Overview
The marine transportation industry is crucial to the global economy. According to the International Chamber of Shipping, U.S. freight rates are estimated at more than $380 billion, or 5% of the global economy. While 2007 was an excellent year for the industry, concerns are predicted in 2008 as margins decrease. Foremost, America's looming recession threatens to decrease overall worldwide shipping. Meanwhile, ships ordered before the economic downturn continue to come online. It is estimated that the new prices of Capesize and Panamax vessels have increased 15% to 30%.
Industry Condition – Good
Key Industry Indicators
- World Economic Output
The U.S. subprime crisis' effects continue to be felt globally. In April, the IMF revised its January estimate down by 0.5%. The IMF is now projecting global growth to slow in 2008, from 4.9% in 2007 to 3.7% in 2008. A recovery is expected in 2009.
- U.S. Trade Deficit
In March 2008, the U.S trade deficit decreased 5.7% over February to $58.2 billion.
- Regional Shipping Trends
- U.S. Dollar vs. Chinese Renminbi
The continued depreciation of the U.S. Dollar to the Chinese Renminbi is resulting in a decrease in shipments from China to the U.S.
- U.S. Dollar vs. Euro
U.S. goods are becoming more competitive in the European market resulting in an increase in shipments along U.S. to Europe routes.
Overview
Some large Panamax container ships that are 5-years old or less are selling for prices in excess of replacement cost, and demand is expected to continue. Average daily rates for global and domestic shipments have also risen 15% to more than 40%, respectively. As supply and demand factors equalize, the market for used container carriers could drop sharply.
Used Equipment Values – Excellent
- Supply of used equipment – Stable
- Demand for used equipment – Increasing
Valuation Monitor
AccuVal routinely provides appraisal, consulting, and asset management services to the
Marine industry, including ship builders, port facilities, stevedores, and intermodal transport companies. Depending on the nature of the vessel to be appraised, AccuVal partners with marine surveyors and other valuation specialists recognized as industry experts.
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Representative Clients Our Associates Have Served
Success Stories
- Provided the Appraisals to Support the Largest Asset Based Loan of ISO Containers in History
- Valued Port Facilities and Stevedoring Operations Supporting Container Shipments
- Aided with Successful Litigation Support in Federal Court Over a Dispute Regarding Tanktainers
- View all Success Stories
Interpool, Inc.
Metropolitan Stevedore Company
Port of Long Beach