Finance Articles
With oceanic luxury reaching new heights in the age of the superyacht, a persistent wave of price escalation emerges in the horizon, casting long shadows on the market for new builds. Distinguished experts from various facets of the superyacht sector convened at a roundtable to dissect the impact of these climbing prices, offering illuminating perspectives.
The backdrop to this narrative is a market undergoing sprightly change: the allure of superyachts is expanding beyond the traditional sphere of the ultra-rich, roping in new market segments. Yet, this increase in demand hasn’t quite translated into an abundance of new build yachts lining marina docks. The barrier? The surging costs associated with constructing these behemoths of luxury.
Landing a refit contract is quite like treading a tightrope, balancing owners’ expectations with shipyards’ practical necessities. Clients often balk at the ‘mark-up’, a percentage added to a quote covering overheads for the shipyard. Shipyards assert it as a necessary component to cover overhead costs. The term ‘overhead costs’ could send one spiralling down a rabbit hole. Insurance, maintenance, sales, marketing, finance and administration costs are common touchpoints. But the defining pillars are health, safety, sustainability, and investments.