International Salvage Convention 1989

Article 1 - Definitions

(a) Salvage operation means any act or activity undertaken to assist a

vessel or any other property in danger in navigable waters or in
any other waters whatsoever.
(b) Vessel means any ship or craft, or any structure capable of
navigation.
(c) Property means any property not permanently and intentionally
attached to the shoreline and includes freight at risk.
(d) Damage to the environment means substantial physical damage
to human health or to marine life or resources in coastal or inland
waters or areas adjacent thereto, caused by pollution,
contamination, fire, explosion or similar major incidents.
 SALVAGE

The term "salvage" applies to

(a)the service performed by a salvor, and
(b) the reward paid to a salvor in respect of his successful services.
The right to salvage can arise only in respect of "maritime property", which term does not
include every kind of property found in tidal waters. Vessels used in navigation, whether
registered or not, their apparel, cargo and wreckage thereof do constitute maritime property,
Three conditions must be fulfilled before the rescue of maritime property can give rise to a
valid claim for a salvage award. These are
(1)the property must be in danger,
(2) the service rendered must be of a voluntary character, i.e., the salvor must not be under any
contractual or official duty to render assistance, and
(3) the service must be successful.
 Salvage work undertaken in accordance with a salvage agreement is not of a
voluntary nature, but the existence of some other kind of agreement may still allow a
valid claim to salvage to exist in a proper case. This may occur, for instance, where
there is a contract of towage or pilotage and salvage services are rendered by the tug
or pilot, as the case may be. Except in special cases, there is a tendency for the courts
to look with disfavor on salvage claims put forward by tugs or pilots, but a good
claim can be established provided that:
1-the vessel being towed or piloted is really in danger;
2-the tug or pilot has in no way contributed towards her being in danger;
3-the tug was well equipped for the services contemplated in the towage contract;

4)the tug or pilot has rendered services substantially in excess of those normally to be
expected in return for their
customary remuneration;
5)the tug or pilot successfully saves, or materially contributes towards saving, the
vessel in danger.
 The Parties to a Salvage Operation. The two parties to the transaction are
(I) the salvors who are entitled to the reward, and they are in most cases the owner,
master and crew of the salving ship, and
(II) the owners of the salved property who are liable to pay salvage, namely, the owners
of the ship, cargo and freight salved.
Master's Right of Decision where several Salvors appear. If several would-be salvors
appear on the scene, the master of the ship needing assistance has the absolute right to
decide which of them shall be employed. If he decides that he needs more help than can be
given by the first salvors on the spot, the latter have no right to exclude others who appear
later with offers of assistance. On the other hand, late comers who interfere against the
wishes of the master will not only earn no reward, but they may be proceeded against if
their interference impedes the efforts of legitimate salvors.
 Derelicts. In the case of a derelict vessel the position is different. The first salvor to take
possession has absolute right and control, and no one may interfere with him except in the
face of manifest incompetence.
Lien for Salvage. There is a maritime lien on property saved, giving the right to arrest the
property even if it has changed hands, in order to have it sold so that claims can be satisfied.
This lien ranks in priority over all previous liens on the property, and is considered to be
such good .protection that salvors are not normally allowed to retain possession of salved
property and thereby prevent the owners of it from making use of it. Apart from this remedy
in rem the salvor may also proceed in personam against the owners of the salved property,
which would be a very valuable right in the event of the lien becoming lost.
The Reward. Wilful or criminal misconduct will result in the salvor forfeiting his reward,
but misconduct which is not wilful or criminal does not give rise to forfeiture though it will
lead to the amount of the reward being reduced. Where one ship negligently
Salvage awards are usually on a fairly generous scale, with a view to encouraging salvage
services, but the award cannot in any event exceed the value of the property saved. Factors taken
into account in assessing the award are:
1-the degree of danger from which the property was salved;
2-the enterprise of the salvors and the degree of risk to their own lives;
3-the extent of the labour incurred and skill displayed by the salvors;
4-the degree of risk to which the salvor's property was exposed, and thevalue of the property
risked;
5-the value of the property salved;
6.the loss, if any, suffered by the salvor.
 Salvage Agreements. Under such an agreement the salvor can bargain for a reward
beforehand, but it is not necessary to do so. Where a specific amount is not fixed the
agreement is called an "open" agreement. All the usual conditions of salvage are implied in a
salvage agreement, hence they are entered into on a "No cure – No pay" basis, and the
salvors have a lien on the salved property. The form of agreement amost universally
employed nowadays is the Lloyd's Standard Form of Salvage Agreement with which a
number of advantages are associated. These are as follows:
*The owner of the property in danger benefits from the "No cure – No pay" principle.
The salvor benefits by having an agreement which can be obtained in a few moments and
which is not likely to be contested. He also retains his right of lien.
*All parties benefit from the provision of the agreement that the salvor's remuneration shall
be referred to arbitration (unless the parties agree otherwise).
*Underwriters of the property in danger benefit because their liability cannot be increased
beyond liability for total loss. That is to say they will not, under the "No cure – No pay"
principle, become liable for suing and labouring charges as well in the event of total loss
occurring.
 Taking a Vessel in tow. A vessel requiring a tow into port is not necessarily in distress, so that before accepting the
offer the master of a vessel able to tow should make certain that a clause giving liberty to tow is included in the C/P
and/or B's/L. In addition, the following points also require careful consideration.
1.Sufficiency of bunkers, including an adequate reserve.
2.Notifying the owners so that they can ratify the master's decision and inform their underwriters in case additional
premiums are required.
3.In the case of a vessel under charter, notifying the charterer.
4. The possibility, when under charter, of reaching the loading port or port of delivery before the cancelling date.
5.The nature of the cargo, if any, being carried, and in the case of a perishable cargo the possible effect of delay
thereon.
6.The power and condition of main propelling machinery and any deck machinery that may have to be used.
7.The probable value of the vessel needing the tow, including the value of her cargo, and whether it is sufficient to
hold promise of an adequate salvage award.
8.Coming to an agreement with the master of the vessel needing the tow as to the destination. Where practicable it
is preferable to take her to a British port rather than to a foreign port.
9.The obtaining of a Lloyd's form of salvage agreement.
It is important to keep in mind that final success is vital to the earning of a reward. From this point of view the
master should not hesitate to engage tug assistance where that is really necessary to

navigate safely the approaches to the agreed port of destination and to berth the tow in a safe position on arrival.
Such tugs
 Article 9 - Rights of coastal States
Nothing in this Convention shall affect the right of the coastal
State concerned to take measures in accordance with
generally recognized principles of international law to protect
its coastline or related interests from pollution or the threat of
pollution following upon a maritime casualty or acts relating
to such a casualty which may reasonably be expected to result
in major harmful consequences, including the right of a
coastal State to give directions in relation to salvage
operations
Article 13 - Criteria for fixing the reward
(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 salvor's
equipment and the value thereof
The rewards shall not exceed the salved value of the vessel and
other property