Yachts For Sale Luxury Yacht & Superyacht News

Ned Ship Group motor yacht BaiaMare

March 23, 2011

Motor Yacht BaiaMare is a 41.3m (135’5”) luxury vessel currently under build at the Turkish shipyard with a launch due in June 2011. TSMM of Antalya, Turkey are responsible for her Naval architecture, as well as for her interior and exterior design.

43 metre motor yacht BaiaMare by Ned Ship Group

The Owner of the yacht BaiaMare, a Turkish investor, chose Ned Ship based on his personal taste and liking for their design. He is the owner of another luxury Ned Ship yacht, built fifteen years ago and currently under refit at the shipyard.  The owner is very pleased with the current project, so much so, that he mentioned using BaiaMare privately, in case she would not sell.

Motor Yacht BaiaMare - Salon - Image courtesy of Ned Ship Group

‘BaiaMare’ superyacht features traditional lines with a great focus on reliable and functional luxury design based on a state of the art configuration. She is completely constructed in Epoxy Composite with Carbon enforcements. The yacht’s shaft and propeller are combined in a tunnel-like design, providing the yacht with a very low draft for her size. This makes her a very suitable charter yacht for places such as the Caribbean.

Onwer Cabin on the superyacht BaiaMare - Image courtesy of Ned Ship Group

Luxurious accommodation on board of the superyacht BaiaMare will be provided in six cabins, including one Owner’s deck, a VIP cabin on the main deck and four guests cabins on the lower deck.

Superyacht BaiaMare - Guest Cabin - Image courtesy of Ned Ship Group

Ned Ship M/Y Baia Mare is powered by 2 MTU 12V 2000 M94 engines of 1920 @ 2450 rpm to a top speed of 18 knots and an economical cruising speed of 15 knots. Her range at maximum speed is of 1,200 nautical miles and 1,800 nautical miles at the cruising speed of 15 knots. BaiaMare yacht is built in full accordance with the RINA Rules for Classification of Pleasure Yachts 2009.

Y BaiaMare - Image courtesy of Ned Ship Group

Miami Yacht & Brokerage Show: Sales Strong and Crowds Solid

March 06, 2011

This year’s Yacht & Brokerage Show in Miami Beach, Miami’s premier in-water boat show, was a testament to the resilience of the yachting industry.  The mile-long strip along Collins Avenue featured more than a billion dollars worth of new and brokerage yachts and the latest in marine accessories and electronics.  According to many exhibitors, the show’s success exceeded expectations with qualified, eager and more relaxed buyers taking to the docks.

The Yacht & Brokerage Show in Miami Beach: Sales Strong and Crowds Solid

The Yacht & Brokerage Show in Miami Beach: Sales Strong and Crowds Solid

 “Overall, the show was very good, resulting in quality leads. We saw many familiar faces from the yachting world, which is a good indication the market is turning and the nervousness is fading away,” said Mark Elliot, a top-producing yacht broker with International Yacht Collection.  “In addition, one-third of our show traffic was new to the industry.”

Feedback from manufacturers, brokers and other exhibitors within the marine industry consistently suggests that the yacht market as a whole is turning in a positive direction and boats are beginning to sell again. “Broker referral and optimism is up,” said Alan Murphy Jr. of Pioneer Linens.  “It seems the industry as a whole has a much stronger sense of well-being.” 

Tripp Nelson of Alexseal agreed, saying, “This year’s show is stronger than last year’s.  Our customers have sold boats at the show, which in turn, results in projects for us, allowing us to grow our market share.”

The Yacht & Brokerage Show in Miami Beach lived up to its reputation as a truly international event with many countries represented by exhibitors as well as by buyers.  “In addition to qualified buyers from the U.S., we met with many qualified buyers from a number of other countries including; France, Brazil, China, Colombia, Russia, Argentina, Mexico, Italy and Sweden,” said Kevin Callahan of Moran Yacht & Ship.  “We are expecting a lot of business to come from this show.”   

A good sign that market turnaround is becoming a reality was that many newer-to-the-market companies such as NISI Yachts, Zeelander USA, and J Craft reported a strong show, many coming away with multiple sales.

