(23.02.2009)

On Friday, 20.02.2009 a new valuation method for ships was introduced by the Hamburg Shipbrokers Association (VHSS), performed by the local media.

The global financial crisis has caused a virtual standstill in the main segments of the ship sales and purchase market.

The very few transactions concluded in the above mentioned segments cannot be used as representative sales in accordance with a traditional determination of a market value because they were forced sales. Similarly, charter rates which in some vessel segments are on the level of the required operating expenses are also not suitable as basis for a projected Earnings analysis.

This was the motivation for the Hamburg Shipbrokers Association (Vereinigung Hamburger Schiffsmakler und Schiffsagenten, VHSS) in collaboration with Ship appraisers as well as representatives from Shipping Banks, Ship Owners and Finance Houses, to create a value assessment (Long Term Asset Value) which beyond short term market fluctuations. The Long Term Asset Value is determined on the grounds of vessels long term earnings potential, using a present value respectively DCF method customised to account for the requirements of vessel valuation.

For more information please refer to the following:

Hamburg Ship Evaluation Standard (HSES)
Media Informations Lloyd's List 19.02.2009

or you can contact us directly.