The Government of Canada has announced that the import tarifs on US Built boat has been dropped. Used European boats will still incur a 9.5% duty.
Boats crossing into Canada will still require all proper documentation and HST will apply at the border, as it has since the HST came into effect.
CHARTER IN THE BVI with TMM and Breezeway Yachts.
We are pleased to announce the Breezeway Yachts is now your Canadian Broker for Tortola Marine Management [TMM] in the British Virgin Islands.
Based out of Road Reef, adjacent to Road Town, TMM operates a fleet of catamarans, from 40 to 50 feet, and with the ability to accommodate 3 to 6 couples.
The BVI is the most popular single stepping off point for cruising in the world. One visit will show you why.
Contact us for more information.
Cheryl and I are just back from our Breezeway Yachts two week excursion-business trip to the BVI. Beaches, restaurants and four days on a big Catamaran. A wonderful mid-winter retreat. Highly recommended.
Throughout the islands there are still signs of Hurricanes Irma and Maria. Damaged boats, homes and businesses abound, however the people have recovered from the traumatic experience and signs of rebuilding are everywhere. The islands are certainly open for business.
One or two cruise ships were in every day. The bars and restaurants were busy. Grocery stores were stocked. And the anchorages were all active. The beaches were beautiful, the waters were teeming with fish. The snorkeling was spectacular. Our stops included Little Bay, Nanny Cay, Smugglers Cover, Jost van Dyke [Hendo's, Soggy Dollar and One Love], Willy T's, The Baths, Anegada [Anegada Beach Club and The Wonky Dog], Peter Island, Cane Garden Bay, the Dove Restaurant, Josiah's Bay, Brewers Bay, and a few more places I've forgotten. So there is lot's, really too much, available to do there.
Our trip included a few meetings with local businesses in the marine field. As a result, we will very shortly be announcing an expansion to our offerings, beyond our Brokerage Services.
Just around the corner is the Toronto International Boat Show, running from January 18 to 27, 2019 at the Enercare Center in Toronto.
This will be the second year for Breezeway. You can find us in booth 1788 on the north wall near SailFest. Please come by and say Hello!
As we open the book on 2019, on behalf of Breezeway Yachts and our team of brokers, I would like to wish a Happy New Year to you and your families. I hope your holidays were enjoyable.
With 2018 in the books, I wanted to give you a quick update on Breezeway and the market in general.
Our final number for 2018 gave us a 49% increase over 2017, so a great result. We had a good balance of sail and power, and we will be working to continue to improve our penetration on the power side, since that market is almost four times larger than the sailboat market in Ontario. Our gains in 2018 were significant, and not indicative of the broker marketplace. In 2017 we were 15th of 35 brokerage companies in Ontario, while in 2018 we moved up to 7th of 35. Wee’re on the right track and as we continually strive to improve, I expect to continue growing.
Many thanks to our great team of brokers and our wonderful clients.
One element that is out of our hands, and the biggest boating news in Canada last year, is the Canadian tariff on imported US built boats, put in place last summer at 10%. This is a countermeasure for the US tariffs on steel and aluminum, and it is expected to remain in place while that US tariff exists. This will likely have an impact on Ontario brokerages who source boats in the US for clients. The tariff on non-NAFTA zone used boats [primarily European built] of 9.5% is still in place and will remain, even with the CETA deal.
Also, we are dealing with historically low inventories of used sail and powerboats, not just in Ontario, but throughout North America. I believe this is the result of fewer new boats being sold each and every year, particularly since 2000, and more pronounced since 2008/09. If clients aren’t buying new, then the supply of 5 to 10 year old boats is not there, and so on down the line.
So our priority for this year will be to be even more visible on the ground and online. We will be providing even more exposure for listed boats, and will continue to search beyond our own listings to find the right boats for our clients.
I was recently asked by a client, about a boat that Breezeway had just sold. He has been looking for a Nonsuch 36 and found our video on YouTube.
Through our email discussion regarding his search, we discussed many aspects of his search and the Nonsuchs in particular. Additionally, I pointed out that the survey on that particular boat had found several issues that we had been previously unaware of, and as such, the price was renegotiated to be fair to buyer and seller.
Since this client is continuing his search, he asked if I could share those issues, to aid in his evaluation of other candidates. In general, the issues centered around problems that are not uncommon for older boats that have had modifications over the years. For instance, this boat had a dodger that was removed by a previous owner. The location of the old fittings was an entry point for moisture. It couldn't be determined if an improper original installation of the dodger was to blame [there is a right and wrong way to install deck fittings], or if the repair was at fault. Either way, the water had entered the core and migrated, meaning an expensive repair is needed. The same issue was found with the aft deck around davit installation points.