J Craft Yachts at the Miami Yacht & Brokerage Show

J Craft Yachts at the Miami Yacht & Brokerage Show

“Boat values are seeing an upward trend and we anticipate a rebound in 2011.  The manufacturing sector is beginning to stabilize, which in turn will result in a stabilized brokerage market,” said Tom George of Tom George Yacht Group.  “The show brought us good quality traffic, resulting in at least one offer on each of our boats on display.”

In addition to the spectacular array of yachts, other activities at the Boat Show included fishing seminars presented by the International Game Fish Association (IGFA).  “This show represents the yachting lifestyle,” said Dane Graziano, senior vice president and COO of Show Management, the company which manages and produces the show.  “Through our top notch exhibitors and state of the art seminars and entertainment, there is something for everyone at The Yacht and Brokerage Show in Miami Beach.” 

Next year’s Yacht & Brokerage Show in Miami will run from February 16-20, 2012.

Lazzara Yachts moves Lazzara Showcase to Bahia Mar Marina, Ft. Lauderdale

March 04, 2011

Lazzara has announced it has located its’ Showcase and new sales operation at The Bahia Mar Resort and Yachting Center in Bahia Mar Marina, Ft. Lauderdale FL.

Lazzara Yachts moves Lazzara Showcase to Bahia Mar Marina, Ft. Lauderdale

Lazzara Yachts moves Lazzara Showcase to Bahia Mar Marina, Ft. Lauderdale

Rich Lazzara, VP of Sales, said “When we designed the Lazzara Showcase two years ago the idea was to create the world’s premiere yachting showcase that would be used as an office as well as a boat show display.  The Showcase has certainly been a huge hit at the boat shows, however finding the premiere location for her year round has taken some time.  However we now have the best location possible.

The permanent home will be in the north basin of the Bahia Mar Marina in Ft. Lauderdale Florida located less than 100 feet from A1A.  There is no better location.  We will be moving our entire sales organization to this new location at 801 Seabreeze Blvd.

I for one am very excited.   We are going to offer a yacht showroom experience unlike anything else.  Certainly there are some nice yacht showrooms around the world. Our idea was to create an iconic yachting showrooms that would be moored in premiere yachting marinas around the world.  Much as Apple has done with their retail store presence we will do that same in the yachting world.  The Showcase at the Bahia Mar is just the first of several locations.

I envision it being a destination for everyone involved in the yachting industry.  The showcase can be used by owners and clients for events.  We can host crew seminars, training and parties.  Brokers can bring their clients there and have a space to sit down, have a refreshment and meet in a quiet location. We can host mini boat shows, and cross marketing events with many other luxury brands.  The opportunities are endless.”

Azimut triples its yacht order portfolio – Benetti sales grow from 8% to 20% in the UAE

March 03, 2011

Azimut Yachts triples its order portfolio in the UAE, while Benetti sales in this area grow from 8% to 20% of total sales with three megayachts sold in the past 12 months.

At the Dubai International Boat Show, the most exclusive and luxurious date on the season’s boating schedule, the Group will be exhibiting 16 yachts at a 600-m2 booth.

The Azimut Benetti Group will land at the Dubai International Boat Show, which is open in the pearl of the UAE until 5 March, with the objective of seizing the opportunities presented by a market that is proving to be particularly vibrant.

Benetti Tradition 100 at the Dubai International Boat Show

Benetti Tradition 100 at the Dubai International Boat Show

For the Company, headed by Paolo Vitelli, the UAE and, in general, the countries of the Middle East have expressed the capacity of economic recovery that is more significant than in the Group’s other traditional markets.

In this regard, it’s worth noting that in this very area, Azimut Yachts has nearly tripled its order portfolio in the last six months, while for Benetti, which operates in a sector where sales are distributed over greater time spans, the Middle East market today represents about 20% of total sales, vs. 8% just two years ago.

The recent path that brought Benetti to this brilliant performance consists of the delivery of three mega yachts in the past 12 months, a record that no other yacht builder has succeeded in matching in this area.

