Symbols, dimensions and abbreviations
For the use of data and for the evaluation of marine commercial vessels it is necessary to understand the widespread specific symbols, abbreviations and professional terms.
It is possible to refere the following ones to a number of widespread abbreviations:
GRT,
NRT – gross and net register tonnage (the characteristics of the conventional volume defined by the rules of the International Convention on Tonnage Measurement of Ships, 1969);
DW – deadweight;
EPS – effective power of vessel’s main engine;
LOA – the vessel length over all (Length over all), etc.
It is necessary to consider, that indicators of gross and net register tonnage in information databases are specified in units corresponding to so–called English ton (usually is called – gross ton).
In the English language and in information databases – metric ton ([tonne] = 1000 kg or «metric ton») the mass unit writing differs from traditional English ton ([ton] = 1016,047 kg or «long ton», that is 2240 trading pounds), and differs from register tonnage unit ([gross ton] = 2.832 cubic meter, that is 100 cubic foots, earlier the term «register ton» was applied).
It is required to consider a context correctly to obtain the dimension. Usually unit «ton» or «gross ton» means conventional volume unit equals 2.832 cubic meter.
Besides, it is necessary to define symbols of various monetary units and dimension, and also one should know, that the fractional part of numerals in the English language separates a point, instead of a comma that is accepted in Russian, and decimal categories of numbers can be separated by commas, and know a number of other conventions.
In other words, for the use of information databases for the vessels evaluation and effectivity estimation, and also for reading and professional understanding of the expert report on an estimation of commercial vessel or other asset of the marine company, including the analysis of sources of data and their use, knowledge, experience and certain erudition are necessary.
The dimensions of the economic indexes, characteristics of a commercial vessel or the other asset of the marine company, the external data, the particulars and parameters, and also the operational characteristics can be various. The coordination and transformation of dimensions concerns professional competence of the expert and is him responsibility.
There are no dimensions of the units in the presented methodological material, except for the following instructions:
– Numerical data with dimensions, and also the numerical values counted under formulas;
– Dimensions of formulas which are generalisations of numerical data, for example statistical regressions;
– Dimensions in the schedules and in the tables which are representation of numerical data;
– Symbols containing instructions on dimension.
The instructions on dimension contains the following symbols:
– Operational speed
υ_{S}, in knots;
– Register tonnage (
GRT,
NRT), in units of Register tonnage by the rules of the International Convention on Tonnage Measurement of Ships, 1969;
– Economic time (
t,
t_{N}, t_{1},
t_{2},
t_{3},
t_{4},
T,
T_{MV},
t_{MV},
T_{R},
T_{1},
T_{2}, …,
T_{N}), the long–lasting or the periodicity, in years, not only the units, but also the fractional values and zero are applied;
– Vessel operational time (
T_{EXP},
T_{RF},
t_{R},
t_{R1},
t_{R2},
t_{G1},
t_{G2},
t_{M},
t_{FS}, Δ
t,
t_{AR}), in days;
– Indicators of the annual income
I and the operating costs
C determined counting annually.
The values of rates, risks, factors, multipliers, expert coefficients and the indicators of the ineradicable depreciation are determined on relative value or in percentage.
The determination of the value and the basic economic indexes where if was necessary to use a dimension is made in US dollars as the market of the commercial vessels, marine transportations, and also the marine business generally have an international structure and generally calculations are made in US dollars. The data in the marine broker companies’ bases and in the Internet are almost everywhere presented in the same monetary unit.
The explanatory to applied symbols for vessel evaluation or other asset of the marine company’s property complex are presented below. The explanatory to symbols are accompanied by short definitions and in these cases also they bear auxiliary function of glossary.
At the statement of the methodical subject the following symbols are accepted.
MV – symbol used for following economic indexes:
à) Market value of vessel, other real asset or market value of the marine company’s property complex, including full set of tangible and intangible assets, – depending on the context;
á) Present value of a cash flow of the net operational income (or profit);
â) Value as a result of the estimation by one of independent standard approaches.
