’s certainly no secret that yachting is not an industry that, on paper, lends itself to successfully balancing work and family life. In Frank’s estimation, fewer than one per cent of those in the industry who leave to have a baby will return to a boat-based role, with many opting to work in shore-based businesses that are more amenable to achieving this balance.

That said, the point about the transitory nature of current crew employment culture is worth reflecting on when it comes to the question of pregnancy in yachting. If we were to create a culture in which crew feel more secure and valued, with their rights around pregnancy and maternity/ paternity leave secured, surely this could pay dividends where crew retention is concerned, with an increased likelihood that crew will see a long-term future for themselves in the industry.

Captain Kelly Gordon, currently driving the 33-metre Pershing Andiamo II, thinks this prospect isn’t too idealistic. It could just take a bit of

94

creative thinking from the industry which already factors in many senior crewmembers working on a rotational basis, often to accommodate family pressures.

Gordon says, “If I could design a pregnancy-friendly programme, it would offer that when the boat is going to a remote area, and the individual is concerned about accessing medical care, they could go on leave and have a freelance person fill in for them, but does not take their position.

“This kind of flexibility and consideration should just be part of the contracts for everyone, regardless of gender, so that people know the maternity/paternity policies of each boat before they take on a role. They can then plan their families, and their future careers, with their eyes wide open.” GT If you have been affected by any of the issues raised in this article, please reach out to: • Yacht Crew Help • The Crew Mess • Nautilus International • www.iasp.info/crisis-centres-helplines/

Elevating maritime excellence: a new chapter unfolds at Palma Superyacht Village From its stunning location at Moll Vell in the heart of Palma de Mallorca to its record-breaking numbers, the Palma Superyacht Village (PSV) and the 39th Palma International Boat Show (PIBS) 2023 have set an unparalleled benchmark in maritime excellence.

It’s not just the numbers that tell the tale; the quality, innovation and sheer vibrancy of the event have also marked it as a milestone in the yachting calendar.

This year, PSV boasted a line-up of 59 superyachts and 12 tenders, attracting 32,000 visitors and 271 exhibiting companies. Notably, 30 international brokerage houses made a strong presence alongside five tender exhibitors. “Of the about 70 yachts that attended the PSV, several sales and good charter bookings were confirmed,” noted Arne Ploch, managing director of Palma Superyacht Village.

Another highlight was the inaugural Yachting Ventures Innovation Corner.

Twelve start-ups from nine countries showcased their revolutionary technologies, reflecting a palpable appetite for change. Well-attended panel discussions explored future trends, including digitalisation and green technologies.

“Being a part of this event meant diving into a maritime haven where meaningful connections were as abundant as the stunning exhibits,” said Thomas Merlier of Ocean Independence. He elaborated, “It's not just a place for sealing deals; it's where the pulse of the yachting industry beats.”

Sean McCarter of Northrop & Johnson added, “We had five sailing yachts in the Palma Show. All of the sellers recognise Palma as the premier sailing yacht show in the Mediterranean. We were very pleased with the quality and number of real buyers. So much so, we had one 35m under offer within the first day of the show!”

Adding to the glamour was Ahab – The Party, held at the Tree House venue with panoramic views of the show area.

This invitation-only event on the eve of PIBS welcomed yacht owners, brokers, captains and industry insiders, setting the tone for the spectacular days that followed.

“What began as a show for local brokers has now attracted houses from the US, UK, South of France and Italy,” Arne Ploch commented. He added that the timing of PIBS offers an alluring prospect. “Clients can sign a contract right after the show in May, and a month later be on the water enjoying their new vessel during the Mediterranean season.”

The venue’s strategic location further elevated the experience. “In the heart of Palma, surrounded by amenities, luxury

hotels and world-class restaurants, clients are flying in from all over Europe and beyond,” said Ploch.

Plans are underway to maximise the exhibition space. “Most, if not all, exhibitors want to return next year,” Ploch articulated, anticipating an even grander showcase for 2024.

The 2023 edition has unequivocally proven that the Palma Superyacht Village is not merely a local event but also a driving force shaping the future of the maritime industry, both locally and internationally. To wrap up PSV’s 2023 chapter, Ploch extends a heartfelt thank you to the attendees from over 40 nations. He confidently stated, “While this year was unprecedented, we’re already setting our sights even higher for 2024 and the show’s 40th edition.

We’ll see you next year in Palma!”

METSTRADE celebrates its 35th anniversary this year. As the event returns at Amsterdam in November, director Niels Klarenbeek sheds light on its achievements, the partnership with The Superyacht Forum and the vision for 2025.

A

fter The Superyacht Forum marked its three-decade milestone in 2022, METSTRADE is following on closely with its 35-year anniversary in 2023.

METSTRADE director Niels Klarenbeek acknowledges the significance of this shared journey, stating, “Our history with The Superyacht Forum goes beyond mere numbers. It’s about mutual growth, shared knowledge and a partnership that complements each other. Our plan for 2023 is not just a celebration but also an evolution of this synergy.”

METSTRADE’s popularity is evident, with the Superyacht Pavilion reaching full capacity well before the event. “It’s exhilarating to see the overwhelming response,” says Klarenbeek. “Our aim has always been to accommodate and cater to the growing needs of the marine industry.

That is why, come 2025, METSTRADE will utilise every hall across the entire venue at the Rai [Amsterdam] for the first time, ensuring we match the industry’s growth.”

Network-building remains a cornerstone. Beyond the event's mainstay features such as the Happy Hour and national receptions, attendees will find numerous avenues to connect and collaborate.

“In much the same way as The Superyacht Forum will focus on connecting professionals in the superyacht industry,

96

at METSTRADE, we are striving to maximise the networking opportunities for our visitors also,” says Klarenbeek.

This is why the METSTRADE Breakfast Briefing on November 16 will be open to all Superyacht Forum delegates, who will have the chance to hear one of the industry’s true titans share his insights.

Massimo Perotti, the much-respected CEO of Italian superyacht builder Sanlorenzo, will set the scene from the outset with his keynote speech at this year’s Breakfast Briefing, jointly hosted

by METSTRADE and ICOMIA. This committed sustainability advocate and industry leader will give much-anticipated insights into how the leisure marine sector can transition to carbon neutrality.

Perotti’s presentation will be immediately followed by the eagerly awaited unveiling of the winners for the

“Our history with The Superyacht Forum goes beyond mere numbers.

It’s about mutual growth, shared knowledge and a partnership that complements each other.”

Fostering Innovation: Start-Up Pavilion In collaboration with Yachting Ventures, METSTRADE debuts the Start-Up Pavilion. Yachting Ventures will source and invite the start-ups chosen to participate and will also organise startup panel discussions and a start-up pitching competition to take place in the METSTRADE Theatre.

Gabbi Richardson, founder of Yachting Ventures, says, “METSTRADE stands as a significant event in the industry calendar.

Collaborating on the Start-Up Pavilion enables us to highlight the potential and innovations of tomorrow.”

prestigious 2023 DAME Design Awards.

The landmark anniversary edition of the event also has other key changes to look out for, as Klarenbeek explains.

“Throughout its history, METSTRADE has been at the forefront of the key leisure marine issues of the day,” says Klarenbeek. “For this 35th-anniversary edition, we are adding a record number of new initiatives, including the Next Generation Propulsion Zone and Foiling Technology Pavilion.

“We are also recognising the importance of people, talent and entrepreneurialism by launching the new Start-Up Pavilion and pitching event.

METSTRADE’s long-standing and muchappreciated Young Professionals Club will feature a Career Corner with professional advisors.”

METSTRADE is expanding once again into a total of 11 halls for 2023. The new addition of Croatia and welcome postpandemic return of China means there will be a record-breaking 28 national pavilions to explore this year, alongside the familiar SuperYacht Pavilion (SYP), Marina & Yard Pavilion (MYP), Construction Material Pavilion (CMP) and the new Foiling Technology Pavilion (FTP). Visitors are expected from 116 different countries.

A Foiling Future Luca Rizzotti, founder of The Foiling Organisation and president of We Are

Foiling events ecosystem, says, “Foiling is changing the water mobility system.

The decarbonisation targets set by the EU, the UN and the IMO make foiling an almost obligatory choice for new leisure and commercial applications. The astonishing number of projects for the transport of people, goods and containers is there to prove it.

“I am confident that the Foiling Technology Pavilion will provide a major boost to accelerate innovation and economic growth in the foiling segment to the satisfaction of all of those who will have the opportunity to take part in this showcase.”

