Calculations in the Marine industry

1. Basic knowledge of ships

Ships are the main tools for water transportation and engineering operations, with many kinds and large numbers. With the development of maritime technology, the types of modern ships are more and more rich, there are a variety of classification methods, such as according to the hull material, there are wooden ships, steel ships, cement ships and so on; According to the navigation area, there are ocean ships, ocean ships, coastal ships and inland/lake boats; According to the power plant, there are internal combustion engine ship, electric ship and nuclear ship; According to the propeller, there are propeller ships, flat rotating propeller ships and sail aided ships; According to the mode of navigation, there are self-navigating ships and non-self-navigating ships; According to the state of navigation, there are drainage and non-drainage type ships. There are several common ship types:

General Cargo Ship (also called General Cargo Ship), a single - or multi-deck cargo ship, mainly for the transport of various types of dry cargo.

Oil Tanker: A ship built or converted to carry bulk oil primarily in its cargo space.

Bulk Carrier: refers to the cargo space usually has a single deck, top side and bottom side tanks, and is mainly used for the transport of dry bulk cargo, including such as ore carriers and part-time vessels.

Container Ship(Fully Cellular) : A ship carrying containers with a fixed grid-rail in the cargo hold, double bottom, double hull, torsion box on the top, large deck opening, or a double bottom, torsion box or other equivalent single hull side structure.

Refrigerated Cargo Ship: A ship with a cargo refrigeration device for the transport of fresh and perishable goods such as fish, meat, fruits and vegetables kept fresh at various temperatures.

Dredger: A vessel with dredging equipment that allows the mud to be loaded on board, transferred to other vessels, pumped ashore, or filled elsewhere.

The most encountered in the evaluation practice is mainly based on bulk carriers.

Ii. Applicability analysis of ship value assessment method

As a fixed asset, there are three evaluation methods to choose, namely, market method, income method and cost method.

The income method is a method to discount the net income that can be brought by the evaluated ship in the next few years, and then obtain the revenue value of the ship. Although in theory, assets with independent profitability can be evaluated using this method, in practice it is almost impossible to collect relevant income data. On the one hand, the financial data of shipping enterprises themselves may not be complete, and shipping enterprises often operate in the world, and income data and working capital are often private data that enterprises are reluctant to disclose, so the collection of basic data is often impossible.

Market method refers to the method that utilizes the recent transaction prices of the same or similar assets in the market to directly or indirectly compare and then obtain the value of the assets. It is based on the principle of substitution to find the same type of cases in the ship trading market that are similar to the indicators of the ships being evaluated according to various parameters such as the model and configuration of the ships being evaluated. Use the transaction cases found as a measure of the value of the ship being evaluated. However, in practice, due to the development of China's shipping industry is still in the initial stage, the ship trading cases themselves are relatively few, and the ship trading information is also less recorded on the public website, so it is difficult to find market trading cases similar to the ships being evaluated, and the application of market law is also subject to certain restrictions.

Cost method refers to the evaluation method that first estimates the replacement cost of the ship to be evaluated, and then estimates the existing derogatory factors of the ship to be evaluated, and deducts the value of the ship to be evaluated from its replacement cost. In popular terms, it is to estimate the full replacement price first, and then calculate the final evaluation price by combining the new rate. Since the market value of various raw materials used in the construction of ships is relatively easy to collect, the cost method is widely used in the valuation of ships.

Third, the application of cost method in the practice of ship value assessment

The replacement cost method is adopted to evaluate the value of the ship, and the full replacement price mainly includes six parts: material cost, equipment cost, labor cost, special production cost, period cost, profit and tax. Among them, material cost, equipment cost, labor cost and special production cost are direct costs, constituting the main part of the full replacement price of the ship.

