Class 1 (Chief Engineer) Engineering Management 📅 Dec 2022

Exam Question

A grounded ship has been refloated 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.

(b) State the duties of the salvor and the shipowner master as per this convention

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

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, taking into account the following criteria without regard to the order in which they are presented below:
* **The Salved Value of the Vessel and other Property:** The post-salvage value of the ship, its cargo, freight at risk, and bunkers. This value forms the fund from which the award is paid. A higher salved value allows for a potentially larger award.
* **The Skill and Efforts of the Salvors in Preventing or Minimizing Damage to the Environment:** This is a key criterion introduced by the 1989 convention. Exceptional skill demonstrated in protecting the marine environment from pollution (e.g., from bunker oil or hazardous cargo) can significantly enhance the award.

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