At the Dubai International Boat Show, 16 yachts are on display: Benetti is exhibiting its Tradition 100, a model that has garnered great success throughout the world; Azimut Yachts is represented by 11 models, and 4 are the sportcruisers branded Atlantis. The local prèmieres are 4: the Atlantis Verve 36 and three Azimut Yachts models: the 48, the 53 and the 72S.

Azimut 72S Motor Yacht at the Dubai International Boat Show

Azimut 72S Motor Yacht at the Dubai International Boat Show

Azimut-Benetti is the leading and most prestigious builder of mega yachts in the world. The Group, which owns the prestigious Azimut Yachts, Benetti and Atlantis brands, each geared to a specific segment of the nautical market and Fraser Yachts, a brand leader in the services sector – operates in 68 countries throughout the world via a sales network comprising 138 sites.

Miami Yacht and Brokerage Show: Riviera achieves best result in two years.

March 03, 2011

Riviera, Australia’s most awarded pleasure boat builder has recorded the best international boat show results in the past two years achieving eleven new boat sales and exceeding conservative expectations at the 23rd annual Miami Yacht and Brokerage Show.

Riviera had an impressive floating display at the Miami Yacht and Brokerage Show

Riviera had an impressive floating display at the Miami Yacht and Brokerage Show

Director of Riviera Yachts Chris McCafferty said Riviera’s new models had impressed the American market.

“This was an extremely successful show for Riviera with overall enquiry and sales up over 200 per cent from last year, further reinforcing Riviera’s reputation for quality and innovation, a tremendous achievement and a great start to 2011,” Chris said.

Riviera entertained about 350 Riviera owners and enthusiasts at its floating display on Collins Avenue over two fun-filled nights. 

Entry to Riviera's floating display at the Miami Yacht and Brokerage Show

Entry to Riviera's floating display at the Miami Yacht and Brokerage Show

Live music, great food and plenty of cool cocktails set the scene for two nights of great entertainment and good company with the Riviera family.

“Our social functions were a real hit with our clients and invited guests and we received very positive feedback from everyone who visited our display.  Our dealers are very confident that a number of quality enquiries received during the show will be converted into sales following a series of upcoming sea trials,” Chris said.

“It was encouraging to see a mix of sales from both the Flybridge and Sport Yacht range and there was strong interest in Riviera’s new 43 Open Flybridge and 5800 Sport Yacht.

“Among the sales at Miami were two 43 Open Flybridges, two 5800 Sport Yachts, two 4400 Sport Yachts, one 5000 Sport Yacht  and several flybridge models ranging 51 to 38 feet.

“These boats are bound for diverse boating destinations including, Massachusetts, Puerto Rico, Costa Rica, Miami, Lake Michigan, Seattle, Canada and Bermuda.  We have several sales pending and were approached by prospective dealers requesting new dealerships in territories where Riviera currently does not have dealers.  This further highlights the strong presence of the Riviera brand in the Americas as the economy starts to move forward.

“We were impressed with the level of attention from the US market with several clients also expressing their interest in Riviera’s new 61 Series II and 53 Enclosed Flybridge which has already sold 12 sight unseen and is bound for Fort Lauderdale in October 2011.  These boats are due for their world release at the 2011 Sanctuary Cove International Boat Show in May.

“The results speak for themselves but it is testament to Riviera’s impeccable quality, design features and ‘built-to-last’ philosophy.”

The new 43 Open Flybridge introduces an exciting new level of cruising amenity to the flybridge market, indoor/outdoor living with the rear bulkhead of the boat opening right up to connect the cockpit and saloon as one space, there is also an optional aft barbecue centre in the transom, making this the ultimate flybridge entertainer.

Volvo Penta IPS propulsion will give the 43 Open Flybridge a powerful, smooth ride while enhancing fuel efficiency and ease of handling in close-quarters via the integrated joystick control.

The new Riviera 5800 Sport Yacht is a versatile design with the option of a galley aft in the saloon or on a lower level, an expansive cockpit with large dining table and a garage that can accommodate a 3.2-metre tender.

