Does Mothballing save the Owner Money?
With the present restrictions on travel and the lack of seasonal crew, it seems that some Superyacht owners are taking the route of mothballing their Yacht to save money. This can seem to be a convenient solution, especially for owners of Charter Yachts that are facing a considerable lack of income; however, some serious questions need consideration before going down this route.
- Can FLAG STATE minimum manning level requirements be met?
- Are Class Surveys programmed, and who will manage them?
- Will crew safety and MLC 2006 requirements be maintained?
- What are the Insurance cover warranties?
- Does the vessel home port have minimum crew level requirements?
- Can scheduled maintenance tasks be carried out?
- Will the interior suffer?
- If your vessel is for sale or charter, can she quickly be prepped for Broker and client viewing?
Looking back on the lessons from 2008, and the negative impact the recession had on the Yacht sales and purchase market, there is no doubt that the industry is facing a similar downturn over the next 12months, with heavy discounting of new and used yachts expected.
It is understood that a Yacht’s statutory requirements and maintenance levels are to be maintained; however, in a depressed market, the vessel’s overall condition becomes of vital importance and is the number one consideration when a Valuation appraisal or a re-valuation is carried out.
With over ten years, valuing Superyachts, my advice to Owners is to consider that although mothballing a Yacht may be a solution for some, if undertaken with the right professional support. It could be a case of short term gain for long term losses for others.