SHIPPING INTELLIGENCE, INC.

SHIP VALUATIONS

We at Shipping Intelligence have been valuing ships for some time. We value both Individual Ships and Company Fleets.

We use as the basis for our appraisals our extensive database of ship sales and the statistical market model that we have built from it. Our valuations are based solely on the actual transactions of the resale market and our statistical analysis of it. We strive to eliminate any bias or opinion that might influence the final value. Where appropriate we use Monte Carlo simulation to provide an indication of the vessel's likely resale value and earning power in the near term future.

A CAUTIONARY NOTE

The ship valuation process has become newsworthy lately - primarily because of legal action taken by unhappy investors who seem to feel that they were misled by biased and inaccurate appraisals.

Perhaps they were. But the ship resale market is usually so volatile that any estimate of a ship's current worth should have an expiration date - perhaps valid for a month or so. Even if the market were not so volatile, the normal process of depreciation would render any appraisal suspect within a year.

Further, while ship's worth is usually meant to mean the resale price between willing buyer and willing seller, that is rarely the case when prior valuations are called into question. Using willing buyer/willing seller appraisals to evaluate collateral in a distress or bankruptcy situation is unrealistic and unwise; in such cases, current valuations provide only a ceiling below which actual prices will be found - sometimes far below.


INDIVIDUAL SHIP VALUATIONS

The Shipping Intelligence SHIP VALUATION (DESK APPRAISAL) is available for a wide range of sizes and ages of tankers and dry bulk carriers. Appraisals can be prepared for any date, current or within the past 15 years.

The SHIP VALUATION (DESK APPRAISAL) is unique in providing:

  • SHIP MARKET VALUES.
  • CONFIRMING COMPARABLE SALES.
  • HISTORICAL CONTEXT.
  • PROBABLE FUTURE VALUES.
Each SHIP VALUATION (DESK APPRAISAL) consists of four parts:

(1.) SHIP MARKET VALUE. The value as of the date specified, and 1 month, 6 months and 12 months previous. These values are based on a statistical model constructed on a database of many thousands of actual ship sales dating from 1986 to the present.

(2.) COMPARABLE SALES. Actual sales that provide real market confirmation of the calculated value for the date specified. These actual sale prices are adjusted, where appropriate, for differences in age, deadweight and market volatility.

(3.) DISTRIBUTION OF HISTORICAL SHIP RESALE PRICES. Graphic display of how much such ships (of similar type/deadweight/age) have sold for in the past, and with what frequency. The position of the current resale value in the distribution is indicated.

(4.) MONTE CARLO SIMULATION OF FUTURE RESALE MARKET PERFORMANCE. Graphic display of probable resale values for such ships (of similar type/deadweight/age) one year in the future. Based on the cyclical nature of ocean shipping and an analysis of similar market situations in the past. The position of the current resale value in the distribution is indicated.

Note: Less comprehensive appraisals are available for ship types other than tankers and dry bulk carriers. Those valuations are based primarily on comparable sales since there is insufficient data for statistical models or Monte Carlo simulation for those ship types.

Inquiries should be directed to:

Sydney P. Levine, President
SHIPPING INTELLIGENCE, INC.
P.O. Box 1019
New York, NY 10024 USA
Tel: (212) 997-0966, Fax: (212) 595-7918
Send email to: SPL@SHIPINTEL.COM


COMPANY FLEET VALUATIONS

The Shipping Intelligence COMPANY FLEET VALUATION is available for a wide range of sizes and ages of tankers and dry bulk carriers. Valuations can be prepared for any date, current or within the past 15 years.

COMPANY FLEET VALUATIONS can be prepared for actual or "theoretical" companies.

A COMPANY FLEET VALUATION consists of two sections:

  • FLEET EARNING POWER.
  • FLEET VALUE.
The contents of each section are:

FLEET EARNING POWER.
(1.) The 6 to 12 month time charter rate for each ship as of the date specified.
(2.) The expected future 6 to 12 month time charter rate for each ship one year in the future. This value is calculated by a Monte Carlo simulation.
(3.) The percentage change in 6 to 12 month time charter rate for each ship over the one year period.
(4.) The 6 to 12 month time charter rates that bracket the middle 50% of the Monte Carlo simulation distribution.
(5.) Totals by ship type and overall for current, future and percentage change in 6 to 12 month time charter rate.

FLEET VALUE.
(1.) The resale value of each ship as of the date specified.
(2.) The expected future resale value of each ship one year in the future. This value is calculated by a Monte Carlo simulation.
(3.) The percentage change in resale value for each ship over the one year period.
(4.) The resale values that bracket the middle 50% of the Monte Carlo simulation distribution.
(5.) Totals by ship type and overall for current resale value, future resale value and percentage change in resale value.

(NOTE: The sample pages referred to below are not of an actual company, but of the Shipping Intelligence INDEX FLEET. An actual report would have the actual company name, ship names, year built and deadweights.)
Click for sample COMPANY FLEET EARNING POWER page.
Click for sample COMPANY FLEET VALUE page.


FLEET VALUATIONS OF PUBLIC COMPANIES

Fleet valuations are available for the following public companies:

BULKER COMPANIES:

  • Diana Shipping
  • Dryships Inc.
  • Eagle Bulk Shipping Inc.
  • Excel Maritime Carriers Ltd.
  • Genco Shipping and Trading Limited
  • Quintana Maritime Limited
TANKER COMPANIES:
  • Arlington Tankers Ltd.
  • Knightsbridge Tankers Ltd.
  • Nordic American Tanker Shipping Ltd.
  • OMI Corporation
  • Top Tankers Inc.
  • Tsakos Energy Navigation Ltd.

Individual company reports may be purchased through the Google Checkout Buy-Button below. The low introductory price of US$95.00 per report is meant to introduce the report and its technology to the widest possible interested audience. Each report is based on the full historical databases, including the most recently reported sale and time charter transactions.

Individuals wishing to purchase multiple reports or monthly or quarterly subscriptions may do so by e-mailing SHIPPING INTELLIGENCE (see below) with their requirements. A proposed price will be returned by e-mail and when agrement is reached an e-invoice will be sent which can be paid through the Google Checkout system.

Inquiries should be directed to:

Sydney P. Levine, President
SHIPPING INTELLIGENCE, INC.
P.O. Box 1019
New York, NY 10024 USA
Tel: (212) 997-0966, Fax: (212) 595-7918
Send email to: SPL@SHIPINTEL.COM