Overview of Maritime Salvage Law and Operations
The Law of Salvage
o
Professor Erik Røsæg
o
Scandinavian Institute of
Maritime Law
o
erik.rosag@jus.uio.no
o
folk.uio.no/erikro
2
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
Intended purposes
o
Counter plundering
o
Incentive
o
Ship
o
Persons
o
Environment
3
This has influenced
the rules on
o
The reward
o
No reward without success
o
Agreement
not necessary
4
An overview of salvage
o
Interest or property subject to
salvage
o
Conditions for reward
o
Danger
o
Voluntariness
o
Useful result
o
Result-based
r
eward
o
No cure - No pay
o
Salvage under contract
5
Quite
u
nique to maritime law
o
Airplanes
Act No. 101/1993 § 12-8
o
Fishery equipment
Act No. 37/2008 § 29
--
o
Negotiorum gestio
o
Wreck act, 1893
o
Lost property Act, 1955
o
Pollution Act, 1981
6
The legal background
o
1910 Brussels Convention for the
Unification of Certain Rules with
Respect to Assistance and
Salvage at Sea
o
Amoco Cadiz
o
International Convention On
Salvage 1989
o
Lloyd’s Open Form (LOF) 2000
7
Common salvage operations
and services
o
Stranding and grounding
o
Sinking
o
Rescue towage
o
---
o
Refloating
o
Pumping, raising and repair
o
Hook up and tow in
o
Surveys
o
Fire fighting
o
Cargo/equipment recovery
o
Wreck removal
o
Standing by
o
Prevention of third party damage
8
Interests subject to
salvage,§ 441
o
Vessels
o
Mobile drilling units, § 507
o
Cargo
o
Other property
o
No Salvage alone of
o
Persons, § 445(2)
o
Liability
o
Loss of time
9
In danger, foundered or
wrecked, § 441
o
Foundered or wrecked
o
Types of danger
o
Total loss
o
Extensive damage
o
Assistance contrasted
o
Degree of danger
o
Severe peril of the sea
o
Actual danger as opposed to perceived danger
o
Loran ND 1996.238
o
Los 102 ND 1999.269
o
Norsk Viking ND 2004.383
10
Voluntariness, § 450
o
Coastguard
o
Crew
o
Pilot
o
Tug
o
Other public authorities
11
Master’s veto, § 450(2)
o
First come, first serve
o
Rationale for veto
o
Problem of delay
o
Duties of the involved, § 444
12
Useful result, § 445
o
No cure no pay-principle
o
Reward cannot exceed the
saved value
o
What is success?
o
Out of danger sufficient?
13
Assessment of the reward
o
Aim to encouraging salvage
efforts
o
Criteria, 446
o
Without regard to the order of
the criteria
o
Reduction, § 450
o
PIOPIC
14
Damage to the environment
treated outside the principle
o
Special compensation, § 449
o
Unsuccessful efforts:
Expenses
o
Successful efforts:
Expenses + 30 to 100 percent
15
Special compensation
o
The vessel must threaten to
damage the environment
o
Damage means substantial
physical damage to human health
or to marine life or recourses
o
Causes only from certain
pollutants
16
Problems
o
What constitute expenses?
o
Can profit be included?
o
How to measure success?
o
How to assess the uplift (+30-
100 %)?
o
Insurers exposed to
“unmonitored” risks
17
The solution to the problems
o
SCOPIC-clause into the
salvage contract
o
Special compensation scheme
not applicable
18
SCOPIC-clause
o
Main advantages compared to art. 14 of the
salvage convention
o
No threat of damage to the environment
required
o
Geographical scope
o
A fixed uplift (25%) not linked to success
o
Agreed tariff rates for tugs personnel and
equipment
o
Firm agreement on security
o
P&I clubs’ and property underwriters’ rights to
be represented during the salvage operation
19
Salvage under contract
o
Agreement that there is a
danger
o
Fixed rate
o
Pure salvage
o
No cure no pay
o
A salvage contract can be
modified and annulled, § 443
20
Towage contrasted
o
Agreed price
o
Daily hourly rate (BIMCO
Towhire)
o
Lump sum (BIMCO Towcon)
o
Usually n
o claim for salvage
compensation
21
Special salvage operations
§ 442(2)
o
Salvage operations by sister
vessels
o
Salvage operations by public
authorities
22
Apportionment
o
Apportionment between independent
salvors, § 448
o
Apportionment between owner,
master and crew, § 451
o
Apportionment between owner and
time charterer, §§ 386 and 392
o
Risk distribution in
carriage of
goods, §§ 275 and 278
23
General Average–
o
Allowed in YAR 1994 Rule VI,
cf. § 447
o
Outside YAR 2004
o
Subsequent debate
24
MARINE Insurance
o
NMIP § 4-8
o
CICG §
39
25
Maritime lien and limitation
o
Maritime lien, §§ 51 and 61
o
Limitation, § 173
o
IOPCF Claims Manual, 2007, #3.1.15
26
