Distinctions (F-I-N-G-S) Salvage Towage Fees Involvement in Needed Consent Governing Law Success

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37.

Towage vs Salvage
SALVAGE - services one person render to the owner of a ship or goods, by his own
labor, preserving the goods or the ship which the owner or those entrusted with the
care of them have either abandoned in distress at sea, or are unable to protect or
secure.
CONTRACT OF TOWAGE - contract whereby one vessel, usually motorized, pulls
another, whether loaded or not with merchandise, from one place to another, for a
compensation. It is a contract for services rather than a contract of carriage.
DISTINCTIONS
(F-I-N-G-S)
Fees
Involvement in
Accident
Needed Consent
Governing Law
Success
Requirement

SALVAGE

TOWAGE

Fees distributed among crewmen


Vessel must be involved in an accident

Fees belong to the tugboat owner


Vessel need not be involved in an
accident

Done with the consent of the


captain/crewmen
Act No. 2616 (Special Law)

Only the consent of the tugboat


owner is needed
Civil Code on Contract of Lease

Required, otherwise no payment

Not required

X. COGSA
38. Delivery to Arrastre operator for purposes of Section 3 (6)
Prescriptive Period: within 1 year after delivery of the goods or the date the goods
should have been delivered
UNION CARBIDE PHILS. VS. MANILA RAILROAD
delivery within the meaning of section 3(6) of the Carriage of Goods by Sea Law
means delivery to the arrastre operator. That delivery is evidenced by tally
sheets which show whether the goods were landed in good order or in bad order,
a fact which the consignee or shipper can easily ascertain through the customs
broker xxx

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