Yacht seizures causing charter market uncertainty, experts say

Global Marine Business Advisors (GMBA) held its first face-to-face meeting in Palma on 14-16 March, with several key issues affecting the recreational marine sector discussed.

At the GMBA meeting, the situation in Ukraine and Russia was high on the agenda, together with its impact on the marine industry, particularly on the builders and the refit yards. Zoom conversations were held with a boating industry journalist from Ukraine and the GMBA consultants based in Russia, who gave an update on the current situation they are facing. Exports of marine products to Russia have been all but stopped, which will severely affect the operation of many businesses in the country as well as those supplying this market.

Whilst it’s cited the charter season bookings look very positive this year, there does appear to be some uncertainty in the market given the negative publicity surrounding yacht seizures, which is creating issues in the market. In Croatia, for example, it was reported some charter contracts had been cancelled.

The impact of weakening economic indicators on the industry was also discussed and will continue to be closely watched. Rising inflation is seen as a big concern given the rapidly increasing global prices of fuel/energy, and inputs to boat production and marina construction. Declining consumer sentiment (now at levels last seen in the 1970s), rising interest rates and perhaps worsening supply chain issues, also present risks to the recreational boating market.

GMBA reports that the marine industry’s approach to sustainability continues to be a very important topic as consumers are increasingly demanding green solutions from the companies they purchase from and do business with. Baltic Yachts’ CEO Anders Kurten gave a presentation on sustainability, plus there were visits to the yacht builder’s refit facility within STP Shipyard Palma, and a tour of Astilleros de Mallorca by its CEO Diego Colón. GMBA advisors discussed creating an approach to defining sustainability so all businesses can practically address environmental issues.

Working with marine companies on their international growth strategies has been a major focus of GMBA. The GMBA network has simplified this for many marine businesses who find the advisors can shortcut their entry to new global markets.

Generally, it was felt boat shows that were going ahead were doing well with high visitor traffic and sales, and the networking component of shows was as valuable as ever. However, with order books full and limited inventory available, many boatbuilders have little to exhibit and what they have is being focused on the major international shows. Participation in international shows is still not a straightforward experience and those who were attending shows felt it critical to get outcomes. GMBA had assisted several companies in identifying new distributors, agents, boat builders, and outlets for products, and with METS being the next strategic show for the industry, the group is already focusing on activities there for clients.

GMBA is a group of independent marine industry consultants across 19 countries focusing on providing a broad range of support services for businesses in the global marine sector. The combined expertise and experience of the group, as well as their extensive networks, support marine businesses across the globe to drive growth and success.