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Class 1 (Chief Engineer) Engineering Management 📅 Aug 2024

Exam Question

A grounded ship has been re-floated and towed by a professional salvor to a place of safety. As per the Salvage Convention the salvor has a right to award

(a) List the various criteria which are considered under Article 13 of the Convention for determining the amount of award. (6)

(b) State the duties of the salvor and the shipowner/master as per this Convention. (5)

(c) Assuming LOF-2000 was agreed between the parties, discuss when is the Convention applicable and when the LOF if any dispute arises. (5)

Reference Answer

### (a) Criteria for Determining the Salvage Award (Article 13)
As per Article 13 of the International Convention on Salvage, 1989, the reward for a successful salvage operation is fixed with a view to encouraging such operations. The following criteria are taken into account without regard to the order in which they are presented below:
1. **The Salved Value of the Vessel and Other Property:** This is the primary factor. The award is a proportion of the value of the property (ship, cargo, freight at risk, bunkers) after it has been brought to a place of safety, less the costs of bringing it there. A higher salved value allows for a potentially higher award.
2. **The Skill and Efforts of the Salvors in Preventing or Minimizing Damage to the Environment:** This is a key enhancement from previous salvage law. Significant efforts and skill demonstrated by the salvor to protect the environment (e.g., preventing an oil spill) are rewarded generously, reflecting the public interest.

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