Although commercial shipping has rotated crew for many years, it is a recent phenomenon in the superyacht industry. It started to become a reality on yachts first with engineers, and then on the larger yachts where manning regulations required officers with STCW qualifications.
When rotation first started is a little unclear; it was certainly in use in the late 70’s when I was with BP Shipping – though it only applied to deck and engineering officers. However, what was clear, that it was not born out of regulation, but driven by market forces and a recognition that to attract and keep the right people they had to offer a better work/life balance. Today, these very same reasons are relevant to yachting.
So, in our latest post, we are going to take a dive into rotation and, due to its importance to many captains, their families and yacht owners, we will break it down into two parts and focus on the whys, how’s and the impact this fundamental employment change has had on the yachting community.
This week in Part I, Brendan is writing of his own employment journey to supply some context, then next week in Part II, Malcolm will take a deeper look at the pros and cons and how you might present the idea to a yacht owner using a worked example.
I entered yachting when contracts and structured leave were rare to the point of not known. Leave was when it suited the yacht’s programme, often with little notice. Crew would scramble to make last minute arrangements when a window opened. With limited leave, weekends in port was our time to get away, explore and socialise, leaving the yacht to the care of a couple of watchkeepers. Regardless of age or relationship status, life revolved around the yacht and no alternate lives ashore were maintained.
This began to change for me in 2007 when I joined my first 100m+ yacht and realised there was no stopping a yacht of this scale. It needed crew every day to keep the show running and there were no more ‘weekends with a couple of watchkeepers’. I remember naively saying to the Heads of Departments we would shut the yacht down one weekend for everyone’s rest; they humoured me, said yes, but ignored the instruction and kept the yacht working the way it demanded.
Since that time, I have modelled many and various employment structures for yacht owners and their representatives. When I do these, I do not speak of rotation from a crew’s perspective, it is with consideration of the yacht owners needs and their investment. My point being that the yacht, the owner and guest experience should not suffer because of crew taking leave. I support this position with a crude calculation; add the finance cost of the yacht to the operating expenses and divide by 365 to gain the cost per day of the yacht’s existence. The number can be staggering and to think that you would intentionally stop the operation so the team can take days off does not show good value.
Further to this crude calculation, the owner is reminded that the beauty of yacht ownership is freedom and spontaneity. Rotation can allow that when a gap opens in their diary, they can escape to their yacht and enjoy the pleasure of being on the water with family and friends; something that is even more relevant today.
In one of the presentations the yacht owner agreed for senior crew without hesitation, saying, “but yes, they have families, and we want them to be focussed on us when they are here and not worried about when they can get home.” For junior crew there was a different perspective with the principal asking, “why do these crew want so much time away when they were young?” Weren’t these the years to earn money, travel and gain experience needed to progress?
Malcolm’s comment – the latter point I also heard from an owner. One 80m+ example lost several junior crew because of generous leave/rotation! The basic reasoning was it was expensive to spend so much time at home, all their friends were working so no one to hang out with, and it took far longer to gain the necessary sea time and experience to progress. Sometimes you cannot win!
Be careful what you wish for.
Since 2007 (outside of shipyard construction) I have been on equal time rotation. This is a Nirvana for many but, having defended the position to the owner that the yacht requires 365-day attendance from its captain and senior team to get rotation over the threshold, you are accountable to work accordingly.
So now, during a 2-3-month roster onboard, I tend to focus completely on the yacht and my days exploring the wonderful areas I sail through are a distant memory. Crew come and go in and procession of rotational changes and although bonds are still made perhaps, they are a little weaker? That said, when they return refreshed, the faces are familiar and they quickly adapt back to life onboard without missing a beat; ensuring operational readiness, a consistent service quality, better maintenance and safety.
It could be said that with better leave and rotation means the yacht is now the place we work; it is no longer the centre of our universe and the place where we also lived our lives!
Clearly this is a much healthier balance but, occasionally, I do look back on those time long ago in sepia, when spending 11-months of the year with the same tight crew created my most memorable experiences and learning opportunities. I am open in saying my memory is grander than the reality, it was unsustainable if I wanted any sort of normal life outside of yachting. I could not have raised a family without rotation and so today I am content with a few laps around the yacht at anchor or a quick morning run on the rare times in port. My days exploring are not lost, I now have the time and freedom to return to destinations in my own time and with my family, and that is incomparable.
Done right, better leave and rotation offer crew and yacht owners many benefits and, although there are added costs, carefully planned, they are not as high as might be imagined, and there are many advantages that cannot be measured purely in monetary terms that can add value to the yacht owning experience.