MV_{C }, MV_{I}– values evaluated by the factors of the operating costs
C and the annual income
I;
MV_{0} – initial value (invested)
MV_{0}=
MV(t=0,0);
MV_{1},
MV_{2} – depending on the context: the value at the beginning and at the end of term of use of the vessel or the other asset of the marine company by the contract of rent; the value estimated on a basis cost and comparable sales retrospective approaches at the determination of indicators of efficiency, if
MV_{3} – the value as the result of the prospective income approach; the value (investments) indexes defined as the economic efficiency criteria transformation: the value
MV_{1}, estimated on the basis of transformation of an discounted costs indicator
f_{1}, the value
MV_{2}, estimated on the basis of an internal rate of return indicator
f_{2}.
Δ
MV – depreciation of the vessel value or the other real asset by the end of term of use or the appreciation of property complex value during the creation of the marine company.
Δ
MV_{1} – additional income meaning the estimation of the seller’s of a real asset (vessel) clearing from difficulties – an estimation of the right of released assets use and an estimation of expenses savings for the asset maintenance in a suitable condition after the end of its manufacture.
Δ
MV_{2} – additional investments for the real asset (vessel) imputing into operation, that is an estimation of economic difficulties of the buyer shifted to the seller.
dMV/dt – value derivative on time – the mathematical potential of present value (the value expenditure for a time unit, in particular, for a year).
MV_{Σ} – total value of the tangible and identified intangible assets which in aggregate are the property complex of the marine company, the investment during the property complex creation
.
MV_{n} – investment value of the
n–th partner (contribution) during co–production or creation of the property complex, the value of the isolated
n–th asset of the property complex, – depending on the context.
MV_{n} +
NPV_{n} – investment value of the
n–th contribution, the investment value of the
n–th asset, – depending on context.
MV_{p},
MV_{D} – private and the debt financial parts with the account a total investments
MV_{Σ}=
MV_{p}+
MV_{D}.
MW – an estimation of the ocean resources (marine resources) contribution to value of the isolated real asset of the marine company, associated with this asset, that is an estimation of set of technological, legal and other opportunities of the ocean resources development; an estimation of unidentifiable intangible asset (good will) as a part of the marine company’s property complex, – depending on the context.
RC – reproductive cost – the sum of the investments for the structural analogue construction in modern market prices on the day of estimation, or the replacement cost, that is the sum of the investments for functional analogue construction.
RC_{n},
RC_{n,m}– investments components of the reproductive cost – infrastructural parts of investments.
D_{1},
D_{2},
D_{3},
D_{4},
D_{5} – set of the depreciation components: the physical depreciation eradicable
D_{1}, the physical depreciation ineradicable
D_{2}, the functional depreciation eradicable
D_{3}, the functional depreciation ineradicable
D_{4}, the external economic obsolescence
D_{5}.
D_{1-4} – internal depreciation in the sum of the physical and the functional.
MVF – vessel value (or the other asset) with the requirement of the compelled or forced sale (Market value forced), differently – the liquidating value.
El – factor of elasticity of the supply in relation to demand (the marketing indicator) – the module of relative appreciation of the mathematical derivative of the supply in relation to the demand.
DF– resale discount at the compelled or forced sale (Discount forced), – a difference of the market value and the liquidating value
DF = MV – MVF.
SV – residual liquidating value (Scrap value) – the value of the compelled sale of materials as a vessel scrap without an estimation of functional suitability of separate parts.
Rv – reversion that is the additional income of vessel or other real asset sale at the end of the period of productive operation or the period of the prognosis at the estimation of the present value cash flow, depending on context, the value of scrap sale (residual liquidating value).
I – annual income index in annual account (Income), depending on the subject requirements it can be applied to the designation of the potential or effective income.
m – tariff rate, the cost for the delivery to destination of the cargo unit (one ton, a piece, unit of volume, etc.), that is the transport tariff rate, for a fishing vessel – the income per the mass unit or seafood conventional.
