Some conditions affecting marine valuations
Design, age, construction, condition and depreciation are the primary factors affecting appraisal of the current market valuation.
Market value may be taken as the agreed price between a willing vendor and buyer. This may not always reflect the current market.
Secondhand imported vessels have depressed the local market. Advertised asking prices, do not always reflect the current market.
Valuations of vessels where refit costs exceed the current market. Costs are supplied to underwriters for appraisal of the insured value.
The ageing fleet of fibreglass, timber, steel and ferrocement vessels with low resale value, present a poor risk to insurance underwriters.