Salvage

Question 1

What is salvage?

Answer 1

Service to save maritime PROPERTY in danger.

Question 2

SOLAS requirement when being informed of DISTRESS at sea?

Answer 2

All ships in are MUST assist.

Proceed with all speed.

Notify vessel in distress or SAR

Question 3

Obligation to save maritime property?

Answer 3

No statutory obligation to save maritime property.

It is called “commercial venture” if done.

Question 4

3 points for salvage to have a valid claim?

Answer 4

Property must be in danger at time

Service rendered must be voluntarily

Service must be wholly or partially successful

Question 5

2 main types of salvage agreements:

Answer 5

1. Ordinary tariff, lump sum, or daily rate = Have time to negotiate
2. Remuneration will be settled later
   (LOF) = Imminent danger, no time to negotiate!

Question 6

6 advantages of LOF:

Answer 6

No pay no cure

Agreement can be reached via radio or other communications

English law applies

Salvor has maritime lien (keeps what is salvaged)

Disputes arbitration in London

Not likely to be disputed

Question 7

When was LOF adopted?

Revisions?

Current version?

Answer 7

1892

10

2000

Question 8

Explain setup of current LOF?

(5)

Answer 8

Imminent danger master has no time to negotiate assistance

12 clauses

2 page document

People signing do not need to be onboard

Int. Salvage Union regards it as a major advance

Question 9

Clause A, B, C of LOF:

Answer 9

A) CONTRACTORS BASIC OBLIGATION:
Salver uses best endeavours to salve & take to decided place OR safety

B) ENVIRONMENTAL PROTECTION:
Minimise damage

C) SCOPIC Clause

Question 10

What dies SCOPIC stand for?

Answer 10

Special Compensation P&I Clause

Question 11

Explain SCOPIC clause:

Answer 11

Payable by the shipowner in cases where salvor as minimised or prevented damage to the environment and the value of work is less than value from salvage.

Salvors can activate SCOPIC clause in writing, is supplementary to LOF.

Salvage team starts working but realize they risk losing the vessel (and their pay) they invoke the SCOPIC Clause

Question 12

Explain no cure no pay:

Answer 12

Salvor is only rewarded upon successfully saving the ship, cargo or environment.

Question 13

LOF payment policy:

Answer 13

No cure no pay.

Question 14

Can there be some reward if the salvage is unsuccessful?

FAQ

Answer 14

Yes, if the SCOPIC clause is invoked.

Question 15

Practical aspects of salvage:

5 duties of master in peril?

Answer 15

Over react on safety & pollution

Consult shipowner IF TIME ALLOWS

Accept most reasonable assistance

Try to obtain LOF

Give salvor all possible assistance