C – index of annual operating costs (total) steady within a year and constant annually cash flow of operating costs.
C_{t }– cash flow of operating costs which are evaluated on the beginning of each year, but are distributed within a year.
Ñ(
t) – terminal intensity of operating costs cash flow distributed within year.
C_{n}– components of the annual operating costs, including:
Ñ_{CR} – expenses for crew salary;
Ñ_{FED} – spending on food for the crew;
Ñ_{EXP} – expenses for crew delivery (to onboard and from);
Ñ_{SOC} – specific payments to the social insurance funds of the crew salary;
Ñ_{FL} – annual expenses for fuel;
Ñ_{SUP} – annual expenses for supply;
Ñ_{RM} – average annual expenses for maintenance and repair;
Ñ_{G} – general service expenses;
Ñ_{MM} – administrative expenses for management;
Ñ_{DS} – marketing expenses;
Ñ_{RES} – expenses for the quota purchase – a payment for use of ocean biological resources under the rates provided by the tax Code;
Ñ_{INST} – expenses for the compensation of deterioration and for the replenishment of the fishery tools;
Ñ_{MS} – expenses for the purchase of tare materials, separation and technological materials.
∑
C_{NC }– sum of the vessel annual operating costs components related to the additional value as a part of production or services turnover (except services of the partner organizations, financial expenses etc.).
OC – working assets for vessel or other real asset of the marine company equipment.
Ñ_{U} – consumption costs that are the minimum income
I_{MIN}, when vessel or other asset operates without losses, provided that the profit and the losses equal to zero, and the net operational income
NOI corresponds to the charges for the compensation of real assets restoration
f_{m}×MV.
[
MV], [
I] and [
C] – external restrictions for value and efficiency estimation: the restriction of investments [
MV] (for example, according to accumulation of the investor’s assets and thir value), the income [
I] (in particular, by the quotas for the ocean biological resources use) and the operating costs [
C] (for one external reason or another).
– cost of one tonne of the diesel fuel used on board of the vessel.
ñ_{CR} – average annual expenses for one crew member support.
NOI– indicator of the net operational income (
NOI =
I –
C).
NOI_{1},
NOI_{2}, ...,
NOI_{N }– sequence of the cash flow values for the stability intervals which correspond to intervals of planning marine company’s property complex
T_{0}, T_{1},
T_{2}, ...,
T_{N}.
p – profit, the index applied when the evaluation based on income approach usually in calculation indexes before the taxation – the economic index correlated with the net operational income and differs for the size of deductions for real assets restoration
f_{m}×MV (when we determine profit the deduction are subtracted from the net operational income,
p =
NOI–
f_{m}×MV).
RN_{t}– charge (payment) under the rent contract for vessel or other asset use.
RN– charter market rate – the equal rent charge of the uniform periodicity, which present value corresponds to the right-of-use value of commercial vessel (or other asset of the marine company).
ΔRN (ΔMV), ΔRN(C), ΔRN(L) – adjustments to charter market rate estimation
RN with the account the requirements: the reduction
ΔMV of asset value by the end of the term of use, the owner’s obligations
C of the asset servicing, correlated with the operating costs, with the account the requirement of leasing–rent contract with the repayment by the end of term of use and obligations
L of the asset repayment by the tenant.
DCF – discounted cash flow, the present value of the net operational income cash flow.
NPV – net present value (reproduced value), corresponding to the difference of the value and the investments.
NPV_{Σ }– value of good will as the net present value of the marine company’s property complex, corresponding to an estimation of the ocean resources
MW.
NPV1,
NPV2 or
NPV_{n}– components of the net present value divided between two or another number of
N participants (investors of the marine company); the net present value of
n–th asset as a part of investment value, – depending on the context.
IRR – internal rate of return, as the relation of profit to investments, more precisely, the profit gain to the gain of the investments causing this gain of the profit, minus rate of the gain of consumer price index that is an inflation indicator.
