YACHT ACQUISITION & MANAGEMENT
The process of locating, surveying, purchasing and placing a yacht into service begins with the client having a reasonable idea of his goals with respect to the following:
First of course the budget- the size and quality of any boat or ship is determined primarily by its cash price, then, of course, Sail or power and some indication of where the vessel will make home port? We need to also know how frequently and with whom he intends to use the boat? Will the vessel be available for charter or private use only? With this information we can narrow down the classification and costs.
For example, if the client wanted to travel between the Caribbean and Europe the ideal yacht would be one that could make that voyage safely and non-stop. If only the Caribbean or Mediterranean waters are considered and these are generally calmer with convenient ports compared to the Atlantic passage, not such a great range and size is needed.
The second issue to consider is the frequency of usage the client is considering. For example, would the yacht sail every week or every other week or perhaps more often? If it is to be used frequently, one consideration is that it would likely not be best to place the yacht on a charter operation as it’s availability to the charter market would be curtailed due to the owners schedule.
How many passengers would be expected to be aboard? If that answer was 2 to 3 or less and the expected voyages were relatively short (i.e.) under 4 days, then a 60 to 90 ft boat might work out ok. If the sailings were on order of 1000 miles and the vessel were expected to carry 6 to 10 passengers, then a larger longer range yacht would be recommended. Fuel, water and provisioning are the limiting factors.
In deciding to own and operate a yacht, the individual or company enters into the most exclusive club in the world. Owning an ocean going yacht affords the client an escape from the cities and towns and creates a luxurious space on the oceans that he doesn’t have to share with any but those he wishes. He travels on his schedule, where, when and at what time suits his particular needs.
Caribex Marine is a service provider. In addition to locating, surveying, delivering and crewing, we can supply the following:
What does it cost to buy or lease a corporate or personal yacht? The answer to that question is probably the most important decision in the process of acquiring and operating any kind of vessel.
The private yacht can be used for business or pleasure and it is there waiting 24/ 7 for the owner’s command to carry him, his family, and associates anywhere in the world. He can carry any amount of luggage or cargo, he can carry his pets and friends and go to locations that the ordinary person cannot easily get to. The benefits, convenience and comfort of private yacht travel are simply suburb; there is nothing in the travel world to compare.
Caribex Inc specializes in corporate and individual yacht acquisition and management. We can help to decide on the most suitable vessel, locate and survey it and assist in financing or leasing. We can negotiate and place the insurance, hire and train crews, schedule the maintenance and handle every aspect of your vessel so that the experience is about as headache free and enjoyable as possible.
What about money? The prospective yacht owner has to know exactly what he is getting into financially well beforehand. It is our job to prepare accurate projections, along with detailed time-lines that prepare the client for every cash call. Once the yacht is purchased and set up under management, the monthly costs become predictable and, with some introduction to the basic areas of consideration, the owner will be able to work out in advance the general costs for all his sailings. Yacht prices vary considerably but, in general, a 150' luxury yacht can cost in the area of $12 to $20 million USD depending on the year of manufacture and condition while a 90' vessel can be found in the $4 to $8 million range.
MAINTENANCE: One area that turns off many from yacht ownership is the unpredictability of maintenance costs. This is an area that Caribex Marine considers and handles very carefully and accurately. The cost to maintain a large vessel can be predicted and controlled somewhat using industry standards but, every boat is a little different. This is especially true of pre-owned yachts. Older boats are typically out of warranty so the owner has to provide all the funding keep it seaworthy.
One of the proven ways to do this is to establish from the beginning reserve fund that's maintained in separate accounts exclusively for this purpose. A good idea is to place the engines into an overhaul program that can pay all or part of the cost of an engine failure or overhaul relieving the owner from unexpected and unplanned expenses. We highly recommend such accounts be set up and funded monthly. One of the most annoying aspects of yacht ownership is to have the Captain or management company constantly sending invoices for unexpected maintenance expenditures. Reserve accounts relieve the owner of problems with this issue.
