GUIDE to TOMAC ARBITRATION


3. Appraisals

Among the work done by TOMAC we are proud of the recognition and record of our appraisals. Apart from arbitration, many appraisals are requested for evaluating assets, for determining the collateral value of a vessel, or for establishing a base price at auction.

The vessel for which the appraisal is requested is not simply checked for the degree of physical defects. Rather we take a multi-faceted approach considering the market value and the extent of possible future earnings to eventually make the appraisal.

In order to facilitate this multifaceted approach, there are numerous experts associated with TOMAC specializing in such diverse areas as vessel operations, shipbuilding and ship sales and purchases. Including occasional trips to observe vessels, appraisals are consequently carried out with the greatest care.

(1) Appraisal Request Form
APPRAISAL REQUEST FORM (Sample)

Day/Month/Year
To: TOMAC
Name of party :

Kindly provide an appraisal of the vessel in question as follows:

1. Vessel Name*1
2. Purpose of the Appraisal*2
3. Date of the Appraisal*3
4. Language of the Appraisal (Japanese [or] English)
5. Currency of the Appraisal (US$ [or] Yen)
6. Desired Completion Date
 
7. Attached Documents*4
Vessel Particulars 4 copies
General Arrangement 2 copies
Copies of this request 3 copies

[Contact for the party making the request]

Company Name: ___________________________________ Job Title: _______________________________________________
Name: ________________________________________________ Telephone: _____________________________________________

Explanation of Appraisal Request Form
  1. (Note 1.) By custom the type of the vessel should be indicated before the vessel name. Use common terminology such as container ship or car carrier.
  2. (Note 2.) With regard to the purpose of the appraisal, indicate whether it is to ascertain damages in a collision case or to evaluate assets, etc. Although it is not the case that the appraised amount would vary depending on the purpose of the appraisal, we divide our records according to the type of request and this information will help us establish useful statistics for the future.
  3. (Note 3.) Write the day on which the appraised value is to be taken (ship's future values can not be predicted and we will not accept requests for the same). Indicate either the date on which the appraisal will be made or some earlier date. For instance, the time could be specified as follows: "just before the vessel in question collided with the offending vessel at 1000 hours on 6 June 1994."
  4. (Note 4.) The minimum required documents to be attached are the vessel particulars and the general arrangement (A diagram that covers the ship's entire structure, including all her machinery and equipment. This diagram is drafted by the shipbuilder, or refitter, of the vessel in question.) With regard to the vessel's particulars, precisely indicate the particulars for the vessel in her present condition. You may in addition attach any other relevant documents.
(2) Appraisal

The appraisal form expressly indicates the commercial value of the vessel in question as of the appraisal date. It is customary not to give any reasoning for the valuation.

With respect to coastal vessels, in many cases there is a "right to replace fee" which goes along with the vessel, but this is not included in the appraised value of the vessel.

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