T_{R} – investments recovery term – an economic index is reverse in relation to index of internal rate of return
IRR,
T_{R} = 1/
IRR.
t – age of the vessel or the real asset of marine company; an indicator of present time in annual account; the term from the time of account to an estimation of the economic index, – depending on context, evaluated in years.
N – number of the predicted intervals of cash flow stability or stability of accumulation of the cash flow grades, corresponding to a number of investments planning periods; the number of investors (partners, participants) at their joint participation in the marine company’s property complex creation or in asset manufacture; the number of assets (groups of assets) of the marine company’s property complex, – depending on the context.
N1– assets group in linear proportional dependence of the net present value related to the isolated asset, on the net present value of the property complex of marine company assets
.
– group of the assets independent on the net present value of property complex .
t_{N} – present time – the discrete variable at summation of the discounted cash flow.
T – lifetime of the vessel or the other real asset; the term of the forecast period of planning before the reversion
Rv, is expected, for example at the end of vessel (or other asset of the marine company) productive operation, – depending on the context.
(
Ò –
t) – term of operation before the utilization with the account the lifetime and the age
t of a vessel or another asset of the marine company, that is residual durability.
t_{1},
t_{2} – the beginning and the end of the usage period of the vessel (or the another real asset) by the rental contract.
t_{3},
t_{4} – the beginning and the end of rent charges payment term.
T_{MV} – exposition term of the typical marketing period for vessel sale at market value.
t_{MV} – duration of the vessel productive operation after purchase before the compelled sale – term of an exposition at the compelled sale.
t_{MV} /
T_{MV} – vessel or other real asset of marine company terminal position during the marketing period.
t-t_{0}– duration of the investment in the creation of the property complex of real assets structure or in the manufacture of the isolated real asset.
T_{0},
T_{1},
T_{2}, …,
T_{N} – planning intervals under the plan of investments.
[
t] – term between payments under the rent contract.
T_{EXP} – term of vessel annual operational period.
T_{RF} – term of the commercial vessel round trip (for the fishing vessel the term of the operation at the fishery ground between fuel fillings–up).
t_{R} – running time of a commercial vessel for the round trip.
t_{R1},
t_{R2} – running time in the transitions to destination and to harbor accordingly.
t_{G1},
t_{G2} – time of cargo operations in harbors of departure and destination accordingly.
t_{M} – term of cargo vessel maneuvering during the round trip, the general duration of fishing vessel maneuvering to search fish concentration.
t_{FS} – actual term of duration of the fish products reception before hold filling, duration of the cargo vessel positioning in the point of destination.
Δ
t – term of fish transfer to the cargo vessel and supply reception to the fishing vessel.
t_{AR} – term of vessel mooring in the harbor between the trips.
Q– annual transportation capacity of the cargo vessel, annual productivity of fishing vessel convention production.
n_{R} – average number of the commercial vessel round trips within a year.
i – discounting rate, correlated with the rate of efficiency or with a macroeconomic index of risks and evaluated by the methods applied in the business estimation, for example, by the market extraction according to analogues, by the next models: the cumulative risks set, the arbitration pricing, the average weighed value of the capital, the model of an evaluation of capital assets, etc.
i_{0}– risk–free rate evaluated according to the data of the emission centers or to the other available data.
i_{1}– adjustment with the account systematic (external) economic risk.
i_{2} – adjustment with the account nonsystematic risk, or
– the total risks index under the given investment project in relation to the macroeconomic risks estimation
i, that is
can mean the estimation of innovative strategy risks.
i_{3} – indicator of the rate of a consumer price index gain (an inflation index).
i_{p} – efficiency of private finances evaluated, for example, by the internal rate of return
IRR.
i_{D} – value of the debt funds evaluated as the loan rate.
i_{n} – risk, that is probability of the individual
n–th action negative result.
– probability of the successful innovative strategy consisting of
n consecutive actions.
