The case revolved around teak used aboard the 127-metre sailing yacht Koru, including deck materials, furniture, and interior finishings. Oceanco admitted to the breach, emphasizing that it was unintentional and occurred despite efforts to comply with the regulation.
Court documents highlighted two key issues. The teak used for Koru’s deck was supplied by German timber merchant Alfred Neumann, who was responsible for conducting due diligence as the first entity to place the wood on the European market. Dutch authorities found indications that this requirement may not have been fulfilled and have referred the case to German authorities for further investigation.
The yacht industry’s reliance on teak, valued for its durability and aesthetic appeal, has made compliance with regulations like the EUTR increasingly difficult.
For the teak used in furniture and interior finishings, sourced from a Turkish supplier, Oceanco was the first importer into the EU. However, it was unable to conclusively verify the wood's legal origin, breaching the EUTR due to a lack of traceability rather than confirmed illegal sourcing. Oceanco clarified that this order predated its 2019 decision to stop using Myanmar teak in new projects.
The 127-meter Koru, launched by Oceanco in 2023, is recognized as the worlds largest true sailing yacht, as it relies primarily on its sails for propulsion. Koru surpassed the 106.7-meter Black Pearl, also built by Oceanco, which previously held the title of the largest sailing yacht. Ranked #26 in the Top 100 yachts by length, it represents a milestone in modern yacht engineering. Despite its significant length, Koru is only ranked #70 in the YachtBuyer YB100 list of the World's biggest yachts by gross tonnage, a metric that offers a more accurate measure of overall size.
View YachtBuyer's unique comparision tool: Koru vs Black Pearl
While Oceanco cooperated fully with authorities and demonstrated a commitment to transparency, the case underscores broader challenges facing the yacht industry. Supply chains for teak are often complex and opaque, with middlemen in countries such as Turkey, Singapore, and Thailand complicating efforts to ensure traceability.
The yacht industry’s reliance on teak, valued for its durability and aesthetic appeal, has made compliance with regulations like the EUTR increasingly difficult. These regulations prohibit the import of illegally logged timber into the EU and require companies to verify the legal origin of wood through strict due diligence.
Oceanco’s settlement follows a similar case last week involving Sunseeker International, highlighting systemic difficulties in sourcing teak ethically and legally. Both cases illustrate the urgent need for the yacht-building industry to adopt more rigorous practices and explore alternative materials.
Despite these challenges, Oceanco’s proactive steps, including ending its use of Myanmar teak and cooperating with authorities, signal a growing awareness within the industry. The settlement reflects the increasing scrutiny on luxury yacht builders to address sustainability concerns and adapt to a rapidly changing regulatory landscape.
Teak has long been a cornerstone of yacht building due to its exceptional durability, natural resistance to water and pests, and its timeless aesthetic appeal. Its ability to withstand harsh marine environments while providing a luxurious finish makes it the preferred choice for decking, furniture, and interior applications in yachts. However, the reliance on teak, especially from Myanmar, has raised concerns over sustainability, legality, and ethical sourcing. In response, the industry is exploring alternatives such as cork, synthetic teak, and other sustainable hardwoods. Materials like cork offer eco-friendly benefits, including renewability and reduced environmental impact, while synthetic options replicate teak's appearance and durability without contributing to deforestation. These alternatives, though promising, face challenges in matching teak's unique properties and the high standards of luxury yacht construction.
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