TYPES OF OPERATING COSTS Operating costs refer to the day-to-day expenses of maintaining a yacht to a reasonable standard. There is some flexibility in these costs, but caution must be exercised when reducing them, as it can affect the yacht’s performance in the long term. Typically, a yacht’s operating costs fall into five major categories.
OPERATING COST 1: DOCKAGE FEES Storage is an important consideration when you own a superyacht. Factors such as the location, season, and facilities provided by a marina affect your final harbor fees. Usually, they are expressed on a dollars-per-foot basis for the LOA of a vessel. An average superyacht sails for about seven weeks a year, in which case the owner can opt for long-term dockage, which is considerably cheaper than transient rates. OPERATING COST 2: FUEL COSTS The age, location, usage, and type of propulsion (engine, sail, or hybrid) will determine a vessel’s fuel expenses. Smaller yachts can bunker about 1,300 gallons at a time, while larger superyachts can bunker over 100,000 gallons. At the current price of $3.60/ gallon for MGO, it costs a minimum of $4,700 to fill the tank. You can, however, reduce these costs by refueling further away from popular marinas and cruising at recommended speeds.
OPERATING COST 3: CREW SALARIES A superyacht experience is best enjoyed when you have a competent crew that delivers value, but that value rarely comes at a low cost. A typical captain will garner wages between $1,000-$1,700 per foot per year based on experience and licenses held. Besides a captain, an owner should also expect to pay the salaries of other crew members, which vary by vessel but can include deck officers, engineers, stewards, and chefs. The size and use of the vessel will determine how many crew members are required, with charter yachts typically requiring more crew members. Most owners also offer their crew benefits like health insurance and some even offer 401(k) plans. It’s not uncommon for crew compensation to exceed 50% of a yacht’s annual operating cost.
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