Caribex Marine will, during the initial survey, develop financial projections as to the future and predictable overhaul costs of capital equipment such as engines, gensets, pumps autopilots and expensive navigation equipment. These figures then are included into the maintenance schedules forming the reserve accounts. Included are scheduled refits and dry dockings such that the owner is afforded a detailed yearly forecast of all expected costs delivered in a long range month by month budget format.
CREWS: One of the most important consideration for the yacht owner is, who is captaining his vessel? We are very conservative in this area relying on only those who have many years of oceangoing international experience. The best source of these men is from the military and commercial world where they typically have 20 plus years of marine experience. We do not hire beginners- that is best left to the small boat operators and water taxis.
We schedule candidates for interviews with the owner and select only those whom the principal approves. We schedule training on all the ship's equipment and carefully vet their backgrounds. We do not accept those with emotional or substance abuse problems or any with family or financial problems of any kind. We are looking for seaman who will make the same decision we would in every difficult situation. We know the kind of men (and women) we are looking for. The point being that you will be assured that the crews who hold your life and the lives of your family and associates in their hands are the very best professionals possible.
For this relationship to work there has to be a strong sense of trust that has been fortified by continuous years of reliable performance. The client has to have faith in the management company to make the wisest decisions always with his best interests in mind. The asset that the client entrusts to the management company is of great value and every consideration has to be given to its care. Likewise, the client has to develop faith in the judgment of the vessels crew selected and trained by the management company. If your Captain suggests that it would not be a good idea to sail to Europe this month due to severe weather forecasts- then you should listen and re-schedule. There are some weather phenomena that are not to be trifled with and your Captain knows well what he and the vessel are capable of and where to draw the line- that’s why we (and you) hired him in the first place.
CHARTER REVENUE: It is always possible, and at times, desirable to place your yacht with charter operators to generate revenues offsetting costs. In general, a large luxury yacht will charter for $10,000 a day or $30,000 a week. The considerations here are that your vessel is not available when on charter and others are putting wear and tear on your interior and engines that you will eventually have to pay for.
Clients for the large yachts demand the best and really are not as concerned with price as they are with comfort, safety and professionalism. The choice to charter or not is entirely up to the owner. It depends on the availability of the vessel vies-a-vie the owner’s personal and business schedule.
Summary:
We hopefully have provided some considerations that will be of interest. We have discussed cost considerations (fixed and variable) that are involved in yacht management. We have discussed management but perhaps we should spend just a few words describing exactly what management services consist of.
THE
15 MOST IMPORTANT FACTORS IN CHOOSING A YACHT MANAGEMENT COMPANY
As you research the best Marine
Management Company, consider these important factors.
1. Safety
and Security Record;
Safety and Security- Systems and Procedures- Crew training and experience, maintenance training, financial tracking and audits, security plans and implementation. Caribex Marine has operated private and commercial yachts worldwide for over 40 years without a single accident, incident or violation.
2. Customer Service;
Can you reach a "live," person around the clock in case of last minute arrangements, changes, special requests, or questions? Will you primarily work with an individual who knows the details of your yacht and can assist you with any and all communication necessary across departments? Caribex Marine provides 24/7 service.
3. Company
Experience and Financial Stability;
Company experience: How long has the company been in business? What is their reputation? Financial stability, Do they have the know how to invest in equipment, safety, quality programs and customer service?
4. Turnkey service;
We take care of all the day-to-day responsibility and management of your yacht. From the moment a sailing is scheduled we begin the process; fuel, ports of call, provisioning and all the myriad but necessary considerations in advance of leaving port.
5. Exclusive Cost Efficiencies;
By contracting with Caribex Marine you save thousands of dollars. We arrange fuel discounts, Registry in the USA or offshore which can save the owner considerable money in avoidable VAT and registration costs. Additional savings discounts can be negotiated with insurance carriers, maintenance providers and suppliers.
