Importing a boat can be tricky and a nerve-testing experience.
It is hard to resist. Why wouldn't you import a boat or yacht when they seem so cheap compared to what us suckers pay here in Australia. Whether it's from the USA, Europe, Japan or Singapore, there is many a bargain waiting to be scooped up. At first glance, the figures might look good on paper. But the experience of importing a boat can become more expensive as the process unwinds. And if you're not careful, it could cost you more than you budgeted for!
Boats in other countries can be cheap for a variety of reasons. In the USA, the economies of scale and consumer lifestyle dictate a vast production level and enormous turn-over rate in boat ownership. The way of things in the USA is to put down a 25% deposit, pay off 50% on debt financing (say, over 7 - 10 years) and pay the remaining 25% as a balloon or final payout figure. When someone sells their boat or yacht, it has usually depreciated to the point where the proceeds of sale will just cover the final balloon payment and maybe leave them with some cash left over. Then the debt merry-go-round cycle starts again; they buy another boat or move onto something else!
A word of warning here. The consumption-driven mechanism mentioned above can also result in a different attitude towards boat ownership and indeed, maintenance levels. Here in Australia, we pay more for boats, cars and especially houses. Because of that, we are instilled with a sense of pride and generally lavish attention on appearance and maintenance. This isn't always the case in the USA and even some parts of Europe. So be cafeful when making a selection. What seems cheap may cost you more in the long term to restore to your expected standards. It might surprise you, but in America even a 30 or 35-foot Sea Ray or a Beneteau yacht is considered a "throw-away" item. No, I am not joking!
This article is written from my viewpoint, having imported cruisers from the USA. But much of this information will be applicable for whatever boat or yacht you import and where ever you ship it from. Now having said that, trailer boats are a more-easily handled commodity. If they're on a trailer, the logistics are more manageable. However the licencing requirements and standards for boat trailers here in Australia varies from overseas, so you will have issues to address there. If it fits into a container, that's a bonus. Otherwise you're dealing with deck cargo and a cradle.
The two pivotal keys for me in the process of importing a yacht or boat are the research and the project management. This activity that you're considering undertaking is afterall, a project. It has numerous stages and you should at all times know where it's at and what has to happen next. A word of advice: no matter who you are referred to for help in some aspect of the importing process, always stay abreast of what is happening. There are a lot of people who get involved along the way and you are wise to stay in touch with each person, ensuring that things happen when they should.
No one cares more about your money than you. Simple fact. Many people will proclaim that they have shipped tens or even hundreds of yacts and boats. They'll tell you they will look after it. No need for worry. But when something goes awry - you, my friend, are going to be the one who pays. It is making sure that things do get done that will save you time and money. You get told your boat has been sitting at the terminal 2 days longer than it should have been. Do you want to pay potentially thousands of dollars extra unncessarily? Damn right you don't.
Let me say it is fair to assume many people will try to import boats to resale in the hope of making a quick buck. You won't be the first. Sure, some have. But for every one who has tried and succeeded, many more have fallen by the wayside. The proess can cost you more than you thought. Economic conditions can change and boat values decline in the same time it takes you to ship your boat or yacht to its destination. For the unwary, exchange rates can also wreak havoc on the dream of making a profitable sale.
If you enjoy golf, stick to importing golf clubs and golfing accessories; you need not worry about boats. A well-worn saying goes like this: the only ones to make a profit out of boats are boat brokers. It's an apt warning. If you love boats, boating, yachts and sailing - knock your socks off! Just make sure you're importing something you actually like. If you can't sell her for what you envisaged, she's yours to enjoy and you won't regret the purchase. Nothing could be worse (or more stupid), than buying something you don't like or have an interest in, only to find you can't even sell it for profit!
Let's move forward. I mentioned research. A very important step, as it underpins everything that will unfold as you follow the import process through to competion. You need to do as much research and investigation as possible before you make the purchase and to enure you ask as many questions as you can. Write everything down and get everything in writing. I mean everything. There's a lot to do and a lot of people to ask for guidance. Along the way, your instinct will guide you towards people who you feel are the most reputable and those who provide solid information.
