Superyacht Investor London 2023: live blog – as it happened
Superyacht Investor London 2023 hosted 170 delegates at the Royal Garden Hotel this week. After two days of topical discussions and networking, here are some of the highlights from the event as it happened.
And so, Superyacht Investor London 2023 comes to an end.
“We’ve discussed a lot of interesting topics over the past two days,” says Andrew Charlier, HFW in his closing remarks. “There is a lot of positivity and promising opportunities to come for the industry.” #SYIL23 pic.twitter.com/PZ01mA9T6F
— Superyacht Investor (@SYInvestor) March 15, 2023
Robin Clayton, @Investec discusses the prospects for yachting financiers in our final panel.
“I think it is inevitable that enquiries will go down given the current economic climate. But we’ve built a strong pipeline and got enough in the tank to see us through.”#SYIL23 pic.twitter.com/EArvwkmy46
— Superyacht Investor (@SYInvestor) March 15, 2023
Ioannis Terdimos, Elixir Cruises assures the audience that his superyacht liner company is not a competitor of the yacht industry. “A person with the money to buy a superyacht will always buy a superyacht. That is not our market.”#SYIL23 pic.twitter.com/Wd0QtWFsW6
— Superyacht Investor (@SYInvestor) March 15, 2023
The fundamental difference between a large yacht and a small cruise ship is space, says Richard Twynam, Scenic. With 600 people on a small cruise ship, you will still feel crowded.
“We also focus very much more on our environmental impact than the larger cruise ships.”#SYIL23 pic.twitter.com/8iDeN5ncWo
— Superyacht Investor (@SYInvestor) March 15, 2023
Around 70% of the audience said the cruise and superyacht industries are they’re completely different markets.
Others feel differently. “I think there is a bit more of a convergence than [the audience] are giving credit for,” says Will MacLachlan, @hfw_law.#SYIL23 pic.twitter.com/JdFWZx9i4d
— Superyacht Investor (@SYInvestor) March 15, 2023
Paul Madeley, Wavebreak says he thinks crew should be trained to use the new technologies on board.
“I don’t think it is unreasonable that crew should keep a logbook of the batteries on tenders so you can mitigate risks of fires from faulty cells.”#SYIL23 pic.twitter.com/21UjEJulkR
— Superyacht Investor (@SYInvestor) March 15, 2023
Dr Peter Mansi, Fire Investigationssays demand for lithium battery cells is predicted to reach 6.7bn a month by 2030.
“For that to happen there will need to be a huge amount of production. Unfortunately, someone will capitalise on making substandard cells.”#SYIL23 pic.twitter.com/RK4Apsg4Su
— Superyacht Investor (@SYInvestor) March 15, 2023
Rachel Butlin, Ince asks panellists on the fire panel why has there been an increase. Most agree that it is due to lithium batteries on yachts.#SYIL23 pic.twitter.com/ZMI8GSj5h9
— Superyacht Investor (@SYInvestor) March 15, 2023
Daniel Shacklock, Millstream Underwriting Limited says: “There has been a definitive increase in catastrophic fires, which has led to numerous yachts becoming a total loss.”#SYIL23 pic.twitter.com/16Um7PhTus
— Superyacht Investor (@SYInvestor) March 15, 2023
Henry Smith, Cecil Wright & Partners recalls instances where problems arose when payments using fiat currency did not clear for a number of hours.
“Using cryptocurrency eradicates this problem because transactions are instantaneous.”#SYIL23
— Superyacht Investor (@SYInvestor) March 15, 2023
Giles Whitby-Smith, @bitcashier tells the audience now is the time to adopt cryptocurrency payments.
“There are a lot of people out there with a lot of money [in cryptocurrency]. If you are only getting to the crypto party now, you a probably a little bit late.”#SYIL23 pic.twitter.com/dXb2paO7fL
— Superyacht Investor (@SYInvestor) March 15, 2023
Owners are more open-minded today, says Geoff Moore, @WestNautical.
“Owners are far more educated now and are asking more questions to do with operations and costs. They have become more business conscious.”#SYIL23 pic.twitter.com/jGdpMcRXLb
— Superyacht Investor (@SYInvestor) March 15, 2023
“Charter is booming,” says Gayle Patterson, @PelorusX.
“Despite everything going on in the world, people are desperate to get away. We expect to have a very positive 2023 too.”#SYIL23 pic.twitter.com/KwHFa3SprU
— Superyacht Investor (@SYInvestor) March 15, 2023
Advait Deodhar, TJB Super Yachts says: “There was a charter boom in 2022 and it is looking like it is going to be the same this year.
“The numbers for 2023 are already looking very similar to what we saw last year.”#SYIL23 pic.twitter.com/OEmDpxFDQT
— Superyacht Investor (@SYInvestor) March 15, 2023
Jay Tooker, @hfw_law adds that an owner shouldn’t buy a yacht with the sole intention of chartering it out or for tax benefits.
