Floating Empires

Jeff Bezos’s 125-meter Koru, Roman Abramovich’s 162-meter Eclipse, or the UAE

President’s 180-meter Azzam... When we see these massive structures in the news, we

usually only focus on their jaw-dropping purchase prices. However, there is a harsh truth

known in the maritime world: buying a superyacht is just the beginning; the real fortune is

keeping it afloat.

1. Does the Famous %10 Percent Rule Work?

In the yachting industry, there is a general consensus that the annual operating cost of a

vessel is about 10% of its current value. However, as the size of the ship increases, this ratio

changes significantly. While the annual cost of yachts in the 45-meter segment is 3-4.5

million dollars, this figure jumps to 16-24 million dollars for yachts exceeding 90 meters.

2. Where Does the OPEX Budget Go?

The item that investors spend the most money on is not fuel, but maintenance and crew:

• Shipyard and Heavy Maintenance (38% - 48%): Continuous paint renewal and 5-year

class surveys.

• Crew Expenses (36% - 42%): Annual crew salaries on 100+ meter yachts reach 4-5.5

million dollars.

• Insurance, Fuel, and Marina (15% - 20%): Mooring fees in premium Mediterranean ports

and global insurance policies.

3. Why is a Crew of 50 Mandatory?

Having 50-60 people work on a yacht over 100 meters is not a luxury, but a legal and

operational necessity. According to IMO and SOLAS rules, a minimum safe manning

certificate is required for vessels of this size. When the engine room, deck, security, and

hotel services are added, the ship turns into a fully-fledged enterprise.

4. The Saving Mechanism: Charter

No billionaire wants to shoulder an annual cash outflow of 40 million dollars alone. This is

where the charter model comes into play. For example, the starting price (Base Rate) to rent

a yacht like the Flying Fox is 3 million Euros per week. In addition, clients pay an advance

(APA) equal to 30% of the rent for fuel and port taxes. Chartering for just 10-12 weeks a

year almost completely zeros out the operational expenses (OPEX).

References

1. Yacht Cost Calculator. Superyacht Running Costs: 150ft, 200ft & 300ft Annual

2. YPI CREW. How Many Members Do You Need in a Crew for a Yacht?.

3. Southern Right Yachting. How many crew does a yacht typically need?.

4. Yacht Bible. FLYING FOX Yacht - Extravagant $400M Superyacht.