Photo: Rogier Bos

The Superyacht Owner Report ISSUE 218

Commitment to Sustainability A noteworthy alliance with Water Revolution Foundation underscores METSTRADE’s sustainability focus.

The introduction of the Superyacht Sustainability Route in 2022 was a testament to this commitment, directing attendees to exhibitors who meet the Foundation’s stringent sustainability criteria.

The Superyacht Sustainability Route will return, with the objective of assisting purchasers at METSTRADE 2023 by providing reliable third-party confirmation of the environmental credentials of suppliers. As the industry strives for more rigorous sustainability standards, this information is becoming vital across all sectors.

Klarenbeek adds, “As the Water Revolution Foundation’s Database of Sustainable Solutions builds on the availability of independent third-party verification, we aim to bring more transparency to the innovative environmental impact reduction activities of the superyacht sector and its supply chain.”

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METSTRADE celebrates its 35th anniversary this year. As the event returns at Amsterdam in November, director Niels Klarenbeek sheds light on its achievements, the partnership with The Superyacht Forum and the vision for 2025.

A

fter The Superyacht Forum marked its three-decade milestone in 2022, METSTRADE is following on closely with its 35-year anniversary in 2023.

METSTRADE director Niels Klarenbeek acknowledges the significance of this shared journey, stating, “Our history with The Superyacht Forum goes beyond mere numbers. It’s about mutual growth, shared knowledge and a partnership that complements each other. Our plan for 2023 is not just a celebration but also an evolution of this synergy.”

METSTRADE’s popularity is evident, with the Superyacht Pavilion reaching full capacity well before the event. “It’s exhilarating to see the overwhelming response,” says Klarenbeek. “Our aim has always been to accommodate and cater to the growing needs of the marine industry.

That is why, come 2025, METSTRADE will utilise every hall across the entire venue at the Rai [Amsterdam] for the first time, ensuring we match the industry’s growth.”

Network-building remains a cornerstone. Beyond the event's mainstay features such as the Happy Hour and national receptions, attendees will find numerous avenues to connect and collaborate.

“In much the same way as The Superyacht Forum will focus on connecting professionals in the superyacht industry,

96

at METSTRADE, we are striving to maximise the networking opportunities for our visitors also,” says Klarenbeek.

This is why the METSTRADE Breakfast Briefing on November 16 will be open to all Superyacht Forum delegates, who will have the chance to hear one of the industry’s true titans share his insights.

Massimo Perotti, the much-respected CEO of Italian superyacht builder Sanlorenzo, will set the scene from the outset with his keynote speech at this year’s Breakfast Briefing, jointly hosted

by METSTRADE and ICOMIA. This committed sustainability advocate and industry leader will give much-anticipated insights into how the leisure marine sector can transition to carbon neutrality.

Perotti’s presentation will be immediately followed by the eagerly awaited unveiling of the winners for the

“Our history with The Superyacht Forum goes beyond mere numbers.

It’s about mutual growth, shared knowledge and a partnership that complements each other.”

Fostering Innovation: Start-Up Pavilion In collaboration with Yachting Ventures, METSTRADE debuts the Start-Up Pavilion. Yachting Ventures will source and invite the start-ups chosen to participate and will also organise startup panel discussions and a start-up pitching competition to take place in the METSTRADE Theatre.

Gabbi Richardson, founder of Yachting Ventures, says, “METSTRADE stands as a significant event in the industry calendar.

Collaborating on the Start-Up Pavilion enables us to highlight the potential and innovations of tomorrow.”

prestigious 2023 DAME Design Awards.

The landmark anniversary edition of the event also has other key changes to look out for, as Klarenbeek explains.

“Throughout its history, METSTRADE has been at the forefront of the key leisure marine issues of the day,” says Klarenbeek. “For this 35th-anniversary edition, we are adding a record number of new initiatives, including the Next Generation Propulsion Zone and Foiling Technology Pavilion.

“We are also recognising the importance of people, talent and entrepreneurialism by launching the new Start-Up Pavilion and pitching event.

METSTRADE’s long-standing and muchappreciated Young Professionals Club will feature a Career Corner with professional advisors.”

METSTRADE is expanding once again into a total of 11 halls for 2023. The new addition of Croatia and welcome postpandemic return of China means there will be a record-breaking 28 national pavilions to explore this year, alongside the familiar SuperYacht Pavilion (SYP), Marina & Yard Pavilion (MYP), Construction Material Pavilion (CMP) and the new Foiling Technology Pavilion (FTP). Visitors are expected from 116 different countries.

A Foiling Future Luca Rizzotti, founder of The Foiling Organisation and president of We Are

Foiling events ecosystem, says, “Foiling is changing the water mobility system.

The decarbonisation targets set by the EU, the UN and the IMO make foiling an almost obligatory choice for new leisure and commercial applications. The astonishing number of projects for the transport of people, goods and containers is there to prove it.

“I am confident that the Foiling Technology Pavilion will provide a major boost to accelerate innovation and economic growth in the foiling segment to the satisfaction of all of those who will have the opportunity to take part in this showcase.”

Photo: Rogier Bos

The Superyacht Owner Report ISSUE 218

Commitment to Sustainability A noteworthy alliance with Water Revolution Foundation underscores METSTRADE’s sustainability focus.

The introduction of the Superyacht Sustainability Route in 2022 was a testament to this commitment, directing attendees to exhibitors who meet the Foundation’s stringent sustainability criteria.

The Superyacht Sustainability Route will return, with the objective of assisting purchasers at METSTRADE 2023 by providing reliable third-party confirmation of the environmental credentials of suppliers. As the industry strives for more rigorous sustainability standards, this information is becoming vital across all sectors.

Klarenbeek adds, “As the Water Revolution Foundation’s Database of Sustainable Solutions builds on the availability of independent third-party verification, we aim to bring more transparency to the innovative environmental impact reduction activities of the superyacht sector and its supply chain.”

97

Marina security

UNRAVELLING THE KAOS THEORY

BY CONOR FEASEY

The defacing of 100m superyacht Kaos in red and black paint by two climate activists had a certain Carrieesque shock factor … but does July’s incident indicate that something more sinister is looming?

98

A

s the curtain rises on the Mediterranean show season, it may seem obvious to some that a similar attack to that carried out on Kaos in Ibiza is only a matter of time. However, this is not a sentiment that is necessarily shared industry-wide, or at least not on the record.

Therefore, this raises a bigger question: Is the superyacht industry taking this seriously?

Some evidence would suggest not.

After TSG reached out to a number of key industry figures, marinas, brokers and management companies, we were extremely surprised at the number of people refusing to comment on the topic.

One source at a top brokerage declined to comment purely out of fear of marking themselves out for an attack.

The show season may yet go off without a hitch, but we just don’t see that happening. A repeat incident seems inevitable, so what is the industry actually doing in response to the vandalisation of Kaos and where does the responsibility lie in the event that it happens again?

Let’s backtrack slightly and look at the mounting evidence that the industry is in the crosshairs of activists.

In September 2022, around 20 protesters from French environmental pressure group Attac closed off the gate leading to a quay in Port Vauban (who incidentally also declined to comment), one of the most popular superyacht marinas in the Mediterranean.

No yacht was damaged during the demonstration. On this occasion, activists only blocked the port for an hour, having held up banners reading ‘disarm climate criminals’ and ‘don't let the ultra-rich destroy the planet’. “It is unacceptable to ask for efforts from those in a precarious situation when we do nothing against the ultra-rich,” said a spokesperson for the group at the time.

When TSF and Metstrade were crashed last year by protestors, Superyacht Group chairman Martin Redmayne, ready as ever, invited representatives on stage

and gave them a platform to voice their reasons for protest.

“What you have to understand is that superyachts, they’re the most caricatured example of injustice,” said Elodie, an ocean scientist and Extinction Rebellion representative. “They only exist as super toys for the super-rich. They only exist for them to lavishly spend all the money that they get from highly polluting industries.”

In light of the heatwaves, droughts, floods and wildfires seen this year, they may represent a valid point of concern.

What is increasingly evident is that it is not simply the literal consumption of yachts that is the root cause of the outrage, but the people who own and use them, particularly against the current economic and environmental backdrop.

There’s no better evidence of this than the defacing of Kaos. The individuals who painted the side of the 110m Oceanco posed dockside with a sign that read ‘You consume. Others suffer’. Notably, Kaos belongs to Walmart heiress Nancy Walton Laurie and the protestors were from the group Futuro Vegetal or ‘Vegetable Future’, who are unsurprisingly against the meat industry and the 17.3bn metric tonnes of greenhouse gases it emits a year.

