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Wednesday, December 10, 2008

Superyacht Charter Market: an American point of view

Obviously, the superyacht market is rather slow now.
The owners a well as the big brokerage companies are hit hard by the economic crisis but what about the charter market ?

Here is a copy of an interesting post published on Power & Motoryacht Forum:

"Hi everyone - I'm new to this wonderful Forum site, so please forgive me if I make some mistakes as to etiquette, etc.

As to the financial crises, I can share my perspective from the charter side of the yacht industry. Our US-based company, SailAway, deals primarily in megayacht rentals. [ ]

We have seen a dramatic drop in both inquires and charters. Most disturbing for us is the fact that 45% of our summer rentals come from Russian clients. In summer, 2008, this percentage dropped to 10%.

Our winter holiday business (Christmas and New Years periods) is off 70%.

You would be amazed how much "inventory" is still available for late December charters in the CAR. We are now getting calls from yacht managers at CNI, Fraser, etc, begging us for work. Sure wish we could oblige, but the calls for charters are just not there.

The interesting by-product of this situation is the availability of "deals" not normally associated with charters. In most years, the charter yacht owners set strong premiums such as 14 night minimum rentals with 10% surcharges at year end. This year, over 70% of the available charter yachts are willing to accept 7-night rentals.

The few potential customers that have called now see an opportunity to work a deal for a rental. One repeat customer asked us last week to submit an offer that was $55,000 lower than the yacht's published rate (220k down to 165k). The yacht manager said the owner will accept the offer AND throw in an extra night free of charge! Such as deal was practicaly unheard of just one year ago.

It's hard to predict a bottom to this financial mess, but no matter our business or jobs, we are globally all in this together. Let's hope we continue to look out for one another and help those in our families and circle of friends who might be struggling, especially with the holiday season upon us.
If any of you have charter-related questions or want to see interior pictures of specific charter vessels, please let me know - I look forward to participating in your discussions, etc!

Jim Araiza / /"

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