Many Sale & Purchase shipbrokers have built up a sufficiently good reputation for their services to be engaged to act as Valuers. There are several purposes for which an independent expert opinion of a ship’s value at a specific time may be required such as: –
- Law cases and arbitration.
- General Average (where the ship’s value is needed to determine the owner’s contribution to the Average settlement).
- Salvage awards. Insurance claims.
- An independent check when the purchase is being made by a government.
- Revaluing assets in a company’s accounts.
Such valuations establish the market value at a particular time and should not be confused with a survey. The valuations given by Sale & Purchase shipbrokers are always given with the qualification that it is assumed the vessel is in good trading condition appropriate to her age. Valuation is by no means easy because, although Ship Sale & Purchase market fluctuates like the freight market, it is seldom that two ships are identical. Giving an expert opinion, therefore, which will not be demolished under cross-examination requires a high degree of expertise.