Ship replacement full price = material cost + equipment cost + labor cost + special production cost + period cost + profit and tax

Assessed value of ship = full replacement price of ship × replacement rate

Case: The evaluated ship is a B-60 bulk carrier built and completed by ** Co., Ltd. on November 18, 2011, with a full load displacement of 82,274.50 tons, a no-load displacement of 11,497.85 tons, a reference cargo capacity of 69,385.00 tons, a gross tonnage of 38,861.00 tons, and a net tonnage of 21,762.00 tons. It has a total length of 221.63 meters (length of 216.16 meters), a width of 32.26 meters, a depth of 18.00 meters, an offshore sailing area, equipped with two lifting equipment, and a total power of 9,480.00 kW of main diesel engine. Its market value is estimated on April 6, 2020.

Evaluation process

1. Material cost

The materials of ships mainly include steel, welding materials, coating materials, cables, auxiliary materials and other materials.

(1) Steel costs

Steel cost = net weight of hull steel ÷ utilization rate of steel × unit price of steel

Hull steel net weight = no-load displacement × steel consumption coefficient K1=11,497.85×0.85=9,773.17 tons

According to the direct and indirect investigation of the relevant shipyards and metal structure manufacturers, the primary utilization rate of steel is about 80 ~ 85%, the secondary utilization rate is 3 ~ 7%, and the total steel utilization rate is 85 ~ 90%. The utilization rate of steel taken in this assessment is 90%.

The unit price of steel is 4500 yuan/ton according to the recent investigation of steel easy network and shipbuilding enterprises.

Hence steel cost

=9,773.17÷90%×4500=48,866,000 yuan (rounded to thousands)

(2) Cost of welding materials

Welding material cost = steel consumption × welding material consumption coefficient K2× unit price of welding material

* 17 * 0.0235 = 9773.17 present 90%, 1000

=4,338,000 yuan (rounded to thousands)

(3) Coating material costs

Coating material cost = ship length L× (type width B+ type depth H) × paint weight per square meter K3× paint dilution coefficient I÷ paint process consumption coefficient K4× unit price of coating materials

K4 value is generally 0.5-0.55, this evaluation K4 is 0.52, so

Coating material cost =221.63× (32.26+18.00) ×0.0086×1.15÷0.52×15×1,000=3,178,000 (Yuan) (rounded to thousands)

(4) Cable costs

Cable cost = ship load ^0.15× cable consumption coefficient K5× ship total power ^0.3× cable unit price

= 69385 ^ 0.15 x 1750 x 9480 ^ 0.3 x 7

=1,017,000 (RMB) (rounded to thousands)

(5) Auxiliary materials and other expenses

Auxiliary materials refer to materials that do not constitute the ship product itself but need to be consumed in the ship construction process, such as carbon dioxide, oxygen, acetylene, high-pressure gas, high-pressure water and other auxiliary materials. This cost can be estimated according to the total weight of Marine steel, the value range is 0.02-0.05, and the consumption coefficient of auxiliary materials in this assessment is 0.04. Other materials refer to the cost of materials such as wood and non-ferrous metals. It can be estimated by 1% ~ 3% of the total material. The consumption coefficient of other materials in this evaluation is 2%.

Auxiliary materials and other costs = steel cost × auxiliary materials consumption coefficient + material cost × consumption coefficient of other materials

+ 59354000 = 48866000 x 0.04 x 0.02

=3,142,000 yuan (rounded to thousands)

Total material cost

= 48866000 + 4338000 + 3178000 + 1017000 + 3142000

=60,541,000 (RMB)

2. Equipment cost

Ship equipment mainly includes turbine equipment, outfitting equipment, electrical equipment and other equipment, this part mainly through the market to determine the cost of equipment.

Equipment cost = replacement price of turbine equipment + replacement price of outfitting equipment + replacement price of electrical equipment + replacement price of other equipment =37,665,245 (Yuan)

3. Labor costs

Labor cost = number of shipbuilding hours × unit price of working hours

The number of shipbuilding hours is generally calculated according to the load of the ship, that is, the number of shipbuilding hours =0.18× the load of the ship ^ 62,870 hours.