The hull showed some bubbling in the paint on one side. These were inherited by the seller, so no certainty on cause, but potentially a nearby lightning strike, or simply poor installation of a shrink wrap with too high a heat applied.
The lesson here is that anyone modifying a boat should really go to the effort of ensuring that these are done properly. And for anyone investigating a purchase, get a survey.
The only issue that would be particular to the Nonsuch 36 involves the mast. With unstayed rigs, the integrity of the mast is paramount. The masts on early versions of these boats had a cutout just below deck to deliver the mast wiring to the onboard wiring. This location for the cutout results in a weak point in the mast. As a result, some of these masts show degradation in that area, specifically cracks emanating horizontally from the cutout. Certainly any mast can fail, but damage to an unstayed mast is cause for action. It is interesting that you will occasionally see a Nonsuch 36 with a carbon mast. I suspect those are a result of a catastrophic failure of the original mast, and not just the extravagance of the owner.
The Nonsuch 36 is a beautiful boat. An interesting rig design providing unique sailing characteristics, while being manageable shorthanded, generous and well organized interior space. A real classic that will continue to be in demand.
May you live in interesting times. Whether the origin is Chinese or British, it is now applicable to many factors of our lives including the Marine business.
Our trade war with the US has resulted in Canada proposing countervailing tariffs on a wide selection of goods including US made Inflatable Boats, Sailboats, Motorboats as they come into Canada.
These tariffs are set to kick in on July 1, 2018 at a rate of 10%, applied at the border at time of import. Note, that the HST is also collected at the border and is calculated on the price of the boat plus tariff.
This week, the Brunswick Company, builder of numerous brands including SeaRay and Meridian, announced that, after failed attempts to sell the SeaRay and Meridian brands, it will shut two divisions [sport yacht and yacht] and close two plants.
Should these trade wars escalate, they will undoubtedly have negative implications for the North American boating industry, as US exporters will face more resistance worldwide and raw goods costs will be forced higher.
We are already seeing this in the US housing market, as US duties on Canadian Softwood Lumber have driven up new home prices in the US by an average of $9,000.
In a low volume industry such as boat building, higher costs will be difficult to absorb.
New sailboat manufacturing in the US is at a decades low level, plummeting to less than 500 units in 2017, part of a steady and precipitous decline over the last 20 years.
Two major factors are the rapidly rising cost of new boats, which is tending to far exceed inflation, and the lack of new developments in boat design. A 20 year old boat basically looks the same as a 2 year old boat. Shoal drafts by either wing or bulb keels, furling mainsails, wide cockpits with accessible transoms, large aft cabins, these have all been available for quite some time. Granted, electronics have improved somewhat, but these can be, and are, easily changed out on almost any boat. And many powerboat builders are offering Pod type drives, but even these offer little more than a bow and stern thruster arrangement.
As volumes decline, manufacturers are less and less in a position to invest in R&D, so a chicken and egg scenario exists.
The high prices and stagnant product mean those who would normally move into a new boat after 5 or 10 years, are reluctant to do so. This in turn means that there is a corresponding decline in used inventory available.
In my 14 years of brokering boats, it has never been this difficult to find recent model year boats, and by recent I mean anything made in the last 15 years. The coming years will see if these trends continue or are somehow reversed, but there is unlikely to be a short term surprise.
It's been an incredible spring. As of today we have closed our 18th transaction, matching our number for all of last year. Additionally, in terms of dollars, we have eclipsed our total for last year, in just the first five months of 2018.
We have worked with clients to buy and sell everything from a Laser Radial and Hobie 21SE to Dufour 36 Classic, Mainship 400 and Sea Ray 480.
Great Boats and Great Clients.
Again, I have to say what a wonderful achievement for a young company, and it's really due to the efforts of our brokerage team. So a shout out to Jamie Crane in Toronto, Rob Saloman in Ottawa, Chris Pearman in Napanee, Tony Cahill in Whitby, Andre Maetzener in Toronto, Glenn Berglund in St Catharines and Phil Kling in Niagara
Very proud to have reached another milestone at Breezeway Yachts. Thanks to the contributions of our great team, and the support of our growing list of clients, Breezeway has reached the #1 spot for total boat brokerage sales in Ontario, for the Year to Date from January to the end of April. We were third for used sailboat sales and second for used powerboat sales. I consider it a significant accomplishment for such a young company, being only 16 months in business. Speaks volumes for having a good system and great people to execute it.
Our goals have never been performance oriented. We focus on working with each client to do our best, whether it is representing a buyer or a seller. There have been challenges. With the very limited used boat inventory in Ontario, we have had situations with multiple offers on the same boat. Someone is always disappointed in those situations, as are we.