“Tax should be a consideration, but it shouldn’t be the only consideration when buying a boat,” he says.#SYIL23 pic.twitter.com/vxlJrsWUNT
— Superyacht Investor (@SYInvestor) March 15, 2023
For Peder Eidsgaard, Harrison Eidsgaard, there is nothing better than a client who returns to build another yacht.
It is just as satisfying when an owner keeps their boat forever.#SYIL23 pic.twitter.com/mkctFr8sy3
— Superyacht Investor (@SYInvestor) March 15, 2023
Michael Breman, Lürssen says that no news is good news after completing a new build.
“If you build a bad boat, it will follow you around for the rest of your career. The best boats are never heard from again because they are out cruising happily.”#SYIL23 pic.twitter.com/xvqVqKr26v
— Superyacht Investor (@SYInvestor) March 15, 2023
Ben Mennem, MB92 addresses the challenges that face the refit market.
Aside from the dangers presented by war and political unrest, Mennem says it is imperative for the industry to improve its sustainability to survive.#CJI23 pic.twitter.com/Q2jyS8uhL5
— Superyacht Investor (@SYInvestor) March 15, 2023
Welcome back to the Royal Garden Hotel and Day Two of Superyacht Investor London 2023.
The day starts with an assessment of the current state of the refit market from MB92 La Ciotat’s Ben Mennem.#CJI23
Follow the event live here: https://t.co/7lYAP0Kvmv#Superyachts
— Superyacht Investor (@SYInvestor) March 15, 2023
Robert Allen, Robert Allen Law agrees. “You need a local lawyer. We work cross-nationally and when we need to get a perfected security interest or mortgage, we need to do it the way that is dictated by local law. And you need to spend a bit of money to do that.”#SYIL23 pic.twitter.com/Y1PwLpkPjR
— Superyacht Investor (@SYInvestor) March 14, 2023
Shipyard insolvencies are an unfortunate reality of the industry, says Alex Sayegh, HFW. “There have of course been the Perini Navi and Nobiskrug insolvencies recently.”#SYIL23 pic.twitter.com/Wda1EIVsQ5
— Superyacht Investor (@SYInvestor) March 14, 2023
Typically, shipyards that file for insolvency do so towards the end of a project when it has stretched their cash flow to the limit.
“It’s only when the tide goes out, that you see who swimming naked,” says Jay Tooker, @hfw_law, quoting Warren Buffet.#SYIL23 pic.twitter.com/5Xn7lE1eXK
— Superyacht Investor (@SYInvestor) March 14, 2023
Drugs are becoming an increasing problem for superyacht crew.
“This is why you I take random drug tests and let the crew know there is a zero-tolerance policy on drugs,” says John Walsh, yacht captain. “Once you take a scalp, people realise you are being serious.”#SYIL23 pic.twitter.com/Ln9V8UhVSP
— Superyacht Investor (@SYInvestor) March 14, 2023
Is the pathway to senior leadership and captaincy harder for women? “Unfortunately, it still is and that shouldn’t be the case,” says Oliver Batty, Döhle Yachts.#SYIL23 pic.twitter.com/MLTBctZai1
— Superyacht Investor (@SYInvestor) March 14, 2023
A Quay Crew survey among crew revealed respondents rated their captain’s leadership skills at 6.4 out of 10.
“My answer to solving this would be to send more captains on leadership courses and those in senior leadership positions too,” says Tim Clarke, @quaycrew.#SYIL23 pic.twitter.com/xXagZpCo2A
— Superyacht Investor (@SYInvestor) March 14, 2023
All panellists on the crew panel agree retaining crew is imperative.
There are challenges, however. “Some people watch Below Deck and think you’re going to be drinking champagne in a hot tub,” says Angus Cowan, yacht captain. “This couldn’t be further from the truth.”#SYIL23 pic.twitter.com/cSJi2GPvpw
— Superyacht Investor (@SYInvestor) March 14, 2023
There will always be a market for yacht ownership and charterers, says Raf Breuls, SeaNet Europe.
“But there is an overlap of people in the middle who would benefit from co-ownership.”#SYIL23 pic.twitter.com/eOZx5H7rlQ
— Superyacht Investor (@SYInvestor) March 14, 2023
Fractional ownership in superyachts is likened to timeshares by some, but Filippo Rossi, Floating Life says that this is not the case.
“We give clients the opportunity to own 20%-30% of the yacht and they can even earn an income from it by chartering it out.”#SYIL23 pic.twitter.com/KyDXJSrJzn
— Superyacht Investor (@SYInvestor) March 14, 2023
Paul Miller, Millstream highlights that regulation keeps changing and will continue to do so.
“What is right today, is wrong tomorrow. And it is only going to get worse – Marine liabilities are likely to go up. “#SYIL23 pic.twitter.com/nLJHZEVVCt
— Superyacht Investor (@SYInvestor) March 14, 2023
All delegates using the slido app agree that Superyacht Insurance is good value.