Accommodation on the 5800 is extremely generous with up to four staterooms and three bathrooms, plus an optional crew quarters.

Continuing Riviera’s commitment to innovation, the new 5000 Sport Yacht offers owners the option of two accommodation layouts to further personalise the vessel: a three cabin and two bathroom design or two cabins and two bathrooms plus a below-deck lounge area. The large full-beam aft cabin offers options of an athwartships double bed and single portside bed or three singles.

The option of an aft-facing lounge in the forward quarter of the cockpit, offers expansive views while protected from sun, wind and rain.  In the saloon, panoramic windows and a huge electric sunroof bring the outdoors, indoors and with the centrally located gourmet galley, this sport yacht is perfect for entertaining.

The 5000 Sport Yacht is powered by twin Cummins turbo diesel engines linked to Zeus pod drives with aft facing propellers. The 5000 Sport Yacht can be operated single-handedly thanks to an advanced joystick control.

Riviera offers 20 different models from 36 to 85 feet across four model series Flybridge, Sport Yacht, Offshore Express and Motor Yachts.

Marine industry to see modest growth in 2011, GE Capital Survey reveals

February 27, 2011

After navigating through rough waters for several years, the marine industry is beginning to push forward on the throttle, according to survey results released today by GE Capital, Commercial Distribution Finance (CDF) from the Miami International Boat Show. More than one-third of respondents (38%) expect sales to increase up to five percent in 2011, and 54% said that the best time for dealers to increase inventory levels is now.

“The marine industry is starting to see signs of recovery as we move past the recession,” said Jeff Malehorn, president and CEO of CDF. “Through our 40 years in the marine industry, we’ve seen many cycles and we’re optimistic about the years ahead.”

Not surprisingly, sales of lower-ticket items are rebounding faster than those of bigger-ticket items. Forty percent of survey respondents expect growth to be led by sales of aluminum boats, followed by recreation boats (17%). In contrast, boats of 30’ or more were the strongest-selling segment during the market’s peak in 2007.

“Dealers are beginning to order new inventory, but they continue to be cautious,” noted Bruce Van Wagoner, president of the CDF Marine Group. “At the same time, manufacturers want to be sure their dealers have the right product mix so everyone is focused on smart growth. They’re all paying close attention to remaining aged product, dealer credit availability and inventory turns, among other metrics.”

Nearly 70% of the responding marine dealers and manufacturers believe that the biggest hurdle facing the boating industry this year is consumer demand, and 40% said a reduced level of showroom and field inventory is the trend that will have the largest impact on the industry this year.

The Marine Industry Survey of 53 marine dealers and manufacturers was conducted on Feb. 16, 2011, at the Access GE Industry Roundtable event at the Miami International Boat Show. Respondents included marine dealers and manufacturers.

Success at Miami Boat Show for Viking Yachts

February 23, 2011

The Miami Yacht and Brokerage Show, which ended yesterday is officially history and what a show it was! The Viking display, which featured 14 motor yacht models from 42 to 82 feet was one of the most visited exhibits on Collins Avenue with 4,800 registered guests during the five day affair, a 50 percent increase over last year’s totals.

Six Viking yachts including two Viking 76 Convertible motor yachts were sold at the Miami Boat Show

Six Viking yachts including two Viking 76 Convertible motor yachts were sold at the Miami Boat Show

At the 70th Annual Miami Boat Show 2001, Six Viking yachts were sold, including two 76 Convertible motor yachts, a 70 Convertible, two 60 Convertibles, and a 66 Convertible, a brand new model announced at the show.  Riding the wave, Viking expect to see additional confirmations over the next several weeks based on our post-show sea trial appointments.

Sanlorenzo sells four yachts at the first two 2011 Boat Shows

February 23, 2011

Sanlorenzo, the prestigious Italian Shipyard focused on the production of motor yachts exclusively tailor‐made according to the requirements and style of every single owner, attended the Duesseldorf Boot 2011 and, confirming the better economic situation of the German Republic, sold two yachts, a SL62 and a SL82, fiberglass planning motor yachts produced in the Ameglia Division.

