Salvage

Question 1

What are the three types of rescue?

Answer 1

Distress: immanent danger to life

Salvage: prevents peril, saves property

Towage: no peril, contractual only

Question 2

What is the process of salvage with Lloyds open form?

Answer 2

• Vessel in peril will be approached by another vessel volunteering to assist
• Verbal agreement over VHF to “LOF”
• Salvor must then take vessel to closest Harbour where repairs can be completed.
• No success no pay
• Deposit payed by vessels company into Lloyds of London and they arbitrate the negotiation of payment to the salvor.
• Salvor can only be awarded max 100% of value of vessel
• Salvor must demonstrate peril at time of salvage
• Salvage master assumes control but casualty mastery aims retains control of own ship
• Master has authority to enter LOF on behalf of company.

Question 3

What is the SCOPIC clause?

Answer 3

SCOPIC (Special Compensation P&I Clause)

• Provides special compensation for reasonable expenses and pollution prevention if salvage is unsuccessful.
• Once claimed then award is reduced to cover expenses and an increase of 30%. This will fall below the potential award for an article thirteen successful salvage.
• It encourages attempts at rescue where there is high chance of failure

Question 4

What is the definition of salvage and what are the 5 defining points?

Answer 4

It is the “voluntary service which successfully saves, or assists in saving, Maritime property in danger at sea.”

• Salvage must be rendered AT SEA.
• Property must be IN REAL DANGER.
• Can only be MARITIME PROPERTY.
• Service must be SUCCESSFUL.
• The salver musty be a VOLUNTEER.

Question 5

What are the advantages of LOF to the Salver?

Answer 5

• No doubt as to the nature of services rendered
• The salver out of pocket expenses will be reimbursed before the award is settled.
• Ensures that any disputes will go to arbitration and not litigation and will therefore be resolved quickly and cheaper.
• Any award to be paid left for later negotiations
• The agreement provides for the salver to proceed against the owner of the property in addition to the property saved, if by chance that the property is lost after the successful service.
• The agreement avoids the need for the salver to put a lein against the property as the owner will pay a bail with in 14 days of the vessel being brought into safe haven.

Question 6

What are the advantages of LOF to the owner?

Answer 6

• Agreement reached via radio
• Little doubt of nature of the services
• Disputes are settled in arbitration which is much quicker and avoided legal costs
• No cure no pay agreement
• English Law applies
• Salver has a maritime lean on the property even after sale of the vessel
  Salved property can be released quickly
• Underwriters cannot not be liable for more than total loss
• Excessive claims by salvers avoided

Question 7

Which Vessels require emergency towing procedure?

Answer 7

All vessel are required to have an emergency towing procedure.

Question 8

What must be included in the Emergency towing procedure?

Answer 8

• Diagrams displaying fore and aft deck towing arrangement
• Inventory of equipment for towing procedure
• Communications
• Procedure checklist

Question 9

What are requirements of the emergency towing booklet?

Answer 9

• Clear and easy to Understand
• Min 3 onboard (Bridge, Forecastle, Ships officer/control room)
• Owner/,Managment to have a copy to facilitate rapid information flow to salvage companies
• Electronic format onboard to be sent easily
• Diagrams and sketches (assembly and ringing, Towing equipment, locations of strong point, SWL of strong points)