Shiparrested.com members that provide valuation services:
When to request a valuation:
When considering arrests “in rem” (against the ship) it is important to factor in the value of the asset.
It is advisable to obtain an independent valuation:
- 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
Should an arrest lead to the judicial sale of the vessel, sale proceeds are used to settle claims. It is important for claimants to understand the market value of the asset, particularly when considering where their claim ranks in terms of priority. In some instances the claim amount may exceed the vessel’s value.
A valuation is an important step towards arresting parties making informed decisions.
Ship values fluctuate within their own specific markets. Values are constantly affected by international economic forces, not limited to supply and demand, commodity prices, locations, political factors and the environment. The residual value of the vessel will be underpinned by its “scrap value”, which is the price that the vessel would fetch if demolished. This is useful to view as a “worst case scenario”, but it is important to be aware that the demolition prices also fluctuate.
To determine the value of the asset, a ship valuation should be obtained.