Mike Taylor-West, Private Client & Marine Partners : “The best way to determine superyacht insurance’s value is by the claims policy, how it is activated and actually supports the client.”#SYIL23 pic.twitter.com/79hbAZF5dT
— Superyacht Investor (@SYInvestor) March 14, 2023
There seems to be an increase in incidents over the last year, especially fires.
Mike Wimbridge, @Pantaenius says that sometimes the apparent increase can be skewed by social media. “However, from an insurance perspective, yes we are seeing an increase in incidents.”#SYIL23 pic.twitter.com/YD1qABRWum
— Superyacht Investor (@SYInvestor) March 14, 2023
With inflation rising, Ben Lind, AIG warns delegates that superyacht insurance rates will continue to go up too.
“Costs are increasing for insurers too. It is inevitable. The client is ultimately going have to take some of this cost on,” he says.#SYIL23 pic.twitter.com/Ya9lv3nX1g
— Superyacht Investor (@SYInvestor) March 14, 2023
The main takeaway from the Russian sanctions panel was that all must be incredibly careful with who they do business.
Matthew Attard, Ganado Advocates said: “This is the benefit of working in a jurisdiction with more transparency – you can vet who you are working with.”#SYIL23 pic.twitter.com/gp132dkcWG
— Superyacht Investor (@SYInvestor) March 14, 2023
Are the sanctions working?
“Definitely not,” says Daniel Martin, @hfw_law. “They are not changing things on the ground as much as we would have hoped.”
Christopher Anderson, Robert Allen Law agrees, noting the Russian economy hasn’t been affected as most anticipated.#SYIL23 pic.twitter.com/qo74ikdy5S
— Superyacht Investor (@SYInvestor) March 14, 2023
Has the Russian invasion reshaped yachting?
Panellists agree that the industry’s image has been damaged.@QBBargateMurray, @BargateMurray: “It has always had a difficult image, but now it has been reinforced as this traditional James Bond villain type image.”#SYIL23 pic.twitter.com/RwWsrTTzar
— Superyacht Investor (@SYInvestor) March 14, 2023
There’s a big difference between yachting and shipping. You need shipping, not yachting, says Olivier Blanchet, @BNPParibas.
“Therefore, yachts need to be as sustainable as possible. We need to start somewhere and we are running out of time.”#SYIL23 pic.twitter.com/eufv6x9XHV
— Superyacht Investor (@SYInvestor) March 14, 2023
How do you convince brokers to promote and sell more sustainable new builds, when some just focus on closing the deal?
Simon Turner, @SunreefYachts says: “We have to make the product available for brokers too. You need to sell the benefits to them first.“#SYIL23 pic.twitter.com/t5C8Stb98P
— Superyacht Investor (@SYInvestor) March 14, 2023
A sustainable new yacht can be built today, albeit with a premium price paid on the initial investment, says Simon Brealey, @lateral_na .
“But the investment you put in now, in 10 or 15 years’ time, there is a likelihood that you will see a lot of that back,” #SYIL2023 pic.twitter.com/tktbnqS305
— Superyacht Investor (@SYInvestor) March 14, 2023
Simon Brealey, @lateral_na says hydrogen is the fuel owners are most likely to want.
Nearly half the audience agrees, with 41% of respondents of #Slido respondents saying they are most excited by methanol fuel.#SYIL23 pic.twitter.com/4EVMB6trJd
— Superyacht Investor (@SYInvestor) March 14, 2023
There has been a significant increase in price reductions and yachts brought to market.
But Richard Lambert, @BurgessYachts says that this is not a bad thing for brokers, who have suffered from lack of inventory over the past three years.#SYIL23 pic.twitter.com/Kg0GNjMyh7
— Superyacht Investor (@SYInvestor) March 14, 2023
It’s difficult to determine what will happen in 2023, but according to @BurgessYachts, it looks like this year will be much quieter.
“It won’t fall off a cliff, but we will start to see a longer term trend of sales from what we’re seeing now,” says Richard Lambert.#SYIL23 pic.twitter.com/gMGtiYNJKl
— Superyacht Investor (@SYInvestor) March 14, 2023
Growth was relatively static until 2021, but that summer became the best period ever for superyacht sales, says Richard Lambert, @BurgessYachts.
There has however been a 22% drop in 2022, but still above pre-2020 levels.#SYIL23 pic.twitter.com/tznqzzji8X
— Superyacht Investor (@SYInvestor) March 14, 2023
Good morning from the Royal Garden Hotel for Superyacht Investor London 2023.
The event opened with a record audience of 170 delegates.
The first panel of the day is ‘A deep dive into today’s market’ from Richard Lambert, head of Sales, @BurgessYachts .#SYIL23 pic.twitter.com/MphJ13s6tG
— Superyacht Investor (@SYInvestor) March 14, 2023