The unit price of the working hour is determined according to the minimum wage standard of the shipbuilding site and the general wage base of the shipbuilding industry. The value of this evaluation is 16 yuan/hour, so

Labor cost

=0.18×69,385^0.6287×10,000×16=31,849,000 (Yuan)

4. Special costs for production

Special fees for ship production include design fees, ship inspection fees, export ship commission, export ship bank guarantee fees, insurance fees, steel plate pretreatment fees, tire frame and support fees, berth fees, water charges, dock fees, mooring and trial fees, dock fees, special tools and molds fees, lifting freight, warranty fees, customs clearance and storage fees for shipowner's supplies, technical service fees, unforeseeable fees, etc.

5. Direct costs

Direct cost of shipbuilding = material cost + equipment cost + labor cost + special cost of production

= 60541000 + 37665245 + 31849000 + 14704890

=144,760,135 (RMB)

6. Period expenses

Period expenses mainly include financial expenses and administrative expenses. The financial cost may be considered on the basis of the equal investment of funds in accordance with the reasonable construction period of the ship, combined with the loan interest rate executed on the base date of evaluation. The management cost can be determined comprehensively according to the average management cost rate of ship construction enterprises, which is generally 2-5%, and 3% is taken in this assessment.

Financial cost = (material cost + equipment cost + labor cost + special production cost) × reasonable construction cycle × bank loan interest rate of the same period ÷2

= (60541000 + 37665245 + 31849000 + 14704890) 4.35% present 2 * 1 *

=3,148,533 yuan (rounded to units)

Administrative expense = (material expense + equipment expense + labor expense + production expense) x average administrative expense rate

= (60541000 + 37665245 + 31849000 + 14704890) x 3%

=4,342,804(yuan) (rounded to units)

Period expense = Financial expense + administrative expense =3,148,533+4,342,804=7,491,337(RMB)

7. Taxes and profits

Ship tax mainly refers to value-added tax. Since the value-added tax of purchased raw materials and equipment can be deducted, the actual value-added tax payable is only the cost part, and the value-added tax rate is 13% according to the latest tax policy. Ship manufacturing is a labor-intensive enterprise, the production cycle is long, the profit margin is often not high, according to the ship market supply and demand relationship and other factors to determine the general 3%-5%, the value of this assessment is 4%.

Tax =(labor cost + special production cost + administrative cost + financial cost)÷ (1+ VAT)× VAT

= (31849000 + 14704890 + 4342804 + 3148533) present (1 + 13%) x 13%

=6,217,592 yuan (rounded to the ones place)

Profit = (direct cost + period expenses) x cost margin

= (144,760,135+7,491,337) x 4%

=6,090,059 (Yuan)

Tax and profit

=6,217,592+6,090,059=12,307,651 (RMB)

8. Replacement price of ship

Vessel replacement price = direct cost + period expenses + profit and tax

= 144760135 + 7491337 + 12307651

=164,560,000 (Yuan)

9, the new rate of ships

The new rate is mainly divided into years method and on-site observation method. In the evaluation practice, the weighted arithmetic average method is generally used to obtain the comprehensive new rate as the ship's new rate. This evaluation assigns 40% proportion to the new rate of the age method and 60% proportion to the new rate of the on-site observation method, then

Comprehensive new rate = years method new rate ×40%+ on-site observation method new rate ×60%=60%

10. Assess the value

Ship's assessed value = ship's replacement price × ship's replacement rate

= 164560000 x 60%

=98,736,000 (RMB)

Iv. Conclusion

Replacement cost method has obvious advantages and disadvantages in the practice of ship value assessment. The advantage is that as a product with greater construction difficulty, ship construction value has a more scientific and refined assessment. However, this method also has obvious disadvantages, because the ship itself is greatly affected by the market economic environment, this method cannot fully reflect the price of the ship market. Therefore, in determining the final value of the ship, the evaluator should also consider the influence of market economic factors.