Metrics for the superyacht market are trending up, with sales and charter revenue up across most brokerage firms in 2019. Yet, owners and buyers are getting increasingly cautious, bracing for an economic slowdown. With yachting still far off its 2008 heights, anxiety grows over whether the sector can sustain another crisis.
A decade ago, the yachting market lost half its turnover. Sales plummeted as American and European markets tumbled, pressuring owners to sell and buyers to hold off, resulting in a drop of nearly 40% in brokerage yacht prices. Abandoned new builds and rare new orders lead to yard collapses that rippled throughout the industry.
Figures now show the market has recovered only 56% of what it lost, before inflation, which puts it at less than half of previous volumes.
Owners and buyers alike are now becoming increasingly cautious as signals of a possible economic slowdown are multiplying. US Government bonds clearly indicate this anxiety in the market with 3-month yields at 2.27% and 10-year yields at 2.1%, an inversion that so far only occurred ahead of a recession.
Indicators of anxiety in yachting are also clear. Speculation builds have returned in the past 18 months, with several small to midsize yards increasingly financing the construction of their own yachts in the hope of finding a buyer along the way. The last time the market saw this at a significant scale was in 2008.
Several new builds over 70-meters have now been sold for more than their construction costs. Another throwback to 2008 when yacht flipping hit scale and completed yachts were selling at 15 to 20% premiums over new build orders.
Ferretti Group, the Italian yacht building conglomerate, is now thinking of going public according to Reuters. The last time the group considered such a move was in 2008.
As the market grows increasingly reminiscent of 2008, some industry players have started heading for the exits, providing an interesting opportunity for capitalists. Whilst M&A talks across yachting have skyrocketed in volume in the past 12 months, some deals have already been closed.
US broker MarineMax acquired Fraser Yachts, a leading brokerage previously owned by the Azimut-Benetti Group, leaving several brokerages still on the market for consolidation. Dutch yacht builder Moonen has also disclosed it is bringing in a new investor, whereas Wider Yachts was acquired by a group involving Zepter, owner of the 50-meter yacht Joy Me.
Global Yachting Group, which went public in 2017 with a market cap of over £50 million, now trades at half that market cap as traders remain skeptical of yachting's performance in the event of a new recession.
Recessions in itself are a normal component of any open markets, cyclical in their nature. Yachting, however, will cruise in unchartered territory as the sector is still far off from having recovered from its 2008 levels and lacks the required capital to sustain a new correction. Despite the recent uptick, many yachting firms remain unprofitable.
A slowdown could also equal opportunity for larger players looking to expand their market share. Combined, the 10 largest yards already account for over 60% of active new builds. History has shown scale and efficiency were amongst the rare factors that could make a yachting organization profitable, even in a recession.
Even if it were to avoid a slowdown, yachting still seems to be poised for deep changes. The private aviation market over the past decade has seen commissions for brokerages rapidly decrease with a liberalization of information and the entry of tech companies.
The latest of which, Central Jets, now lets users subscribe for €199/month and charter any jet direct from its owners with the platform taking only a 3% processing fee, a steep discount from the 50% margins traditional brokers used to charge.
In aviation, the advent of such business models eradicated a large part of small traditional brokerages and slashed earnings for larger groups, handing back savings to the end users. Whilst yachting is still in its early days of seeing such models come in, a restructuring of current 20% charter and 10% sales fees could be hard to process for most organizations.