Superyachts are often synonymised with the wealthiest one per cent, and it’s important to remember this at a time where economic disparity and greenhouse gas emissions are growing in tandem. With that in mind, yachts will always be a target for people looking to make a statement addressing these topics.

This year alone we have seen many demonstrations against corporations, banks, hunting shops and disruptions at fast fashion shows and oil company conferences. Surely an incident at the most significant event in the yachting calendar could also be on the cards?

“Activists are targeting all other industries, so I don’t see why it will be any different for us,” says Geoff Moore, managing director of UK-based brokerage and management firm West Nautical.

The Superyacht Owner Report ISSUE 218

“Yachts whose owners are well-known public figures are more likely to be targeted too since they make more of a statement and grab the attention of the media.”

An official from the Monaco Home Office says security has a duty to be vigi-lant regarding the existence of all movements likely to present a risk of disturbing public order, first and foremost those involving radical or violent protest.

“With regard to eco-activism in particular, the police are obviously keeping a close eye on the emergence of this phenomenon, even though no demonstrations of this kind have been reported on our territory,” he says.

Without disclosing specific details, the official adds that numerous security measures have been implemented to guarantee the safety of people and property inside the MYS facilities, as well as throughout the country.

“These measures are designed to prevent public-order disturbances, and a large number of Sûreté Publique staff are on hand to deal with any trouble-

The 110-metre Oceanco superyacht Kaos in Ibiza, which was vandalised in July.

99

Marina security

UNRAVELLING THE KAOS THEORY

BY CONOR FEASEY

The defacing of 100m superyacht Kaos in red and black paint by two climate activists had a certain Carrieesque shock factor … but does July’s incident indicate that something more sinister is looming?

98

A

s the curtain rises on the Mediterranean show season, it may seem obvious to some that a similar attack to that carried out on Kaos in Ibiza is only a matter of time. However, this is not a sentiment that is necessarily shared industry-wide, or at least not on the record.

Therefore, this raises a bigger question: Is the superyacht industry taking this seriously?

Some evidence would suggest not.

After TSG reached out to a number of key industry figures, marinas, brokers and management companies, we were extremely surprised at the number of people refusing to comment on the topic.

One source at a top brokerage declined to comment purely out of fear of marking themselves out for an attack.

The show season may yet go off without a hitch, but we just don’t see that happening. A repeat incident seems inevitable, so what is the industry actually doing in response to the vandalisation of Kaos and where does the responsibility lie in the event that it happens again?

Let’s backtrack slightly and look at the mounting evidence that the industry is in the crosshairs of activists.

In September 2022, around 20 protesters from French environmental pressure group Attac closed off the gate leading to a quay in Port Vauban (who incidentally also declined to comment), one of the most popular superyacht marinas in the Mediterranean.

No yacht was damaged during the demonstration. On this occasion, activists only blocked the port for an hour, having held up banners reading ‘disarm climate criminals’ and ‘don't let the ultra-rich destroy the planet’. “It is unacceptable to ask for efforts from those in a precarious situation when we do nothing against the ultra-rich,” said a spokesperson for the group at the time.

When TSF and Metstrade were crashed last year by protestors, Superyacht Group chairman Martin Redmayne, ready as ever, invited representatives on stage

and gave them a platform to voice their reasons for protest.

“What you have to understand is that superyachts, they’re the most caricatured example of injustice,” said Elodie, an ocean scientist and Extinction Rebellion representative. “They only exist as super toys for the super-rich. They only exist for them to lavishly spend all the money that they get from highly polluting industries.”

In light of the heatwaves, droughts, floods and wildfires seen this year, they may represent a valid point of concern.

What is increasingly evident is that it is not simply the literal consumption of yachts that is the root cause of the outrage, but the people who own and use them, particularly against the current economic and environmental backdrop.

There’s no better evidence of this than the defacing of Kaos. The individuals who painted the side of the 110m Oceanco posed dockside with a sign that read ‘You consume. Others suffer’. Notably, Kaos belongs to Walmart heiress Nancy Walton Laurie and the protestors were from the group Futuro Vegetal or ‘Vegetable Future’, who are unsurprisingly against the meat industry and the 17.3bn metric tonnes of greenhouse gases it emits a year.

Superyachts are often synonymised with the wealthiest one per cent, and it’s important to remember this at a time where economic disparity and greenhouse gas emissions are growing in tandem. With that in mind, yachts will always be a target for people looking to make a statement addressing these topics.

This year alone we have seen many demonstrations against corporations, banks, hunting shops and disruptions at fast fashion shows and oil company conferences. Surely an incident at the most significant event in the yachting calendar could also be on the cards?

“Activists are targeting all other industries, so I don’t see why it will be any different for us,” says Geoff Moore, managing director of UK-based brokerage and management firm West Nautical.

The Superyacht Owner Report ISSUE 218

“Yachts whose owners are well-known public figures are more likely to be targeted too since they make more of a statement and grab the attention of the media.”

An official from the Monaco Home Office says security has a duty to be vigi-lant regarding the existence of all movements likely to present a risk of disturbing public order, first and foremost those involving radical or violent protest.

“With regard to eco-activism in particular, the police are obviously keeping a close eye on the emergence of this phenomenon, even though no demonstrations of this kind have been reported on our territory,” he says.

Without disclosing specific details, the official adds that numerous security measures have been implemented to guarantee the safety of people and property inside the MYS facilities, as well as throughout the country.

“These measures are designed to prevent public-order disturbances, and a large number of Sûreté Publique staff are on hand to deal with any trouble-

The 110-metre Oceanco superyacht Kaos in Ibiza, which was vandalised in July.

99

There is a legal tenet known as acting as a ‘prudent uninsured’. “If you are prudent, there are fewer claims, less stress and more optimised premiums.

Insurance is there for the unforeseen, despite best endeavours.” makers,” he says. “As far as Public Security is aware, the exhibition is not exposed to any particular threat. That said, the police are particularly vigilant at these major events to ensure that they run as smoothly as possible.

“The greatest challenge for Public Security is to ensure the security of these major events on the one hand, and to maintain a high level of security throughout the Principality on the other, while ensuring that these security measures are as unobtrusive as possible for the people who live, work or visit the Principality.”

Among many things, Monaco is known for its no-nonsense attitude towards public disorder, and the police presence is inescapable during the MYS. This is likely to be a red flag for any wannabe activists.

“If you target Monaco, you must be a bit of an idiot because you will be caught and the consequences will be pretty severe,” says Moore. “More than likely, they will probably do something at Cannes and in Genoa.” He adds that these areas are more open and less secure than Monaco.

This raises a point of concern. Ports such as Nice and St Tropez are open to the public and you can walk right up close to the yachts. There is relatively easy access to Port Hercule dockside too. Some ports like Antibes have round-the-clock security but that doesn’t necessarily make it a viable option for most superyacht owners.

“One of the benefits of yachting is

100

that people love the freedom. It is the unique nature of it – being able to dock in St Tropez and have the public walk past your yacht,” adds Moore. “If you want to change the set-up to closed ports, then you are moving towards being too similar with cruise ships, and that’s not what people want. Yes, marina security plays a factor but there has to be vigilance from owners and crew too.”

No marina responded to our questions, and numerous management companies refused to comment too, so questions about their response to incidents such as Kaos remain relatively answered. What we do know is that management companies are advising their clients differently.

“We are advising the crew to be vigilant, but it does become difficult when you look at how easy it can be for some activists to get alongside a boat. I don’t think anyone was surprised at what happened to Kaos, but I do think it could lead to more incidents in the future,” says Moore.

With crew and marinas expected to do their part in keeping yachts secure, insurers are left to bear the brunt when they fail.

However, according to Mike TaylorWest, Partner-Private Client & Marine at insurance firm Partners&, this should be a last resort rather than an expectation.

“In a year where there has been an increasing focus on lithium-fuelled fires and response to ever-increasing yacht blazes, there is a new kid on the block – eco and protest activism,” says Taylor-West.

“This raises not only interesting questions

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There is a legal tenet known as acting as a ‘prudent uninsured’. “If you are prudent, there are fewer claims, less stress and more optimised premiums.

Insurance is there for the unforeseen, despite best endeavours.” makers,” he says. “As far as Public Security is aware, the exhibition is not exposed to any particular threat. That said, the police are particularly vigilant at these major events to ensure that they run as smoothly as possible.

“The greatest challenge for Public Security is to ensure the security of these major events on the one hand, and to maintain a high level of security throughout the Principality on the other, while ensuring that these security measures are as unobtrusive as possible for the people who live, work or visit the Principality.”

