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

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 o Counter plundering o Incentive o Ship o Persons o Environment
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This has influenced the rules on o The reward o No reward without success o Agreement not necessary
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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 reward o No cure - No pay o Salvage under contract
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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
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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
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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
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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
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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
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Voluntariness, § 450 o Coastguard o Crew o Pilot o Tug o Other public authorities
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Master’s veto, § 450(2) o First come, first serve o Rationale for veto o Problem of delay o Duties of the involved, § 444
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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?
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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
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Damage to the environment treated outside the principle o Special compensation, § 449 o Unsuccessful efforts:
Expenses o Successful efforts:
Expenses + 30 to 100 percent
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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
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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
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The solution to the problems o SCOPIC-clause into the salvage contract o Special compensation scheme not applicable
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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
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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
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Towage contrasted o Agreed price o Daily hourly rate (BIMCO
Towhire) o Lump sum (BIMCO Towcon) o Usually no claim for salvage compensation
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Special salvage operations
§ 442(2) o Salvage operations by sister vessels o Salvage operations by public authorities
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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
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General Average– o Allowed in YAR 1994 Rule VI, cf. § 447 o Outside YAR 2004 o Subsequent debate
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MARINE Insurance o NMIP § 4-8 o CICG § 39
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Maritime lien and limitation o Maritime lien, §§ 51 and 61 o Limitation, § 173 o IOPCF Claims Manual, 2007, #3.1.15
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