Salvage & Towage

What is Salvage?
 Salvage, in maritime law, the rescue of a ship or its cargo on navigable waters
from a peril that, except for the rescuer’s assistance, would have led to the
loss or destruction of the property.

 Typical acts of salvage include releasing ships that have run aground or on
reefs, raising sunken ships (or their cargo), putting out fires, and so on.
5 of the Greatest Salvage Operations in
History
 http://marinesciencetoday.com/2014/01/20/5-of-the-greatest-salvage-
operations-in-history/
Salvage Operations

 https://www.youtube.com/watch?v=B9fBdltZDUo

 https://www.youtube.com/watch?v=3dRjysol1rs&t=488s

 https://www.youtube.com/watch?v=-NnlEC7pBKk
Legal Background
 1910 Brussels Convention for the Unification of Certain Rules with Respect to
Assistance and Salvage at Sea
 International Convention On Salvage 1989
 Lloyd’s Open Form (LOF) 2000
-Agreement of Salvage
Sources
 Before 1910 there is no unified law of salvage.
 Rules of Law respecting Assistance and Salvage at Sea
(Brussels 1910)
 London Salvage Convention 1989 (come into force
internationally in 1996)
 Malaysia (MSO 1952 Part X)
 Order 70 of Rules of Court 2012
Salvage & Towage

 Towage services may be converted to salvage services

 Section 391 (b) of MSO 1952 – contract of towage service
may NOT be able to be converted except the act itself is of
exceptional character and is outside the scope of the contract
of towage.
The Law of Salvage

 http://www.orcv.org.au/index.php/docman-link/racing/vanuatu/1405-2006-
m2v-salvage-issues/file

 http://treaties.fco.gov.uk/docs/pdf/1996/TS0093.pdf (1989 Salvage

Convention)
Criteria to consider for salvage claims
 Art 8 of 1910 Convention – danger run by salved vessel, passengers, crew and
cargo as criterion to receive salvage remuneration
 Art 13(1)(b) 1989 Convention – add in efforts of salvors in preserving or
minimizing damage to environment as criteria
 Art 14 of 1989 conventions – includes special compensation for preventing or
minimizing damage to environment
 Benefit conferred by the salved through the actions of the salvor by his
salvage services.
 Third Party Claims – Not only preserves the salved property but also removes
the prospect of owner of the salved property being subject to claims for
damages by third parties for loss of and damage sustained by them
 The Whippingham (1934) 48 Li.L Rep 49
Salved Property and Salved Values

 Payment is only recoverable if that property is recognized.

 Before Convention 1989
 Vessel had to qualify as a ship.
 The Gas Float Whitton (no .2) [1897] AC 337
 After Convention
 Art 1(a) inclusion of ‘other property in danger.’
 Includes Hovercraft
Elements of Salvage

 Danger
 Voluntary services
 Success
Danger
 Must exist
 Reasonable apprehension of danger is sufficient
 The Phantom[1866] LR 1 A&E
 The Charlotte [(1848) 3 W Rob 68
 The Helenus [1928] 2 Lloyds Rep 261
 Future & Contingent Danger
 Hamtun v St John [1999] 1 Lloyds Rep 883
Voluntary Services
 Not rendered under a pre-existing agreement or under official duty
 Article 17 of 1989 convention
 The Neptune (1824) 1 Hagg 227
Salvage and Wrecks (Case Study)

 http://www.paclii.org/libraries/maritime-law/case-summaries-salvage-and-
wrecks/index.html
Salvage Contracts

 Lloyds Open Form (LOF)

 To determine the amount of payment to be awarded to salvors
 SCOPIC clause
 To supplement LOF in regards of the “no cure no pay principle” and to
increase tariffs.
 Could performance of duties arising under
statute or official duty be used to bar salvage
award?
 Duty to assist after a collision
 The Melanie v San Onofre [1925] AC 246
 Duty to assist other in distress
 Article 10 of Convention 1989
 The Tower Bridge [1936] P 30
Success

 Principle of “no cure, no pay”

 The India (1842) 1 Wm Rob 406
 “Unless the salvors by their services conferred to actual benefit on the salved
property, they are not entitled to salvage payment”
 The Cheerful (1855) 11 PD 3
Duties of Salvors

 General rule: no obligation of salvor to complete salvage.

 Under Lloyds Open Form (LOF) and conventions, there are certain obligations
 1.Best endeavor
 2.Due Care
 Art 8(1)(a) and (b) of Convention 1989
 Art 18 of Convention 1989
 Towage
 The act or service of towing ships and vessels, usually by
means of a small steamer called a "tug." That which is given
for towing ships in rivers. Towage is the drawing a ship or
barge along the water by another ship or boat, fastened to
her, or by men or horses, etc., on land.
 It is also money which is given by bargemen to the owner of
ground next a river, where they tow a barge or other vessel.
 https://www.youtube.com/watch?v=F5fGFxCL-yI (How tugboat works)
Tutorial Discussion

What are the differences

between Salvage and Towage?
Discuss.