Salvage Flashcards
Difference between salvage and distress?
On reciept of a distress, the master of any ship is obliged to proceed with all speed to assist, to save life
Salvage is voluntary and aims to save maritime property
what are the three conditions for salvage
*Maritime property must be in danger, not necessarily imminent, but where any prudent master would accept an offer of assistance
*Service rendered must be voluntary, not contracted to, or in their official duty
*Service rendered must be wholly or patially succesful
what are the 2 main types of salvage agreement
1 Pre agreed sum/ tarrif/ daily rate.
Done in advance if time allows. eg. if a vessel aground in a sheltered harbour, or raising a sunken vessel.
Time in advance to negotiate - agree on the price
2 Lloyds Standard Form of Salvage Agreement
Known as ‘Lloyds open From’
Done in times of imminent danger, means the cost will be settled later
Advantages of Lloyds open Form
*Can be agreed via radio etc, form can be physically signed later
*agreement not likely to be disputed
*No cure - No pay
*Done under English law, in London
*Salvor has a Lein over the saved ship, even if the saved ship is sold, they keep it until paid
*Liabilty cannot be increased beyond the cost of total loss, prevents excessive clims by salvors
history of LOF
1st adopted in 1892, latest revision in 2020
When should LOF be used
When the ship or environment are at risk and the master has insufficient time to request the owner arrange salvage services at a pre agreed rate
What is the SCOPIC clause?
Special Compensation P&I Clause
Supplementary to the LOF
Invoked by the salvage contractors by written notice to the owners of teh vessel being salvaged
It determines the means of assessing special compensation to the salvors if they have prevented damage to the environment, but the value of the salved property is insufficient for a normal salvage award
(If the cost of the cleanup would be higher than the value of the vessel)
To be paid by the stricken vessel’s owners, not the owners of the cargo
Before accepting salvage assistance, the master should:
*seek advice from ship owner, but only if time allows, the master has authority to act
*obtain agreement to LOF before accepting any assistance
*Give the salvors all possible assistance, as it will minimise the amount to be paid to them
Salvage, if immediate assistance is not required:
if time allows, assistance should be arranged through the owner at a pre agreed rate
Salvage, in cases of immediate peril
There should be no delay in engaging assistance to protect life, property and the environment,
do not wait, hoping that the situation will improve
Can there be some reward even if salvage is unsucceful
Yes if the SCOPIC clause is invoked, and they did succesfully limit or prevent pollution, they would be entitled to remuneration
