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Marine Salvage
PRESENTER NAME
CAPT AMIN QAWASMEH
What is Marine
Salvage?
• Is the process of recovering a ship, its cargo, or
other property after a shipwreck
• Salvage encompasses
1. Towing
2. refloating a sunken
3. grounded vessel
4. patching or repairing a ship
How is the
salver?
seamen and engineers who carry
out salvage to vessels that are not
owned by them, and who are not
members of the vessel's original
crew
Salvage
operation aim
• The aim of the salvage may
be to repair the vessel at a
harbor or dry dock or to
clear a channel for
navigation
• Another reason for salvage
may be to prevent pollution or
damage to the marine
environment. Alternatively, the
vessel or valuable parts of the
vessel or its cargo may be
recovered for their resale value,
or for scrap.
Conditions of salvage
1. There must be a marine peril placing the
property at risk of loss, destruction, or
deterioration;
2. The salvage service must be voluntarily
rendered and not required by an existing duty or
by special contraction; and,
3. The salvage efforts must be successful, in
whole or in part.
• Brussel convention 1910
• Salvage convention 1989
• Scopic clause in LOF , Lloyd open form
The three major developments in salvage law
Brussel convention was
based on the no cure no pay
principle
But this rule alone was not a
good motivator for salvers to
undertake high-risk
operations
but in the 80s when huge
pollution incidents it became
necessary to encourage
salvagers to take up high-risk
operations
Brussel
convention
1910
1910 Convention:
No mention
of environmental
salvage
Convention
1989
Salvage operation means any act or activity to
assist a vessel or any other property in danger
in navigable waters or in any other waters
whatsoever
Where property means any property not
attached to the shoreline and includes freight
at risk. Convention specifically denies an
application to fixed or floating platforms or to
mobile offshore drilling units when such
platforms or units are on location and are
engaged in the exploration, etc.
No cure no pay: means no payment is due
under this Convention if the salvage has had
no useful result.
LOF 2000
Lloyd open form
2000
LOF provides a regime for determining the
amount of remuneration to be awarded to
salvors for their services in saving property at
sea and minimizing or preventing damage to
the environment. Originating from the late
1800s, it is probably the most widely used
international salvage agreement of its kind in
the world today.
‫ت‬‫و‬ ‫بة‬‫و‬‫املنك‬ ‫سفينة‬‫ل‬‫ا‬‫و‬ ‫املنقذة‬ ‫سفينة‬‫ل‬‫ا‬ ‫فني‬‫ر‬‫الط‬ ‫الك‬ ‫من‬ ‫علهيا‬ ‫التوقيع‬ ‫يمت‬ ‫ثيقة‬‫و‬ ‫يه‬
‫الرشوط‬ ‫عىل‬ ‫نص‬
‫مع‬ ‫سفينة‬ ‫لك‬ ‫لها‬ ‫ختضع‬ ‫ن‬‫أ‬‫أ‬ ‫جيب‬ ‫اليت‬ ‫حاكم‬‫أ‬‫ل‬‫وا‬
(
‫التسعرية‬
)
‫خطوة‬ ‫للك‬
LOF most important article
1. Article (13)
2. Article (14) special compensation clause.
3. Box 7_ SCOPIC clause/ SCOPIC: special
compensation of P&I
Clause 14_ special compensation clause
• If the salvors have been negligent and failed to prevent/ minimize damage to the environment, they
must be deprived of the whole or part of any special compensation.
- Deprived: ‫يحرم‬
• If no negligence and the salvors have failed to prevent/minimize damage to the environment, he shall
be entitled to special compensation equivalent to his actual expenses.
• ‫مبلغ‬ ‫فيأخذ‬ ،‫االنقاذ‬ ‫في‬ ‫فشل‬ ‫ولكنه‬ ‫يهمل‬ ‫لم‬
‫صرف‬ ‫ما‬ ‫بمقدار‬
.
• If the salvors prevent/minimize damage to the environment, the special compensation may be
increased by up to 30% according to the SCR report.
SCR: ship owner causality representative.
• The special compensation may be increased by up to 100% according to tribunal/ arbitration.
