Superyacht owners hear the same words constantly — ship manager, yacht manager, yacht management firm, ship management company — without always knowing what they cover concretely, or what distinguishes them. The confusion is sustained by a lightly regulated market where anyone can present themselves as a “manager” without necessarily exercising the role in the strict sense of the ISM Code.
This article restates the definitions, scope of services, business models and criteria that allow an owner or family office to seriously compare ship management firms.
The strict definition: Company under the ISM Code
The IMO’s ISM Code (International Safety Management) introduced in 1998 the concept of the Company: the legal entity responsible for vessel operations. This responsibility cannot be delegated informally — it is held by whoever holds the Document of Compliance (DOC) issued by the flag State or by a classification society.
In practice, two configurations exist:
- Company = owner — the owner (often a holding company) directly holds the DOC and operates the yacht in-house through a captain’s office or a dedicated shore team.
- Company = ship manager — a third-party firm is designated as Company, assumes ISM responsibility, holds the DOC, and provides the full suite of operational services to the owner under a contractual mandate.
The ship manager in the strong sense of the term is therefore the firm that assumes Company responsibility — which implies a unique IMO number (IMO Unique Company Identifier), an audited Safety Management System (SMS), and the designation of a Designated Person Ashore (DPA) with direct access to the highest authority of the Company.
”Yacht manager” vs “ship manager”: real differences
In English-language usage, the terms overlap. A few practical nuances worth keeping in mind:
- Ship management firm — term historically used in commercial shipping (cargo, tankers). Designates a firm that takes on the ISM Company role for one or more vessels under mandate, with a very procedural approach.
- Yacht management firm — adaptation of the ship management model to the luxury yachting market. Similar scope but accompanied by a service dimension to the owner and master (concierge, MLC crew, events) absent from commercial shipping.
- In-house yacht manager — captain or operations manager salaried directly by the owner, without a third-party firm. The DOC is held by the owning holding company.
- Yacht broker / charter broker — distinct profession, no operational management. Handles yacht sales-purchase or commercial chartering. Common confusion: a broker is not a ship manager.
- Captain — the master has authority on board, but does not carry Company responsibility. The captain is the interface between the shore Company and the vessel.
In the European market, one mainly encounters yacht management firms operating fleets of 3 to 30 yachts, and integrated management for very large fleets (more than 10 units under the same owner).
What a yacht management firm actually covers
A full management mandate typically covers six distinct domains. Depending on the firm, some are outsourced to subcontractors, others internalised.
1. Regulatory compliance and flag
- Maintenance of the DOC and SMC (Safety Management Certificate)
- Designation of the DPA and effective performance of the function
- Liaison with the flag administration (Cayman Islands, Marshall Islands, Isle of Man, etc.)
- Renewal of statutory certificates (MARPOL, SOLAS, Polar Code if applicable)
- ISM and ISPS audits, internal pre-audits
2. Crew and MLC 2006 compliance
- Recruitment, SEA contracts (Seafarer Employment Agreement)
- Payroll and social contributions according to flag
- Tracking of STCW certifications, medicals, specific training
- Management of leave, crew rotations, career planning
- MLC inspection preparation
3. Technical management
- Planned preventive and corrective maintenance
- Coordination of refit periods and classification surveys
- Supervision of shipyards and suppliers
- Spare parts and lubricant inventory management
- Monthly technical reporting
4. Financial and accounting management
- Operating accounts for the yacht
- Annual budget, variance tracking, monthly cash calls to the owner
- Cost accounting by category (crew, technical, ports, fuel)
- Annual financial audit
- VAT optimisation according to berthing jurisdictions
5. H&M / P&I insurance
- Underwriting and renewal of H&M (Hull & Machinery) policies
- Membership in a P&I Club (Protection & Indemnity)
- Claims and loss adjustment management
- Advice on complementary cover (war risk, kidnap & ransom)
6. ISPS security and security plan
- Maintenance of the Ship Security Plan (SSP)
- Designation of the SSO (Ship Security Officer) on board and CSO (Company Security Officer) ashore
- ISPS audits and documentary intrusion tests
- Preparation of sensitive port calls (Caribbean, Eastern Mediterranean, Gulf of Aden)
A serious yacht management firm internalises at least four of these six domains. Firms that outsource everything are in practice service brokers, and their added value is limited to coordination — which can suffice for some owners, but must be clearly disclosed.