Among many things, Monaco is known for its no-nonsense attitude towards public disorder, and the police presence is inescapable during the MYS. This is likely to be a red flag for any wannabe activists.

“If you target Monaco, you must be a bit of an idiot because you will be caught and the consequences will be pretty severe,” says Moore. “More than likely, they will probably do something at Cannes and in Genoa.” He adds that these areas are more open and less secure than Monaco.

This raises a point of concern. Ports such as Nice and St Tropez are open to the public and you can walk right up close to the yachts. There is relatively easy access to Port Hercule dockside too. Some ports like Antibes have round-the-clock security but that doesn’t necessarily make it a viable option for most superyacht owners.

“One of the benefits of yachting is

100

that people love the freedom. It is the unique nature of it – being able to dock in St Tropez and have the public walk past your yacht,” adds Moore. “If you want to change the set-up to closed ports, then you are moving towards being too similar with cruise ships, and that’s not what people want. Yes, marina security plays a factor but there has to be vigilance from owners and crew too.”

No marina responded to our questions, and numerous management companies refused to comment too, so questions about their response to incidents such as Kaos remain relatively answered. What we do know is that management companies are advising their clients differently.

“We are advising the crew to be vigilant, but it does become difficult when you look at how easy it can be for some activists to get alongside a boat. I don’t think anyone was surprised at what happened to Kaos, but I do think it could lead to more incidents in the future,” says Moore.

With crew and marinas expected to do their part in keeping yachts secure, insurers are left to bear the brunt when they fail. However, according to Mike Taylor-West, partner at insurance firm Private Client & Marine, this should be a last resort rather than an expectation.

“In a year where there has been an increasing focus on lithium-fuelled fires and response to ever-increasing yacht blazes, there is a new kid on the block – eco and protest activism,” says Taylor-West.

“This raises not only interesting questions

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App_Advert.indd 2 The Superyacht Owner Report ISSUE 218

18/10/2021 16:33

101

We craft your refit with care

Image: Mar Sala Oltra

Kaos was vandalised again in Barcelona, just as this report went to press.

for insurers, but [also] highlights the need for new thinking around the role of the owner, the crew, the marina staff and local support in creating a truly secure space in which your vessel can be supervised and cared for, particularly when owners or charter guests are absent.”

He adds that there is a legal tenet known as acting as a ‘prudent uninsured’.

“If you are prudent, there are fewer claims, less stress and more optimised premiums. Insurance is there for the unforeseen, despite best endeavours.”

Other insurers also believe that there are problems on the horizon. “Whilst it hasn’t necessarily crossed our books as of yet, I can see it becoming more of a problem in the future,” says Mike Wimbridge, managing director at Pantaenius. “While it is quite easy to blow these things out of proportion because they are so shocking, we have to remember that these incidents rarely happen. But marinas and crew need to be on hand for when they do.

“These people aren’t stupid, and it only takes for them to get someone on the inside to do some damage. A bit of paint over the side of the yacht is manageable but if they were to get on board and damage the Renoir hanging over the fireplace, then that is a serious problem.”

To mitigate this, owners need to work closely with crew, marinas and insurers to build a partnership around managing risk. “We need everyone to take a moment to invest some time in understanding the

possible hazards and how you can better protect your craft, its owners, crew and guests,” says Taylor-West.

Both insurers add that a dialogue between owners and other parties will allow for a better understanding of what truly secure berthing arrangements look like, where downtime manning, access, regular inspection, physical and electronic supervision, first responders, keyholders and fire-attack plans are the norm.

This obviously won’t deter protestors from attempting to get close to the yacht, but it does ensure maximum protection in the event that they do. The litany of lithium-related fires in recent years has led to the damage or destruction of neighbouring yachts, all of which might have been avoidable had the relationship, arrangements and communication between owners and marina operators been deeper and more effective. The same approach needs to be taken with activists and protestors. It is on the owners to ensure their property is secure.

“You wouldn’t buy a puppy and tie it up with a bowl of water and some food and leave it,” says Taylor-West. “Why on earth do some people think it’s acceptable to do this with a 30 metre-plus yacht and just expect that the marina will keep an eye on it? Having eco-activist graffiti daubed on the stern of your yacht is just the tip of the iceberg, and it’s time to wake up.” CF

REFIT & REPAIR SHIPYARD

80 102

YEARS

OF

UNINTERRUPTED

HISTORY

We craft your refit with care

Image: Mar Sala Oltra

Kaos was vandalised again in Barcelona, just as this report went to press.

for insurers, but [also] highlights the need for new thinking around the role of the owner, the crew, the marina staff and local support in creating a truly secure space in which your vessel can be supervised and cared for, particularly when owners or charter guests are absent.”

He adds that there is a legal tenet known as acting as a ‘prudent uninsured’.

“If you are prudent, there are fewer claims, less stress and more optimised premiums. Insurance is there for the unforeseen, despite best endeavours.”

Other insurers also believe that there are problems on the horizon. “Whilst it hasn’t necessarily crossed our books as of yet, I can see it becoming more of a problem in the future,” says Mike Wimbridge, managing director at Pantaenius. “While it is quite easy to blow these things out of proportion because they are so shocking, we have to remember that these incidents rarely happen. But marinas and crew need to be on hand for when they do.

“These people aren’t stupid, and it only takes for them to get someone on the inside to do some damage. A bit of paint over the side of the yacht is manageable but if they were to get on board and damage the Renoir hanging over the fireplace, then that is a serious problem.”

To mitigate this, owners need to work closely with crew, marinas and insurers to build a partnership around managing risk. “We need everyone to take a moment to invest some time in understanding the

possible hazards and how you can better protect your craft, its owners, crew and guests,” says Taylor-West.

Both insurers add that a dialogue between owners and other parties will allow for a better understanding of what truly secure berthing arrangements look like, where downtime manning, access, regular inspection, physical and electronic supervision, first responders, keyholders and fire-attack plans are the norm.

This obviously won’t deter protestors from attempting to get close to the yacht, but it does ensure maximum protection in the event that they do. The litany of lithium-related fires in recent years has led to the damage or destruction of neighbouring yachts, all of which might have been avoidable had the relationship, arrangements and communication between owners and marina operators been deeper and more effective. The same approach needs to be taken with activists and protestors. It is on the owners to ensure their property is secure.

“You wouldn’t buy a puppy and tie it up with a bowl of water and some food and leave it,” says Taylor-West. “Why on earth do some people think it’s acceptable to do this with a 30 metre-plus yacht and just expect that the marina will keep an eye on it? Having eco-activist graffiti daubed on the stern of your yacht is just the tip of the iceberg, and it’s time to wake up.” CF

REFIT & REPAIR SHIPYARD

80 102

YEARS

OF

UNINTERRUPTED

HISTORY

Brokers forecast the market

Brokerage readjusts to its ‘old normal’ As data suggests a daunting downturn in activity, representatives from five top yacht sales companies assess the current state of the market following a sluggish start to the year.

BY CONOR FEASEY

The Superyacht Owner Report ISSUE 218

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Brokers forecast the market

Brokerage readjusts to its ‘old normal’ As data suggests a daunting downturn in activity, representatives from five top yacht sales companies assess the current state of the market following a sluggish start to the year.

BY CONOR FEASEY

The Superyacht Owner Report ISSUE 218

105

U N D E R

I

t was easy to fear the worst in the first few months of this year. A dramatic drop in sales accompanied by economic instability, sky-high interest rates and rising costs of production seemed to signal the beginning of the end of the stable superyacht market.

However, although the euphoric highs of 2021 and 2022 may be a thing of the past, the industry isn’t on the brink of disaster.

The reality is that business is good, at least according to the top brokerages.

But trepidation surrounding the bubble bursting is inescapable. While 2022 wasn’t as strong as 2021, it was still up on pre-pandemic levels. This year has been a slow burner, with alarmingly low sales throughout until June, causing concern for the health of the market.

Our data, aggregated from publicised transactions from the top 10 brokerage houses, suggests that while there have been some significantly large yachts sold this year, the overall volume of sales is in decline. But after discussion with some of the top brokers in the industry, this could be more indicative of a return to stable pre-pandemic levels, seasonality and the rise of boat shows as sales opportunities.

The final quarter of 2022 displayed a surge in sales probably due to a successful autumn show season. Richard Lambert, head of sales, Burgess, says that after such a buoyant period for yacht sales, the market often corrects itself and is followed by a few quieter months. This was the case for the first quarter of 2023. “I believe we should view the market as a rolling 12 months to get a more realistic depiction of the industry’s strength, especially since a significant

number of deals close towards the end of December,” he says.

