Page 12: of Maritime Reporter Magazine (November 2017)

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The challenge of

Marine Asset Appraisal


About the Authors hile large shipping should be transparent as far as the process rable sales or market approach as applied in

Harry Ward is the President of Dufour, asset deals are often used for reaching a value, and that third- the residential real estate industry. In the

Laskay & Strouse, Inc. Harry is a US ? nanced through the party readers of the report can understand marine industry, this approach involves the

Navy veteran and has spent much major capital markets, the methodology used to reach a value identi? cation of vessels that are similar to of the past decade in the maritime loans for most oil? eld opinion. the subject vessel in terms of function, age,

W industry in sales, ? nance and general service marine equipment are funded with Professional appraisers in specialized size, and other properties. The appraiser management. His goal is to build on asset based lending. For such asset based ? elds, such as marine asset valuation, often then accounts for variations in the chosen the strong history and reputation of lending, a domestic U.S. bank, with some also carry certi? cations from organizations, properties to produce a rational, easily un-

DLS and provide outstanding service exceptions, will be asking for an appraisal such as the American Society of Appraisers derstood value opinion.

to marine industry clients just as the that is compliant with the Uniform Stan- (ASA), which requires many years of train- Even more so than the real estate indus- company has done for the past 50 dards of Professional Appraisal Practice ing and experience. An accredited appraiser try, the maritime ? eld abounds with count- years. (USPAP). is committed to providing unbiased value less properties that have a staggering array

Due to blatantly false appraisals that opinions derived via a thorough, document- of features, ages, and end-use applications. caused the collapse of the savings and loan ed process. The appraiser will consider and Also unlike the real estate industry, there is industry in 1988, it became mandatory for use (or dismiss with cause) the three basic no readily available database of consum- real estate appraisers to provide transparent, paths to value: the cost approach, the com- mated marine vessel transactions – nor any veri? able, and unbiased appraisals of real parable sales approach, and the income ap- incentive for buyers and sellers to divulge estate. All major banks now request USPAP proach. their sales price. So what happens when complaint appraisals for all assets, includ- there are no viable sales numbers available? ing marine equipment. The basic premise This situation is common in marine ap-

Appraisals in Practice behind USPAP is that any appraisal report Most people are familiar with the compa- praisal. For example, through the OSV

Norman F. Laskay is currently Of Coun- sel with Dufour, Laskay & Strouse, Inc., a full service marine survey company with its head of? ce in New Orleans,

Louisiana. He is a graduate of Maine

Maritime Academy, has sailed as a deck of? cer on U.S. and foreign ? ag freighters and worked ashore in ship agency operations. He has been an in- dependent marine surveyor of hull and machinery for over 40 years. He was a member of the Machinery & Technical

Specialties Committee of the Ameri- can Society of Appraisers (ASA) for 12 years, where he is now an Emeritus member.

Image: © Danial / Adobe Stock 12 Maritime Reporter & Engineering News • NOVEMBER 2017

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Maritime Reporter

First published in 1881 Maritime Reporter is the world's largest audited circulation publication serving the global maritime industry.