In Part II Malcolm’s deep dive is where you need to go to look to the tools that you might need when structuring your own rotational plans to a yacht owner, their representative or yacht manager. The strength of your case will depend not only of the financial model, but also the quality of your reasoning and supporting facts. Without a compelling case, the yacht owner or their representatives might be thinking “living the dream, sailing the seas, working half a year and still complaining?”
It could be suggested there is too much information available on COVID-19 and the pandemic; including, an almost infinite number of articles and commentary on the internet, numerous Circulars and Guidance from the IMO and, publications from the International Chamber of Shipping (ICS) such as Coronavirus (COVID-19) Guidance for Ship Operators for the Protection of the Health of Seafarers (version 3.0 29th September 2020).
This excess of information can be confusing and, also as suggested in Tom Nichols book “The Death of Expertise” result in a tendency to trust in the internet to make us ‘experts’ in all manner of subjects and, resist or even ignore, advice from those with a deep understanding and experience of the subject matter, including COVID-19 – this can lead to poor outcomes.
With the absence of a collective response from the industry, it has been left to individual yacht management companies and/or captains and crew to wade through the mass of information, try to assess its quality and efficacy, and then develop and implement their own protocols and procedures in response to the virus. And, whilst some of these are well thought out and effective, others on deeper analysis, are perhaps like the ‘Swiss Cheese’ risk assessment analogy, have holes for the virus to pass through.
So, it was a great relief to come across the “Recommendations from the Healthy Sail Panel.” This is the first document I have seen from a related industry with a well-researched and holistic approach to the prevention, protection and mitigation of COVID-19, in an easy to follow format.
The Healthy Sail Panel is a collaboration between Royal Caribbean Group and Norwegian Cruise Line Holdings Ltd who put together a panel of World leading experts to help inform and find a new pathway back to the “new normal” of sailing. The resulting research and recommendations are broken down into 5 key focus areas, with over 70 recommendations, many of which are applicable to yachting.
The key focus areas are: –
Testing, Screening and Exposure Reduction
Sanitation and Ventilation
Response, Contingency Planning and Execution
Destination and Excursion Planning
Mitigating Risks for Crew Members
It is well worth downloading and reading. I suggest you also follow up on some of the footnote references.
COVID testing is one of the subjects with references in the footnotes. Further reading clearly highlights the value of testing for screening and diagnosis but, like the use of electronic aids to navigation, you have to be aware of the limitations, errors and accuracy.
I was certainly confused by the various tests; Rapid Antigen, PCR, Antibody, etc., their effectiveness for screening, diagnosing present and past COVID infection. The US CDC footnote reference in the Healthy Sail Panel certainly helped my understanding, along with the infographic below – found on the Nature website in their article “Fast coronavirus tests: what they can and can’t do.”
It became clear that, amongst other factors, the timeline of infection has a big effect on the various tests and why caution is required – especially with the Rapid Antigen tests that may be used by yacht crew.
Indian Ocean and Caribbean Passage
As many yachts and crew are readying themselves for passages to the Caribbean, Indian Ocean or further afield, I thought it was also worth considering this in the context of COVID-19 and posing the following question: –
“Should you self-isolate the yacht and crew and test before departing?”
Clearly, the time taken in transit is likely a suitable quarantine period for destination arrival purposes. However, the reason I pose the question is that given that most yachts will be departing from countries/areas with high rates of infection, and crew will have been enjoying shore leave and their time in port, what happens if a crewmember is infected, but tests negative (if tested) and is asymptomatic prior to departure?
Once underway and symptoms present, not only would there be concerns of further infections amongst the crew, and medical treatment if severely affected, there would also be concerns about at the port of destination; would the port allow the yacht to berth and what are the reception and medical facilities for any infected crew?
The same goes for ‘crossing crew’ do you bring them in early and quarantine (onboard in single cabin) and test prior to departure?
Clearly, no captain wants to restrict well-earned shore leave but, then again, it is important to avoid any crewmember being infected and becoming a medical emergency and/or a vector for further transmission, especially on a long sea voyage, so it makes sense to try and prevent this outcome.
I’d be interested to know how yachts and management companies are dealing with this. Some considerations:
What methods are in use for mitigating the risk of infection prior to departure
Has the port authority of your arrival destination been contacted and what is their policy in the event of an infected crewmember on an arriving yacht
Do the hospitals have the facilities and capacity to handle a COVID-19 patient
Are there any additional medical supplies and PPE above ‘Medical Scales’ that may be recommended to carry
The above, departs slightly from the main reason for this post but, for those about to embark on a lengthy passage, it’s something worth thinking about?
