The Ship Valuer's Handbook

This publication is a guide to the ship valuation process. It outlines the role of a ship valuer and emphasises the importance of the criteria of assignment. The handbook also discusses each stage of the valuation process, explaining the principles of valuing ships, types of valuation and the terminology used, research and data collection, conducting the valuation and producing the certificate of valuation and the valuation report.

Foreword

Modern shipping rarely exceeds a working life of more than 30–40 years. The true economic life of most modern ships is probably 20–25 years until such time as technology or economics overtake them and they head to the breakers’ yards.

No matter what the age, size, condition or trade, every ship still has a value. Early insurers of cargo saw the intrinsic value of the hulls carrying their goods and this led to the development of hull insurance against the ‘perils of the sea’. As this market matured, so did the need for reliable appraisals of a ship’s value.

This book provides a methodical approach to the appraisal of ships within their own class and within their trade using statistical and historical data as working tools but, most importantly, recognising the intended use of the valuation.

The introductory chapter outlines the role of a ship valuer and highlights the importance of the criteria of assignment, which is the underlying foundation of all valuations. Among other things, it protects the valuer against improper use of their valuation and against legal action in disputes over the ship’s value.

Subsequent chapters discuss each stage of the valuation process, explaining the principles of valuing ships, types of valuation and the terminology used, research and data collection, conducting the valuation and producing the certificate of valuation and the valuation report.

Valuing requires years of practical experience, but it is hoped that this publication will support valuers with useful advice and information.

Foreword

Acknowledgements

Part 1: An Introduction to Valuing Ships

Part 2: The Principles of Valuing Ships

Part 3: Types of Valuations and Terminology Used

Part 4: Research and Data Collection

Part 5: Conducting the Valuation

Part 6: The Certificate of Valuation and the Valuation Report

Appendices

Appendix I: Valuation Graph (Typical)

Appendix II: Valuation Work Sheet

Appendix III: Ship’s Certificate of Valuation for Insurance (Sample)

Appendix IV: Ship Valuation Report for Finance Security Purposes (Sample)

Appendix V: Certificate of Valuation for Small Ships/Fishing Vessels for Insurance Purposes (Sample)

Appendix VI: Small Ships/Fishing Vessels’ Valuation Report for Finance Security Purposes (Sample)

Appendix VII: Valuation for Bonding Purpose (Sample)

Appendix VIII: Fleet Valuation Summary for New Ships (Sample)

Appendix IX: Fleet Valuation Summary for Existing Ships (Sample)

IMarEST

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Here you will find all the information you need about who we are, what we do and why we do it.

You can also find out how IMarEST is governed, learn about the history of IMarEST, founded in 1889, and discover how our associated charity, The Guild of Benevolence, works to support those in the marine community requiring financial support.

https://www.imarest.org/about-imarest