Marine Valuations

E-Marine Survey - Marine Valuations

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.

Marine valuations to whom and what for?

  • Underwriters for appraisal of the insured value
  • Banks and financial institutions for finance appraisal
  • Legal entities for family law and dispute resolution
  • Australian customs and taxation for imported vessels
  • Owners and third parties with a vested interest

Types of marine valuations?

Fair Market Value implies a normal market, without any major disruption caused by events such as the  Global Financial Crisis.

Current Market Value reflects the current market, adjusted for any temporary market fluctuations. In a stable economy, fair market and current market values should be the same.

Forced sale valuations for banks and financial institutions in the event of loan default. The industry norm is 60% or less, based on design, build and condition, auction or open market sale.

Our marine valuations are based on research of vessels to the same or similar design, age and condition.  Those recently sold with reference to our database, or listed for sale adjusted for condition, commission and the current market.

Scope of our valuation reports

  1. Vessel particulars, design and construction
  2. Structural and overall cosmetic condition
  3. Machinery and major systems identified
  4. NavCom and equipment of significant value
  5. Summary condition and market valuation
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