The Law of SalvageoProfessor Erik Røsæg

oScandinavian Institute of Maritime Law

oerik.rosag@jus.uio.noofolk.uio.no/erikro

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 What salvage is about

Any act or activity to assist a vessel, or any other property in danger, in navigabel waters, or in any other waters watsoever

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Intended purposes

oCounter plunderingoIncentiveoShipoPersonsoEnvironment

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This has influencedthe rules on

oThe rewardoNo reward without success

oAgreement not necessary

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An overview of salvage

o Interest or property subject to salvage

oConditions for rewardoDangeroVoluntarinessoUseful result

oResult-based rewardoNo cure - No pay

oSalvage under contract

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Quite unique to maritime law

o AirplanesAct No. 101/1993 § 12-8

o Fishery equipmentAct No. 37/2008 § 29

--oNegotiorum gestiooWreck act, 1893o Lost property Act, 1955o Pollution Act, 1981

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The legal background

o1910 Brussels Convention for the Unification of Certain Rules with Respect to Assistance and Salvage at Sea

oAmoco Cadizo International Convention On

Salvage 1989oLloyd’s Open Form (LOF) 2000

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Common salvage operations and services

o Stranding and groundingo Sinkingo Rescue towageo ---o Refloatingo Pumping, raising and repairo Hook up and tow in o Surveyso Fire fightingo Cargo/equipment recoveryo Wreck removalo Standing byo Prevention of third party damage

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Interests subject to salvage,§ 441

oVesselsoMobile drilling units, § 507oCargooOther property

oNo Salvage alone of oPersons, § 445(2)oLiabilityoLoss of time

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In danger, foundered or wrecked, § 441

o Foundered or wreckedo Types of danger

o Total losso Extensive damageo Assistance contrasted

o  Degree of dangero Severe peril of the seao Actual danger as opposed to perceived danger

o Loran ND 1996.238 o Los 102 ND 1999.269oNorsk Viking ND 2004.383

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Voluntariness, § 450

oCoastguardoCrewoPilotoTugoOther public authorities

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Master’s veto, § 450(2)

o First come, first serveo Rationale for vetoo Problem of delayoDuties of the involved, § 444

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Useful result, § 445

oNo cure no pay-principleoReward cannot exceed the saved value

oWhat is success?oOut of danger sufficient?

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Assessment of the reward

oAim to encouraging salvage efforts

oCriteria, 446oWithout regard to the order

of the criteriaoReduction, § 450oPIOPIC  

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Damage to the environment treated outside the principle

oSpecial compensation, § 449

oUnsuccessful efforts:Expenses

oSuccessful efforts:Expenses + 30 to 100 percent

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Special compensation

oThe vessel must threaten to damage the environment

oDamage means substantial physical damage to human health or to marine life or recourses

oCauses only from certain pollutants

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Problems

oWhat constitute expenses?oCan profit be included?oHow to measure success?oHow to assess the uplift (+30-

100 %)?o Insurers exposed to

“unmonitored” risks

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The solution to the problems

oSCOPIC-clause into the salvage contract

oSpecial compensation scheme not applicable

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SCOPIC-clauseo Main advantages compared to art. 14 of the

salvage conventiono No threat of damage to the environment

requiredo Geographical scopeo A fixed uplift (25%) not linked to successo Agreed tariff rates for tugs personnel and

equipmento Firm agreement on securityo P&I clubs’ and property underwriters’ rights to

be represented during the salvage operation

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Salvage under contract

oAgreement that there is a danger 

oFixed rateoPure salvageoNo cure no payoA salvage contract can be

modified and annulled, § 443

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Towage contrasted

oAgreed priceoDaily hourly rate (BIMCO Towhire)

oLump sum (BIMCO Towcon)oUsually no claim for salvage compensation

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Special salvage operations

§ 442(2)

oSalvage operations by sister vessels

oSalvage operations by public authorities

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Apportionment

oApportionment between independent salvors, § 448

oApportionment between owner, master and crew, § 451

oApportionment between owner and time charterer, §§ 386 and 392

oRisk distribution in carriage of goods, §§ 275 and 278

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General Average–

oAllowed in YAR 1994 Rule VI,cf. § 447

oOutside YAR 2004oSubsequent debate

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MARINE Insurance

oNMIP § 4-8oCICG § 39

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Maritime lien and limitation

oMaritime lien, §§ 51 and 61o Limitation, § 173o IOPCF Claims Manual, 2007,

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