“This year, in comparison to last, started a bit slow. The first four or five months suggested that the number of transactions will likely be lower than the previous year,” adds Lambert. “However the summer months picked up and brought the market back on par with last year.”

After discussing the current state of the market with brokers, it’s clear that activity is slowing. That doesn’t necessarily mean that it’s stagnant, but it does mean the sales and growth figures are declining from the highs seen in the post-Covid boom.

“It’s always a bit of a crystal ball when forecasting the market, but if you look at the five-year average number of sales, we’re returning to a similar level of transactions that were seen pre-Covid,” says Lambert. “It is still a fairly reliable and stable market. It’s not overinflated, but it does appear to have returned to a more traditional long-term average consistent with the five years prior to 2019.”

There are a few key reasons for the slowdown, with one main factor being the lack of quality inventory, particularly in the larger sectors. “The market, if anything, is lacking choice right now,” says Antoine Larricq, sales broker at Fraser Yachts. “We’ve been in a position where it has been quite difficult to find anything around 60 metres. When you look at available yachts between 70 and 90 metres, there’s hardly anything left.”

Another reason is that owners are simply not selling, in somewhat of a

T H E

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H S H

P R I N C E

A L B E R T

I I

O F

“We’ve been in a position where it has been quite difficult to find anything around 60 metres. When you look at available yachts between 70 and 90 metres, there’s hardly anything left.”

Antoine Larricq, sales broker, Fraser Yachts

27•30 SEPTEMBER 2023

monacoyachtshow.com 106

O F

M O N A C O

U N D E R

I

t was easy to fear the worst in the first few months of this year. A dramatic drop in sales accompanied by economic instability, sky-high interest rates and rising costs of production seemed to signal the beginning of the end of the stable superyacht market.

However, although the euphoric highs of 2021 and 2022 may be a thing of the past, the industry isn’t on the brink of disaster.

The reality is that business is good, at least according to the top brokerages.

But trepidation surrounding the bubble bursting is inescapable. While 2022 wasn’t as strong as 2021, it was still up on pre-pandemic levels. This year has been a slow burner, with alarmingly low sales throughout until June, causing concern for the health of the market.

Our data, aggregated from publicised transactions from the top 10 brokerage houses, suggests that while there have been some significantly large yachts sold this year, the overall volume of sales is in decline. But after discussion with some of the top brokers in the industry, this could be more indicative of a return to stable pre-pandemic levels, seasonality and the rise of boat shows as sales opportunities.

The final quarter of 2022 displayed a surge in sales probably due to a successful autumn show season. Richard Lambert, head of sales, Burgess, says that after such a buoyant period for yacht sales, the market often corrects itself and is followed by a few quieter months. This was the case for the first quarter of 2023. “I believe we should view the market as a rolling 12 months to get a more realistic depiction of the industry’s strength, especially since a significant

number of deals close towards the end of December,” he says.

“This year, in comparison to last, started a bit slow. The first four or five months suggested that the number of transactions will likely be lower than the previous year,” adds Lambert. “However the summer months picked up and brought the market back on par with last year.”

After discussing the current state of the market with brokers, it’s clear that activity is slowing. That doesn’t necessarily mean that it’s stagnant, but it does mean the sales and growth figures are declining from the highs seen in the post-Covid boom.

“It’s always a bit of a crystal ball when forecasting the market, but if you look at the five-year average number of sales, we’re returning to a similar level of transactions that were seen pre-Covid,” says Lambert. “It is still a fairly reliable and stable market. It’s not overinflated, but it does appear to have returned to a more traditional long-term average consistent with the five years prior to 2019.”

There are a few key reasons for the slowdown, with one main factor being the lack of quality inventory, particularly in the larger sectors. “The market, if anything, is lacking choice right now,” says Antoine Larricq, sales broker at Fraser Yachts. “We’ve been in a position where it has been quite difficult to find anything around 60 metres. When you look at available yachts between 70 and 90 metres, there’s hardly anything left.”

Another reason is that owners are simply not selling, in somewhat of a

T H E

H I G H

P A T R O N A G E

H S H

P R I N C E

A L B E R T

I I

O F

“We’ve been in a position where it has been quite difficult to find anything around 60 metres. When you look at available yachts between 70 and 90 metres, there’s hardly anything left.”

Antoine Larricq, sales broker, Fraser Yachts

27•30 SEPTEMBER 2023

monacoyachtshow.com 106

O F

M O N A C O

SuperyachtIntelligence.com

Second-hand sales comparison between January and August 2017-2019 and 2022 and 2023 Units

LOA (m)

50

50

45

45

40

40

35

35

30

30

25

25

20

20

15

15

10

10

5

5

0

17 12 15 26 18

20 24 14 18 15

19 18 17 21 16

16 14 17 21 22

30 28 25 26 22

16 16 17 19 36

28 21 29 31 25

Jan

Feb

Mar

Apr

May

Jun

Jul

Number of sales

2017

2018

perpetual cycle of waiting for quality boats to come to the market before selling theirs.

“If you look at the shipyards there is a long waiting list for yachts over 50 metres, especially for custom projects,” adds Larricq. “Then, of course, if you go above 60 metres you have a long building time, as well as the waiting list. So 50-metre yachts will take at least 24 months, 60-metre two-and-a-half years, maybe three. And then 70-metresplus you’re looking at maybe three to four years. Clients are keeping their yachts, and that simply means available inventory is less.”

Geopolitical tensions and conflict have played a part in the decline too.

108

2019

2022 2023

15 20 9

Aug

7 14

0

Average LOA(m)

2017

2018

While the war in Ukraine hasn’t had the catastrophic effect on the industry that was initially feared, it has had an impact nonetheless. Geoff Moore, managing director at West Nautical, says, “There is a knock-on effect from what has happened in the war. A lot of Russians have been stopped from buying a lot of the new boats. It doesn’t mean they are not buying used boats, and it doesn’t mean they’re selling their boats, which was a big expectation. But a large part of the market has been handcuffed somewhat.”

Lambert adds that buyers have also been cautious before coming to market in light of the current economic climate.

“Prospective yacht owners likely held

2019

2022 2023

back from entering the market earlier this year when considering the increasing interest rates and global financial instability. Perhaps it was a time people took a bit of a step back to observe the market too. Yachting is all about confidence, about feeling happy to invest.

“There is also the fact that current owners are still getting a lot of use out of their yachts. It’s a safe environment to enjoy with family, with friends. Because of this, they are not listing them for sale, and therefore are also not seeing other options on the market that satisfy their interests. It is a bit self-perpetuating in the sense that if you don’t see something you are interested in buying, then you

Photography: Julien Hubert - TWW Yachts

Source

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The foremost pool faces a 144’ retractable cinema screen, which transforms the bow into an outdoor theatre.

The entire yacht is fitted for state-of-the-art stereo sound and brims with entertainment.

The Starlink satellite network brings total connectivity, for navigation, for technology and for streaming media.

Interiors are graceful, sublimely comfortable, spacious and finely crafted, and encased by large windows that

bring the view to you. This beautiful and sophisticated S501 Evolution perfectly balances privacy and conviviality.

Made in Italy to the highest standards of luxury, the M/Y Grey is both venue and star attraction, a cruising palace of pleasure, an icon of the seas.

Tankoa epitomises the boutique shipyard. Every Tankoa yacht combines the Italian flair for design with luxury components, specialist details and superior production – to give life to owners’ dreams. Excellence means always moving forward. Constant progress is the Tankoa way.

www.tankoa.com | sales@tankoa.com | Facebook - @tankoayachtsofficial | Instagram - @tankoayachts

SuperyachtIntelligence.com

Second-hand sales comparison between January and August 2017-2019 and 2022 and 2023 Units

LOA (m)

50

50

45

45

40

40

35

35

30

30

25

25

20

20

15

15

10

10

5

5

0

17 12 15 26 18

20 24 14 18 15

19 18 17 21 16

16 14 17 21 22

30 28 25 26 22

16 16 17 19 36

28 21 29 31 25

Jan

Feb

Mar

Apr

May

Jun

Jul

Number of sales

2017

2018

perpetual cycle of waiting for quality boats to come to the market before selling theirs.

“If you look at the shipyards there is a long waiting list for yachts over 50 metres, especially for custom projects,” adds Larricq. “Then, of course, if you go above 60 metres you have a long building time, as well as the waiting list. So 50-metre yachts will take at least 24 months, 60-metre two-and-a-half years, maybe three. And then 70-metresplus you’re looking at maybe three to four years. Clients are keeping their yachts, and that simply means available inventory is less.”