You will inevitably decide for yourself what make and style of boat to import. You will be researching where to buy it from and from which likely region/s in which ever country you choose. Then it gets down to the knitty-gritty. You will be speaking to end e-mailing yacht clubs and their management. You want to speak to locals. Ask which are the best marine surveyors and the best boat brokers to deal with. For a first-time importer, I recommend going through a boat broker as opposed to a private sale. That way you will be signing proper contracts of sale, paying the deposit into a trust account (hopefully) and using your solicitor to check the fine print (a must).
Once you've screened all your boat selection and areas/zones, you need to find people to transport your boat to the closest shipping terminals. The proximity of shipping terminals and where they can move freight to may assist you in deciding where to buy. It may be much cheaper to ship from the west coast of a country than its east coast, for example. Even before you look for the boat, you need to secure written quotes for shipping from a port of origin to a destination port. If you live on the east coast of Australia, get quotes for the ports of Melbourne, Sydney and Brisbane and compare them. Make sure they clearly state port and terminal charges and GST.
When you ask for referrals for marine surveyors, I avoid asking the broker I'm dealing with. Ask local marina operators and yacht club management. Ask other boat brokers. But always obtain independent opinion and weigh up the information given to you in your own mind. Always get at least three quotes for transporting your boat. You will need quotes for moving the boat or yacht to its port of origin and you will need more quotes to move her to her berth or destination from the local port of arrival here in Australia.
Researching the shipping companies is a hurdle, too. It wasn't about asking for three quotes, either. First, it's about trying to find someone you feel you can trust. I mentioned using your intuition - your gut feel. There's many shipping companies and many freight forwarders. Over the telephone, you get a feel for what they're saying and whether they're just trying to sell to you. Some will explain the process and tell you what to be on the lookout for and what to avoid. You'll find some are quite helpful, some guarded and some you just don't feel comfortable dealing with. It is an individual choice. You might be referred to someone, but ultimately it is your decision. By the time I selected a company, I had contacted roughly a dozen others and had obtained six quotes. In every instance I asked for multiple quotes - covering pick-up from east and west coasts and delivering to various ports in Australia.
You should contact the ports yourself. A shipping company will get prices. But it is better to hear it from the port authorities. Tell them what boat or yacht you intend to import and from where. Have the vessel's specifications ready in case they ask for details. Ask what port and terminal handling charges apply and at what stage are they payable and to whom. Your shipping company may very well take care of this, but do not go in blindly. Always know what you should be paying and know the process.
In addition, if your boat exceeds 7-8 feet in beam, a container - whether it be 20 or 40 feet long, is useless. Most vessels over 30 feet in length will be wider that this. Even a 40-foot container will only allow a 7-8 feet beam in once the doors open. So you are looking at a cradle. This is something you will also need quotes on. And make sure you get a couple of quotes. The shipping company may offer a cradle hire service. You may have one made up especially for your vessel. You need to ensure that it complies with Australian Customs regulations. Any prohibited timbers used in your cradle may see your boat impounded and you could incur additional fumigation charges, or worse.
Unless your boat is brand new, you will face fumigation charges anyway if your boat has any timber fittout whatsoever. This is handled by Customs. In means another step in the transport process, because the boat now has to be moved to a facility nominated by Customs to undertake the fumigation. I allowed Customs to organise the fumigation and I personally arranged the transport. Since then I have been informed (rightly or wrongly), that it is cheaper to arrange the fumigation yourself. Customs charges are not cheap, so it is up to you to find out!
The marine survey is critical. Read my article about marine surveys here. You might have marine surveyor who is competent in both the survey of the hull and its engines and machinery. Or you might have a marine surveyor who works in tandem with a mechanic or engineer, who checks the engines and machinery. Remember to ask around and ask the surveyors as many questions as possible. You don't want to be paying someone too much for travel time and local knowledge is great, but it's also nice if they are a town or two away!
