Salvage & Towage

Question 1

What is the difference between salvage and towage?

Answer 1

Towage
Any operation in connection with the holding, pushing, pulling, moving, escorting or guiding of or standing by a hirer’s vessel, in return for fixed remuneration.

Salvage
Any act or activity undertaken to assist a vessel or any other property in danger in navigable waters or in any other waters whatsoever.

Question 2

Conditions for salvage

Answer 2

• The property salved must be in danger at the time;
• The service rendered must be voluntary. That means that the salvor must not be under any contractual obligation, or official duty, to render assistance and;
• The service rendered must be wholly or partly successful.

Question 3

What is LOF and what are the benefits?

Answer 3

Lloyds Open Form is a contract used in marine salvage which is designed to minimise time wasted on agreeing terms of a fixed contract. Compensation will be agreed after the event using Lloyds arbitrators. No cure, no pay.

• Agreement can be reached via radio if witnessed. There is no need for the form to be signed untilthe salvage services have been completed
• Not likely to be disputed
• No cure, no pay
• English law applies
• Salvor has a maritime lien to the property salved
• Salved property can be quickly released upon payment to the salvor
• Underwrites liability cannot be increased beyond that for total loss
• Excessive claims by salvors can be avoided

Question 4

What is SCOPIC clause

Answer 4

Special Compensation P&I Clause
When invoked, it provides compensation when the salvor prevents or minimises damage to the marine environment, even if the salvage is unsuccessful.

Question 5

What if the owner does not want to use salvage?

Answer 5

As per the ISM code, the sms will contain a clear statement authorising the Masters overiding authority to make any decision he feels necessary in order to preserve the safety of the vessel and prevention of damage to the marine environment

Question 6

Accepting Salvage

Answer 6

• Establish radio comms
• Confirm that the vessel is capable of preforming salvage
• Determine whether SCOPIC will be agreed on
• Agree final destination
• Agree currency
• Make a clear and unambiguous statement as to the acceptance of LOF
• Make appropriate entries in the OLB
• Brief the crew
• Record all actions and events