San Lorenzo sells a SL62 and a SL82 Motor Yachts at the Duesseldorf Boat Show

San Lorenzo sells a SL62 and a SL82 Motor Yachts at the Duesseldorf Boat Show

On the other side of the Altlantic during the first United States Boat Show that took place on February in Miami, Sanlorenzo of the Americas, the Brand Representative responsible for the sale of Sanlorenzo yachts in the continent, sold a SL72 and a SL88 Ameglia planning fleet’s yachts; in particular the SL88 has been built in a specific American version.

San Lorenzo sells a SL72 and a SL88 Ameglia planning yacht at the Miami Boat Show picture

San Lorenzo sells a SL72 and a SL88 Ameglia planning yacht at the Miami Boat Show picture

It is important to notice that, beside the annual world builders super yacht classification (yachts over 80 feet, 24 meters), called Global Order Book in which Sanlorenzo is third, Sanlorenzo listed in 2010 classification 38 hulls for a total length of 4.085 feet, while in 2011 maintain the same level of orders with 37 units and a total length of 3.898 feet. Sanlorenzo keeps maintaining the same level of orders for all its fleet.

Sanlorenzo proves itself as one of the most stable and strengthened operator in the super yacht field and can praise and extraordinary performance for the 2011 too.

SANLORENZO Spa

San Lorenzo shipyards were established in Viareggio, Italy in 1958 and up to 1985 the production consisted of semi‐custom boats totally wooden‐made. In 1985, the first Sanlorenzo fibreglass flying bridge was born, the SL57. In 1999 the company moved to Ameglia into a natural park area (Sanlorenzo is certified “UNI EN ISO 14001” which guarantees the utmost respect for the environment). The lines of the Sanlorenzo fleet have always been extremely classic, never‐aging.

In April 2005, Massimo Perotti took over from Giovanni Jannetti the shipyards that become Sanlorenzo Spa.

Massimo Perotti, after bringing to completion many of the most original and successful products of the sector, decides to leave the industry figures where he had built his background to join a tradition of absolute perfection and small production numbers. The Sanlorenzo philosophy remains focused on “customization and total dedication to the customer, top notch quality and personal relationships”. Today Sanlorenzo is based on two divisions: the Ameglia Division, for the production of fibreglass motor yachts ranging between 62 and 108 ft., and the Viareggio Division, for the production of navettas in composite material with semi‐displacement hull from 92 to 122 ft. and super yachts in metal (aluminium and steel), from 40 to 50 metres over.

Allied Marine Expands to Newport

January 25, 2011

As the primary distributor for the Ferretti Group brands in North America, Allied Marine has recently expanded its operations in the North East with the opening of a new office in Newport, Rhode Island. Newport is a well established hub for the yachting community on the East Coast and the Allied Marine Office in Newport will actively represent a selection of the groups most exclusive brands including Ferretti Yachts, Pershing, Riva, Mochi Craft and CRN throughout Rhode Island, Massachusetts and Connecticut in addition to offering brokerage vessels. The Newport Office will operate in concert with the Allied Marine Office in Sag Harbor that primarily supports New York and Long Island.

Allied Marine Expands to the Newport

Allied Marine Expands to the Newport

Established in 1945, Allied Marine is one of the oldest and most established yacht dealers and brokerage houses in North America and offers some of the largest inventory and listings of new and brokerage yachts over 50 feet throughout the country. The Newport office was recently established in the heart of Newport’s downtown quarter. This new location will operate year round, while the Sag Harbor office will be open seasonally from May through September. “The Newport location was a strong strategic choice for us as we have a significant number of clients with homes in both the North East and Florida. We see tremendous opportunities for the Ferretti, Riva, Mochi Craft and Pershing products, particularly in the North East. We are now poised to better serve our clients needs while offering an extensive product portfolio to the area.  states Robert McDougal, President of Allied Marine.

