Brokerage and Charter Discounts Flood Market
The megayacht downturn means great deals for those after an upscale charter or megayacht of their own.
It's hard, at this point, to discern the long-term effects of the global economic meltdown on the megayacht market. One thing is for sure, though: More and more owners are dropping bigger and bigger amounts from their sale and charter prices, with the trend now extending to virtually all of the world's major management companies. As a megayacht captain who asked to remain unnamed told me recently, "The question no longer is, Will you be able to sell or charter your boat? The question has become, How much are you willing to negotiate your price?"
The main saloon on the 197-foot Seawolf. Photo by Kim Kavin
In the past few weeks alone, Edmiston & Company (www.edmistoncompany.com) announced that the 157 Trinity Perla Blu has dropped its asking price by more than $2 million, from $28 million to $25.95 million; Fraser Yachts Worldwide (www.fraseryachts.com) said the 114 Warren Crystal Lady has dropped its asking price by $3 million, from $12 million to $9 million; and Ocean Independence posted an item on its new website (www.oceanindependence.com) proclaiming that the 141-foot Northern Cross has had a "big price reduction," dropping €1.4 million (the equivalent of $1.75 million) from €6.9 million to €5.5 million.
Sherakhan, a 228-footer, in the Caribbean. Photo by Kim Kavin
Meanwhile, in the megayacht charter world, some owners are now offering two weeks for the price of ten days, or ten days for the price of seven, in an attempt to rustle up bookings before the end of the dismal Caribbean season. The 197-foot Seawolf, part of the Fraser Yachts Worldwide (www.fraseryachts.com) fleet, just announced a weekly rate reduction from $220,000 to $180,000 for the upcoming summer season. The 145 Christensen Aghassi, which is managed for charter by Northrop & Johnson (www.njyachts.com), has lowered its weekly asking price from $170,000 to $150,000. The owner of the 237-foot R.M. Elegant (www.rmelegant.com) is discussing offers as low as €35,000 per day when the yacht's advertised daily charter rate is €65,000. The 228-foot Sherakhan is offering a big price break through management company Camper & Nicholsons International (www.cnconnect.com), having reduced its regular €380,000 weekly rate by more than $110,000 for the remainder of the Caribbean season.
The 145-foot Christensen, Aghassi
A good number of owners in the brokerage and charter markets are still trying to resist this "price dumping" trend-concerned that once a price goes down, it can't be brought back up again, even after the economy swings back into gear.
In the meantime, I'm staying tuned for signs that the discount spigot is going to turn off. So far, though, the offers keep coming, with one seemingly bigger than the next.