η_{MV }– rate of the property tax.
η_{INS }– rate of insurance coverage.
f – economic efficiency criterion function depending on determined optimal vessel (or other real asset of the marine company) project characteristics
X for the commercial order, on the parameters
Y and the data
Z.
X,
Y, Z – variables (that is a vector or a set of variables – the optimized project characteristics), the parameters and data (constants), the symbols of the criteria function argument.
f_{m}– factor of fund of compensation of a depreciated part of the investments for restoration, denoted also by
PMT/FVA, in the applied economics is evaluated as one of discount financial functions with the account the real asset residual durability (
Ò –
t) and the macroeconomic index of total commercial risks in the form of the discounting rate
i, by the book keeping rules
f_{m} is associated with the standard of the amortization (restoration) charges in dependence on the asset assignment and in correspondence with the real assets classification.
f_{MV} – factor of present value potential, considering vessel depreciation (or other asset of the marine company) in the process of value transformation into the financial form.
f_{NOI} – factor of the net operational income evaluated with the account the factor of present value potential
f_{MV}.
R – rate of the net operational income capitalization, including addends: the discounting rate in the sum of risks ∑
i_{n} and the factor of the fund of compensation of depreciated part of investments
f_{m}, used at an evaluation based on income approach in the sum with rates: the property tax
η_{MV}, the insurance coverage
η_{INS}.
R_{MV} – rate of the net operational income capitalization with the account the factor of the net operational income defined by the factor of present value potential.
RÑ– factor of operating costs
Ñ, which is proportionality factor between the asset value and the operating costs.
RI – factor of the annual income
I, which is proportionality factor between the asset value and the annual income.
c(T,i) – factor of investments capitalization as a part of economic criterion of the capitalized costs on the basis of sequent estimation of the: the vessel construction (or the other real asset of the marine company), productive operation, recycling, the reinvestment, the reproduction and repetition of the specified cycle.
R1,
R2 – of investments efficiency indexes of the seller and the buyer or joint investors – as a part of the balance of their interests
R1 =
R2.
R_{0} – index of risks of innovative strategy which is set by the investment planned schedule, the capitalization rate of the initial capital.
e = 2,71828283... – Euler's number – a mathematical constant which can be applied in calculations of present values of economic indexes under discount financial functions.
FV,
FVA,
PMT/FVA,
PV,
PVA,
PMT/PVA – symbols of the discount financial functions:
FV – indicator of the future value of the individual investment;
FVA – indicator of unit capitalization – future value at the end of the definite period
T of an unit cash flow annuity, uniform on periodicity;
PMT/FVA - factor fund of compensation of the depreciated part of investments (the constant periodic payment in accumulation of the definite unit sum at the end of the period within durability or the forecast period
Ò), in formulas is designated as
f_{m};
PV – present value of unit (discounting), that is the present value of the future unit investment, through time
t;
PVA – present value of the unit cash flow annuity, uniform on periodicity to the end of the definite period
T;
PMT/PVA – payment for the unit amortization (repayment of the unit credit by equal payments, uniform on periodicity to the end of the definite period
Ò).
a,
a_{1},
a_{2},
a_{3} – symbols of factors, particularly, the statistical approximation factors of the marketing researches, the expert factors of preference of the separate results of evaluation by the independent methodological approaches or so called «weightings» of the factors of economic criteria components.
α – confidential probability (balance factor) of the net operational income in structure of a capitalized index at estimation of the present value based on income approach; the factor of the structure balance of the property complex assets, – depending on the context.
α
_{1}, α
_{2}, α
_{3}, α
_{4} – factors showing what part of the total net present value
of the marine company’s property complex its composed, associated with the separate isolated assets and correlated with the total net present value in a proportion with its certain degree.
α_{j} – expert weight factor which is characterizing methodological importance of certain economic criterion
f_{j} and simultaneously is a scale multiplier.
– expert factor of «optimism» when defining Gurvits criterion.
