Valuation report

A valuation report is a sale-and-purchase broker’s written estimate of a ship’s market value, used by lenders to test loan-to-value covenants, by owners for accounts and impairment, and by buyers and sellers in S&P negotiation. Most are desktop valuations on a willing-buyer, willing-seller basis for prompt charter-free delivery, drawn from recent comparable sales of similar type, size, age, and yard. Lenders often require valuations from two or three approved brokers at set intervals and average them. The value drives the minimum-value clause and any margin call, so the methodology and date matter to the parties relying on it.