6. Impeccable Safety Record;
As part of the private and commercial marine business for over 40 years, we have, due to our commercial background, managed yachts more efficiently and safely than any purely corporate operation and while so doing, we have maintained an impeccable safety record. Our Crews are highly are all experienced professionals and exceptionally well trained. We require all of our personnel to have and a minimum of five years at sea and all our crew members exceed routine training standards.
7. Personal Account Team;
Our clients are assigned a personal Account Team with a dedicated customer service specialist. This team also includes technical experts from fleet maintenance, operations and accounting - all working in unison with your interests in mind.
8. Your Asset Maintained at Peak Level;
Under our Turnkey Management program, your vessel will be maintained to its utmost safety and performance level. Every yacht that we have managed must pass a rigorous conformity inspection. Your vessel will be maintained to the strictest of standards. Our Managed yachts are held to the same conformity and maintenance standards as are the commercial carriers and beyond. Additionally, all managed vessels must pass random safety audits by our Standards and Security Department so you can be confident that your yacht is always at its highest performance and safety level.
9. Putting Your Best Interests First;
Every decision that we make regarding your yacht puts your best interests first. Whether it is a part being purchased, a crew member hired or a charter being scheduled-- the decisions are carefully evaluated to maximize the benefit to you. Safety is always first in our priorities
10. How we do this;
We will arrange for a full time staff member to provide maintenance, accounting and management programs providing the information you need to effectively cost control your vessel. We deliver monthly reports reflecting usage, routings, passengers carried and the cost of the trip presented in understandable format.
10. Scheduled Maintenance;
We provide advance forecasts of yard times for inspections and maintenance that are coming due so you can better schedule the use of your vessel. We negotiate carefully with the facilities and make sure we have the ships engineer oversee the work and protect the owner's interests.
11. Insurance;
We work with your administrative offices to ensure that copies of the insurance policies are kept in a secure location and that the amount of liability and hull coverage is adequate for all your requirements. We negotiate for the best coverage at the most affordable rates. We avoid rapacious brokers, working only with trusted and ethical insurance professionals.
12. Offshore Registry (option)
Depending on circumstances, we can register your yacht off-shore which can avoid VAT and registration taxes. All crew members are normally Caribex Marine Contractors so as to reduce your liability and the many difficulties of offering direct employment. All our contract crews and staff are employed by an off-shore corporation.
13. Charter;
As an option, we can arrange for your vessel to be included on a world wide network of charter yachts. The considerations for such placement may include somewhat higher Insurance costs and negotiated commissions, etc. We would prepare a detailed budget for these expenses if this is desirable.
14. Payments;
We have developed a vastly simplified and effective methodology for handling the myriad expenses that are encountered every day in yacht operations and management. We use a Credit Card) that you supply with a merchant authorization permitting us to charge 100% of the operational and management costs to the card on a monthly and / or timely basis. We will provide an agreed upon budget and charge the card for the various items that appear on the approved budget. In this way, we are not constantly sending invoices to your payables department for each and every item appearing on the budget. Perhaps more importantly, as many payments often have to be made in advance (fuel, provisions etc.,) or when immediately incurred, such as port handling, fees, crew hotels, etc, all the expenses are handled in an expeditious and controllable way. You will receive a monthly statement from the bank and from Caribex Marine that will tally with the approved budget. Thus, you can be assured of only a single payment each month for the operation of your yacht. Nothing we know of works this well and is this simple.
15. Employment Handbook;
Caribex Marine provides initial indoctrination training to the personnel retained to serve on your vessel. We have an Employment Manual that forms the basis of the crew performance covering every aspect of their daily work. We will establish communications guidelines and company identification such that out crews and scheduling personnel will become very familiar with the owners requirements and travel plans.
We look forward to serving your yachting requirements and are available at your convenience to discuss the particulars.
ROBERT J. FIRTH
PRESIDENT
CARIBEX MARINE, INC.
Boca Raton Florida USA
www.caribexmarine.com
robert@caribexinc.com