Marine salvage

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Marine salvage is the process of rescuing a ship, its cargo and sometimes the crew from peril. Salvage encompasses rescue towing, refloating a grounded ship or patching or repairing a ship. Today the protection of the environment from cargoes such as oil is often considered a higher priority than saving the ship or cargo.

"Salvors" are seamen and engineers who carry out salvage to vessels that are not owned by themselves. When salvaging large ships, they may use cranes, floating dry docks and divers to lift and repair ships for short journeys to safety towed by a tugboat. The aim of the salvage may be to repair the vessel at a harbour or dry dock. 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 its resale value, or for scrap.

1 Types of salvage
2 Ship salvage and the law
3 See also
4 External links

[edit] Types of salvage

There are two type of salvage, contract salvage and pure salvage. Contract salvage occurs when a contract is made prior to commencement of salvage operations, the amount of compensation is fixed and the salvor is paid regardless of whether the salvage is successful or not. When a ship or boat has been rescued or salvaged without prior agreement between the owner and salvor or an agreement is made but not for a fixed amount, this is known as pure salvage . In this case the salvor can legally claim recompense or a salvage claim. It is also pure salvage when the ship's master signs an open form salvage agreement with no fixed compensation. This is a contingency contract that leaves the value of the salvage operation to be decided at a later date and both parties agree to binding arbitration in the case of a dispute. The best-known open form is the Lloyd's Open Form salvage contract, which was developed by Lloyd's of London and states "no cure - no pay". Although this rule seems to the disadvantage of the owner of the ship, its purpose is to encourage potential salvors to risk their vessels and use their working time for the benefit of both themselves and the ship owner. In order for a claim to be awarded three requirements must be meet: The vessel must be in peril, the services must be rendered voluntarily, in other words there is no contractual obligation, and finally the salvage must be successful.

[edit] Ship salvage and the law

Salvage law has as a basis that a salvor should be rewarded for risking his life and property to rescue the property of another from peril. A vessel is consider in peril if it is in danger or could become in danger. Examples of a vessel in peril are when it is aground or in danger of going aground.

Prior to a salvage attempt the salvor receives permission from the owner or the master to assist the vessel. If the vessel is abandoned no permission is needed.

The amount of the award depends on, in part, the value of the salved vessel, the degree of risk involved and the degree of peril the vessel was in. Legal disputes do arise from the claiming of salvage rights. To reduce the amount of a claim after an accident, boat owners or skippers often remain on board and in command of the vessel; they do everything possible to minimise further loss and seek to minimize the degree of risk the vessel is in. If another vessel offers a tow and the master or owner negotiates an hourly rate before accepting then salvage does not apply.

Some maritime rescue organisations, such as Britain's Royal National Lifeboat Institution, insist the crews of their lifeboats renounce their right to claim compensation for salvage.

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 are 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 abandoned vessels or cargo.

In the United Kingdom under the Merchant Shipping Act 1995, jetsam, flotsam, lagan and all other cargo and wreckage remain the property of their original owners. Anyone, including recreational divers and beachcombers, removing those goods must inform the Receiver of Wreck to avoid the accusation of theft. As the leisure activity of wreck diving is common, there are laws to protect historic wrecks of archaeological importance and to protect war graves.

The 1910 Brussels Convention for the Unification of Certain Rules with Respect to Assistance and Salvage at Sea reflects the traditional legal principles of marine salvage. The 1989 International Convention on Salvage incorporated the essential provisions of the 1910 Convention, and added some new provisions, as well. The 1989 Salvage Convention entered force on July 14, 1996, with nearly twenty parties. It replaces the 1910 Convention for states which are parties to both where the two conventions' provisions are incompatible.