Hurricanes affect the yacht industry the most in the South East of the U.S., particularly South Florida, Puerto Rico, The Bahamas, and The Keys. The affects hurricanes have on the yachting industry are cyclical, just like the hurricanes themselves.
These affects can be predicted, witnessed, and fixed, just like they are after every major storm. To discuss how hurricanes affect the yacht industry, we have focused on the three main categories of change.
It goes without saying that all that damage incurs a lot of insurance payouts and requests. The yacht claims market is inundated with claims on smaller vessels. Though most people think that superyachts and megayachts, the more expensive hulls and yacht repair projects, might garner the most dollar amounts in claim, it’s actually the smaller vessels that do.
Smaller boats do not fair well in the storm, so the sheer number of vessels and the high likelihood of damage cause a strain on the claims market.
Survey, repair, and salvage teams are just not ready for the damage when a hurricane does hit. The truth is, most industries are strained after a massive storm and hurricane readiness is a better way to prepare than hurricane recovery. But most industries are not as equipped to deal with that as others. Hurricanes affect the yacht industry when it’s not prepared.
Yacht Marketing & Prices
After a hurricane, the market is now flooded with yachts that need repairs. Two types of yacht sellers emerge:
- The casual owner who now must deal with a wrecked vessel, hardly used and stealing focus from other priorities.
- The long-term boat owner who is dealing with a wrecked boat and wants a new one, they want to sell and use the insurance pay out to do so.
The market is flooded with sales, restoration projects, refurbish projects, and yachts that are just a “fixer upper” needing some TLC. All carry with them the scars.
The issue here is that new yachts are now surging in price. The market adapts, and yacht builders charge accordingly. Beware of selling and purchasing at this time because you can easily end up on the wrong side of either.
Docks, Slips, & Covered Storage
The increasing winds see and increase in calls to boat storage facilities and marinas with covered storage. It’s clear that hurricanes affect the yacht industry as soon as the storm is announced because captains and boat owners quickly find storage options when they can.