Megayacht Breakdowns: A Word to the Wise
Charter and brokerage clients should beware of neglected maintenance as megayacht owners cut back on expenses.
February 7, 2011
I recently received some interesting news from Ben Osborn, the chief financial officer at Churchill Yacht Partners. He had just seen Churchill’s charter yachts pick up an unprecedented amount of last-minute business. Why? Nearly a half-dozen megayachts in other charter fleets had cancelled their bookings because of mechanical breakdowns. The Churchill yachts took up the slack mere days before the charters were scheduled to begin.
Capt. Virginia Wagner of the charter yacht Matau does an outstanding job on maintenance.
Osborn couldn’t help but wonder aloud whether the unprecedented number of breakdowns—during the holidays, weeks of charter when owners command the highest fees—were a result of lackluster maintenance during the economic recession. This is a time of year when owners know their yachts need to be in prime condition, especially if charters are already booked. Had owners skimping on maintenance during the past 12 to 18 months finally caught up with megayacht performance?
It’s a question that caught my attention because I, too, have been hearing about an unusual number of megayacht breakdowns in recent weeks. I also have been a party to one—the first time that’s happened to me in a decade of covering the megayacht industry.
I was aboard a Benetti motoryacht in early December that was supposed to take me from Antigua to Sint Maarten. We never left the dock because of an engine failure. And one of my fellow guests was a charter broker working feverishly to salvage another charter that had just been canceled because of a mechanical failure. She said it was only the second time in 10 years that such a thing had happened to one of her clients, and yet there we were, with two megayachts encountering the same problem in a single week.
My own recent experience, combined with Osborn’s comment, makes me wonder if there is, indeed, some truth within his rumination. Of course there are plenty of megayachts whose owners have invested heavily in maintenance during the recession, but common sense tells me that perhaps there are also more owners holding back on spending than previously thought.
This trend, if it’s real, affects far more than the charter industry. It also affects brokerage yachts, whose value is determined in great part by upkeep and maintenance.
We are still in a buyer’s market for charter and brokerage alike, but even the best deal can quickly become a nightmare if a megayacht fails to move when the captain nudges the throttle. My suggestion to anyone buying or chartering in the near future is to request a copy of all maintenance logs, as well as any recent surveys. Some brokers might tell you that this request is overkill, especially for a charter booking, but they’re not the ones who are going to be stuck at the dock if a problem arises.
Having been in that position myself just a few weeks ago, I can say unequivocally that your best option right now is to take an extra step in the due diligence department.
Editor’s Note: Kim Kavin is an award-winning writer, editor and photographer who specializes in marine travel. She is the author of seven books including Dream Cruises: The Insider’s Guide to Private Yacht Vacations, and is editor of the online yacht vacation magazine CharterWave.