Allied Marines 65 years of marine heritage compiled with the largest brokerage listing services in the country makes Newport, Rhode Island the perfect fit. Noted for its harbor front homes and classic New England architecture, the Brown & Howard Marina provides the perfect backdrop for Allied Marines store location and impressive yacht line-up. This will be the company’s sixth location established in the U.S. Allied Marine has offices, which currently span Florida from Miami to Stuart and extend to Sag Harbor in addition to its newest Newport location.

The Ferretti Group is the leading luxury yacht manufacturer, which produces models currently ranging from 33 ft to 278 ft, each of which is a leader in its market segment. Ranking first in the Showboats International Global Order Book 2011, the Ferretti Group was rated as the top producer of luxury maxi-yachts worldwide. With such a strong foundation, Allied Marine customers benefit from Ferretti Groups worldwide customer service and are offered 24-hour mobile assistance upon request. Allied’s seasoned sales representatives have direct access to the Ferretti Groups factory representatives and can easily process any of their clients yachting needs, while gaining entry to a wealth of information, services and benefits for its valued customers from the moment of their first purchase.

Jim Mattingly has been appointed as Sales Manager to spearhead Allied Marines Newport location. With evidence of nearly 40 years in the industry, he brings a spectrum of expertise to the Allied organization. He served as Marketing & Sales Director for Palmer Johnson, Inc. and went on to found Nautor’s Swan sailboat company, one of the most successful manufacturers of sailing boats worldwide. Furthermore, he spent years managing the new construction, service and brokerage offices for Robert E. Derecktor & Co. in New York, Florida and Rhode Island, where he was the Vice President for Marketing & Sales. Jim is a trusted source within the marine industry through his involvement in various sailing regattas, maritime associations and respective organizations. Jim is a recognized Newport waterfront icon, having been involved in three Americas Cup races as well as Ted Turners crew boss and watch captain. “When Jim Mattingly says a boat’s impressive, you might want to listen.” quoted, Power & Motoryachts Editor in Chief, Richard Thiel. His experience provides him with a unique perspective in the buying and selling process of boats. Jim will be very active as Allied Marines key representative in the Newport location further educating the area about Ferretti Groups products and working towards enhancing Allied Marines presence in the area. With Jims management and the Newport office fully up and running, Allied Marine and the Ferretti Group will become increasingly involved in an array of activities at the height of this coming spring/summer 2011 season.

3rd “La Belle Classe Superyachts” Symposium Monaco 2011

January 24, 2011

International yachting professionals gathered at the Yacht Club de Monaco for the 3rd “La Belle Classe Superyachts” Symposium. They discussed various issues in the superyacht industry and reflected on the market of 2010, as well as looked forward to likely future developments in the superyacht industry.

Monaco Harbour

Rationalisation beckons in 2011

Yacht Club de Monaco logo

Monaco, 20 January 2011: under the aegis of “La Belle Classe Superyachts”, a label initiated by the Yacht Club de Monaco to unite all those involved in the yachting industry and support club members in this sector, 45 delegates attended a dinner-debate at the YCM. Participants represented the complete luxury yachting chain (shipyards, brokers, designers, captains and specialists in yacht finance, insurance, surveys and law) and they came to take stock of the current economic situation in their industry.

Hosted by Bernard d’Alessandri, YCM Secretary General, and organised with the support of Only Yachts, this third symposium was also of great interest to the Monegasque authorities. Among those attending were HE Marco Piccinini, Adviser to the Government on Finance and the Economy, Paul Masseron, Advisor to the Government for the Interior, Jean-François Robillon, President of the Conseil National (Monaco’s parliament), Jean-Louis Bissuel, Director Maritime Affairs, Jean-François Tourret, Manager of Saint-Tropez Port, as well as Gian Battista Borea d’Olmo and Daniel Realini, respectively Managing Director and Operations Director for the SEPM (Société d’Exploitation des Ports de Monaco) which manages the two ports in Monaco.

After an introductory speech by David Legrand of Fraser Yachts, in which he described the current situation and gave his macro-economic vision of the yachting sector, everyone had an opportunity to express their views and put forward their analyses and experiences in a friendly and constructive atmosphere.