As always at OnlyCaptains, or goal is to share knowledge and help inform. Hopefully, the Healthy Sail Panel offers some useful information on COVID-19 that may help with your own procedures. And, perhaps it might be used as a reference by industry associations such as MYBA, LYBRA, IYBA, in a collaborative effort to create our own yachting recommendations. These would not only be of value to captains, crew and yacht management, they would also help to instil confidence in owners and charterers through the knowledge that industryaccredited measures were in place to protect them whilst onboard.
Last week, I attended the Yacht Cub de Monaco: Capital of Yachting Experience. It was a very well organised and attended event, with some very interesting presentations and discussions.
It was also the launch of the Yacht Club de Monaco Superyacht Eco Association (SEA) INDEX. Supported by Nobiskrug and Credit Suisse, this is an important initiative with a goal to benchmark yachts in terms of their CO2 environmental performance. And, whilst there are other emissions, CO2 is by far the largest greenhouse gas (GHG) of importance and the one most visible in the public eye.
The principle is that it uses the IMO’s Energy Efficiency Design Index (EEDI) formula with a few changes to make it more specific to yachts.
The SEA INDEX is the first tool designed to assess and compare the efficiency of a yachts design and its environmental impact in terms of CO2, with a transparent and easy to understand rating system. Stars are awarded from 1 (lowest rating) to 5 (highest rating) depending on where a yacht sits above or below the rating bands relative to the baseline of sampled yachts.
Image: Courtesy of the SEA INDEX
The data from approx. 130 yachts of various length and displacement was sampled and their data entered in order to develop the initial baseline – there are now over 200 yachts.
It uses max power and speed, which may seem excessive, but a metric was required and, if you consider this as the ‘maximum emissions potential’ of a yacht, by using the same set of data points for all yachts, it provides a ‘standard’ for comparing their designs. For example, on comparable sized yachts, a more efficient hull will require less power for the same speed, and more efficient HVAC and hotel systems power management, will require smaller generators, both of which will result in reduced emissions and a higher INDEX rating.
And, as new designs and engineering innovations are introduced into yachting, the SEA INDEX will help highlight the improvements being made.
Of course, actual emissions depend on many variables that are affected by an owner and the operational profile of a yacht – these are hard to assess in any consistent or meaningful way. If we had recorded all yacht activity and consumption over the last 10 or 20 years, we would be able to draw a curve of standard deviation and have an idea of what might be described as ‘average use’ on which to make comparisons. Unfortunately, we don’t have this information, and this is perhaps the flaw in all such tools, so the only true account of a yachts CO2 emissions has to be calculated from their fuel consumed.
The factor the IMO use for CO2 emissions from MGO is 3.206, this means for every 1,000t of MGO used, 3,206t of CO2 is generated so it is easy to calculate your CO2 from fuel.
Any design efficiency gains, and improvements that can be made in the operation of the yacht, such as running at lower speed, managing power, switching off unused lighting and equipment, etc., will reduce the power required, fuel consumed and emissions.
In combination with efficiency gains, Carbon offsetting is one way to mitigate a yachts emission. Though, as I have written in a previous piece Superyacht Carbon Offsetting great care is required to select one that is fit for purpose.
But, it’s not just the amount of CO2 that is an important consideration. Looking to the future, it is very likely that shipping, like other industries, will be impacted by Market Based Mechanism’s (MBM) to drive forward the transition to a greener future, and these will have cost implications.
The IMO by 2023 will introduce their new framework for the reduction of GHG emissions from shipping and it could include a carbon tax. The EU in a recent plenary session of parliament, agreed that shipping should be included in the EU Emissions Trading Scheme (ETS) possibly in 2021and include vessels less than 5000gt. Trafigura, one of the World’s largest ship charterers, published on 25th September “A proposal for an IMO-led global shipping industry decarbonisation programme” calling for a $100 – $200 tax per ton of CO2 on shipping as the only way of driving the necessary industry change.
As further evidence of the direction of travel for CO2 emissions for business, Swiss Re made this announcement on the 15th September 2020:
“Swiss Re steps up its internal carbon levy to USD 100 per tonne as of 2021 and will gradually increase it to USD 200 per tonne by 2030”
Any such taxes or levies imposed on CO2 emissions will increase the cost of yacht ownership.
On top of that we have Environmental Governance and Sustainability (EGS) targets that are becoming ever more prevalent, especially in investment and finance. The Poseidon Principles is just one initiative, launched the 18th June 2019, “major shipping banks will for the first time integrate climate considerations into lending decisions to incentivize maritime shipping’s decarbonization” their goal is to work towards the IMO 2030 and 2050 reductions in GHG by ensuring that their loan books are aligned with those targets – finance will become harder for vessels that fail to meet efficiency improvements and GHG reductions.
