Four things decide whether a vessel purchase pays: market rate, utilisation, running and repair costs, and scrap value. Here is how to weigh each one.
Return on capital in a commercial fleet usually depends on three main variables: the market rate, annual utilisation, and operating and repair costs. In a Voyage Charter the market rate is the freight; in a Time Charter it is the daily hire.
Offshore and service vessels are usually backed by long-term charters to industrial charterers. For that reason they tend to give steadier cash flow than general cargo vessels.
Scrap value. At the end of its useful life, a vessel's scrap value is usually the floor under the value of the asset, and you should include it when you calculate total return. It is estimated from the lightweight tonnage (LDT) and the scrap price in US dollars per tonne of LDT.
If you are weighing a purchase on these terms, search the vessels listed on Shipo Market, or contact me, Pooria Adli, and we can go through the numbers together.