When considering an arrest in rem (against the ship), understanding the vessel’s value is essential.

An independent valuation is recommended:

• As soon as an arrest is considered
• If you have a claim on an arrested vessel
• When insuring an arrested vessel
• When setting a reserve price for a court sale
  
  

If a vessel is sold through judicial sale, the proceeds are used to satisfy claims. Understanding the vessel’s market value is essential, particularly when assessing claim priority, as claims may exceed the vessel’s value.



Ship values fluctuate due to market conditions, supply and demand, commodity prices, location, political factors and environmental conditions. While scrap value provides a useful worst-case reference, demolition prices also fluctuate.



To determine the value of the asset, an independent ship valuation should be obtained.