NEW STANDARD SHIPS OR SECOND HAND SHIPS? AN ECONOMICAL EVALUATION USING COMPUTER TECHNIQUES

Today, most shipyards have developed their own standard design and are less interested to quote for specially designed vessels. Therefore it is difficult for shipowners to compare offers from different shipyards. The same difficulty is met by the shipowner who wants to compare various second hand ships. To this purpose a method has been created to evaluate the economics of new standard and second hand ships using computer techniques. As criterium for comparison the Internal Rate of Return (IRR) on the investment has been chosen. To determine the IRR, round voyages can be simulated, all revenuse and costs calculated and extended to ship's file taking into account the ship's age at purchase date. A computer program has been written for bulkcarriers in the range of say 20,000 - 80,000 ton deadweight, for both voyage- and timecharter. A Dutch shipowning and shipbroking company supplied the required input data. As an example numerical results and diagrams are given for bulkcarriers in the range of 25,000 - 45,000 ton deadweight, based on the market situation in 1974. Conclusions are drawn on the question whether new standard or second hand ships should be purchased. The influence of ship's age and size on the economical performance is shown.

Media Info

  • Features: References;
  • Pagination: p. 91-100

Subject/Index Terms

Filing Info

  • Accession Number: 00141482
  • Record Type: Publication
  • Source Agency: North-Holland Publishing Company
  • Report/Paper Numbers: Proceeding
  • Files: TRIS
  • Created Date: Nov 17 1976 12:00AM