First Ship Lease Trust

[Boon]

and another thought - it seems that the accounting lifespan of the ship and corresponding depreciation is based on the charter contract length.

For example, a new ship is contracted with 10 years charter. Say the charterer default halfway at 5 years, and the TM redeploy the ship to a pool - the useful life (for depre figures) will be revised from initial 10 years to 25 years.

am I right?

Useful life of a vessel is an estimate of the average number of years the vessel is considered useable before its value is fully depreciated.
 
Useful life of a modern vessel is about 25 to 30 years.
 
Depreciation is the systematic allocation of the acquisition cost of the vessel, less its estimated residual value or (or salvage value) over the vessel’s estimated useful life.”

It has nothing to do with charter contract length.
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