• special compensation is paid only if the salvage reward is less than the special compensation.
 advantages of using scopic 2000 to shipowner of salved vessel:
1. Little case goes for arbitration/ tribunal.
2. Owners/clubs have much control or at least knowledge of what is happening.
3. The owner has the right to terminate the contract (clause 9).
4. The up life is capped at 25%
- Terminate: ‫انهاء‬ capped: ‫اعاق‬
/
 Disadvantages to shipowner of salved vessel using scopic 2000:
1. The tug rate is high_ 3USD/ 1 HP a day, if more than 5000 HP it would be 1.5 USD/ 1 HP
2. The ship owner has given up the environmental threat.
 Advantages to salvors using scopic 2000:
1. No longer to prove that there was an environmental threat.
2. Salvors will be paid a profitable (tug) rate.
3. Security is more certain) L/G by million USD within 2 working days).
Profitable: ‫ربح‬ُ‫م‬ L/G:
 Disadvantages to salvors using scopic 2000:
1. Salvor cannot recover more than 25% uplift.
2. There is a risk of terminating the contract.
 Owner/Master obligation:
A. Shall cooperate fully with salvors in particular or:
1. To use vessel machinery/ gear and equipment free of charge provided that the salvors shall not unnecessarily damage or sacrifice any property onboard.
2. To get information as may reasonably require relating to the vessel, or to cargo if this information is relevant to the performance and can be provided without undue
delay or difficulty.
3. For entry the place delivery of the vessel.
A. To exercise due care to prevent/ minimize damage to the environment.
B. To accept redelivery at the agreed place when reasonably requested by salvors.
C. The master of salved vessel offers his opinion as a suggestion only as it is understood “No Cure, No Pay” that the salved party not to interfere with salvage operation,
so the master (salved) shall be diplomatic.
D. The master (salved) has to interfere in a salvage operation to safeguard, human life, vessel, cargo, and environment, he shall offer his protest in writing.
E. To record the timing of all events.
 SCR: ship owner causalities representative: ‫من‬ ‫اختياره‬ ‫يتم‬
There are several factors that would be considered by a court in establishing the amount of the
salver’s award. Some of these include:
 The difficulty of the operation,
 The risk involved to the salver,
 The value of the property saved,
 The degree of danger to which the property was exposed, and
 The potential environmental impacts.
Jetsam: are goods that were thrown off a ship, which was in danger, to save the ship.
Flotsam are goods that floated off the ship while it was in danger or when it sank.
Ligan or lagan is goods left in the sea on the wreck or tied to a buoy so that they can be recovered
later by the owners.
Derelict: is an abandoned vessel or cargo.

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salvage .pptx

  • 2. What is Marine Salvage? • Is the process of recovering a ship, its cargo, or other property after a shipwreck • Salvage encompasses 1. Towing 2. refloating a sunken 3. grounded vessel 4. patching or repairing a ship
  • 3. How is the salver? seamen and engineers who carry out salvage to vessels that are not owned by them, and who are not members of the vessel's original crew
  • 4. Salvage operation aim • The aim of the salvage may be to repair the vessel at a harbor or dry dock or to clear a channel for navigation • Another reason for salvage may be to prevent pollution or damage to the marine environment. Alternatively, the vessel or valuable parts of the vessel or its cargo may be recovered for their resale value, or for scrap.
  • 5. Conditions of salvage 1. There must be a marine peril placing the property at risk of loss, destruction, or deterioration; 2. The salvage service must be voluntarily rendered and not required by an existing duty or by special contraction; and, 3. The salvage efforts must be successful, in whole or in part.
  • 6. • Brussel convention 1910 • Salvage convention 1989 • Scopic clause in LOF , Lloyd open form The three major developments in salvage law
  • 7. Brussel convention was based on the no cure no pay principle But this rule alone was not a good motivator for salvers to undertake high-risk operations but in the 80s when huge pollution incidents it became necessary to encourage salvagers to take up high-risk operations Brussel convention 1910 1910 Convention: No mention of environmental
  • 8. salvage Convention 1989 Salvage operation means any act or activity to assist a vessel or any other property in danger in navigable waters or in any other waters whatsoever Where property means any property not attached to the shoreline and includes freight at risk. Convention specifically denies an application to fixed or floating platforms or to mobile offshore drilling units when such platforms or units are on location and are engaged in the exploration, etc. No cure no pay: means no payment is due under this Convention if the salvage has had no useful result.
