Tutorial

1. The 1989 Salvage Convention has set up several basis in rewarding the salvor. Discuss.

According to Article 13(1) the reward shall be fixed with a view to encouraging salvage operations,
taking into account the following criteria without regard to the order in which they are presented
below:

(a) the salved value of the vessel and other property;

(b) the skill and efforts of the salvors in preventing or minimizing damage to the environment;

(c) the measure of success obtained by the salvor;

(d) the nature and degree of the danger;

(e) the skill and efforts of the salvors in salving the vessel, other property and life;

(f) the time used and expenses and losses incurred by the salvors;

(g) the risk of liability and other risks run by the salvors or their equipment;

(h) the promptness of the services rendered;

(i) the availability and use of vessels or other equipment intended for salvage operations;

(j) the state of readiness and efficiency of the a salvor's equipment and the value thereof.

2. Define and discuss the ‘No Cure – No Pay’ principle

A treaty that was concluded in London on 28 April 1989 that replaced the Brussels Convention on
Assistance and Salvage at Sea as the principal multilateral document governing marine salvage.

The Convention replaced a convention on the law of salvage adopted in Brussels in 1910 which
incorporated the "'no cure, no pay" principle under which a salvor is only rewarded for services if the
operation is successful.

The 1910 Brussels Convention had established the principle (known as "no cure, no pay") that a salvor is
rewarded only if the salvage operation successfully rescues the ship or its cargo.
3. Describe the elements of customary salvage

There are 3 main element of customary salvage

Danger

• The property concerned must have been preserved from danger at sea.

• The subject of salvage includes vessels, cargo or any other property.

Voluntariness

• The salvors must have been “volunteers” and under no pre-existing duty to act.

• The law of salvage only applies when there is no pre-existing duty on the part of the salvor to
come to the assistance of the distress ship.

• However, if for example, the master and the crew have a duty to salvage their vessel and cargo,
they are not entitled to any award.

Success

• The services must succeed either wholly or in part.

• If there is no salved value, there will be no salvage award, namely the “No Cure-No Pay"
principle will apply.

• This requirement has now been diluted by the introduction of Article 14 of the 1989 Salvage
Convention which has the effect of entitling a salvor to payment if he has carried out salvage
operation even if the outcome of the operation is not successful.