Salvage law encompasses acts to assist vessels or property in danger, with rewarding conditions based on success and voluntary efforts. Maritime salvage operations involve a range of services such as stranding assistance, rescue towage, and wreck removal, governed by international conventions and regulations.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
The Law of Salvage oProfessor Erik R s g oScandinavian Institute of Maritime Law oerik.rosag@jus.uio.no ofolk.uio.no/erikro
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 2
Intended purposes oCounter plundering oIncentive oShip oPersons oEnvironment 3
This has influenced the rules on oThe reward oNo reward without success oAgreement not necessary 4
An overview of salvage o Interest or property subject to salvage o Conditions for reward o Danger o Voluntariness o Useful result oResult-based reward oNo cure - No pay o Salvage under contract 5
Quite unique to maritime law o Airplanes Act No. 101/1993 12-8 o Fishery equipment Act No. 37/2008 29 -- o Negotiorum gestio o Wreck act, 1893 o Lost property Act, 1955 o Pollution Act, 1981 6
The legal background o 1910 Brussels Convention for the Unification of Certain Rules with Respect to Assistance and Salvage at Sea o Amoco Cadiz o International Convention On Salvage 1989 o Lloyd s Open Form (LOF) 2000 7
Common salvage operations and services o Stranding and grounding o Sinking o Rescue towage o --- o Refloating o Pumping, raising and repair o Hook up and tow in o Surveys o Fire fighting o Cargo/equipment recovery o Wreck removal o Standing by o Prevention of third party damage 8
Interests subject to salvage, 441 oVessels oMobile drilling units, 507 oCargo oOther property o No Salvage alone of oPersons, 445(2) oLiability oLoss of time 9
In danger, foundered or wrecked, 441 o Foundered or wrecked o Types of danger o Total loss o Extensive damage o Assistance contrasted o Degree of danger o Severe peril of the sea o Actual danger as opposed to perceived danger o Loran ND 1996.238 o Los 102 ND 1999.269 o Norsk Viking ND 2004.383 10
Voluntariness, 450 oCoastguard oCrew oPilot oTug oOther public authorities 11
Masters veto, 450(2) o First come, first serve o Rationale for veto o Problem of delay o Duties of the involved, 444 12
Useful result, 445 oNo cure no pay-principle oReward cannot exceed the saved value oWhat is success? oOut of danger sufficient? 13
Assessment of the reward o Aim to encouraging salvage efforts o Criteria, 446 o Without regard to the order of the criteria o Reduction, 450 o PIOPIC 14
Damage to the environment treated outside the principle oSpecial compensation, 449 oUnsuccessful efforts: Expenses oSuccessful efforts: Expenses + 30 to 100 percent 15
Special compensation o The vessel must threaten to damage the environment o Damage means substantial physical damage to human health or to marine life or recourses o Causes only from certain pollutants 16
Problems o What constitute expenses? o Can profit be included? o How to measure success? o How to assess the uplift (+30- 100 %)? o Insurers exposed to unmonitored risks 17
The solution to the problems oSCOPIC-clause into the salvage contract oSpecial compensation scheme not applicable 18
SCOPIC-clause o Main advantages compared to art. 14 of the salvage convention o No threat of damage to the environment required o Geographical scope o A fixed uplift (25%) not linked to success o Agreed tariff rates for tugs personnel and equipment o Firm agreement on security o P&I clubs and property underwriters rights to be represented during the salvage operation 19
Salvage under contract o Agreement that there is a danger o Fixed rate o Pure salvage o No cure no pay o A salvage contract can be modified and annulled, 443 20
Towage contrasted oAgreed price oDaily hourly rate (BIMCO Towhire) oLump sum (BIMCO Towcon) oUsually no claim for salvage compensation 21
Special salvage operations 442(2) oSalvage operations by sister vessels oSalvage operations by public authorities 22
Apportionment o Apportionment between independent salvors, 448 o Apportionment between owner, master and crew, 451 o Apportionment between owner and time charterer, 386 and 392 o Risk distribution in carriage of goods, 275 and 278 23
General Average oAllowed in YAR 1994 Rule VI, cf. 447 oOutside YAR 2004 oSubsequent debate 24
MARINE Insurance oNMIP 4-8 oCICG 39 25
Maritime lien and limitation o Maritime lien, 51 and 61 o Limitation, 173 o IOPCF Claims Manual, 2007, #3.1.15 26
