Insights & News

Meet the Team: Knut Heiberg- Andersen

Knut is our representative in Norway and although “retired” after 29 years at WINDY BOATS AS, he is as busy as ever. He has a 100 % Consultancy Agreement with WINDY SCANDINAVIA AB, serves as Co-Chairman , Windy Scandinavia AB; is a board member of Flexiteek International AS and is an Advisory Board Member of EVOY AS, an electric drive-lines start-up venture.

1. You officially retired a few years ago but you seem busier than ever. How has the move from full time work to semi-retirement been like for you? Any advice for others contemplating the move but nervous about retirement?

When I retired in the fall of 2019, my next work format with WINDY was already staked out. I was hired as a full-time consultant for the new management team, and I am very pleased to learn that they still want me. For certain I am not a qualified retirement advisor, but it goes without much saying that you need your physical and mental health in order. You must have a continued urge to do business, every day, and even more so than when you were in the driving seat. You need to be prepared for the constant changes taking place around you. For many of us our careers can be far from over when you pass 75, but I know I have been, and continue to be, very lucky.

2. As Chairperson of Windy Boats, you are still actively involved in the industry. What is the most exciting new trend that you feel will have a major impact on our sector in the years to come?

To see a new generation of professionals entering our industry, with new ideas, new products, new concepts, and designs. They are keeping the old establishment on its toes, trying to compete. They also attract the new generation of boaters which our industry needs. Particularly encouraging is to be engaged in the gradual shift from fossil fuel to greener options

3. The growth in the boating sector over the last few years has created a skills shortage globally. It is challenging to lure newcomers to the marine sector. Any advice you can give companies, or any good examples you have seen in the sector?

One of the challenges many European boat companies have, is their location. Many of us are in small towns and villages with limited access to the lifestyle the bigger cities and locations offer. Hence, attracting and recruiting young professionals is a constant concern. Like many other builders, we at WINDY are deeply engaged in apprentice programs, vocational education, and making sure that our company is offering a financially and socially stable future for the younger generation.

4. Many of our clients are looking to move into new markets, with our European firms eying the USA and vice versa. What do you perceive as the main difference between European markets and the USA?

Moving into an overseas market is much more than a strategic decision. It is a state of mind which requires considering a different set of factors: cultural, financial, and seasonal, differences in the purchasing processes, boater’s preferences, etc.

The differences between Europe and USA are vast in so many aspects hence one should take ample time to collect, absorb and analyse information to better understand and prepare for any overseas market entry. I am really pleased to see so many Europeans succeeding in the USA and there are more to come.

5. You come from a sales and marketing background. How has the rise of digital marketing impacted your businesses?

I have to smile when asked this question. It reflects the very fact that I am not a teenager anymore, but I now belong to the group of aldermen accepting that the internet is no fly by night and is here to stay!

Digital marketing has an immense impact on our business and WINDY is fully adapting to the new world of marketing. It will affect printed marketing, boat shows, improved use of market data, etc. The changes are already there and will, in my opinion, strengthen as we move forward.

6. If you were to go back in time, would you select this industry and your career path again?

Without any doubt.

Knut Heiberg-Andersen, Norway
Tel: +46 70 675 65 20
Email: knut.heiberg-andersen@gmba.blue

Disclaimer: Global Marine Business Advisors is a registered legal entity and is a network of independent marine industry advisors. In all articles the opinions expressed are those of the author and does not necessarily reflect those of GMBA.

Diurnal Emissions – Part 2

As mentioned in our last newsletter, there are numerous benefits to adding a diurnal emissions control fuel system to gasoline-powered boats. But how do these systems work?

Today’s two most popular diurnal emissions control systems are pressurized systems and canister (often called atmospheric) systems. Pressurized systems prevent outward venting until internal system pressure exceeds roughly 1.25 psi. This usually happens only with significant temperature swings.

Canister systems operate at atmospheric pressure. Certified carbon canisters in the vent line capture hydrocarbons from venting vapors during the day and expel them back into the tank at night when cool air causes the system to breathe in. Most automobiles use a complex version of the marine canister system.

Both systems need airspace (or ullage) at the top of the tank to ensure that a gas (air or vapor) will be vented, not liquid fuel. Both systems can (and usually do) use the same approach to creating that ullage. Typically, they use three different mechanical control valves.