Geopolitical tensions and conflict have played a part in the decline too.

108

2019

2022 2023

15 20 9

Aug

7 14

0

Average LOA(m)

2017

2018

While the war in Ukraine hasn’t had the catastrophic effect on the industry that was initially feared, it has had an impact nonetheless. Geoff Moore, managing director at West Nautical, says, “There is a knock-on effect from what has happened in the war. A lot of Russians have been stopped from buying a lot of the new boats. It doesn’t mean they are not buying used boats, and it doesn’t mean they’re selling their boats, which was a big expectation. But a large part of the market has been handcuffed somewhat.”

Lambert adds that buyers have also been cautious before coming to market in light of the current economic climate.

“Prospective yacht owners likely held

2019

2022 2023

back from entering the market earlier this year when considering the increasing interest rates and global financial instability. Perhaps it was a time people took a bit of a step back to observe the market too. Yachting is all about confidence, about feeling happy to invest.

“There is also the fact that current owners are still getting a lot of use out of their yachts. It’s a safe environment to enjoy with family, with friends. Because of this, they are not listing them for sale, and therefore are also not seeing other options on the market that satisfy their interests. It is a bit self-perpetuating in the sense that if you don’t see something you are interested in buying, then you

Photography: Julien Hubert - TWW Yachts

Source

It’s Showtime The Tankoa M/Y Grey is 50 metres of luxury lifestyle and outstanding entertainment. On display at MYS 2023 The S501 Evolution M/Y Grey is all about the good times.

Tankoa’s latest 50 metre yacht is spectacular in all senses and features two pools, including a jacuzzi on the fly deck.

The foremost pool faces a 144’ retractable cinema screen, which transforms the bow into an outdoor theatre.

The entire yacht is fitted for state-of-the-art stereo sound and brims with entertainment.

The Starlink satellite network brings total connectivity, for navigation, for technology and for streaming media.

Interiors are graceful, sublimely comfortable, spacious and finely crafted, and encased by large windows that

bring the view to you. This beautiful and sophisticated S501 Evolution perfectly balances privacy and conviviality.

Made in Italy to the highest standards of luxury, the M/Y Grey is both venue and star attraction, a cruising palace of pleasure, an icon of the seas.

Tankoa epitomises the boutique shipyard. Every Tankoa yacht combines the Italian flair for design with luxury components, specialist details and superior production – to give life to owners’ dreams. Excellence means always moving forward. Constant progress is the Tankoa way.

www.tankoa.com | sales@tankoa.com | Facebook - @tankoayachtsofficial | Instagram - @tankoayachts

“Something we are seeing more and more of in the larger yacht segments is deals being conducted off-market.”

Ben Bensahel, Europe head of sales and brokerage, Camper & Nicholsons.

1 10

are unlikely to put your own boat onto the market to the same degree.”

When the yachting industry was enjoying record demand it could afford to keep prices high. While strong interest in the market remains, the softening of demand could mean that yacht valuations may need to be readjusted.

“In 2021 and 2022 demand was high, and as a result, this led to some unusually high prices,” says Ben Bensahel, Europe head of sales and brokerage at Camper & Nicholsons. “Today, a large percentage of buyers are faced with the same or similar prices but they are waiting for them to drop. The question is, will this happen or are we looking at a new norm? Yes, there have been some price reductions recently, but I believe that more buyers will come back to the market once they realise the prices seen in 2018 and 2019 are a thing of the past.”

There are also a lot of yachts that are not brought to market publicly. “Something we are seeing more and more of in the larger yacht segments is deals being conducted off-market,” adds Bensahel.

“So instead of listing the yacht publicly, if an owner of a quality yacht is looking to sell, a broker will contact his clients one by one to gauge interest. Then they can discuss numbers in-house and conduct the sale without the yacht even hitting the market. Few of these deals happened recently, like the Mangusta 165 AAA that we sold off market in July or the 95-metre Lürssen Madsummer sold this summer.

Ben Farnborough, chief operating officer at Denison Yacht Sales, agrees and adds that some sellers may be deterred from selling for less than they paid.

“There are quite a few people who bought boats during Covid and not necessarily paid a premium due to demand, but spent a lot of money for their boats,” he says.

“Now some people are looking to sell, whether it is because they are in love with yachting and want to upgrade or because they didn’t love it as much as they thought. But, of course, there is naturally some depreciation to their asset, and some might not be inclined to settle for less than their asking price.”

However, Farnborough adds that there has been an increase in price reductions in the build-up to show season, and as a result, there seems to be fluidity in the market again.

There were numerous price reductions prior to several yachts being sold this year. Although this raised some concerns towards instigating a race to the bottom in order to get boats off the market, Farnborough maintains that this isn’t the case. “If someone has a well-built, well-maintained yacht, it will always hold good value. A lot of owners who reduced the asking price of their yacht have sold it.

I don’t know if there is a direct correlation, but it is an indication of people getting slightly more realistic of their post-Covid valuations than anything else.”

Despite the price reductions and slight increase of available inventory towards show seasons, Moore believes that it is still a seller’s market. “We thought this would change last year, and it didn’t, as when a good boat comes on the market, it sells very quickly. Just look at Here Comes The Sun, for instance,” he says. “So buyers are out there, especially for the bigger boats from brands with good reputations.

It’s the smaller boats, or ones from slightly obscure brands, the older yachts or ones that need a lot of work, they are the boats that are struggling the most.”

There is always the fear that the market will crash if sales continue to decline, however. “I think if you look at global superyacht sales, the number of boats sold will be way off what it has been for the last five years,” says Farnborough.

“As a company, we are always trying to be ahead of where we were the year before.

But I think if you look at the record books in the future, it will show that 2023 wasn’t the greatest year for superyacht sales by the numbers.”

For Larricq, it’s only a matter of time until the bubble bursts. “That being said, I was expecting it to burst last year, and I was proven wrong,” he says. “The market is still very strong. And unless there’s a major meltdown, I don’t see anything dramatic happening to the industry.”

Notably, listings are increasing in the build-up to show season. Despite the challenges to the market and the slow start to the year, the boat shows will likely be lucrative for sellers. Most brokers mentioned here reported full bookings for their Cannes, Genoa, Fort Lauderdale and Monaco slips by July, some as early as May. Considering that the sharp increase in sales at the end of last year was likely a consequence of sales that originated in shows, Bensahel believes it is likely the

The Superyacht Owner Report ISSUE 218

“It’s the smaller boats, or ones from slightly obscure brands, the older yachts or ones that need a lot of work, they are the boats that are struggling the most.”

Geoff Moore, managing director, West Nautical,

111

“Something we are seeing more and more of in the larger yacht segments is deals being conducted off-market.”

Ben Bensahel, Europe head of sales and brokerage, Camper & Nicholsons.

1 10

are unlikely to put your own boat onto the market to the same degree.”

When the yachting industry was enjoying record demand it could afford to keep prices high. While strong interest in the market remains, the softening of demand could mean that yacht valuations may need to be readjusted.

“In 2021 and 2022 demand was high, and as a result, this led to some unusually high prices,” says Ben Bensahel, Europe head of sales and brokerage at Camper & Nicholsons. “Today, a large percentage of buyers are faced with the same or similar prices but they are waiting for them to drop. The question is, will this happen or are we looking at a new norm? Yes, there have been some price reductions recently, but I believe that more buyers will come back to the market once they realise the prices seen in 2018 and 2019 are a thing of the past.”

There are also a lot of yachts that are not brought to market publicly. “Something we are seeing more and more of in the larger yacht segments is deals being conducted off-market,” adds Bensahel.

“So instead of listing the yacht publicly, if an owner of a quality yacht is looking to sell, a broker will contact his clients one by one to gauge interest. Then they can discuss numbers in-house and conduct the sale without the yacht even hitting the market. Few of these deals happened recently, like the Mangusta 165 AAA that we sold off market in July or the 95-metre Lürssen Madsummer sold this summer.

Ben Farnborough, chief operating officer at Denison Yacht Sales, agrees and adds that some sellers may be deterred from selling for less than they paid.

“There are quite a few people who bought boats during Covid and not necessarily paid a premium due to demand, but spent a lot of money for their boats,” he says.

“Now some people are looking to sell, whether it is because they are in love with yachting and want to upgrade or because they didn’t love it as much as they thought. But, of course, there is naturally some depreciation to their asset, and some might not be inclined to settle for less than their asking price.”

However, Farnborough adds that there has been an increase in price reductions in the build-up to show season, and as a result, there seems to be fluidity in the market again.