It will be a challenge to continue on this pace. We need more listings!!!
My first time on the water this year, for a sea trial on a beautiful Regal 3760 Commodore. We took the boat for a spin out of Bowmanville, from the Wiggers facility.
Sea trial went very well. All systems operational. The new owner will be taking her away soon!
The Holiday Season is upon us and before we have a chance to fully recover from the festivities, the Toronto Boat Show will be here.
After an absence last year, I will be exhibiting in 2018 with my new company, BREEZEWAY YACHTS. We will be near the Sailfest area, so if you do get to the Show [January 12 to 21], please look me/us up [Cheryl will be there on weekends]. Members of our talented team of brokers will be there as well.
It’s been a great year here, personally and professionally.
Our youngest daughter, Meagan, passed her board exams to complete her professional qualifications. Our oldest, Katelyn, who lives in Tortola, survived Hurricanes Irma and Maria and is thriving in her role there as a teacher, in very unique circumstances.
The new company has gotten off to a great first year, logging several months as the top sailboat brokerage in Ontario and should finish the year in the Top 3. To my old clients, Thank You for your support over the years. To my new BREEZEWAY clients, Thank You for placing your trust with us.
If you have a minute [and I know that’s rare at this time of year], please check out BREEZEWAY YACHTS on Facebook. LIKE and COMMENT with your favourite or dream boating destination, and get automatically entered into our Boat Show contest.
From me, my family and our BREEZEWAY team, we wish you and yours Peace, Joy, Health and Prosperity now and through the New Year.
For the foreseeable future, BREEZEWAY YACHTS will be contributing a portion of our proceeds to relief efforts in the BVI.
Today we are sending our first contribution to the BVI relief efforts, supported by contributions from the sales team.
There are so many possible avenues for this. Many are providing supplies, but the time from contribution to delivery is long.
The school Katelyn teaches at, CEDAR International School, re-opened a few weeks ago for those students who are still on the island [and with the teachers who are still on the island], with a modified cirriculum developed with the assistance of the Red Cross.
The school, active in the community and as part of the students' education and development, is holding a weekly outreach program where they source supplies and distribute to those in need on the island.
It's hard to imagine that over two months have passed and the basics are in short supply for those in the most need.
By the way, as much as things are coming along, Katelyn, who lives about 6 km from Road Town, is still without power [although they have a small generator and still use the batteries] as is most of the island. She is hoping that Santa will restore the power for Christmas.
Another sales milestone as BREEZEWAY surpasses $1.5mil in annual sales. GREAT first year result, thanks to our clients and the efforts of our team.
The newest member of our team is welcomed aboard today. PHIL KLING is currently based in WHITBY but will be covering territory on the ground throughout the Niagara Region. Phil will be relocating there in 2018, and does spend time in the region currently.
His bio is on the 'Our Team' page.
Hurricane Maria swept through the Caribbean with a near pass of the BVI today, dropping considerable rain on Tortola. The whole region is still reeling from Hurricane Irma, so this really pushes back recovery efforts.
Our contact with Katelyn is typically once a day when she gets into town and close enough to a cell office to get a signal. They have no power other than a couple of solar panels which power some batteries that generate enough to keep the fridge going and charge the cell phones.
But they are safe and have food and water.
After 24 harrowing hours, we have finally heard from Katelyn in Tortola. It was a brief text from a friend's sat phone indicating that they are all safe. She was in her apartment with boyfriend, roommate, two teacher friend and the boss of TMM and his wife. Their apartment was deemed the safest and most likely to survive of the groups' homes. A reply to the text received no response.
After several days of formation and strengthening, Hurricane Irma hit the BVI today as a Force 5 Hurricane. The devastation thoroughout the Caribbean has been unimaginable.
The situation in the BVI is of particular concern since my oldest daughter, Katelyn, is a teacher on Tortola and her boyfriend works at TMM Charters.
The course of Irma changed repeatedly over the last few days, from an anticipated skirting of the island, to a direct hit. By the time the direct hit was forecast, there was no way off the island.
Opposite is a picture of Katelyn taken a couple of days after Irma. It was published in the Toronto Star as part of an interview they did with her several days after the storm.
Welcome to the newest member of our sales team, TONY CAHILL. Tony is a no nonsense guy with a broad, nearly encyclopedic, knowledge of boats.
He is based in Whitby Yacht Club and will cover the eastern GTA.
His bio is in the 'Our Team' section of our site.
Today we attended our first event, the Port Whitby Harbour Days, always a favourite because of the great hospitality from the Whitby Yacht Club and the chance to see many of our old friends from our days at WYC.