J– total sum of the private criteria generalized in compound criterion.
D – vessel cargo displacement (total) when full cargo and with the draught at the cargo waterline.
DP – vessel displacement empty (the displacement in dry dock).
DW – deadweight, the sum of all variables load components of commercial vessel: cargo, fuel, supply, tools, tara (container), crew with luggage, ballast, stocks etc., or, on the other hand, a difference of cargo displacement of vessel and displacement empty
DW =
D –
DP.
PG – cargo capacity of commercial vessel.
W – capacity of commercial vessel cargo premises – the hold volume (it can be measured in cubic meter, for some vessels’ classes the volume of refrigerator hold can be measured in cubic foots, 1 foot corresponds 0.305 meter, 1 cubic foot is 0.02832 cubic meter).
GRT,
NRT – gross and the net register tonnage – conditional volume, – counted depending on commercial vessel’s characteristics and dimensions by rules of the International Convention on Tonnage Measurement of Ships, 1969, measured in units of Register tonnage – 1 unit of capacity corresponds 2.832 cubic meter, that is 100 cubic foots.
Ne – power of the vessel’s main engine (also designated as
EPS that is effective power the main engine, i.e. the power corresponded to the movement).
υ_{S} – operational speed under the project of commercial vessel, that is the specification speed in knots (nautical miles per hour, 1852 meters per hour), the specification speed of a fishing vessel.
υ_{S}_{1} and
υ_{S2}– speed of commercial vessel accordingly during the trip to destination and return trip.
n_{CR} – number of crew, including the personnel onboard the processing fishing vessel.
L – length of vessel over all (also it is designated as
LOA).
WL – cargo waterline.
LW,
B – commercial vessel length at the cargo waterline, the breadth.
TW – draught at vessel cargo waterline.
H – height of the board to the main deck (that is deck covers the hermetic transverse bulkheads).
HD – height of the board to the apper cargo deck (including the spaces ahead the deck of hermetic transverse bulkhead).
δ – factor of the general volume displacement, the relation of commercial vessel displacement of volume units to the parallelepiped volume which sizes are equal to the length of cargo at the waterline, breadth and a vessel draught of cargo waterline.
PG_{PR} – specification cargo of the conventional fish products (or seafood), processed by fishing vessel annually.
Ð_{F} – amount of the fresh ocean bioresources (fish or other), catches during the round trip of fishing vessel between the fillings–up of fuel.
r – weight ratio of the conventional fish products (or seafood) output to the processed amount of fresh ocean bioresources, ranged from 0.0 to 1.0.
[
ñ_{ADM}] – the Admiralty factor determined with use of the commercial vessel–prototype data or accounting of the statistical data and used for an estimation of the commercial vessel’s main engine effective power according to a prototype (note: the Admiralty factor is the characteristic of a prototype and, as well as other applied data of a prototype, in symbols it is accepted in square brackets).
£ – extent of ocean rout (a distance to the area of harvesting – for fishing vessel).
Ð_{FL} – specification fuel stock onboard,
ÐFL also can designate the fuel consumption for a trip depending on its use in calculation, considering, that, when designed rationally the vessel’s specification fuel stock is according to the fuel expenditure during the trip between the fuel fillings–up (not so much extra stocks).
Ð_{FR} – fuel consumption for fish search, maneuvering and trawling (catching) during the period between transfers of fresh fish to the processing ship or the fish production to a consumer or a cargo vessel.
Ð_{FM} – fishing vessel’s fuel consumption for maneuvering.
Ð_{FPR} – fishing vessel’s fuel expense in an operating time at trawling (catching).
q_{1} – daily fuel expenditure for running.
q_{2} – daily fuel expenditure for trawling (catching).
q_{G1},
q_{G2} – average daily productivity of cargo operations in the departure (arrival) harbor and the destination point.
η_{Gi},
η_{G}_{1},
η_{G2} – operating factors of use of vessel cargo capacity during the trip to destination and return trip.