Fill Limit Valves (FLVV) – These valves control the ullage volume. A large 5/8″ (16mm) vent allows a high volume of vapor to pass through during refueling.
Tank Vent Valves (TVV) – These are also called Rollover Valves (ROV) or Grade Valves (GRV), depending on the manufacturer. They have a much smaller 5/16″ (8mm) vent size and control venting anytime the FLVV is closed. Diurnal venting often passes through TVVs.
Inlet Check Valves (ICV) – ICVs are usually mounted in the fill hose and prevent fuel from coming out of the fuel fill if the tank “burps” immediately after the FLVV closes. ICVs prevent wellback.

Systems typically have one FLVV, one or two TVVs, and one ICV. Variations exist depending on the size and shape of the tank and the overall system design. During refueling, incoming fuel hits the ICV and opens it. An FLVV vents the high volume of refueling vapor until the fuel level in the tank reaches and closes it. Tank pressure then spikes as fuel comes in, but no air leaves. This closes the ICV, fuel backs up the fill hose, and shuts off the pump. Then, the TVVs slowly vent the tank pressure. As it drops, the ICV opens, and the fuel in the fill hose drains into the tank. When someone rounds off the cost by clicking the pump several times, they repeatedly refill and empty the fill hose into the tank. If someone does this long enough, they will reduce the airspace and eventually defeat the system. Hence the warning on cars and pumps not to overfill.

The fuel cap is another critical component in these systems. It seals when closed and “clicks” like your car’s. Caps used in pressurized systems have built-in pressure and vacuum relief valves, usually the only system vents. Caps used in canister systems often have the same built-in pressure and vacuum relief valves. But these are used as a system failsafe or for additional makeup air when high horsepower engines run flat out. Actual venting in canister systems is often via a conventional vent on the side of the hull.

In simple terms, that is how these systems work.

While these are the two most common approaches, other unique ways to control diurnal emissions are available. Enviro-Fil systems use a venturi effect rather than a pressure spike to shut off the pump. And Perko also offers a system to control emissions without any tank-mounted valves. There are options to fit every application. System integrators like Perko and Attwood help fuel tank manufacturers and boat builders to determine and then design the system that best fits the need of every boat model.

Look for our next newsletter, where we’ll talk about matching system design with system goals like safety, installed cost, range, and ease of refueling. We’ll also discuss the cost of these systems and the advantages and disadvantages of the most common approaches.

George B. Bellwoar, GMBA United States
Email: george.bellwoar@gmba.blue
Tel:: +1 954 646 5920

Bailing the keel, watching the Mustang

It was, for many of us taking our first steps in sailing, the price to pay if we wanted to earn the right to peek overboard, to act as counterweight, or be assigned the responsibility of tending a jib sheet. Different dinghies would carry tins, plastic containers, even square ones, and the novice sailor duty was collecting the bilge water and throwing it outside. The scooping was done by rubbing the bailer’s opening against the keel, which due to the constant friction, kept the area in bare wood, no matter how many layers of paint was applied.

Down there in the bilge, a parallel world was happening. It was a world of noises: of the water against the hull, the snapping of ropes in and out of the cleats, of a lack of reference when going about, in which case implied to change sides to the other side of the centreboard following the bilge water. A world of short, sharp shouts to that crew, reminding the galley slaves who helped win more than a crucial battle. A crew that was supposed to be thankful for being given the opportunity to forge the first steps to becoming real crew members. I remember two boats where I had such a duty: a Lightning, an open dinghy 5,95m of USA design, and a Dragon, for me one of the most elegant designs of all times. The big difference apart of the 9m LOA is the dragon has a keel, no centreboard box in the middle. A higher freeboard of the Dragon made a better resonance box and the water noises sounded like thunder, surrounding the cockpit box where the helmsman and the crew danced their magic with ropes, weight shift and the bronze genoa sheet winches with the under-deck handles.

This story tells the emotional part of learning to sail, a practice which is disappearing, giving way to efficient building techniques, very light and strong materials, and improving the performance of modern craft to levels unimaginable 20 years ago. Today, you could find an instruction book to learn sailing, in 14 languages, thanks to CE rules. But you can always tell when someone has been through the basics, no matter the position the person holds now in the industry. Norwegians, for instance, grow up through the nautical business starting often with clinker-built rowing or sailing boats, plus they have the history and the culture. Most of Northern Europe shares a nautical history and tradition, but the tendency is fading when we go South towards the Med. Norway has a recreational boat for each 7 inhabitants, the figure for UK is 55, and for Spain 135.

I had a similar emotional experience a few weeks ago at the Guggenheim Museum in Bilbao. There is a car and mobility exhibition called Motion, curated by Sir Norman Foster. The cars exhibited have been built from very early 1900 to this day. But there are cars of the ‘50s and the ’60 that triggered my admiration. Why? Because I remember seeing some of them on the street, admiring some in magazines and movies. Examples include the Aston Martin DB5 James Bond drove in Goldfinger, a Porsche 911, an E Type Jaguar or a more mundane Ford Mustang 68 with Anouk Aimee enjoying a ride on a beach. The icons and the dreams would stay forever unachievable, yet fully enjoyable. They are classic and a tradition, defining an epoch and a way of living. Life takes us through unique experiences, and although we do recognise them immediately as such, time must bring up the treasure from within them and present it to us for our full enjoyment and get us marked forever with it.

It is easy to recognize an early nautical experience: you hear the person, you see the body language, you witness those smiles across the whole face. You communicate with a language behind the language and feel immediately comfortable with it. Your roots are such of a boy being invited to bail the bilges, old fashioned yachting.

Oscar Siches, CMP, GMBA Spain
Tel: +34 667 494 858
Email: oscar.siches@gmba.blue

Emissions

When considering emissions control in the marine industry, many look at engines and manufacturing processes as the culprits. For sure, both contribute. But they are not the only sources of emissions. For example, spilled gasoline and diesel fuel both pollute our water. And evaporating gasoline adds to air pollution. And there is another source of pollution from boats that many don’t even realize exists – diurnal emissions.

The diurnal cycle describes the daily temperature swing from nighttime to daytime. As the earth rotates, the sun warms the parts it faces during the day. Then those parts cool at night. Materials expand when heated and contract when cooled. Gasoline is no different. It expands quite a bit with temperature changes. It can grow nearly 1% for every 15⁰ F (or 1% for every 8⁰ C.). So, a tank with 200 liters at 6⁰C. could have 210 liters at 46⁰C., a reachable temperature in a boat stored in blue shrink wrap.

Unlike water, a molecule, gasoline is a complex liquid solution of many different (mostly hydrocarbon) molecules. Several of these molecules evaporate around room temperature. It is one of the reasons that gasoline gets “stale” over time. So, the top of a half-filled tank contains hydrocarbon vapor, not the air you’d want to breathe.

We have diurnal emissions when the evaporation of hydrocarbons combines with the diurnal cycle that expands and contracts fuel and pushes vapors out of the tank daily. Gasoline-powered boats stored outside emit hydrocarbons from their tank through the vent and into the atmosphere daily.

Since 2010, the United States has controlled diurnal emissions from boats by law. It has been the only country to do so. There is “talk” in Europe and Australia, but regulations are probably 3 to 5 years away.

Therein lies an opportunity for boat builders. Many talk the green talk. However, when it comes to diurnal emissions, only a few European builders walk the green walk.

Automobile manufacturers worldwide added diurnal emission control nearly 50 years ago. Boats sold in America have had similar features for over a decade. This technology is proven. It even offers benefits beyond diurnal emission control, some of which apply to diesel-powered boats. For example, boats using these systems force automatic pump shutoff – just like in cars. So gone are the days of watching for a squirt of fuel to know when your boat is full. Also gone are the days of fuel leaking out of your vent on a hot day. These systems make filling boats easy and eliminate premature shutoffs. Ensuring ullage (airspace) in the tank allows room for fuel expansion. The release of harmful vapors into the atmosphere gets controlled while the evaporation of expensive gasoline is limited.

Diesel systems differ from gasoline systems because, unlike gasoline, diesel fuel doesn’t readily evaporate once spilled. So, spillage is the problem, not diurnal or evaporative emissions. When spilled, diesel fuel floats around until it eventually sticks to something. Therefore, avoiding diesel spills is especially important. And doing so is surprisingly inexpensive. Since we’re not worried about evaporative emissions, diesel systems only need to create airspace and shut off fuel pumps to prevent spills, which can often be done for less than 100 Euros on smaller diesel boats under about 20 meters.

In most cases, even complex systems are affordable. In all cases, the benefits are great. And boat builders, system integrators, and designers can customize these systems based on varying goals, such as tighter emission control, ease of installation, price, safety, space utilization, and even range.

In our next article on diurnal emissions, we’ll explain how US builders do this, describe the different types of systems available, and then discuss the pros and cons of each approach.

George B. Bellwoar, GMBA United States
Email: george.bellwoar@gmba.blue
Tel:: +1 954 646 5920

An Overview Of China Yacht Marinas

(And why most foreign enterprises have failed on the Chinese market)

It is a fact: In the last ten-plus years, since the start of the yacht market growth in China, many western companies with great expertise in the marina field have failed miserably to secure any consistent and long term contracts. In this article I try to examine the Chinese market specificities and the obstacles companies face when trying to enter this market.

First a few numbers to get a perspective: China has roughly 25-30 marinas in operation (9 of them are located in Hainan province) with probably a hundred more under planning or construction. The total number of yachts is estimated to be around 20,000. Most marinas are small in size and few offer more than 300 berths. With these figures why do foreign companies have a hard time getting a share of this market?

MANAGEMENT

Major hospitality chains have done extremely well in China, with thousands of hotels managed by foreign brands, under very well established and recognized structures and management systems. So why are these systems not effective for marinas? The problems are multiple.

Size factor: most marinas are small and often built as a satellite to real estate projects and therefore operations are hardly financially viable. Smaller promoters do not have the habit of hiring or contracting foreign companies to handle their business, and usually prefer to remain local. On the other hand larger marinas are often state owned, and for various reasons governmental bodies will prefer to deal with local corporations.
Financial control: Chinese companies have very strict administration and control systems and usually want to keep 100% control over finances. At present western management contracts mainly offer a package, whereas the management company has full control over the expenditures and operations. In addition they are often expensive. This cannot work with penny conscious medium size Chinese companies, unless it has been proven effective in terms of financial return. So far most marinas in China at present (except for a select few) have the reputation of not being profitable.
Fear factor: Mid-size Chinese entrepreneurs like to work with people they know well whereas trust comes from years of experience. So a Chinese boss will rather put his trust in people he knows for years (often relatives) even if these individuals are clueless or inexperienced about the marine business. In addition investors with little or no international practice will be fearful of communication problems that may arise in dealing with foreigners.

DESIGN & EQUIPMENT & SERVICES

Designers still have a good card to play on this market, providing they have been on the Chinese market for years and have a good, proven track record. Hopefully in the future, larger corporations will be investing in marinas and the market may well offer increasing opportunities.

Equipment suppliers (pontoons, ancillaries, etc.) are facing several serious obstacles.

Firstly, they rarely have a Chinese entity which means they can’t issue local invoices, and payments need to be made abroad and in foreign currency which for local companies is very troublesome.
Secondly, they seldom have a local production unit, which in turn means higher costs due to taxes and shipping.
Thirdly, equipment is not rocket science and local companies are learning fast. Some of them even expanded and have become very tough competitors on foreign markets.

In terms of yacht services, the market is extremely tough. Price competition is very fierce and there is no organization or professional federation to enforce consistent pricing. The small guy next door can always offer a better deal even if he barely makes any profit and if the service quality is not on par with what I would call professional yacht services.

CONCLUSION

The Chinese marine and yacht market is undoubtedly gigantic and can offer enormous opportunities. However the access card can be excruciating and pricey. One should be prepared to be cost-effective, have personnel that can communicate perfectly and is familiar with Chinese business habits and customs, and overall be extremely patient, resilient and adaptable. An easier path to market access is establishing a long term partnership with a Chinese company, bringing branding and technical knowledge while benefiting from local experience and production capability.

Godfrey Zwygart, GMBA China & Asia
Tel: +86 188 0899 8617
Email: godfrey.zwygart@gmba.blue

Interview – Meet the Team | Kai Malmivaara, GMBA – Middle East

You are a lawyer by profession but now mainly work in the Marina sector. How were you introduced to the sector, and what excited you about it?

Actually, my first position after graduating from the university was a lawyer in one of the biggest shipping companies in Finland, which managed a fleet of over 30 different types of vessels, from large passenger ferries to all types of cargo vessels. That was a good introduction to the Marine world, which I have always found to be a fascinating sector. I have been a boater for most of my life, and I got my first boat in early 70’s. I think boating is close to the hart of most Finns, as we have thousands of lakes and a beautiful archipelago between Finland and Sweden. Before joining Marinetek, I had been involved with a couple of large scale marina projects, providing a basic understanding of the industry related challenges.

What was the most interesting position you have ever held? What made the job so interesting?

I have been lucky as all my positions, across varying sectors, have been extremely interesting and rewarding. In addition to shipping, I have worked in oil exploration and production, in financial services and asset management, in consulting and executive search, in real estate business and now in the marina sector. It is difficult to pick only one but, if pressed, it would be my position as Managing Director of Marinetek Middle East and Asia. In this position I have had to learn how to work in an extremely international environment, with strong Middle Eastern bias. We have build and grown the business from scratch to an operation covering most of GCC countries. People do not usually understand the challenges relating to building on water compared to building something on land. Structures on water are on constant movement 24/7 and 365 days in a year, with design life for more than 50 years. This requires special engineering skills and knowledge, which makes this business both demanding but also rewarding.

How long have you been based in Dubai? And what made you move to the Middle East?

I moved to Dubai in 2005, when the building boom here had just started. I have seen the Palm and the World Islands literally built in front of my eyes, aswell as the tallest buildings in the world. I came to Dubai for the first time in the early 80’s when I was working in the oil business, and found the place to be fascinating, full of different cultures and in many ways very exotic. Naturally Dubai was then very different to what it is now as it has become one of the metropolises of the world in a very short period. The weather here is very nice and sunny for most of the year, and Dubai is one of the safest cities in the world. The level of services here is outstanding. However, I spend all summers in Finland, when the weather here is very hot, and in that respect, I can enjoy the best sides of both UAE and Finland.

Dubai and the entire Arab region are embracing yachting with multiple projects on the go at the moment. There are marina developments in Jeddah, Dubai, Qatar. What are your predictions for yachting in the Arab region in the next 30 years?

After a few quieter years many of the waterfront project are seeing daylight here again. In the UAE most of the projects are in Abu Dhabi, where many of its surrounding islands are being developed, and several new marinas are planned. There are many projects ongoing or in the planning phase in Saudi Arabia, especially in the Red Sea, such as Neom, Jeddah Central, the Red Sea and Amaala Triple Bay Projects, to name a few. These projects are built both for locals but also for tourists. Clearly, they want to attract visitors from around the world to experience the Red Sea and its beautiful reefs. The target is to entice the Mega- and Superyachts, spending most of the summer season in the Mediterranean Sea, to come to the Red Sea during the winter. From there they can travel through the Gulf to Dubai, Abu Dhabi and Qatar, and all the way to Maldives and even Thailand. This project is called “The Spice Route”. Qatar has experienced a boom in construction relating to the FIFA World Cup, to be hosted November – December 2022. A few new marinas have been built to cater for the needs of the visitors that will come with their yachts to watch the games.

My belief is that yachting is going to be grow in the Middle East once the new marinas and related facilities are ready to receive their guests in the coming years.

And what are the biggest challenges facing yachting in the region?

There are still some obstacles relating to yachting especially in the KSA and Dubai. For example, financing has not been available for boat buyers, which naturally affects the number of boats that will be bought in the region. However, changes are imminent, and in future the banks can give financing for boat byers. There are some historical bureaucratic matters to be addressed, for example: getting sailing permits before going out with the boat; getting visas for the visiting crew members of the yachts; alcohol permits, etc. The weather in summer is not ideal for boating but in the winter season it is great. There may also be some political risks, like the vicinity of the waters of Iran in the Arabian Gulf, and the military actions in Yemen on Gulf of Aden added with some acts of pirates from the African side countries. However, the situation seems to be contained at present.

We work in a very global sector and Covid 19 again highlighted the interconnectedness and dependency of global trade. What do you think are the lingering challenges from Covid 19 for the sector? And what is the silver lining?

Most of the restrictions relating to Covid 19 have now been withdrawn in the GCC countries. The situation has normalised with tourists and visitors welcomed again. The only thing that will be checked is their vaccination certificate.

There is an increased demand for boats which, coupled with the shortages of components for the boats, has lead to long waiting times for new boats. Although a temporary situation, it does affects boating. Sales are dropping from last year’s peak, as was expected.

As for the silver lining, we saw an increase in the number of new boat owners, thus increasing the size of the boating community, which is good for the industry in general. The challenge is to keep these new boaters within the community!

Kai Malmivaara, GMBA Middle East
Tel: +971 50 276 0287
Email: kai.malmivaara@gmba.blue

Press Releases: Does advertising guarantee publication?

In the second part of the interview MaryAnne Edwards, GMBA Australia and New Zealand, chats to Hillary Buckman about the value of creating quality content, with an emphasis on press releases.

Do you have any advice for those wishing to get their press releases published?
Yachting media is bombarded with press releases daily, so they must be well-written, relevant and, of course, newsworthy to run. As for other media sites, the easier it is on our end to turn it around, the better.

Of course, we edit to fit our style and, if required, will ask questions to add more detail, but if it’s a topic we think owners and the industry will be interested in, we’ll run it. All press releases must have website links and contact details, and be accompanied by high-quality images.

It is surprising how often crucial facts, key contact details and high-resolution images are not included, which makes it harder to run. Finally, businesses need to understand a press release is not advertising. If you’re just promoting your company, it’s unlikely to be published.

Should a business engage a public relations (PR) company?
This is an interesting question. The companies that do invest in professional public relations companies generally get more coverage as they ensure press releases are well written, interesting and engaging, plus they make sure it is accompanied by quality images. They also usually have a good media contact base and can target the right audience.

Conversely, many PR companies churn out stories that are not newsworthy or relevant. They simply adhere to their promise of meeting their quota, not generating quality stories to improve branding or sales.

Most PR firms have various charging scenarios. It’s important to select one that suits you and not to feel pressured into any ongoing costs you may not be able to sustain financially or in terms of editorial quality. I believe a well-managed marketing strategy, which includes editorial and advertising, keeps your business front of mind.

Do businesses need to advertise to get their PR published?
Within Ocean Media’s group of titles, there is no requirement to advertise to get your news published. It’s all about the relevance and newsworthy nature of the piece. If, however, we continue to receive press releases from a company and publish them, either online or in print, we’ll approach that company to see if we can help them develop an advertising strategy that also supports our platforms.

Whether through my company or other yachting media, the industry needs to support those working for their benefit to ensure the media in our industry stays strong. It’s also worth noting that, as with most media, if you advertise with us, you also get access to our journalists to assist with writing your copy, which can be invaluable.

How should companies evaluate their PR results?
If you’ve gone to the trouble of sending out PR material, you must put as much effort into evaluating the outcomes as creating it. Look where it was published. Look at the timeframe between when you sent it and when it was published. Often, timing is critical. Consider, have you received any feedback? Have you had more interest in the product? Ultimately, is it driving sales enquiries or improving your branding?

Do you believe online newsletters are overtaking print?
There is a market for both. Each has its place and, again, it depends on your business strategy and budget as to which will work best for you. Most businesses we deal with like a combination of both throughout the year. In turn, we work out an editorial plan that complements this investment.

A high-quality printed magazine has become a luxury item, particularly in our niche market. If you’re trying to promote to the top end of the market, you must make sure your company’s message is on point and the platform you use mirrors the quality and message you’re trying to make.

With the ever-increasing use of digital apps for news, when it comes to relaxing, tuning out and enjoying the features you’re reading, there’s no better way than in a high-quality printed format. Time is the most luxurious item money can’t buy.

Printing and distribution costs have skyrocketed, leading to the demise of various magazines in various sectors, as well as newspapers and classifieds, so for quick results in a timely manner, online is important.

However, research tells us the retention of information is up to 35 percent higher when read in print than online. Interestingly, Forbes has just launched Forbes Australia’s first printed issue – many perceive print as a luxury item. And it still offers greater credibility.

Maryanne Edwards, GMBA Australia / New Zealand
Tel: +61 41 291 6036
Email: medwards@gmba.blue

In-Depth Interview with a Media Powerhouse from Down Under

Maryanne Edwards from Global Marine Business Advisors (GMBA) speaks with Hillary Buckman – Founder, Managing Director and Editor-in-Chief at Ocean Media – about her business, the current market and ideas for those businesses wanting greater exposure.

