It is one of life’s most memorable and rewarding moments – the day you finally take possession of your yacht. However, in an industry that’s becoming increasingly more regulated and at a time when there is no longer the ‘luxury of excess’, the way in which yachts are being managed and how much they cost to run, is the subject of much scrutiny by owners and their captains.
Yacht management is the support and expertise captains and owners have access to that ensures – and in some cases improves upon – the efficiency and cost effectiveness of running or building a yacht. It covers all aspects of owning a yacht from the complete project management of a new build to the general running of the vessel. Everything from improving the discount on provisioning to better yard time management; taking care of the yacht’s maintenance schedule, its accounts, payroll, human resources, insurance, ISM & ISPS issues; right through to Owner VIP security and even 24/7 emergency call out.
‘As yachts increase in tonnage, so do the demands on the owner. A management company takes the day-to-day burden and responsibility of running the yacht away from the owner,’ says a member of the Burgess Yachts management team. ‘More importantly, ”managers“ are there to respond to urgent situations and emergencies around the clock, and to provide advice to the owner and crew in all areas.’
Running a yacht is a full-time job
Boats are inherently needy machines. Quality time on the water rarely comes without at least a modicum of thought for their care and feeding.
Owning a superyacht can take on characteristics of running an international business. For some, a competent corporate accountant and a talented captain may be able to manage the program, but for many, at least some level of professional shore-based yacht management can be a welcome relief.
‘Administration of a yacht, managing its safety, paying suppliers, managing crew and charter agents is a full-time job,’ says Barbara Jolly, yacht and aircraft manager of Abacus Trust Company Ltd. ‘The larger the yacht, the more likely it is for such services to be contracted out. This will allow the captain to focus on its safe and smooth operation.’
Yacht management comes in many shapes and sizes depending on an owner’s individual requirements. Owners may decide to hire a small firm or individual expert to handle one element. such as regulatory compliance, and another for charter management.
A number of firms, large and small, offer ‘full lifecycle’ management for every aspect of ownership, beginning with an owner’s decision to build a new yacht and end with its sale.
Management networks
If a management company does not have on-staff expertise in a specific area, it often has relationships with specialists who do.
For regulatory compliance, it may go to someone like Ken Argent of Water’s Edge Consulting Ltd., who specializes in ISM and ISPS (International Safety Management Code/International Ship and Port Facility Security Code) management and MLC (Maritime Labor Convention) compliance.
Argent’s business provides shore-based regulatory compliance services to yachts over 500GT that are engaged in trade (charter in the case of yachts) as required by the various codes, regulations and conventions.
‘A yacht manager will undertake technical management, day-to-day crew management, and day-to-day operational management of the yacht, in close co-ordination with the captain and crew,’ says Brew. ‘The corporate and statutory management of the yacht, which is what we undertake at I-Cap Marine Ltd., is in very simple terms, the management of the corporate ownership structure.
Managing private yachts
By some estimates, there are more than 7,000 yachts 24m and above worldwide, but only a small percentage of their owners retain the services of a management company. Those who don’t are likely owners of private yachts that do not engage in commercial activity such as charter. So who’s coordinating all the details if not a management company?
Often captains serve as the lead management executive, hiring crew, keeping books and managing the technical aspects of the yacht. But an owner moving up in class may find the added layers of regulation and compliance strain the resources and time of his captain.
Some owners use accountants or managers within their businesses and software such as Marine CFO or Manage My Vessel to coordinate those activities in conjunction with the captain. The owner of the 85m Cakewalk, launched in the US in 2010, established a separate entity to handle the management details of his yachts.
Services offered:
Thailand is one of the most magical and affordable destinations on Earth. While the mountains, temples, and incomparable markets of the mainland shouldn’t be missed, no trip to Thailand would be complete without spending a few sunny days in the Thai islands sipping coconut milk in the sand and strapping on the snorkel gear.
another world. Koh Similan is one of the best-known island groups in the Andaman Sea, largely because of the wonders that wait beneath the clear blue waters that surround it.
It’s best known as a diving and snorkelling destination, but the Similans’ scenic moorings are also becoming increasingly popular with the sailing fraternity. Every year more yachts come to cruise the Similans during the northeast monsoon (November-May, with December-February the peak of the high season), drawn by the lovely anchorages, the beaches and forests, the clear waters and teeming marine life.
Mykonos is famous for its superb landscapes, its traditionally whitewashed buildings, its windmills, small churches and picturesque harbours, where fishing boats are moored next to the luxury yachts of the jet set.
Luxury yacht 