“Fine art and antiques have captured the imagination of collectors around the world for centuries, due to aesthetic considerations, of course, but also their compelling investment potential. They are recognized as an important and resilient asset class for investors — high-net-worth individuals (HNWIs), in particular — across the economic cycle. During the COVID-19 crisis, which has impacted the wealth of many global investors, the resiliency and diversity offered by fine art has become even more important.
The significant monetary and rarity value of art and antiques drives a large international industry for associated logistics services — including storage in secure, temperature-controlled warehouses, as well as careful handling and shipping of items, often across international borders. In 2019, it was estimated that the global art trade spent US$19.9 billion on a range of ancillary and external support services directly linked to their businesses (Source: Arts
Economics, 2020). Packaging and shipping activities were worth US$2.2 billion, employing approximately 41,000 globally” (Ellis, 2020).
It’s now more vital than ever that artists are able to safely and efficiently transport their work to and from spaces. The fine art market has grown both in value and volume, indicating a shift that affects artists, galleries, and investors. Additionally, the United States makes up 44% of this market, meaning almost half of the entire fine arts market operates within our own country. However, the United States is part of “the Big 3,” consisting of the USA, UK, and China (Ellis, 2020). “Of the Big 3, the UK and China have been stable markets, with the USA showing particularly strong growth, as shown in the graph below. The USA has a large base of HNWIs [high-net-worth-individuals] (meaning those with a wealth in excess of US$1 million) and ultra high-net-worth individuals (UHNWIs) (meaning those with a wealth in excess of US$50 million) and is culturally well developed” (Ellis, 2020).
At this caliber and level of art transportation, “The preferred method of shipping fine art across international borders is air transport, principally due to the speed at which the goods can be moved, but also due to the sensitivity of the high-value works that are being transported. It is estimated that whilst air freight accounts for just 4% of international freight movement, it accounts for approximately 50% of the total value transported globally (Source: ICEFAT 2020) (Ellis, 2020). Prominent carriers for fine art transportation include Cadogan Tate, Crown, and Iron Mountain, who remain active in the industry while also upholding strict quality and service standards.
In my project I won’t be working at the same scope and value level as these prominent companies, but I felt it was important to understand the market impact of the trading of fine art. My hope is that a conjecture into the market on a smaller scale can shift the way that smaller artists can attach value and ownership to their work without fear that transportation will cause damage or harm.
References
- Ellis, J. (2020). Paddles being held up at a fine arts auction [Photograph]. Oaklins. https://d21buns5ku92am.cloudfront.net/68798/documents/43226-1600769256-Oaklins%20Fine%20Art%20Logistics%20Spot%20On%20Sep2020%20email_web-a05b66.pdf
- Ellis, J. (2020). Fine art logistics: picturing a resilient future. Oaklins. https://d21buns5ku92am.cloudfront.net/68798/documents/43226-1600769256-Oaklins%20Fine%20Art%20Logistics%20Spot%20On%20Sep2020%20email_web-a05b66.pdf
