Salvage

Question 1

What 4 key elements have to be present for there to be a successful salvage claim?

Answer 1

1. The property or life saved must be in danger (does not have to be absolute or immediate, only that a prudent master would not hesitate to accept a salvors help)
2. The property saved must fall within the categories capable of being saved (a vessel, her apparel and cargo etc. Not a buoy or beacon)
3. The service rendered must be voluntary in nature (Salvor cannot be previously contracted, eg a tug inside port limits)
4. The salvage must have resulted in some level of success

Question 2

What is LOF

Answer 2

Lloyd’s Open Form - A standard form to avoid haggling and save time. Master can sign on behalf of owners but must sign “for and on behalf of - the owners as master if he is unable to contact the owners, it is reasonable to do so, he acts for the interest of all parties.

It is not actually necessary to sign this form provided there is good evidence both parties agreed to it.

Question 3

Is it necessary to formally enter into a salvage agreement?

Answer 3

No. As long as the 4 factors are present then an award will be made

Question 4

What is a SCOPIC clause?

Answer 4

Special Compensation P & I club.
A clause designed to incentivise salvors despite the chance of being successful low, and a no cure no pay clause. Designed to encourage salvors to take the risks/effort to protect the environment.

Salvors who are unsuccessful but still prevented damage to the environment will be awarded compensation

Question 5

What factors does a master need to take into account before offering services?

Answer 5

• Safety of crew/pax/vessel/cargo
• Allowed by CP/BoL?
• Bunkers
• Will you miss cancellation date?
• Enough machinery/power/equipment
• Cost/value ratio

Generally masters are only under statutory obligation to render assistance in distress not engage in salvage

Question 6

What considerations should a master take into account before accepting salvage?

Answer 6

• Safety of personnel
• Proximity to shore or shoal
• Availability of assistance
• Weather and sea conditions
• Damage sustained by the ship
• Risk of further damage
• Threat of pollution

Question 7

Where will the Salvor take the ship if nothing is defined in the agreement?

Answer 7

A place of safety

Question 8

What is the difference between towage and salvage?

Answer 8

In legal terms, towage is always contractual. No contract - no payment
Can a vessel in danger enter into a standard towing contract - freedom of contract in most countries - yes