There were numerous price reductions prior to several yachts being sold this year. Although this raised some concerns towards instigating a race to the bottom in order to get boats off the market, Farnborough maintains that this isn’t the case. “If someone has a well-built, well-maintained yacht, it will always hold good value. A lot of owners who reduced the asking price of their yacht have sold it.

I don’t know if there is a direct correlation, but it is an indication of people getting slightly more realistic of their post-Covid valuations than anything else.”

Despite the price reductions and slight increase of available inventory towards show seasons, Moore believes that it is still a seller’s market. “We thought this would change last year, and it didn’t, as when a good boat comes on the market, it sells very quickly. Just look at Here Comes The Sun, for instance,” he says. “So buyers are out there, especially for the bigger boats from brands with good reputations.

It’s the smaller boats, or ones from slightly obscure brands, the older yachts or ones that need a lot of work, they are the boats that are struggling the most.”

There is always the fear that the market will crash if sales continue to decline, however. “I think if you look at global superyacht sales, the number of boats sold will be way off what it has been for the last five years,” says Farnborough.

“As a company, we are always trying to be ahead of where we were the year before.

But I think if you look at the record books in the future, it will show that 2023 wasn’t the greatest year for superyacht sales by the numbers.”

For Larricq, it’s only a matter of time until the bubble bursts. “That being said, I was expecting it to burst last year, and I was proven wrong,” he says. “The market is still very strong. And unless there’s a major meltdown, I don’t see anything dramatic happening to the industry.”

Notably, listings are increasing in the build-up to show season. Despite the challenges to the market and the slow start to the year, the boat shows will likely be lucrative for sellers. Most brokers mentioned here reported full bookings for their Cannes, Genoa, Fort Lauderdale and Monaco slips by July, some as early as May. Considering that the sharp increase in sales at the end of last year was likely a consequence of sales that originated in shows, Bensahel believes it is likely the

The Superyacht Owner Report ISSUE 218

“It’s the smaller boats, or ones from slightly obscure brands, the older yachts or ones that need a lot of work, they are the boats that are struggling the most.”

Geoff Moore, managing director, West Nautical,

111

Source

SuperyachtIntelligence.com

Brokerage sales and yearly LOA(m) sales average GT 300

LOA (m) 43.58

43.55

44.0

43.12

250

43.0 42.18

41.95

200

41.46

42.0

41.39 40.74

150

40.79

41.0

40.38

40.74

40.96

40.58

100

40.0 39.86

50

0

39.0 147

161

160

212

239

220

215

238

220

206

208

268

244

168

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Sales

1 12

38.0

Average LOA(m)

“If someone has a well-built, wellmaintained yacht, it will always hold good value.”

Ben Farnborough, chief operating officer, Denison Yacht Sales

Do you have a defined Brand Strategy?

There is always the fear that the market will crash if sales continue to decline, however. “I think if you look at global superyacht sales, the number of boats sold will be way off what it has been for the last five years,” says Farnborough.

“As a company, we are always trying to be ahead of where we were the year before.

But I think if you look at the record books in the future, it will show that 2023 wasn’t the greatest year for superyacht sales by the numbers.”

For Larricq, it’s only a matter of time until the bubble bursts. “That being said, I was expecting it to burst last year, and I was proven wrong,” he says. “The market is still very strong. And unless there’s a major meltdown, I don’t see anything dramatic happening to the industry.”

Notably, listings are increasing in the build-up to show season. Despite the challenges to the market and the slow start to the year, the boat shows will likely be lucrative for sellers. Most brokers mentioned here reported full bookings for their Cannes, Genoa, Fort Lauderdale and Monaco slips by July, some as early as May.

Your brand is what makes you unique and positions you in the market. Have you invested in an informed brand strategy? Will you be lost in the crowded brandscape? Our team of expert strategists and creatives are on hand to give you the strategic brand recommendations you need to stand out from the crowd. Get in touch with the team today on hello@thesuperyachtagency.com

INTELLIGENCE. S T R A T E G Y. C R E AT I V E .

EVENTS.

thesuperyachtagency.com Instagram: syagency Linkedin: The Superyacht Agency

Source

SuperyachtIntelligence.com

Brokerage sales and yearly LOA(m) sales average GT 300

LOA (m) 43.58

43.55

44.0

43.12

250

43.0 42.18

41.95

200

41.46

42.0

41.39 40.74

150

40.79

41.0

40.38

40.74

40.96

40.58

100

40.0 39.86

50

0

39.0 147

161

160

212

239

220

215

238

220

206

208

268

244

168

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Sales

1 12

38.0

Average LOA(m)

“If someone has a well-built, wellmaintained yacht, it will always hold good value.”

Ben Farnborough, chief operating officer, Denison Yacht Sales

Do you have a defined Brand Strategy?

There is always the fear that the market will crash if sales continue to decline, however. “I think if you look at global superyacht sales, the number of boats sold will be way off what it has been for the last five years,” says Farnborough.

“As a company, we are always trying to be ahead of where we were the year before.

But I think if you look at the record books in the future, it will show that 2023 wasn’t the greatest year for superyacht sales by the numbers.”

For Larricq, it’s only a matter of time until the bubble bursts. “That being said, I was expecting it to burst last year, and I was proven wrong,” he says. “The market is still very strong. And unless there’s a major meltdown, I don’t see anything dramatic happening to the industry.”

Notably, listings are increasing in the build-up to show season. Despite the challenges to the market and the slow start to the year, the boat shows will likely be lucrative for sellers. Most brokers mentioned here reported full bookings for their Cannes, Genoa, Fort Lauderdale and Monaco slips by July, some as early as May.

Your brand is what makes you unique and positions you in the market. Have you invested in an informed brand strategy? Will you be lost in the crowded brandscape? Our team of expert strategists and creatives are on hand to give you the strategic brand recommendations you need to stand out from the crowd. Get in touch with the team today on hello@thesuperyachtagency.com

INTELLIGENCE. S T R A T E G Y. C R E AT I V E .

EVENTS.

thesuperyachtagency.com Instagram: syagency Linkedin: The Superyacht Agency

Photo courtesy of Amels

Join The Su pe Forum ryacht an METST d visit R 15-17 N ADE on ovemb er!

Quality inventory isn’t available for long, with Antoine Larricq of Fraser Yachts selling the 89-metre Amels Here Comes The Sun within 49 days of it coming to market.

same thing will happen again. “The boat shows are full. The quality on display is quite good. If we look at the last few years, we secured a number of transactions from clients that came to the yacht shows,” he says, “and while the Northern European or Italian ships gain a lot of attention traditionally, we are seeing increasing interest in Turkish shipyards.

Bilgin is definitely one to follow closely.

So there is definitely a lot of potential in new and emerging markets.”

The appetite from buyers is still there, and with the increase in available inventory during show seasons, it’s likely the sales following the boat shows will

bring this year’s figures to similar levels as 2022.

“Judging by the market’s current position and seasonal trends witnessed in previous years, we foresee more owners making a move and bringing their yachts to market for the Mediterranean season and as we enter the Caribbean season,” says Lambert. “Shows have become more and more sales-orientated over the years, so we are feeling positive going into the final part of the year. The 50-metre-plus market looks particularly active too, and that is positive for the entire market.

This segment typically leads the way, so if they have the confidence to move,

you’ll suddenly have a trickle-down effect with more yachts coming to market.”

As the industry descends from its crescendo of 2021, it’s time to prepare for the old normal. Adjustments in yacht valuations may be necessary to stimulate the market further, but ultimately it remains in good health and could improve further with a return to a more stable global economy and peace in Europe. For now, the market looks set to cruise into similar figures as seen in the years before the pandemic, which is stable enough to continue to foster the growth of the industry. CF

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 Martin Redmayne: martin@thesuperyachtgroup.com

WE’RE SWITCHING IT UP FOR 2023.

WE’LL SEE YOU FROM WEDNESDAY - FRIDAY! WED - 15-11-23 THU - 16-11-23 FRI - 17-11-23 The METSTRADE Show is the world’s largest marine equipment trade show and the only truly international B2B exhibition. With excellent networking opportunities, a broad range of showcased innovations and located in one of the most beautiful cities in the world, the METSTRADE Show is an unmissable event for every professional in the marine industry.

Unrivalled Superyacht Intelligence – your partners for strategic growth METSTRADE FEATURES

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Photo courtesy of Amels

Join The Su pe Forum ryacht an METST d visit R 15-17 N ADE on ovemb er!

