Lifetime cost of scheduled dry-docking across an asset’s trading life.
Formula
$$ N = \lfloor \text{Horizon} / \text{Interval} \rfloor, \quad \text{Cost}i = C\text{dock} + d_\text{off} \cdot R_\text{day} $$
$$ \text{PV} = \sum_{i=1}^{N} \frac{\text{Cost}_i}{(1 + r)^{i \cdot \text{Interval}}} $$
Symbol legend
| Symbol | Meaning | Unit | Source |
|---|---|---|---|
| $Horizon$ | Asset lifetime | years | project plan |
| $Interval$ | Docking cycle length | years | IACS survey regime |
| $N$ | Number of dockings | - | result |
| $C_\text{dock}$ | Shipyard cost per docking | USD | yard quote |
| $d_\text{off}$ | Off-hire days per docking | d | shipyard contract |
| $R_\text{day}$ | Day rate when trading | USD / d | chartering |
| $r$ | Discount rate | fraction | corporate WACC |
Class rules require dockings every 5 years; in-water surveys can extend to 7.5 years on eligible ships with a clean hull.
Sources
- IACS - PR 1 Survey Arrangement Requirements.
- Stopford - Maritime Economics.