At the beginning of May, when the first shoots of market recovery began to emerge from a torrid first quarter, we predicted that fleet activity across the year would be turned on its head because of the COVID-19 pandemic. While Q1 and Q2 are traditional periods of frenzied activity among the new-build fleet, in May we forecast that this would be inverted, with Q3 seeing somewhere in the region of 36% of cumulative deliveries, rising to a forecast 47% in Q4 as the industry finally returns to full capacity.
So, as we depart Q2 and enter Q3, it is interesting to see this forecast beginning to take shape. We analysed fleet activity (a broad term for new-build and brokerage market movements) from 25/06 – 01/07, which highlighted that momentum is returning, with a spike in vessels hitting the water, and a flurry of new launches.
There was a cumulative 327.0m delivered in this seven-day period, a staggering 27.7% of the cumulative delivered meterage for the whole of 2020 to date. Indeed, the 6 deliveries equate to almost a third of the year’s 19 at the time of writing. These deliveries range from 30.0m – 95.0m, with three of the six coming from the Netherlands and the largest vessel, O’Pari being delivered by Golden Yachts in Greece.
If we look back at the status of the brokerage market around the same time – early May – there had only been a slight YoY decline in sales (54 in 2020; 63 in 2019), bolstered by a flurry of activity in February 2020.
This week saw three sales made, at an average of 33.0m and €4.63 million. There were also three new listings, with an average LOA of 39.0m and a mean average listing price of €4.43 million. There was only one price reduction – to classic 1969 Feadship, Blue, a hint perhaps that the market is beginning to favour the sellers again. Although, with the market recovery so nascent, and restrictions on movement continuing to make the showing of vessels a logistical challenge, these positive statistics will still need to be vindicated by continuous market movement in the coming weeks.
Sanlorenzo’s first 62Steel was one of five launches this week.
These data snapshots merely scratch the surface of The Superyacht Agency’s Intelligence capabilities. Our analysis spans nearly three decades and every sector of the industry. If you have a bespoke Intelligence enquiry, please contact Russell Cockerton for more information on how we can support your strategic requirements.
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