Class 1 (Chief Engineer) Engineering Management 📅 Jul 2023

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. (5)

(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 the Convention is applicable and when the LOF, if any dispute arises. (6)

Reference Answer

### (a) Criteria for Determining Salvage Award (Article 13 of the International Convention on Salvage, 1989)
As per Article 13 of the International Convention on Salvage, 1989, the reward for a successful salvage operation shall be fixed with a view to encouraging such operations. The following criteria are considered without regard to the order in which they are presented below:
* **The Salved Value of the Vessel and Other Property:** This is the primary factor. The award is a proportion of the market value of the ship, its cargo, freight at risk, and bunkers after it has been brought to a place of safety, less the costs of bringing it there and preparing it for sale.
* **The Skill and Efforts of the Salvors in Preventing or Minimizing Damage to the Environment:** This is a crucial modern consideration. Exceptional skill demonstrated in averting a pollution incident (e.g., an oil spill) significantly enhances the award, reflecting the public benefit of the action.

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