The money you pay for the marine survey is worth its weight in gold. My first boat survey uncovered that the vessel had been fully submerged, with no effort at all to flush the engines and working systems. Imagine buying that! A bargain! "Hang on, the motors aren't starting! What's all that salt build-up?!!!" People selling something will tell you as little information as need be. Your marine surveyor can check insurance and registration records, title documents and the Hull Identification Number (HIN). And that's just for starters.
What can happen; believe it or not, is that the transport company can make blunders! Even the shipping company can make errors. There can be miscommuication between the transport company and the shipping company. They might stuff up the date of pick-up. They might arrive with the wrong truck or trailer. They might arrove at the port only to be turned away by port staff because the cranes had not been booked. Each party tells you the other is to blame. Neither of which is of any help to you!
My first boat import - all the above happened. Both the transport company and the shipping company regularly ship boats and yachts. Many of them much, much larger than mine! But it happened. But I remained in contact with both parties, worked diligently over the phone to sooth the bruised egos and and manged the project with unmitigated determination. You will require patience, good negotiation skills, a pleasant but confident (firm) manner and above all else, nerves of steel. There's nothing like being told on Thursday that if your vessel is not off the terminal by Friday you will pay $5,500 per day until it is moved on Monday!!! Remember that I told you so.
You will also need insurance - transit insurance for at least two stages in the process. I suggest obtaining insurance quotes for the transport of your vessel to the port of origin. Sure, transport companies have insurance, don't they? What's to say something happens and you're not covered? That sounds like a fantastic and profitable situation for lawyers on two sides of the globe, to me! It's a one way trip that you don't want ending in litigation. The second leg is the shipping and you should definitely arrange your own transit insurance for this. Once the boat arrives, your third insurance deal should be a comprehensive owner's policy that will cover the transport of your boat or yacht to its new home.
The process of importing boats and yachts can be a drawn-out and exhausting experience, especially your first time. The virgin boat importer is prone to falling in any one or more open traps that lie waiting. The key to some of the challenges is how you react to situations as they arise. Inevitably, you face some sleepless nights. You have to be very careful about how you speak to people, particularly in other countries. Mind your words and manners carefully. Be measured, because you do not want someone getting upset and putting a set of fork lift forks through your hull.
The fact is that things sometimes do not get done. Something happens along the way. The boat import process presents many logistical challenges. You need to be up to the task of communicating with different people and realise that some of them are not just dealing with your boat, but potentially a dozen being moved at once! You need to be firm with dates and times as best you can, without getting the person on the other end of the phone aggravated. Foremost, you have to be on the ball and communicating via telephone and e-mail at every stage. E-mail is great when you are dealing with different time zones!
Foreign exchange rate issues lurk in the background. You'll need a currency exchange when you pay the marine surveyor, another when you pay the deposit on your boat or yacht. Then there's the settlement on transfer of the title and the payment of shipping fees to the shipping company. Don't forget about the overseas transport company who moves your boat or yacht to the port of origin. So there's a number of transactions to account for. You may wish to buy the currency at each stage, or buy a larger cash amount to cover all or most of the cost upfront. Personally, I opened up a commercial Travelex account. Good rates and great service; never had a problem with them.
When the Australian dollar is high against other currencies (particularly the US dollar, the Euro, the Japanese Yen and the British Pound), then buying a boat or yacht overseas and importing it is certainly cheaper. But exchange rates can and do vary by the minute, so you will need to follow them as and when required. A movement of half a cent or a cent can cost you hundreds or even thousands of dollars, depending on the dollar scale of your purchase and associated shipping costs.
Overall, I would recommend importing a boat or yacht only to those who really, really love their boating and sailing. It can be a daunting and stressful task and is not to be underestimated at any time. Having said that, I have been rewarded for my efforts. I have enjoyed the use of boats that otherwise I would not have been able to obtain here locally. Additionally, I have leared project management and people management skills, enhanced my ability to negotiate, learned lessons about international trade, about overseas cultures and learned more about boats. It's a hard way to learn, but I feel rewarded for the experience. You will too, provided you do the research, manage the process as a project and remain at all times vigilant and informed.
Best of luck!....watch another boating horror here...