Resumption of Yacht Sales

“After a difficult end of year in 2009, 2010 saw a recovery in sales with transactions to the value of 2,575,866,000 euros, a +30% increase on 2009. And the average value of these transactions was 13 million euros,” began David Legrand.

The rise is explained by a significant drop in prices for the 30 to 40 metre vessels, generating a considerable volume of business as owners sought to quickly raise cash.

2010 also led to an adjustment in prices of second-hand boats. As a result, sales picked up again in a generally stabilised market, even though there are still discounts to be had. There is a better balance between the number of boats coming onto the market and those sold or taken off the market, so the situation is healthier which has led to a recovery, particularly in bargains.

It was also noted that the refit business has held up, although there are no longer the big renovations of previous years: further proof that owners are again more conscious of cost.

Espen Oeino observed that the level of serious enquiries for new-builds among designers seems to be higher than in 2009, a positive sign that should be confirmed by actual contracts.

“Clients have become more demanding and try to push the price to the maximum due to a lack of clarity. The Russian market collapsed on the Côte d’Azur, particularly between the end of 2009 and mid-2010, except for vessels over 35 metres,” reports Philippe Blattès, exclusive Importer for Azimut-Benetti (Monaco and France).

Among comments relayed from the Heesen shipyard, represented by Marketing Manager Sara Gioanola: “After the sale in December of a 51 metre to a Russian in his thirties, we have just signed another contract for a semi-customised 50 metre.”

Chartering at half-mast in 2010 but a fairer wind forecast for 2011

Contrary to all expectations, 2010 was a very difficult year for the charter market (30-40 metres), with last-minute or very late bookings at rock-bottom prices (-30%). The customary clientele preferred to take advantage of generous discounts in the second-hand market, and a chance to take out loans at very competitive rates to buy a yacht rather than charter.

Some in the profession fear these new owners (with a discounted product) will not be able to manage yacht maintenance costs (around 10% of the real value of a yacht per year). They are afraid the second-hand market in 2011 may become saturated, leading to a depreciation of the new-build sector which must maintain its production costs.

Some brokers remain optimistic for 2011, such as Kristen Ringsing (YachtZoo) who says his company has already signed contracts early in the year which was not the case at the same period in 2010.

Crews get a rough ride

Crewing is one of the sectors most affected by the crisis, with falling wages (-30%) and the number of staff onboard reduced, which is also having an impact on crew agencies.

Like the second-hand market, we have seen an enormous turn-over of personnel since last year,” says Jacques Conzales, President of GEPY (Groupement des équipages professionnels du yachting), and he adds: “Only the port and maritime authorities, and insurers can stress the importance of keeping crew on board to ensure not only maintenance but also security when the boat is moored up without a charter. We must not ignore the importance of having a properly trained seaman on board all year round!”

2011: A “pivotal year for shipyards”

“Many contracts signed in 2007-2008 are in the process of being delivered. They have enabled shipyards and all their suppliers to get through the crisis. Now everything hangs in the balance!” argues designer Espen Oeino.

Michael Breman, President of SYBASS (Superyacht Builders Association) and Sales Director at Lürssen, agrees: “It is important to reassure owners. The reputation and quality of production at the shipyards are decisive factors in the decision to purchase.”

“While some boatyards took advantage of the crisis to enter agreements or transactions, like Lürssen which bought a German shipyard or Oceanco that changed shareholders, for others 2011 will be a critical year once the final orders have been delivered. Rationalisation will continue in this sector. There will probably be more mergers in 2011. The present difficulties with order books for 2012 and 2013 should sound the death knell for speculative orders from those who sometimes built yachts before they had even been sold. This crisis will continue to streamline the market by reducing the competition,” affirms Olivier Blanchet, Fund Manager for Yachts (+40m) at BNP Paribas.

Yachting must step up its efforts to be recognised as an industry

“Some 53% of the world’s wealth is divided between the USA, Japan and Germany. For cultural reasons, and given what we have seen in Japan, Asia (apart from Singapore) is not yet a mature market partly due to cultural barriers and a lack of infrastructure. At present, South America is a more promising market than Asia, contrary to what one might think. Certainly, since 2009 and for the first time, the population of Asian “Ultra High Net Worth Individuals” has overtaken the Europeans. However, a yacht is still not an investment they make on impulse because they are yielding to a passion, as usually happens with this clientele. Today they think first about the way it is built before wanting to buy one. We estimate that there are around 100,000 people in the world likely to buy a yacht of +30 metres,” says Olivier Blanchet.

