GlossaryEN1 min readUpdated: Jun 26, 2026
Salvage Value
Salvage value is the estimated amount that can still be recovered from damaged, end-of-life, or fully depreciated transport equipment or cargo—whether through scrap sales, second-hand resale, or recycling.
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Source: https://www.investopedia.com/terms/s/salvagevalue.asp
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Logistics concept
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Definition & Explanation
Salvage value is the estimated amount that can still be recovered from damaged, end-of-life, or fully depreciated transport equipment or cargo—whether through scrap sales, second-hand resale, or recycling. In claims handling, insurers deduct the salvage value from the insured value before calculating the net indemnity payable: the higher the salvage value, the lower the payout. In asset accounting, salvage value anchors the depreciation schedule by defining the floor below which an asset's book value is not written down. It should not be confused with the current market value prior to any loss event, which is the basis for determining the insured value in the first place.
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