Salvage

Question 2

What is the duty of the Master under SOLAS V/33.1?

Answer 2

The Master must proceed with all speed to assist persons in distress.

Question 3

Is there a statutory duty to save property at sea?

Answer 3

No obligation to save property, only lives.

Question 4

Define salvage.

Answer 4

Service rendered to save maritime property in danger.

Question 5

What 3 conditions must exist for salvage?

Answer 5

1. Property must be in real danger (not necessarily imminent).
2. Service must be voluntary (not under contract/duty).
3. Service must be successful (wholly/partly).

Question 6

Who has authority to sign salvage contracts?

Answer 6

The Master has the authority to sign salvage contracts.

Question 7

What are the 2 main types of salvage agreement?

Answer 7

Ordinary tariff/lump sum/daily rate and deferred remuneration.

Question 8

Give an example when a lump sum salvage contract might be used.

Answer 8

Used when there is no immediate danger.

Question 9

When would you use LOF?

Answer 9

When the service is voluntary and successful.

Question 10

What does ‘no cure, no pay’ mean?

Answer 10

Salvors are only paid if they successfully save the property.

Question 11

Why might fixed-rate salvage be cheaper?

Answer 11

It avoids excessive claims.

Question 12

What is LOF and who uses it?

Answer 12

Lloyd’s Open Form (LOF) is a salvage agreement used by salvors.

Question 13

What are the advantages of LOF?

Answer 13

Can be agreed via radio/telecoms, quick & rarely disputed, English law applies, maritime lien protects salvors, arbitration in London saves costs.

Question 14

Which law applies under LOF?

Answer 14

English law applies.

Question 15

Where are disputes settled?

Answer 15

Disputes are settled in London.

Question 16

Does LOF give salvors a maritime lien?

Answer 16

Yes, LOF gives salvors a maritime lien.

Question 17

What is the SCOPIC Clause?

Answer 17

Special Compensation P&I Clause that allows payment for environmental protection achieved.

Question 18

When is SCOPIC invoked?

Answer 18

SCOPIC is invoked when environmental protection is achieved even if property is not saved.

Question 19

Who pays SCOPIC compensation?

Answer 19

The shipowner’s P&I club pays SCOPIC compensation.

Question 20

Why was SCOPIC introduced?

Answer 20

To ensure salvors are compensated where property value is low.

Question 21

Can salvors still be rewarded if salvage fails?

Answer 21

Yes, if environmental protection is achieved.

Question 22

What should the Master do if the ship is drifting onto a lee shore?

Answer 22

The Master should assess the threat urgently and act immediately.

Question 23

Should the Master delay salvage to negotiate better terms?

Answer 23

No, the Master should not delay salvage.

Question 24

What factors should the Master consider before accepting salvage?

Answer 24

The urgency of the threat and the reasonableness of the assistance.

Question 25

Why should the crew assist salvors?

Answer 25

To keep the ship’s crew active and reduce the reward.

Question 26

What are the risks of refusing immediate salvage help?

Answer 26

The ship may be lost or incur greater damage.

Question 27

What property qualifies for salvage?

Answer 27

Maritime property in danger qualifies for salvage.

Question 28

Does salvage apply to lives saved?

Answer 28

No, salvage applies only to property.

Question 29

What happens if salved property is sold?

Answer 29

The proceeds from the sale are used to pay salvage rewards.

Question 30

Who pays salvage rewards?

Answer 30

The owner of the salvaged property pays salvage rewards.

Question 31

What is meant by 'professional salvors may want to do everything'?

Answer 31

It means that professional salvors may take all necessary actions to ensure a successful salvage operation.