And he continued: “The average period of keeping a yacht is five to seven years maximum and in terms of value that represents around 12-15 billion for yachts of +24 metres.”

“We see yachting as an industry that must become more professional and better structured if it is to fully mature. The banks’ aim is to have an integrated approach: from the shipyard to the end user. The tendency is to ask those who are building the yachts for bank guarantees and the shipyards to ask for guarantees of payment. Under these conditions, legal contracts for construction, sub-contracting and credit is the key. The boat’s pedigree and the value of the maritime assets are just as important as the assurance given by the future owner on the means they have to buy the yacht of their dreams, but especially also their ability to maintain it properly with respect to nautical tradition. It is a relationship that must be set up for the medium term. It’s all about teamwork, from the designer and shipyard through the broker, manager, insurer, and so on; each has a role to play in the chain!”

“This sector is important when you remember that it generates 300,000 jobs in Europe. It is an industry on which people’s livelihoods rely: two billion euros in Italy and nearly a billion pounds sterling in GB. It is not by chance that the luxury industry is also interested in this sector; take for example the LVMH group which has got closer to Princess. These two industries focus on marketing and tailor-made products to meet the demands of a common clientele and thereby minimise depreciation of their production.”

“It’s true that this is an industry which doesn’t defend itself enough and suffers from a poor image. We need to communicate better! It’s up to us to explain that it creates jobs!”

Antoine Perry, Administrator at the Nice CCI (Chamber of Commerce & Industry) agrees: “We have identified 1,200 companies just between Cannes and Nice (excluding Monaco), that’s 3,600 direct jobs. Yachting is fourth for employment in the district [Alpes-Maritimes].”

Maintain its implied position as leader

“Monaco and the Côte d’Azur have assets. It is important to analyse and examine how we can lift our game to attract owners and respond to expectations about how best to exhibit their vessels when they go up for sale,” argues Philippe Blattès.

Faced with the current shortage of berths (many marinas being under construction), boat shows offer the best “shop” window. The Monaco Yacht Show helps generate sales; it is a solid bubble in terms of image and stability, and a barometer for the market. Proof of its success lies in the fact there were more than 130 yachts moored in the bay in 2010.

“For the last four to five years demand from exhibitors has been stable, with 50 to 80 companies on the waiting list who we are not able to satisfy. However, the size of yacht has changed with the  40 metre average in 2005 rising to 45 metres in 2010 and an increase in demand for yachts of over  60 metres,” comments Gaëlle Tallarida, Managing Director of the Monaco Yacht Show.

However, attention must be paid to the competition. This includes other shows such as the one at Fort Lauderdale, still an international benchmark, or the development of new marinas throughout the world whether in Liguria, where a dozen are springing up, Greece, Asia or Montenegro, or again the emergence of a new clientele and investment in South America, notably Argentina. “I was very impressed by the facilities set up in Montenegro in a former Russian naval shipyard. They already have a 100% occupancy rate in the summer and are starting to take 50 metre boats,” observes Gian Battista Borea d’Olmo, Managing Director of SEPM.

Laurent Perignon recalls: “The economic mechanisms which impact on industries producing upmarket and luxury consumer goods functioned in a similar way to luxury yachting during the crisis – and also we hope in the resolution – showing that the yachting industry is also subject to market forces. Clients are increasingly mindful of its evolution, rationalisation and professionalism.”

And Olivier Blanchet concludes: “Faced with a European market looking for a second wind, only environmental innovation to reduce energy use, with initiatives to unite players in the industry around a common goal, supported by greater transparency on prices and an ongoing search for quality, are likely to bolster development for 2011 and the years to come.”

Next rendez-vous:

“La Belle Classe Superyachts” Environmental Symposium, Wednesday 30 March 2011.