Sales of superyachts (luxury vessels over 100 feet in length) fell 17% in 2023, according to a new report, with the decline due to rising costs, long waiting lists and the Russian oligarchy. It is said that this is due to sanctions.
Just 203 new superyachts were sold last year, down from 245 in 2022 and a record 313 in 2021, according to Superyacht Times’ latest Yacht Situation Report.
Ralph Dasart, head of information at Superyacht Times, said there was a year-long backlog for acquiring luxury ships built during the pandemic when costs were lower. CNBC Previously reported.
Since then, the costs of operating a yacht, including the price of labor and materials, have soared, pushing up prices for would-be superyacht owners from an already exclusive market.
For example, buyers who order a new superyacht over 200 feet in length today should be prepared to wait as long as four years before actually enjoying their shiny asset, Dasart told CNBC.
Superyachts of this size, from just over 200 feet to about 650 feet, took the biggest hit in sales in 2023, with sales down 40%.
And this year, Dasart told CNBC that he expects new superyacht sales to be “a little bit lower this year” given the ongoing costs and delays.
Superyacht Times reports that the main reason for the steep decline is that Russian oligarchs have exited the market following the country’s invasion of Ukraine in 2022.
“Russians tended to order very luxurious, very large yachts,” Dasart told CNBC.
The US government has seized several ships owned by Russian billionaires. Among them is a ship called Amadea owned by Suleiman Kerimov, a money launderer who has profited from the Kremlin.
AFP (via Getty Images)
The 348-foot vessel Amadea, which was seized in Fiji in April 2022 at the request of the U.S. government, has cost U.S. taxpayers $600,000 a month in maintenance costs since then.
The high monthly cost includes $360,000 in crew payments, plus $75,000 in fuel costs and other maintenance costs such as waste removal and food, according to court documents filed by the U.S. in Manhattan earlier this year. Includes $165,000.
Authorities are also behind on Amadea’s $1.7 million annual insurance claim, so they are asking a judge to sell the superyacht after making $5.6 million in repairs.
Sanctioned Russian businessman Viktor Vekselberg also had his $90 million, 255-foot superyacht Tango seized in Spain last March at the request of the U.S. government.
The United States hopes to punish Russia’s wealthy leaders for supporting the war by confiscating their assets.
However, not all superyacht owners are Russian.
Superyacht Times reports that Americans will account for nearly 25% of all sales in 2023, but Americans tend to build smaller yachts compared to buyers in the Middle East or Russia. reported CNBC.
For reference, the average length of a Saudi-owned superyacht is 202 feet, compared to 200 feet for Russian buyers and 177 feet for U.S. buyers, according to the report.
One American who ignored the statistics is Amazon founder Jeff Bezos, who last year bought a massive 417-foot superyacht called Col for $500 million.
