Nuno do Ó Caeiro from Earth & Sea Elite looks at how yacht management has changed over the past few years and what the future has in store
There is no doubt that the industry is changing at a rapid rate of knots. Increased regulations, larger and more complex new builds and larger crews to name but a few. There are benefits in these changes, but Owners and Captains need to start deligating complex tasks to a specialised management company, leaving them time to enjoy the yacht and benefits from such an expensive asset.
How has yacht management has changed in the last 3-5 years?
In recent years, generalised yacht management companies offering basic management packages were enough to offer much needed relief in assisting Captains and HODs with the endless amount of paperwork, that was putting strain on their resources and time. We believe that with the ever increasing added layers of regulation and compliance in all departments on board in present times, the need to find a yacht management company that can offer a wider range of specialist knowledge and skills under one roof has become evident. Therefore, at Earth & Sea Elite we are proud to partner with a number of specialists who are ahead of their game in their particular areas of expertise, ensuring that we provide a thorough and complete package to our clients.
Are there new rules & regulations effecting yacht management?
The REG yacht code brought in November 2017 has put pressure on our clients to ensure that all yachts are up to date and compliant by the 1st January 2019. Most changes are minor but some require owners to make physical modifications to their vessels and such alterations we advised owners and their representatives to implement during the 2018/19 winter refit period. One additional sensitive topic, not new but important to mention for 2018 is the spotlight put upon the yachting industry’s tax affairs after the recent investigation and infringement procedures against Greece, Malta and Cyprus by the EU Commission. It has since become evident that our clients are seeking more specialist knowledge to take care of all of their yachts’ complex VAT arrangements.
What changes do you foresee for the immediate future (3-5 years), and beyond. How will management evolve do you think?
With the increasing demand for our clients to have fail-safe, practical ways to record and trace department checks and maintenance to use for auditing, we predict huge continuous developments in superyacht management software. More so, that these new developments will be planned and implemented into most, if not all new builds whilst still in the shipyard. Having such advanced systems in place from the beginning will give owners and representatives a much wider and more accurate spectrum of information in real time.
What particular areas of yacht management often prove difficult to manage? How could this be resolved?
It has not been unusual to experience resistance and sometimes difficult tension between experienced, long standing Captains and Heads of Departments (who have worked hard to implement their own unique yacht management systems and structures) and modern, up to date shorebased Yacht Management companies who can offer a wider range of significant and specialised experience of applicable rules and regulations. To help the transition run more smoothly it is therefore our job to help remind our Managers and Captains of the fundamental purpose of the vessel: the enjoyment of owners and charter guests; and by sharing out the responsibility of ever-growing complex yacht management issues, we can work closely as a team to absorb each others extensive knowledge, helping to ease the daily stress put solely upon Captains and HOD’ and ensure owner and guest satisfaction at all times.
Would you say yacht management is a growing feature of the super yacht industry or not? And why?
We would definitely say that yacht management is a growing feature of the superyacht industry. Ultimately, yacht owners crave value. The more pressure and increased workload that is placed on Captain–led, sole management of a vessel (due to the ever growing size of yachts and technical advancements in recent years), the more risk there is of important regulatory and safety changes being overlooked and therefore being a waste of owners’ time and costs. a more stress free environment and enjoy the asset to its full potential.
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