Progress continues at a rapid pace on the construction of the Perini Navi 56m Ketch C. 603, staying true to the predetermined schedule with enthusiasm and dedication.The second in the new generation of large Italian sailing yachts, this custom vessel's naval architecture and exterior design were meticulously crafted by the esteemed Malcolm McKeon Yacht Design studio. With over 30 years of expertise in creating innovative and high-performance sailing yachts, Malcolm McKeon's design promises a blend of elegance and functionality.Internally, the yacht's interiors are being shaped by the renowned English studio Winch Design, known for its excellence in luxury yacht and aviation interiors. Their collaboration with Perini Navi aims to merge comfort, style, and performance while preserving the iconic features of the historic Perini Navi fleet."The success of the Perini Navi Artexplorer Catamaran has fueled our passion for sailing yachts," remarked Giovanni Costantino, Founder & CEO of The Italian Sea Group. "With the expertise of Malcolm McKeon and Winch Design combined with our commitment to quality and innovation, we are confident this yacht will be a worthy addition to the Perini Navi fleet."Magnitude, overseeing the project on behalf of the owner, expressed high expectations for the finished product. "Through the dedication of The Italian Sea Group, Malcolm McKeon, and Winch Design, we anticipate this yacht to be truly exceptional," stated James Edward Kerry, CEO of Magnitude.Malcolm McKeon shared his excitement about the collaboration, stating, "Designing a 56m Ketch with Perini Navi has been an exciting journey," emphasizing the fusion of luxury, performance, and innovation.Winch Design also provided insights into their contributions, describing an interior that embodies timeless elegance while offering comfort and practicality. Inspired by the fluidity of the ocean, their design incorporates organic contours, warm timbers, and sand-colored materials to create a harmonious ambiance.In line with Perini Navi's tradition, the Ketch 56m will feature a digital tactile steering system for safe and enjoyable navigation. The spacious deck ensures maximum comfort for guests, even during advanced sailing maneuvers.Scheduled for delivery in the summer of 2025, the yacht promises to redefine luxury sailing.The Italian Sea Group is a global operator in the luxury yachting industry, listed on Euronext Milan (“EXM”) and active in the construction and refit of motor yachts and sailing yachts up to 140 meters. The Company, led by Italian entrepreneur Giovanni Costantino, operates on the market with the brands Admiral, renown for elegant and prestigious yachts, Tecnomar, Perini Navi, and Picchiotti; the Company has a business unit, NCA Refit, that manages the maintenance and refit services for yachts and mega yachts with a length over 60 meters. Credits: The Italian Sea Group
April 30, 2024
Enata joins forces with Mirarri, a visionary yacht brand spearheaded by Rashed Al Shaali from the UAE. The collaboration marks a significant milestone in the marine industry, as Enata will bring to life Mirarri's inaugural vessel, a stunning 16.7-meter yacht crafted with a full carbon hull and designed by the acclaimed Timur Bozca.Rashed Al Shaali, hailing from a distinguished lineage in the marine industry, embarks on a new chapter with Mirarri, driven by a desire to redefine luxury yachting. His partnership with Enata and Bozca underscores a commitment to innovation and excellence, setting a new standard in the sector."It's a proud moment for Mirarri to unveil our collaboration with Enata and Timur Bozca," said Rashed Al Shaali. "With their unparalleled expertise and dedication to craftsmanship, we're poised to create something truly extraordinary in the world of luxury yachting."The Mirarri yacht will showcase Enata's cutting-edge Wingman system, allowing remote control of various yacht functions, a feature synonymous with the Foiler's groundbreaking technology. Aloïs Vieujot, CEO of the Enata Group, expressed enthusiasm about the partnership, emphasizing the vessel's advanced materials and integrated design."The Mirarri yacht represents a leap forward in the boating industry," Vieujot stated. "With Enata's manufacturing prowess and Timur's design ingenuity, we're delivering a vessel that combines innovation, luxury, and performance."Beyond its collaboration with Mirarri, Enata has a strong track record in the B2B sector, leveraging its aerospace division to maintain exceptional quality standards. The Mirarri project exemplifies Enata's commitment to excellence and its ability to push the boundaries of yacht design and engineering.Designed to captivate discerning travellers, the Mirarri yacht boasts a seamless blend of futuristic aesthetics and organic elements. Its spacious interior, adorned with vibrant colours and contemporary furnishings, promises unparalleled comfort and sophistication.As construction of the first Mirarri yacht progresses, anticipation mounts for its unveiling in 2025. Rashed Al Shaali looks forward to the vessel's completion, eager to introduce the world to Mirarri's vision of luxury yachting reimagined.The Enata Group is the international manufacturing group headquartered in United Arab Emirates, and the builder of the flying 9.8-meter carbon Foiler. The group’s primary businesses include three main areas of R&D and manufacturing: marine, aerospace and architecture. Credits: Enata Group
April 29, 2024