Quality inventory isn’t available for long, with Antoine Larricq of Fraser Yachts selling the 89-metre Amels Here Comes The Sun within 49 days of it coming to market.

same thing will happen again. “The boat shows are full. The quality on display is quite good. If we look at the last few years, we secured a number of transactions from clients that came to the yacht shows,” he says, “and while the Northern European or Italian ships gain a lot of attention traditionally, we are seeing increasing interest in Turkish shipyards.

Bilgin is definitely one to follow closely.

So there is definitely a lot of potential in new and emerging markets.”

The appetite from buyers is still there, and with the increase in available inventory during show seasons, it’s likely the sales following the boat shows will

bring this year’s figures to similar levels as 2022.

“Judging by the market’s current position and seasonal trends witnessed in previous years, we foresee more owners making a move and bringing their yachts to market for the Mediterranean season and as we enter the Caribbean season,” says Lambert. “Shows have become more and more sales-orientated over the years, so we are feeling positive going into the final part of the year. The 50-metre-plus market looks particularly active too, and that is positive for the entire market.

This segment typically leads the way, so if they have the confidence to move,

you’ll suddenly have a trickle-down effect with more yachts coming to market.”

As the industry descends from its crescendo of 2021, it’s time to prepare for the old normal. Adjustments in yacht valuations may be necessary to stimulate the market further, but ultimately it remains in good health and could improve further with a return to a more stable global economy and peace in Europe. For now, the market looks set to cruise into similar figures as seen in the years before the pandemic, which is stable enough to continue to foster the growth of the industry. CF

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 Martin Redmayne: martin@thesuperyachtgroup.com

WE’RE SWITCHING IT UP FOR 2023.

WE’LL SEE YOU FROM WEDNESDAY - FRIDAY! WED - 15-11-23 THU - 16-11-23 FRI - 17-11-23 The METSTRADE Show is the world’s largest marine equipment trade show and the only truly international B2B exhibition. With excellent networking opportunities, a broad range of showcased innovations and located in one of the most beautiful cities in the world, the METSTRADE Show is an unmissable event for every professional in the marine industry.

Unrivalled Superyacht Intelligence – your partners for strategic growth METSTRADE FEATURES

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STERN WORDS

PERCEPTION ISN’T EVERYTHING

The industry is preoccupied with how it is perceived when, in reality, this is merely a symptom of important issues that need to be addressed now.

your pleasure is a serious matter

T

BY CONOR FEASEY

he very word ‘perception’ has become a challenge in the superyacht industry, akin to NOx emissions or marina capacity. But instead of addressing these fundamental challenges head-on, the sector has fallen into a cycle of using its image as a PR platform to showcase the industry’s positive aspects in response to criticism.

But what if, instead of merely reacting, problems were tackled at their roots, rendering the need for perception management obsolete?

Take the term ‘crew retention’, for instance. It’s often treated as its own issue when, in truth, the issue is as intricate as running a medium-sized company and hotel concurrently.

Therefore, to change the perception of our industry and present it as a secure career prospect for all, there must be a focus on addressing the core issues, rather than masking them. A thriving, well-supported crew community is the key to changing perceptions in this area and making careers in the superyacht industry accessible to all, not just the elite.

While marketing strategies can be instrumental in changing perceptions, they must also align with tangible, meaningful change. Far too often we see press releases proclaiming a commitment to reducing carbon emissions or achieving carbon neutrality at some distant future date, but what actions are being taken right now? This PR machine,

churning out empty statements, not only distracts us from the real issues, it also undermines the genuine efforts and initiatives that are underway.

The industry is renowned for its innovation, and this spirit can propel it towards a less carbon-intensive future.

By investing more in infrastructure and training for this inevitable transition, we can demonstrate to the world that we’re leading the way.

That’s not to say that unless yachting is 100 per cent good, it’s all bad, but it does need to be resolute in its commitment to sustainability. Sending vague press releases about future intentions just won’t cut it anymore – it’s time to showcase only concrete actions and achievements.

There’s also much to be proud of.

There are constant drives in technology to reduce emissions, initiatives to enhance crew welfare and advancements that elevate technological boundaries.

However, to truly establish legitimacy and transparency, yachting must set out an accurate representation of its accomplishments.

Criticism should not be considered an opportunity to wheel out press releases about plans for change, but rather a chance to evaluate. Instead of obsessing over managing perception, the focus should be on the core challenges we face. By taking genuine action, the industry can be transformed from within … and then its perception will take care of itself. CF

The Superyacht Report (ISSN 2046-4983) is published four times a year by TRP Magazines Ltd and distributed from the UK. Postage is paid in the UK on behalf of TRP Magazines Ltd. Send address changes to: hello@thesuperyachtgroup.com

MONACO BEAULIEU-SUR-MER SAINT-LAURENT-DU-VAR ANTIBES JUAN-LES-PINS GOLFE DE SAINT-TROPEZ LA SEYNE-TOULON LA CIOTAT MARSEILLE MONACO PHONE NUMBER : +37797970220

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COMMERCIAL@MONACOMARINE.COM

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MONACOMARINE.COM

STERN WORDS

PERCEPTION ISN’T EVERYTHING

The industry is preoccupied with how it is perceived when, in reality, this is merely a symptom of important issues that need to be addressed now.

your pleasure is a serious matter

T

BY CONOR FEASEY

he very word ‘perception’ has become a challenge in the superyacht industry, akin to NOx emissions or marina capacity. But instead of addressing these fundamental challenges head-on, the sector has fallen into a cycle of using its image as a PR platform to showcase the industry’s positive aspects in response to criticism.

But what if, instead of merely reacting, problems were tackled at their roots, rendering the need for perception management obsolete?

Take the term ‘crew retention’, for instance. It’s often treated as its own issue when, in truth, the issue is as intricate as running a medium-sized company and hotel concurrently.

Therefore, to change the perception of our industry and present it as a secure career prospect for all, there must be a focus on addressing the core issues, rather than masking them. A thriving, well-supported crew community is the key to changing perceptions in this area and making careers in the superyacht industry accessible to all, not just the elite.

While marketing strategies can be instrumental in changing perceptions, they must also align with tangible, meaningful change. Far too often we see press releases proclaiming a commitment to reducing carbon emissions or achieving carbon neutrality at some distant future date, but what actions are being taken right now? This PR machine,

churning out empty statements, not only distracts us from the real issues, it also undermines the genuine efforts and initiatives that are underway.

The industry is renowned for its innovation, and this spirit can propel it towards a less carbon-intensive future.

By investing more in infrastructure and training for this inevitable transition, we can demonstrate to the world that we’re leading the way.

That’s not to say that unless yachting is 100 per cent good, it’s all bad, but it does need to be resolute in its commitment to sustainability. Sending vague press releases about future intentions just won’t cut it anymore – it’s time to showcase only concrete actions and achievements.

There’s also much to be proud of.

There are constant drives in technology to reduce emissions, initiatives to enhance crew welfare and advancements that elevate technological boundaries.

However, to truly establish legitimacy and transparency, yachting must set out an accurate representation of its accomplishments.

Criticism should not be considered an opportunity to wheel out press releases about plans for change, but rather a chance to evaluate. Instead of obsessing over managing perception, the focus should be on the core challenges we face. By taking genuine action, the industry can be transformed from within … and then its perception will take care of itself. CF

The Superyacht Report (ISSN 2046-4983) is published four times a year by TRP Magazines Ltd and distributed from the UK. Postage is paid in the UK on behalf of TRP Magazines Ltd. Send address changes to: hello@thesuperyachtgroup.com

MONACO BEAULIEU-SUR-MER SAINT-LAURENT-DU-VAR ANTIBES JUAN-LES-PINS GOLFE DE SAINT-TROPEZ LA SEYNE-TOULON LA CIOTAT MARSEILLE MONACO PHONE NUMBER : +37797970220

│

COMMERCIAL@MONACOMARINE.COM

│

MONACOMARINE.COM

TIS been a real MADSUMMER – the sky was a bright QUANTUM BLUE and every day began like an ELYSIAN dream with the AURORA of the warm RISING SUN. In the evening, thanks to the light of a CRESCENT moon, I’d look at the PLATINUM mountains, where a FLYING FOX would escape from the bat caves into unknowable OASIS of the deep night.

Even the very smallest things were magical, such as a tiny SEA STAR, in a vast CORAL OCEAN. Then one day, it all started with a BLIND DATE. I met her in ONTARIO, she was RADIANT. I hoped that one day she’d BE MINE and that together our possibilities would be nothing less than LIMITLESS in this wonderful BELLA VITA. It was KISMET, fate, and I’d found my ACE. Anything can happen onboard a LÜRSSEN: