If you’re lucky enough and sufficiently rich to have a superyacht of your own, it’s more than likely that you’ll already have a relationship with LR. The classification society, which has been working with the owners of high-end private yachts for longer than most, has a market share of 62% of vessels on the water in the 500gt plus category, and more than 70% of today’s 83-ship orderbook in this segment.
R provides a comprehensive start to-finish service ranging from design validation through construction assurance, commissioning, the oversight of through-life care, maintenance and periodic surveys, upgrades and refits, and eventually, decommissioning and recycling. The process involves a deep involvement and appraisal of the many new technologies which the owners of these vessels increasingly want to install. Some of these find their way through to commercial vessels, albeit in a scaled-back and more utilitarian form.
According to Engel-Jan de Boer, LR’s Yacht Segment Manager, the yacht industry is “the Formula 1 of the shipping industry” where many of the latest technologies are trialled.
“It is a huge fertile ground with owners wanting to participate in exciting new projects, which can then be upscaled to the commercial shipping world. For far too long, the industry has had an image of tycoons and villains owning and operating yachts for their own entertainment. But the opposite is evident in the projects we have been involved with recently in this sector.”
Focus on eco-efficiency
In fact, de Boer reveals that the high-net worth individuals who own these luxury superyachts are a fascinating bunch. They have sharp minds, a close attention to detail, and a desire to understand and pioneer new technologies whenever possible. Today, many of them are closely focused on eco-efficiency and sustainability.
A key differentiator of this sector, de Boer explains, is the fact that steady growth rarely falters and there are always plenty of new vessels at design, construction, and commissioning stages. And LR’s existing market share – 42% of the 5,567 vessels of all sizes currently in service – means that the class society is well-placed to track latest technology developments and win more superyacht business.
The orderbook provides compelling evidence. Although RINA is classing 43% of yachts currently under construction in numbers, most of these are relatively small, in the sub-500gt category. In terms of gross tonnage, LR has a 47% share compared with RINA’s 20%, at number two.
So why is demand for luxury yachts so inelastic? De Boer says that it’s partly because the number of very rich individuals in the world continues to rise, almost regardless of the state of the world economy. But there are other factors too. Superyacht owners want to be able to go to places where others have not been before, such as the Arctic and Antarctic, and they want to sample and offer to privileged friends the unique experiences made possible onboard some of the most luxurious vessels afloat.
De Boer notes that across the environmental considerations that are climbing the agendas of yacht owners, interest in wind is strengthening. More are now interested in sailing vessels, he reveals, such as the three-masted 106.7m Black Pearl, delivered in 2018 whilst many are adopting hybrid power systems with batteries, including the recently delivered MY Dreamboat and the MY Bravo Eugenia.
A trailblazer here was the 2012-built sailing vessel Rainbow, a J-Class vessel based on the lines of the original 1934 America’s Cup winner, designed by William Starling Burgess. The LR-classed vessel has a classic interior true to the 1930s, but a modern hybrid propulsion and power system specially designed and engineered for the vessel.
Technology transfer
Solar power and other sources of energy are hot topics. De Boer highlights sails with solar panels and comments on the pressing need to keep abreast of the latest developments. “We published Rules and Regulations for Sail-Assisted Ships last year,” he explains, “and this July, we launched Requirements for Wind Propulsion Systems, a development from the experience and know-how we have with sailing yachts now being extended and transferred to commercial ships.”
A range of other sustainability features are now also found on owners’ shopping lists. “Cyber security, data analytics, glass constructions, 3D plan approval techniques, and environmentally friendly solutions such as hydrogen and battery propulsion are amongst developments that are catching the eyes of more environmentally conscious and forward-looking owners,” de Boer says. Bound by non-disclosure agreements, he cannot reveal details of the hybrid systems under development involving hydrogen and other fossil-free fuels of the future.
“Since many yachts are used both for their owners’ pleasure and business, top-notch connectivity is essential,” he continues. “Therefore, the very latest
communications technologies are to be found on these vessels. The availability and use of data are also changing the way we work with yachts and their owners in this sector. Systems and components are becoming more autonomous, allowing for remote condition monitoring and predictive maintenance.
“This is already having an impact on the way class societies operate. Remote inspection techniques are often used now for smaller tasks such as verifying that a repair has been undertaken and completed, and ensuring that minor damage has been rectified.
“The environmental footprint of construction, operation and maintenance has become, and will remain, a hot topic,” he predicts. “And the industry is developing a Yacht Environmental Transparency Index (YETI) to make owners even more aware of their environmental profile. The drive for owners to reduce their eco-footprint is good news for us – it generates significant demand for our core classification and consultancy services.”
Power of the wind
As to the future, de Boer is convinced that wind power will play an important part in the sector’s propulsion developments. These are also likely to have a bearing on wind propulsions in the commercial sector, an area he thinks has great potential.
“If slower steaming becomes the norm and global economies are less reliant on the ‘just-in-time’ principle, of which COVID-19 has demonstrated the dangers, Rotor Sails and Ventifoils will probably become more common. I doubt that there will be a push towards fully sail-operated vessels, but on some trade routes and liner services, these could be possible.
“Actual propulsion systems using wind vary in configuration and we have been involved in a range of different technologies. Our rules and regulations apply to the rig insofar as this structure is used for propulsion purposes. The actual propulsion force may be generated by sails that are hoisted on the mast (a fore-and-aft rig, for example), rotation of the mast structure itself as in the Flettner rotor concept, or other ways of capturing wind force and transferring it to the hull.
“In a way,” he muses, “we are going back to our roots in 1760 when wind power was the only source of propulsion.”