May numbers are in and we are continuing to produce strong results. We again were #1 in Ontario for brokerage sailboat sails. We are pleased to be providing these results for our clients. Our milestone this month was in surpassing $1mil in sales. This is significant since only about 5% of ALL businesses ever achieve this level of annual sales, so thanks to our team and clients.
Although we are focussing out efforts on digital marketing, we understand the importance of traditional media. Today we produced our first hard copy marketing effort with a flyer that will get distributed at clubs and marinas around the lake.
April results are in and BREEZEWAY has jumped to #1 in Ontario and Canada for brokerage sailboat sales for April [per Yachtworld sold boat results].
Congrats team and thank you to our clients.
Another milestone day, marking our first purchase with a client of a boat in the US. Thanks Martin. And nice work Rob getting this done.
Today we closed our first Sale to US Client. A 2008 Catalina 34mkII will be heading to Michigan and Lake Huron. Thanks Phil, I hope you get many years of enjoyment from the boat.
First quarter results are in. We are very pleased and excited to announce that BREEZEWAY has jumped to the number 4 position of the 19 Ontario Brokers for Sailboat sales. Thanks to our brokers and clients.
A milestone day for BREEZEWAY YACHTS. Today marks the close of our first sale, a Dufour 410 to clients in Toronto. A beautiful boat that will hopefully provide years of enjoyable use to the new owners, Kevin and Gillian.
And thanks to the seller for entrusting us with the listing and sale of his boat.
We are please to announce that ANDRE MAETZENER is joining the BREEZEWAY YACHTS team. Andre is new to Yacht Sales, but has a boating background and great interpersonal skills.
Andre will work in the GTA.
Please see 'Our Team' page for his bio.
Today, another top producer from the yachting industry joins the BREEZEWAY YACHTS team. GLENN BERGLUND was my mentor when i joined the industry back in 2005. Well respected, knowledgeable and customer centric, we are very happy to have Glenn join us.
Glenn will provide representation in the Niagara area, but his old clients throughout Ontario are encouraged to continue to work with Glenn.
His bio is on the 'Our Team' pageI
The BREEZEWAY YACHTS team is growing more quickly than anticipated. Today we welcome ROB SALOMAN, an experienced businessperson and longtime boater to our group. He also has a catamaran in charter at TMM in the BVI so he can offer some information on chartering there.
Rob will provide coverage on the ground from Ottawa to Kingston and east.
Find Rob's bio on the 'Our Team' page.
BREEZEWAY YACHTS is very happy to announce a new addition to the team. A long time boater with great community connections, our newest addition to out team of brokers is CHRIS PEARMAN.
Chris is based out of Napanee and will cover the area from Cobourg to KIngston.
See the 'Our Team' page for his bio.
Today marks the official soft launch of BREEZEWAY YACHTS. Our website is now live, our listings are presented on Yachtworld, the top North American MLS site for boats. We also launched our Facebook, Instagram, Twitter accounts and a YouTube channel.
Today we welcome aboard one of Canada's finest yacht brokers, and a perennial top producer. WIth 18 years experience handling brokerage and new boats, including Dufour, Hunter, Bavaria, and more. Join me in welcoming JAMIE CRANE to Breezeway Yachts.
Jamie's bio can be found on the 'Our Team' page.
Today we signed our first two listings, a couple of Laser Radials, which happen to be owned by my daughters. Hey, family counts!
A few weeks after leaving my position with a Yacht broker/dealer, I decided to stay in the business. The marine industry, particularly on the sales side, seems to be slow to adapt to new ideas. Confident that sellers and buyers would appreciate better representation, I developed a series of guidelines, one of which would become our 20 POINT MARKETING PROGRAM.
"I'm feeling like an excited kid, I may be able to make it back Fri am and if you're free Fri pm we could do the check then. I'll keep you in the loop. Thanks for the help. I am delighted."
“Thanks for all your help with Lion Heart, you spent a lot of time dealing with what must after all be a relatively small sale. I'll be sure to buy my next boat from you.”
Breezeway Yachts offers you the benefits of dealing with an experienced, professional team with on the ground coverage from Ottawa through to Cornwall, Kingston, Picton, Belleville, Cobourg, Bowmanville, Whitby, Toronto and the GTA, Oakville, Hamilton, St Catharines to Niagara on the Lake, Sarnia and Windsor. We also ultiize our relationships with Brokers throughout North America.
Whether your goal is to 'SELL MY BOAT', 'FIND A YACHT BROKER' or 'FIND MY NEXT SAILBOAT' or 'FIND MY NEXT POWERBOAT' your best choice in Ontario is Breezeway Yachts. In addition to the local market, we source boats throughout North America and cooperate with other brokers to sell our listings.
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