VALUATION OF SHIPS FOR PURPOSES LOAN, MORTGAGE BANK

Valuation of means of transport is the most common type of property on a daily basis. In which, the appraisal of boat prices accounts for one of the leading proportions, because our country has the characteristics of owning more than 3,400 km of sea and 41,900 km of waterways. Besides, boats are also assets with high value and easy liquidity, so they are always considered by banks as a good collateral in considering loans.

Purpose of vessel valuation

Vessel valuation is the determination of the value of a vessel converted into a specific amount according to the market price at the time of valuation. The property owner will be issued with a valuation certificate and a detailed legal assessment report to serve the following purposes:

• Mortgage for loans from banks/credit institutions.
• Buying/selling/liquidating boats
• Calling for investment, contributing capital, dividing assets
• Proof of financial capacity to participate in the bidding
• Satisfy the traffic conditions on the sea/river
• Other purposes…

Dossier of appraisal of ships

When conducting a vessel valuation, the property owner needs to have legal papers proving the legal and correct existence of that vessel. Accordingly, ships will be divided into two main categories: new and used ships. Records include:

• Certificate of registration of inland waterway vessels issued by a state agency
• Minutes of technical inspection of inland waterway vessels
• Technical inspection book for inland waterway vessels
• Certificate of technical safety and environmental protection for inland waterways issued by a state agency
• International Freeboard Certificate
• Certificate of preventing pollution caused by oil
• International certificate of ship security
• Contract + invoice for purchase and sale of ships
• Ship certificate (if any)
• Ship design drawings (if any)

The above dossier must show the specifications and identity of the ship such as: Name of the ship, registration number, purpose of use, engine number, capacity, tonnage, ship size, shipbuilding materials , history of repair - maintenance - conversion...

Vessels are often appraised

• Dry cargo ships: General cargo, bulk cargo, equipment cargo, wood chips, timber, grain, bagged cargo, iron and steel cargo;
• Container ships;
• Ore carriers;
• Liquid cargo ships include: Crude oil, product oil, vegetable oil;
• Gas and liquefied gas tankers;
• Ro – Ro ships, other ships, sea barges, sea ferries.
• Wooden cruise ship, steel hull cruise ship
• Wood-hulled fishing boats, steel-hulled fishing boats

Process of appraisal of ships

Like other types of transport assets, vessels also undergo specific valuation processes, including: Receiving information; Field survey & information gathering; Prepare valuation report; Control; Issuance of Certificate of Valuation and Valuation Report.

Vessel appraisal cost

Vessel valuation fee is the cost of hiring a price appraisal unit with legal conditions and capacity to conduct the valuation of such vessel. Normally, appraisal fee will be calculated in 2 ways:

• One is a percentage (%) of the total value of that vessel after the unit has preliminarily appraised the price plus other expenses (trip allowance).
• The second is the fee for a package agreement between the property owner and the appraisal unit.

At SunValue, the fee for appraisal of boats is regulated according to the Price List regulated by the Company. Customers can also enjoy additional price incentives from time to time.

Prestigious - professional boat price appraisal unit

Indochina International Investment & Appraisal Joint Stock Company (INA) with more than 20 years of experience in the field of appraisal with abundant data warehouse, a team of highly qualified and professional appraisers, fast appraisal process , closely, minimizing appraisal costs... Besides, SunValue will provide customers with information about the value of the business with high reliability for each appraisal purpose.