The world’s largest yacht has a problem with Myanmar teak with Oceanco—the boat builder owned by Omani billionaire Mohammed Al Barwani—fined more than €150,000 by the Netherlands Public Prosecution Service for unintentionally breaking the European Timber Regulations (EUTR) in building Koru, a decision which has ramifications for the supply of timbers for European and North American superyachts.
The latest prosecution comes just days after Sunseeker—the UK’s largest boatbuilder—was fined almost £360,000 for violating the post-Brexit United Kingdom Timber Regulation (UKTR). Thus, the prosecution highlights the challenges faced by an industry long marred by shadowy brokers—in Singapore, Thailand, and Turkey—profiteering from the sale of conflict timber infiltrating European supply chains.
“Put simply, ensuring compliance within global supply chains and sourcing materials ethically and legally is becoming harder than ever,” according to Super Yacht News, a dedicated publication covering the industry, with the latest court action pointing to a day of reckoning for the industry. “The EUTR prohibits the import of illegally logged timber into the European Union and requires companies to conduct due diligence to verify the legal origin of the wood they use.”
According to the Dutch court, Oceanco was found guilty of using illegal teak in furniture and interior finishings aboard the 127-metre, US $500m Koru owned by Amazon Jeff Bezos, which set sail last year. Court documents also revealed that German timber merchant Alfred Neumann provided illegal teak on the vessel’s decks, and German authorities are now investigating the trader’s actions.
The court found that Oceanco was the “first party responsible” for placing an order for teak used in the boat furniture and interior finishings, both sourced from an unnamed Turkish firm. In its ruling, the court said, “Oceanco was the first to place the timber on the European market but could not conclusively verify whether the wood had been legally or illegally harvested.” It was this lack of traceability, rather than confirmed illegal sourcing that constituted a breach of the EUTR.
“Whilst Oceanco acknowledged its failure to comply with the regulation, it maintains that the violation was unintentional, pointing to its 2019 decision to stop using Myanmar teak in new projects,” the company said in a statement, confirming the teak purchase predated the policy change.
Is Blockchain the answer to global shipping supply woes?
“Emerging technologies, such as blockchain for supply chain transparency and sustainable alternatives to teak, offer pathways for the industry to evolve,” according to Super Yacht News, adding that “Firms committed to adopting ethical practices can lead the way in setting new standards that ensure compliance, protect the environment and show the industry in a positive light for its innovation.”
In August, Hollie Bridgland and Anna Roberts, both from iov42, a global blockchain company focused on eliminating risk in timber supply chains, told Wood Central that new technology could hold the key to complying with the EUTR and the new European Union Deforestation Regulation (EUDR), which is set to come into effect in December 2025.
“As with so many things, technology makes the seemingly impossible possible,” they said. “In the near future, it is highly likely that we’ll see AI deployed to digitise handwritten documents, making compliance easier. We’re already seeing technology solutions coming to market that simplify traceability and compliance with (the new) EUDR. Even for those who do not consider themselves tech-savvy, tech solutions could solve many of the headaches associated with EUDR compliance. Now is the time to embed these within businesses.”
- To learn more about the case and Myanmar Teak’s risk in the boatbuilding supply chain, click here for Wood Central’s special feature. To learn more about the Environmental Investigation Agency’s teak allegations against Jeff Bezos super yacht, click here for Wood Central’s coverage from last year.