  • 9. LOF 2000 Lloyd open form 2000 LOF provides a regime for determining the amount of remuneration to be awarded to salvors for their services in saving property at sea and minimizing or preventing damage to the environment. Originating from the late 1800s, it is probably the most widely used international salvage agreement of its kind in the world today. ‫ت‬‫و‬ ‫بة‬‫و‬‫املنك‬ ‫سفينة‬‫ل‬‫ا‬‫و‬ ‫املنقذة‬ ‫سفينة‬‫ل‬‫ا‬ ‫فني‬‫ر‬‫الط‬ ‫الك‬ ‫من‬ ‫علهيا‬ ‫التوقيع‬ ‫يمت‬ ‫ثيقة‬‫و‬ ‫يه‬ ‫الرشوط‬ ‫عىل‬ ‫نص‬ ‫مع‬ ‫سفينة‬ ‫لك‬ ‫لها‬ ‫ختضع‬ ‫ن‬‫أ‬‫أ‬ ‫جيب‬ ‫اليت‬ ‫حاكم‬‫أ‬‫ل‬‫وا‬ ( ‫التسعرية‬ ) ‫خطوة‬ ‫للك‬
  • 10. LOF most important article 1. Article (13) 2. Article (14) special compensation clause. 3. Box 7_ SCOPIC clause/ SCOPIC: special compensation of P&I
  • 11. Clause 14_ special compensation clause • If the salvors have been negligent and failed to prevent/ minimize damage to the environment, they must be deprived of the whole or part of any special compensation. - Deprived: ‫يحرم‬ • If no negligence and the salvors have failed to prevent/minimize damage to the environment, he shall be entitled to special compensation equivalent to his actual expenses. • ‫مبلغ‬ ‫فيأخذ‬ ،‫االنقاذ‬ ‫في‬ ‫فشل‬ ‫ولكنه‬ ‫يهمل‬ ‫لم‬ ‫صرف‬ ‫ما‬ ‫بمقدار‬ . • If the salvors prevent/minimize damage to the environment, the special compensation may be increased by up to 30% according to the SCR report. SCR: ship owner causality representative. • The special compensation may be increased by up to 100% according to tribunal/ arbitration.
  • 12. • special compensation is paid only if the salvage reward is less than the special compensation.  advantages of using scopic 2000 to shipowner of salved vessel: 1. Little case goes for arbitration/ tribunal. 2. Owners/clubs have much control or at least knowledge of what is happening. 3. The owner has the right to terminate the contract (clause 9). 4. The up life is capped at 25% - Terminate: ‫انهاء‬ capped: ‫اعاق‬ /  Disadvantages to shipowner of salved vessel using scopic 2000: 1. The tug rate is high_ 3USD/ 1 HP a day, if more than 5000 HP it would be 1.5 USD/ 1 HP 2. The ship owner has given up the environmental threat.
  • 13.  Advantages to salvors using scopic 2000: 1. No longer to prove that there was an environmental threat. 2. Salvors will be paid a profitable (tug) rate. 3. Security is more certain) L/G by million USD within 2 working days). Profitable: ‫ربح‬ُ‫م‬ L/G:  Disadvantages to salvors using scopic 2000: 1. Salvor cannot recover more than 25% uplift. 2. There is a risk of terminating the contract.
  • 14.  Owner/Master obligation: A. Shall cooperate fully with salvors in particular or: 1. To use vessel machinery/ gear and equipment free of charge provided that the salvors shall not unnecessarily damage or sacrifice any property onboard. 2. To get information as may reasonably require relating to the vessel, or to cargo if this information is relevant to the performance and can be provided without undue delay or difficulty. 3. For entry the place delivery of the vessel. A. To exercise due care to prevent/ minimize damage to the environment. B. To accept redelivery at the agreed place when reasonably requested by salvors. C. The master of salved vessel offers his opinion as a suggestion only as it is understood “No Cure, No Pay” that the salved party not to interfere with salvage operation, so the master (salved) shall be diplomatic. D. The master (salved) has to interfere in a salvage operation to safeguard, human life, vessel, cargo, and environment, he shall offer his protest in writing. E. To record the timing of all events.
  • 15.  SCR: ship owner causalities representative: ‫من‬ ‫اختياره‬ ‫يتم‬
  • 16. There are several factors that would be considered by a court in establishing the amount of the salver’s award. Some of these include:  The difficulty of the operation,  The risk involved to the salver,  The value of the property saved,  The degree of danger to which the property was exposed, and  The potential environmental impacts. Jetsam: are goods that were thrown off a ship, which was in danger, to save the ship. Flotsam are goods that floated off the ship while it was in danger or when it sank. Ligan or lagan is goods left in the sea on the wreck or tied to a buoy so that they can be recovered later by the owners. Derelict: is an abandoned vessel or cargo.