Salvage Flashcards
What are the three types of rescue
Distress: immanent danger to life
Salvage: prevents peril, saves property
Towage: no peril, contractual only
What is the process of salvage with Lloyds open form
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 Loyds 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.
What is the SCOPIC clause.
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
What is the definition of salvage and what are the 5 defining points.
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.
What are the three rights provided to the person in possession of the salvage service.
- Their ACTIONS must be in the INTEREST OF SAVING the PROPERTY.
- They must be GIVEN FAIR OPPORTUNTIY to earn their reward, and if their services are released in favor of another salvor the former is entitled to compensation.
- In the event of possible SERIOUS POLLUTION event, the COASTAL STATE has the power to INTERVENE and override the master, owner and salver.
What is the definition of a Derelict.
It is property which has been abandoned by those in possession without hope of ever returning to it.
What is common law Salvage?
It is a salvage service performed by someone with out a contract and who relies on the law of Salvage to ensure payment. Claims are dealt with by the courts of the land I.e. Admiralty court.
What is Contractual Salvage?
It is a salvage service rendered by somenne under terms of a contract which preserves the principles of salvage law and contractually obliges the contractor to salvage property even if at the end of the day proves unprofitable.
Salvage carried out under contract should be referred to as “services in the nature of salvage” and not as Salvage.
Who has the control and responsibility of a Salvage operation?
The person in possession and control of the property has the right to decide which of the person offering should render the salvage service. He has the right to dispense with the services of Salvers and to have additional salvers if necessary. Any salver who unjustifiably interferes with this right puts his own salvage award in jeopardy and can be sued if greater damage is caused.
What is the definition of a wreck and the following terms.
Flotsam, Jetsam and Lagan.
Under the merchant shipping act a wreck includes a ship, parts of a ship, her equipment or cargo in or about the sea or tidal waters.
- Flotsam: Goods lost from a ship that has sunk or otherwise perished and are recoverable because they float.
- Jetsam: Goods that have been cast over board in order to lighten a vessel which is danger of sinking even if they ultimately perish.
- Lagan: Goods which float and can be recovered later cast overboard from a ship after which perishes
What/who is the Receiver of Wreck and what is their responsibility.
The receiver of wreck is a British Government official, usually a local senior officer of customs or MCA official who’s main task is to process incoming wreck reports to ensure the following.
- To establish control in a complex and confused state and to discourage looting.
- Give the legitimate owner teh opportunity to retrieve their property.
- Ensure the law abiding finders of wreck receive and appropriate reward.
What are the advantages of LOF to the Salver
- 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.
What are the advantages of LOF to the owner.
- 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
Which Vessels require emergency towing procedure
All vessel are required to have an emergency towing procedure.
What must be included in th eEmergency towing procedure
Diagrams displaying fore and aft deck towing arrangement
Inventory of equipment for towing procedure
Communications
Procedure checklist