Could similar lending rules apply to yachts in the future, how would that affect the value of older less efficient yachts?
Whilst it is not yet clear how taxes and regulations will be imposed in the future, what is clear, is that yachting is unlikely to escape their embrace. And our intimate connection to the sea and the environment places additional responsibility on the industry to protect the health of our oceans and planet. The SEA INDEX is the first of many important tools, including those from the Water Revolution Foundation, that will help us to understand our environmental footprint and drive the necessary change that puts us on a pathway to a sustainable superyacht industry.
Like any instrument that is reliant on data; the more yachts that participate, the more refined and accurate the SEA INDEX will become – I would call upon all Captains to get involved.
It is often overlooked, but the most important relationship for a successful yachting experience is that between the Captain and the Yacht Owner, or Principal Charterer. Long past the heady days when deals are signed and photos are taken with designers, brokers and shipyard owners cutting ribbons, the Captain and the Crew are tasked with delivering on the promise.
I was recently asked a question during an interview, “As a Superyacht Captain, how do you manage the expectations of an Owner?”
On the face of it, a simple question but the answer is rather more complex. Let’s think of a sample 100 metre yacht; the cost may exceed €200M and the yacht owner has waited 5 years – 2 years of development with designers and brokers, and 3 years in construction. So when their dream is finally delivered and their anticipation is heightened, how does a Superyacht Captain manage their expectations?
There is no way to perfectly match the expectations an Owner has built up over the years as he waits patiently for delivery day. To take it further; how should the Captain deliver bad news to this Yacht Owner? News that may reflect that the yacht does not function in the manner presented during the design, sales, purchase cycle. Or on charter, the promotional photo that shows all watersports in use, seemingly on demand, is a guest expectation that cannot be delivered; with the Captain trying to respect the legal obligation for hours of work and rest.
The honeymoon is now over and there is a risk of a breakdown in the Owner / Captain relationship, there is nobody else in the room. The photo of the ribbon cutting may be sitting in a frame or the charter brochure open on the web browser, but the actors belong to a time long-forgotten, all shortcomings are directed to the Captain.
This is a scene in which I have had a walk on role many times; as have most Captains. Standing before an unhappy Yacht Owner for an operational shortcoming that was built into the yacht with no way to address, is a humbling experience. And, as awkward as an operational ‘moment of truth’ can be, it is preferable to the personal rebuke that can’t be blamed on a technical or manning deficiency.
The Owner / Captain relationship has a sense of intimacy. The Yacht Owner spends significant time on the yacht, and the Captain is brought into their World. Many new Captains are swept up in the intoxication of being within this inner sanctum, wiser Captains maintain some separation knowing that such personal intimacy is fragile and can easily fracture – often without warning.
I recall from my own career, a time when I would greet the Principal on every arrival and departure from the yacht. This was and remains an accepted practice; one learnt from observing my former Captains, and absorbed automatically into my own Captaincy. It was some years into my time with a Yacht Owner when, during a particularly challenging conversation, he said, “and why do you meet me every time I move? Can’t I have some privacy?” It seemed such a small point but, over time, it had catalysed into a real annoyance for this exceptional Yacht Owner.
It should not have escalated to this level, but a Yacht Owner is not normally driven to address the issues of their day to their staff unless it is of a serious nature. Too often, a Yacht Captain’s success is measured only by the departing comment of the yacht owner who says, “Thank you, we had a great time.” This may be authentic or, likely the yacht owner is not ready to invest the time to deconstruct the trip at that point. Not unlike the automatic response when the ever-friendly waiter asks, “did you enjoy your meal?” The question is more rhetorical than a real enquiry of the dining experience.
I was only awakened to this cold reality when an Owner’s Representative confronted me with a concern of the Yacht Owner. I held my position that the Yacht Owner expressed gratitude and pleasure with the last visit. The Representative quickly cut me down and made clear what is said onboard is very different to the detailed debrief he received in the office some days later. It was a growth and career inflection point for me; I would no longer take for granted any Owner’s praise or make assumptions based on yachting’s normal practices.
I did not enjoy being admonished by the Owner’s Representative, but he caught what could have been a fatal rupture in an otherwise successful relationship. From that time on, we worked together to ensure the good health of the Owner / Captain relationship. I would no longer take for granted the warm smile on departure and would readily seek the ‘truth’ from my colleague in the Family Office.
OnlyCaptains seeks to support Captains and Yacht Owners through their model of Search, Select, Place and Mentor. We have lived the Owner / Captain relationship and realise it is the cornerstone of a successful yacht experience. We are the knowing advisor; able to listen, reflect and interpret the concerns of a Yacht Owner and use this insight to help coach the Captain to their success.