“At the helm of Ocean Media for almost 20 years, Hillary Buckman has driven the growth of Ocean Media and its flagship magazine Ocean. She has established strong relationships with marques, boatbuilders, captains and owners worldwide, and the magazine, which recently celebrated 100 issues, enjoys a connection with audiences and clients that is quite simply unparalleled”

Hillary hails from New Zealand and has long been associated with the marine industry. Her experience within the superyacht sector, her knowledge of the industry and her contact base are extensive, and her networking skills are globally renowned.

Can you tell us a little about Ocean Media?

Ocean Media launched in 2005 with our flagship magazine Ocean, which still leads our stable of content. Ocean is a premium, world-class yachting publication for Australia, New Zealand and the broader Asia-Pacific region.

Our editorial profile and readership are strictly top-tier, reaching a circle of discerning, high-net-worth enthusiasts. Every issue features the latest local and international news and events, such as boat launches, new builds and concept designs, as well as industry developments and profiles. It is supplemented by extensive digital media, including OceanTV.

Ocean magazine is complemented by The Great Southern Route Superyacht Cruising Guide (GSR). Available in print and online, it’s regarded as the 21st-century version of a sea captain’s detailed almanac. Whether setting out for the Antipodes from the Caribbean or the Mediterranean, GSR provides cruising advice for yacht owners and captains on the more than 80 stepping-stone destinations along the way.

Sails is the digital home and online destination for sailing enthusiasts of all interests and knowledge levels. With a curated selection of the best racing and cruising content for our dedicated worldwide readership, Sails covers the sailing spectrum from sport to lifestyle.

Ocean Media opens up a world of possibilities in the luxury yacht market, partnering with the most exclusive brands and extending the lifestyle experience with the Ocean Club, which is renowned for holding much-anticipated events at international yacht shows and the adrenaline-fuelled SailGP.

The Ocean Concierge Service rounds out the offering, redefining what it means to have someone take care of life’s details. Whatever way you enjoy the yachting lifestyle, you’ll find something to delight, entertain and inform with Ocean Media.

Did COVID affect your business?
At the beginning of the pandemic, businesses slowed down their advertising as no-one knew what the immediate future held. Most of our online news turned to how companies were managing under such quickly changing circumstances, and there was a lot of pressure.

However, as time passed, everyone realised that doing nothing was not the answer. Interestingly, in light of restrictions, more and more people discovered the safety of boating and, as a result, people were drawn to the incredible boating lifestyle with family and friends. The interest in boating escalated globally, and not just the high end of the market – every aspect benefited.

With some assistance from the government, I was fortunate to maintain my staffing levels, which I greatly appreciated, as did many other businesses in Australia. During lockdowns, we managed the business as a team from our homes – Zoom became my friend! As a company, we emerged from COVID with a clearer focus, a dedicated team, and a strong and supportive client base and readership, which definitely grew over this time.

What is your view of boat shows in the post-COVID era?
Having recently returned from the Cannes and Monaco yacht shows after a two-year hiatus, we needed to reconnect with the industry in this way. It is not only where we view all the new yachts, it’s where we learn about the latest technologies, discuss future projects with marques, and source editorial features for the year ahead.

While Zoom allowed us to maintain relationships during COVID, being back at the shows reinforced how vital face-to-face contact is. Boat shows are where relationships are established, and real connections are made and thrive.

Both shows were very successful, but the industry is becoming more discerning in terms of where they choose to exhibit. With the cost of exhibiting and travel in particular becoming exorbitant, especially from our part of the world, we need to ensure every show or conference is working for us.

In addition, with a lot of the larger yard build times now out until 2025/26, brands are far more selective about who they spend time with. Given current order books, they could afford to be even more targeted. I was taken aback at one of the shows by the following comment: “Trying to sell boats into countries like Australia is just too difficult right now given the complexity of compliance, especially when you have easier customers on your doorstep.”

What is your view of the industry in Australia and New Zealand at the moment?

Like most boating nations around the world, yacht ownership over the past two years has boomed in Australia and New Zealand. Marinas are full, refit yards are busy, and associated businesses are thriving.

COVID brought about rapid change. Some owners with larger yachts, who would usually have kept them overseas, brought them back to Australian waters instead due to travel restrictions.

