EuropeMaritime CEOOperations Sell VLCCs, buy capesizes and VLGCs

London: Asset players should sell VLCCs, buy capesizes and VLGCs and hold on to smaller containerships. That’s the advice of Richard Rivlin, chief executive of Seasure Shipbroking and online pricing vehicle, VesselsValue.

Rivlin makes these predictions to Maritime CEO on the back of a new type of ship valuation called Discounted Cash Flow (DCF) values, created by This offers daily and historical income based valuations, estimating the total cash flows for the remaining trading life of the vessel. The mathematical model takes into account a large number of inputs, including anticipated charter rates, operating expenses, utilisation rate, commissions, inflation rates and discount rate.

“Guessing what is going to happen in the shipping industry over the next 12 months can be likened to gazing into a crystal ball,” Rivlin concedes, before adding: “But by using different valuation methods, there are ways to predict where shipowners should place their money in today’s market.”

In the secondhand market, Rivlin is adamant that large bulkers still offer the greatest potential in terms of asset play but uncertainty in future earnings remains a “major concern”.

Coming up for, Rivlin says the plan is to roll out Book and Replacement Values for each individual vessel.

“Adding these to our Market, Demo and DCF valuations, will soon be computing 175,000 valuations every single day,” says Rivlin.



Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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