Condition Adjusted Valuations (CAV)

Changing the way ships are sold

The valuation of ships usually relies upon several desktop-based assessments combined with the prevalent market conditions, comparisons of previous sales of similar assets and overall market sentiment. Desktop valuations commonly assume a vessel is in fair condition with all relevant Class, Flag and certificate requirements in place and rarely is the actual condition of the ship itself taken into consideration.

The reality is that the maintenance and condition standards of ships can vary significantly and often the condition of the vessel has a direct impact on the eventual asset value once a vessel has been inspected as part of an S&P or financial transaction.

As the leading provider of vessel inspection and assessment services to the maritime industry, Idwal has developed the industry’s first Condition Adjusted Valuation (CAV) model in collaboration with VesselsValue. Through this new and exciting industry development, Idwal and VesselsValue are providing a greater level of transparency and accuracy which is allowing the industry to move beyond the usual assumptions that all vessels are in a fair condition.

Condition Adjusted Valuations (CAV) combine the vessel’s actual condition, measured using our unique Idwal Grade, with algorithmic-derived market values to account for a vessel’s physical condition; in a first for the maritime industry. Leading shipowners, traders, brokers, banks, funds and financiers use our condition inspection services to obtain Condition Adjusted Valuation certificates from VesselsValue, to fully understand the true value of their ships.

Why use CAV?

CAV is an industry first and allows shipowners to connect their inspection data to their valuation process.
CAV rewards shipowners who maintain their vessels to a high standard, with a premium on their valuation.
Nowhere else can you visualise the premium and added value benefits of maintaining your fleet to a high standard.
Get ahead of your competitors with the industry’s only fully integrated CAV service.
The Idwal Grade is the industry benchmark for ship condition.
Speed up your decision making processes.

CAV in the press

UK-based VesselsValue (VV) has teamed up with ship inspector Idwal Marine to provide valuations drawing on the condition of each ship. The automated condition adjusted values (CAV) service uses the state of the vessel combined with algorithmically-derived market values.

Director Tom Evans added: “CAV will assist stakeholders to get value for the additional time, effort and expense of maintaining quality fleets; an effort that we see rewarded in transactions but not in valuations currently”.
Idwal vessel-grading data is fed into the VV system to produce daily updates.

Historical inspection reports can also be requested directly through the VV platform and, if no permission has been granted by the shipowner, or if no recent inspection reports are available, users can commission a new inspection report via the platform. Desktop valuations commonly assume a vessel is in fair condition with all relevant class, flag and certificate requirements in place. CAV allows users to move beyond these assumptions, VV said.

Complete transparency

Transparency and confidentiality are very important to us at Idwal and is something we pride ourselves on.

Our clients can always expect total confidentiality of all report information and data, which is never re-sold or passed to third parties, unless specifically requested for the purposes of obtaining a Condition Adjusted Valuation.

We do however harness and collect data from the ship inspection process so that comparisons and benchmarking insights can be provided back to our customers in order to benefit their business, by providing them with greater clarity in respect of how their ships compare with the wider market.

“We’re thrilled to enter a partnership collaboration with Vessels Value to bring Condition Adjusted Valuation to the industry. Through the combination of Idwal’s latest inspection reports and Idwal Condition Grade data with the daily automated values from VesselsValue, users now have unequalled visibility into their potential ship’s true value - which effectively speeds up the decision-making processes for individuals and organisations across the globe."

Nick Owens, CEO

Why Idwal?

Idwal is the ship inspection, technology and data business. The global leader in independent sale and purchase inspections and the industry’s trusted partner for fleet condition monitoring.

Idwal’s 500-point inspection reports provide transparent and actionable insights into a vessel’s maintenance, quality and ESG compliance, contextualised by the Idwal Grade^®, the industry standard for measuring asset integrity.

Idwal’s data-driven methodology ensures that reports are consistent, intuitive to read, accurate and free from bias. Trusted as the industry standard, they inspect almost half of all vessels sold each year.

Founded in 2010, Idwal is based in Cardiff, UK, with offices in Singapore, Shanghai, Tokyo and Athens, and with an extensive surveyor network around the globe.