When to engage a ship manager
Outsourcing is justified mainly in three scenarios:
- Yacht held via family office or wealth holding — the owning structure is not designed to carry maritime employees or to build an ISM infrastructure. The yacht is one asset among others, managed under external mandate.
- First yacht for the owner — no in-house experience yet, significant regulatory learning curve (ISM Code, MLC, ISPS), legal risk in case of non-compliance. The firm provides the grammar of the profession.
- Yacht in commercial operation (charter) — enhanced regulatory requirements (Large Yacht Code, REG Yacht Code, commercial audits), increased civil liability, need for independent management to reassure charterers and insurance underwriters.
In-house management becomes preferable from a fleet of 4-5 yachts under the same owner: the fixed cost of a dedicated shore team becomes competitive, and operational consistency outweighs mutualisation.
How to evaluate a ship management firm
A few discriminating questions to ask systematically before signing a mandate:
- IMO Company Identifier? — Without this number, the firm cannot be ISM Company nor hold the DOC. Check the registration on the IMO website.
- How many yachts under active mandate today? — Too few (< 3) = lack of experience. Too many (> 30) = risk of standardisation and loss of personalisation.
- Is the DPA internal or outsourced? — An outsourced DPA raises questions about real availability and maritime qualification of the holder (see our dedicated article on outsourcing the DPA).
- What is the firm’s exact remuneration? — Monthly retainer, success fees, purchasing commissions, supplier rebates? A truly independent firm receives only its management retainer.
- Independence from suppliers and insurers? — Does the firm also sell insurance, fuel, shipyard services? If yes, structural conflict of interest.
- NDA and confidentiality — A serious mandate opens with a signed NDA. The firm should be able to name existing clients only under explicit agreement.
- Audit Trail — Are all management acts traced and accessible to the owner in real time? Full case extraction possible at mandate end.
Indicative cost ranges
For a private yacht under full management mandate, the management fees typically fall within the following brackets (excluding taxes, excluding pass-through costs):
| Yacht size | Monthly fee | Annual fee |
|---|---|---|
| 30-45 m | €6,000 – €10,000 | €72,000 – €120,000 |
| 45-65 m | €10,000 – €18,000 | €120,000 – €216,000 |
| 65-90 m | €18,000 – €30,000 | €216,000 – €360,000 |
| > 90 m | bespoke | > €350,000 |
These brackets correspond to a full mandate (ISM/ISPS + crew MLC + technical + finance + insurance + flag). A partial mandate (for example DPA + ISM/ISPS only, without crew or technical) drops to €15,000 – €40,000 annually.
Pass-through costs (crew salaries, fuel, port, technical work) are not included in the retainer — they pass through with supporting documents.
Why the topic is poorly understood
Three factors sustain the ambiguity around the profession:
- No professional order — unlike brokers or maritime surveyors, no mandatory accreditation exists in France or Europe to operate as a yacht management firm. Only IMO registration and flag recognition serve as filters.
- Market opaque by rarity — almost all relevant owners are wealthy individuals under NDA. Public comparisons are rare, and reputation circulates by word of mouth in closed circles.
- Confusion with brokers and captains — experienced captains sometimes act as informal yacht managers for a single owner. This model works as long as the captain stays on board; it collapses the moment they leave or pass away.
The Cursorio position
Cursorio is an independent yacht management firm based in Le Cannet, on the French Riviera. Our scope covers the six domains listed above under full mandate, or targeted one-off engagements (ISM/ISPS audit, DPA outsourcing, flag reflagging, H&M negotiation).
We hold IMO Unique Company Identifier no. 6391845. We manage a deliberately small fleet — fewer than ten vessels — to guarantee a human, personal follow-up for each owner. Our remuneration comes exclusively from the management retainer: we do not sell insurance, fuel or shipyard services, and we do not receive any supplier rebates.
To discuss your yacht and evaluate the relevance of a Cursorio mandate, get in touch. An initial hour-long conversation, confidential and without commitment, is enough to frame the need.