Our industry and yacht ownership are both maturing, and the local infrastructure is growing to meet the demand. A lot of investment from the private sector and government is assisting this growth.

The Asia-Pacific superyacht industry is starting to work together to promote the region for private yachts and charters. With exploration cruising also on the rise, this region offers incredible experiences that simply can’t be found anywhere else in the world. Since launching the first edition of the Great Southern Route superyacht guide in 2007, I have seen this exponential growth firsthand.

An international publication recently reported that Australia is, for the first time, in the top 10 countries for superyacht ownership in the world. I would suggest this number is even higher than reported. Most Australians who own large superyachts prefer to keep them in Europe and, being internationally flagged, tracing the owners back to Australia can be very difficult. While some owners do bring their boats back to this part of the world, most love the anonymity of the Med and keep smaller vessels locally instead.

What is your view of the global market?

I don’t anticipate a major correction to the current market as we saw in 2008, but no-one can be complacent. With interest rates and inflation still on the rise, the yachting industry will start to cool, though we knew it couldn’t keep going the way it has over the past two years.

In saying this, many yards will be busy over the next few years delivering their new build order book, as will suppliers and services to the industry. My concern is the increase in the cost of products and services, combined with staff shortages, which is affecting every sector in our industry.

One area that is at an all-time high is the refit and repair market. Owners who don’t want to wait for a new build are now looking at the second-hand market and undertaking a refit instead – some quite extensive. In our part of the world, refit yards are seeing massive potential. The maxim, build it and they will come, is definitely paying off.

Since I started in this industry nearly 20 years ago, the investment in this area of the market has grown year on year. Australia and New Zealand now offer some of the best refit yards in the world and, with more owners looking further afield for their cruising itinerary, I can only see this market sector getting stronger.

We’ve also seen an increase in new owners and charterers discovering the yachting lifestyle – during lockdowns, it was one of the safest ways to holiday with family. With the rise of social media, the interest from mainstream media, including TV programs, as well as influencers within and outside the industry, awareness of the yachting lifestyle is only growing.

What are the challenges for media?

It’s now so easy for individuals to start a blog, YouTube channel or website, and this has led to huge interest in our industry from mainstream non-boating people and current owners. Many larger media companies with expensive overheads, such as staff costs, have been slower to gear up for this new digital transformation. You need to be able to monetise each new platform – if it’s only one person, it’s easier to make it work.

Also, most people believe they should get all their media for free. Transitioning platforms to a paid system where readers pay is tricky when so many channels push out news for free.

At Ocean Media, we have four to five staff working on our news websites. Publishing high-quality stories, either written by us or supplied by PR firms, takes time and money to keep new items flowing daily and ensure our websites are updated. It’s about quality and maintaining the high standard we are known for; it is what our readers rely on.

Some companies are so busy with their current order book they don’t believe they need to attend boat shows, networking events and conferences, or undertake any advertising. However, I have noticed that the top-performing companies do a mixture of everything. Often, it’s not about the money you spend – it’s about where and how you spend it. Every business requires a different approach depending on the business strategy.

As a leading media company in our industry, we offer tailored solutions and achieve outcomes. My team is the best in our sector. We are as committed to increasing the awareness of your products and services as you are. This is what makes our clients want to return every issue, every week. We have built a strong following with owners and captains, and within the industry.

Ocean Media is very supportive of our industry. For 20 years, whenever a new player enters, I’ll sit down with them and chat through what we can do to help them promote their product or service. We always recommend attending boat shows, joining the main associations, and the importance of networking. I would like to see more collaboration, more sharing of ideas and talking through any difficulties the industry or companies might be facing, which is why I established the Captains of Industry.

At the recent Monaco Yacht Show, I also spoke to several international yachting journalists and editors about getting a group of us together a few times a year to discuss industry matters and share some of our thoughts on our changing industry, as well as any features we’re working through that might need input.

I’ve never worried too much about competition (even though plenty exists). For me, it’s more about working to the highest standard possible, sharing ideas and helping our clients get the best solution for them. This is not always through us, which I am upfront about. It needs to be a win-win solution for everyone. This isn’t always easy, but the only way for the industry to grow and mature is to work together and share ideas.

If all the yards currently working on emission-free, new engine technologies and solutions to a cleaner yachting world worked together, we’d get to the finish line in half the time for half the cost. Food for thought.