Antigua Sailing Week kicked off in thrilling fashion with the English Harbour Rum Race Day 1 on Sunday, April 28, 2024. The picturesque South Coast of Antigua provided the backdrop as the international fleet embraced the tropical heat and set sail in ideal conditions. With an easterly breeze of 7-13 knots and calm seas, the stage was set for some intense competition.J122 McFly on El Ocaso (GBR) topped CSA Racing 2 on the first day of racing in Antigua © Paul WyethUnder the direction of the ASW Race Committee, a variety of courses were laid out, ranging from tight coastal short races to longer routes that explored the deeper waters of Antigua. J133 Credit Mutuel – Jivaro (FRA) – Class winner CSA Racing 3 © Paul WyethThe start lines buzzed with energy as the 88-boat fleet engaged in close racing throughout the day. Several class victories were decided by mere seconds after time correction, adding an extra layer of excitement to the competition.<iframe width=560 height=315 src=https://www.youtube.com/embed/uOSgXIGpW08?si=jeOqIStDFwgWPhWl title=YouTube video player frameborder=0 allow=accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share referrerpolicy=strict-origin-when-cross-origin allowfullscreen></iframe>Following the exhilarating races, sailors gathered at the Regatta Bars on the Antigua Yacht Club Lawn for some well-deserved relaxation. The atmosphere was electric at the English Harbour Rum Daily Prize Giving, where winners were rewarded with bottles of the renowned English Harbour 5 Year Old Rum. CSA Racing 1 – Adrian Lee’s Swan 60 Lee Overlay Partners II (GBR) on English Harbour Race Day © Paul WyethLisa Farara, Executive Director of Antigua Distillery, emphasized the significance of the rum's connection to the island's heritage and its longstanding partnership with Antigua Sailing Week.Volvo Ocean 65 Sisi (AUT), skippered by Oliver Kobale © Paul WyethThe festivities continued into the evening with a lively Pirate Nite celebration at the AYCM Platform, featuring a fancy dress theme and a spirited performance by party-band HyperActive. As the night unfolded, sailors and spectators alike reveled in the vibrant atmosphere, setting the stage for another day of thrilling racing ahead.Credits: Antigua Sailing Week
April 29, 2024
Tillberg Design of Sweden (TDoS), a division of the Viken Group, commemorates the completion of the monumental Sun Princess project, reflecting on its applicability to the superyacht sector. Over a span of seven years, TDoS played a pivotal role in shaping the interior architecture of the Sun Princess, a colossal 175,500-ton cruise ship accommodating 4,300 passengers. The ship recently emerged from Fincantieri’s Monfalcone yard, showcasing TDoS's expertise in crafting elaborate onboard venues.For the Sun Princess, TDoS orchestrated the design of key areas, including a grand three-deck dining room and an expansive sea terrace with a pool, demonstrating their ability to navigate complex spatial dynamics and ergonomic considerations. Fredrik Johansson, Co-Founder of the Viken Group and Executive Director of TDoS, emphasizes the team's disciplined approach and creative prowess in executing such ambitious projects.Drawing from their extensive experience in cruise ship interiors, TDoS seamlessly translates its skills to the superyacht sector. By optimizing development processes and maximizing onboard functionality, TDoS ensures that every design element harmonizes with the vessel's overall vision. The firm's mastery in managing intricate flows and operations contributes to the creation of unparalleled onboard experiences.Furthermore, TDoS excels in project management and coordination, serving as a central hub that aligns various stakeholders with the project's objectives. Johansson underscores the importance of clear communication and strategic planning in driving project success, whether for cruise ships or superyachts.Ultimately, TDoS's holistic approach and commitment to excellence make them an invaluable partner for complex superyacht ventures. Their ability to unlock the full potential of every project ensures the realization of exceptional design outcomes, regardless of scale or scope.The Viken Group includes Tillberg Design of Sweden, Hot Lab and Thalia Marine. It has been established to gather leading and passionate companies, with similar ideas and business ethics, under one umbrella. This enables it to provide a full range of completely aligned and comprehensive design, naval architecture and project management services.Credits: Tillberg Design
April 29, 2024
Moonen Yachts has launched the 36.3m Martinique named Moonshine, during a christening ceremony held last week in The Netherlands. This marks the sixth Martinique model from Moonen's successful fast displacement steel hull series, designated as yard number YN204.Represented by Neal Esterly from Fraser Yachts, the owners chose Moonen Yachts to bring their vision to life due to the yard's reputation for excellence in their size range and yacht type. Customizations were made to suit the owners' preferences, including adjustments to the yacht's length, allowing it to fit within a specific location with a limited length requirement.Set to be delivered before the summer season, Moonshine will embark on a journey through the Mediterranean and the Caribbean before finding her permanent home in San Diego, California.The collaboration between Moonen Yachts and the owners, crew, and construction team was characterized by close cooperation and productive exchanges. John Bechtold, the Project Manager at Moonen Yachts, expressed gratitude for the opportunity to refine Moonshine according to the owners' desires and intended use.Crafted in collaboration with Hollander Yacht Design, Moonshine boasts a rich and characterful interior design. The main saloon features full-height windows and innovative sliding doors, creating a seamless transition between indoor and outdoor spaces.Designed by René van der Velden, the Martinique's exterior architecture prioritizes natural light, breathtaking views, and harmonious indoor-outdoor connections. With a maximum speed of 17 knots and transatlantic capability, Moonshine promises exceptional comfort, spaciousness, and stability.Moonshine's launch follows the recent introduction of Lumière, the fifth yacht from Moonen's premium semi-custom Martinique series. The shipyard is currently working on the construction of the seventh Martinique model, YN205.Moonen Yachts is a yacht builder based in the Netherlands, and its first yacht was built in 1964 under the original yard name of De Ruiter. In 1981, the yard was renamed Moonen Shipyards. It’s launching its first vessel under new ownership: Alhena. In 2017 Moonen Shipyards changed into Moonen Yachts. With the help of strong vision, innovative technology and new designers, Moonen is once again becoming the market leader in 30m to 50m luxury yachts.Credits: Moonen Yachts
April 26, 2024