Class 1 (Chief Engineer) Engineering Management 📅 Aug 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 Articie 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, and

(c) Assuming LOF-2000 was agreed between the parties, discuss when is the Convention 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:
1. **The Salved Value of the Vessel and Other Property**: This is the primary factor. It represents the post-salvage market value of the ship, its cargo, freight at risk, and bunkers. The award cannot exceed this total salved value.
2. **The Skill and Efforts of the Salvors in Preventing or Minimizing Damage to the Environment**: This is a key enhancement in the 1989 Convention. Significant efforts to prevent pollution (e.g., oil spills) are heavily rewarded, reflecting the public interest in environmental protection.

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