EVALUATION OF CARGO SHIPS CONSTRUCTION PRICES AND THEIR IMPACT ON INSURANCE COSTS

Abstract

Introduction. The relevance of the research is determined by high capital expenditures for ships construction, complexity of ships as objects of assessment, the need to take into account factors affecting the prices of ships construction, use of adequate assessment methods, and the relationship between ship prices and the costs of insurance. Purpose. The article is devoted to development of methodological and methodical bases for evaluating the construction prices of cargo ships, in particular: systematization of factors affecting construction prices, classification of methodical approaches to determining ship prices, improvement of assessment methods from the point of view of shipowners, and taking into account the influence of ship price on the costs of insurance. Results. The factors affecting shipbuilding prices are systematized. The classification of approaches to determining ships construction prices has been developed. The method for calculating the discounted value of free cash flows to equity is proposed. The method of correlation-regression analysis for estimating the construction prices of ships of a certain type depending on deadweight is proposed. The stages of estimating the ship’s construction price on the example of the market method have been determined. It is shown that the price of a ship directly affects the insurance premium and other terms of the insurance contract. Conclusions. The shipbuilding costs are affected by the prices of steel, equipment and materials, the cost of labor, demand from shipowners and supply of shipbuilding capacity, currency fluctuations, regulatory requirements, government regulation, etc. The classification of approaches to the estimation of ships construction prices includes cost approach, intrinsic value and market approaches. The proposed method of discounted free cash flow to equity is universal, and can be used for various chartering schemes. The market approach includes the methods of correlationregression analysis, the method of parametric series, the method of specific indicators, and the engineering method. There is a close positive correlation between deadweight and construction prices of cargo ships. Nonlinear regression models sufficiently describe the dependence of the construction price of a certain type of ship on deadweight. The ship price directly affects the insurance premium and other terms of ship’s insurance.