1. Department for Maritime and Transport Law| 21 May 2018 Dr. Iva Savić
salvage
Department for Maritime and Transport Law| 21 May 2018
Dr. Iva Savić

2. What does a salvage operation look like. https://www. youtube

3. Basics (I) Salvage at sea – every act undertaken to assist people,
vessels or
any other property that is in danger at sea or under sea
*generally excluded: offshore platforms (including the drilling equipment) and other fixed structures; public vessels
Additional category: environmental salvage > establishment of a special parallel category of salvage award

4. bASICS (II) Key elements: (0. object of salvage)
The requirement of danger
Voluntary undertaking
No-Cure, No-Pay = no reward if no useful result
Exception: special compensation

5. Salvage of persons

6. Salvage of persons
General Duty – even if contrary to the wishes of salvees
Exceptions:
if serious danger to the salvage vessel,
if low or no chances of success,
if other salvage vessel already engaged,
if help no longer necessary
No right to salvage award
Exception – if simultaneous salvage of persons and (some) maritime property
Art. 16 of 1989 Salvage Convention

7. Salvage of property

8. Salvage of property What „maritime property” can be salved?
Not a general duty
(!) exception: in case of a ship collision
Contractual salvage
Informal, but usual through the use of standard contract forms (most utilized: Lloyd’s Open Form, LOF)
Contractual norms for most part take precedence over statutory provisions
Payment: ship operator, joint liability with regard to the cargo
Non-contractual salvage
Payment: individual responsibility of salved interests

9. Mandatory statutory provisions
Duty of due care:
When providing salvage services
When preventing or mitigating damage to the marine environment
If circumstances reasonably require: seek and accept help from other salvors, Master of Vessel’s duty to cooperate, accept the delivery of salved property
Court’s discretion to modify or nullify a contract (Art. 7):
If entered under duress and terms are inequitable
If due to deceit or intentional concealment of facts
If agreed award too high or too low for the services rendered

10. Salvage award If useful result – dispositive norm
Duty of care – usually „best endeavours” – all efforts and all means
Duty of result – daily rate or lump sum
Total value of award – can be determined by contract, but cannot exceed the value of salved property
If not determined by contract – determined by court or (often) arbitration, equitable reward
Court or arbitration can diminish or deny the right to claim a salvage award (especially if there is intention or negligence on the side of salvor; including the „affirmative damages”)
Privileged claim, right or retention, part of GA
Salved Fund – value of salved property – value or property at time and in place where the salvage operation has been completed

11. Special compensation 1989 Salvage Convention
aim: protection of marine environment
No-cure, no-pay rule not relevant
Cumulative preconditions
Salved vessel was a threat to marine environment
No salvage award, or salvage award not at least equal to the costs incurred
If salvor:
was not successful > actual costs
was successful (prevention or mitigation of damage to marine environment) > 30% to 100% increase
Not part of GA – covered by P&I Clubs

12. SCOPIC Clause Special Compensation of Protecting and Indemnity Clause
Nagasaki Spirit
Parties’ choice
Opt-out from special compensation system
Tariff, P&I guarantee, not necessary to prove a threat to marine environment, SCOPIC tariff payable only if higher than the salvage award
If not, 25% penalty, based on the difference