As global tensions rise, the owners of superyachts and those seeking to complete a transaction feel a tightening grip of uncertainty. Faced with heightened scrutiny, rising costs and unprecedented labor unrest, those wishing to purchase or sell a yacht find additional layers of complexity so far unseen in the industry. Will these factors negatively impact the industry? How long might these challenges last?
With so much uncertainty surrounding the European industry and sanctions against Russia, numerous factors could influence the direction of yacht transactions and future operations, including:
- Increased scrutiny: With various sanctions in place against Russia, many yachts face increased scrutiny by local customs officials. While those not on the sanction list might not notice a difference, the fear is that all international superyachts, regardless of ownership, will experience a heightened level of inspection.
- Increased media coverage: While there are some exceptions, in general, the owners of superyachts prefer privacy over media coverage. For now, many see the increased media coverage and loss of secrecy as an unacceptable negative trend.
- Increasing costs: From the massively fluctuating gas prices to the increasing cost of construction materials such as aluminum, the costs of purchasing, owning and operating a superyacht is skyrocketing.
While the rise in global tensions might seem to at first only impact European transactions, the ripples could soon spread into other regions. From the rising cost of construction and daily operations to the heightened scrutiny from both media outlets and government organizations, this unprecedented situation has caused many to rethink their positions. With cancelled orders, a limited pool of clients and higher costs, the entire industry could face a staggering impact for years to come.