LOF 2000 & SCOPIC

Salvage (principles)
Maritime Property
At Sea
In Peril
Voluntary Service
Successful Service (No cure – No pay)

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LOF 2000 & SCOPIC

– LOF 2000 - MAIN CHANGES

• PERSONNEL EFFECTS & BAGGAGE EXCLUDED
• CURRENCY OF PAYMENT
• DUTY TO CO-OPERATE - INFORMATION EX.
• RIGHTS OF TERMINATION - SHIPOWNER &
SALVOR
• DEEMED PERFORMANCE
• SCOPIC
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LOF 2000 & SCOPIC

• AWARD
– ARTICLE 13 (INTERNATIONAL SALVAGE CONV. 1989)
• ONLY IF SALVOR IS SUCCESSFUL
• BASED ON THE EFFORTS & READINESS OF
THE SALVOR AND RISKS TAKEN
• REWARD COMES FROM ALL OF PROPERTY
• CAN NEVER EXCEED SALVED VALUE OF
PROPERTY
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LOF 2000 & SCOPIC

– ARTICLE 14 (INTERNATIONAL SALVAGE CONV. 1989)

• IF SERVICE IS NOT SUCCESSFUL UNDER NO
CURE - NO PAY, THERE WILL BE NO AWARD
• IF VESSEL IS A THREAT TO ENVIRONMENT,
INCENTIVE FOR SALVORS TO TRY TO SAVE
ENVIRONMENT
• SALVOR CAN RECEIVE 30% TO 100% ABOVE
EXPENSES

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LOF 2000 & SCOPIC

• POTENTIAL PROBLEMS
– WHICH SHIP IS A THREAT TO
ENVIRONMENT ?
– WHICH SHIP IS NOT ?
– AFTER UNSUCCESSFUL SERVICE IF VESSEL
DOES NOT CAUSE POLLUTION ?
– WHO SUFFERS IF POLLUTION OCCURS ?

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LOF 2000 & SCOPIC

• SCOPIC
“SPECIAL COMPENSATION P&I CALUSE”
– SUPPLEMENTARY TO LOF AGREEMENT
– INCORPORATES PROVISIONS OF “ART 14”
– IF INCONSISTENT WITH MAIN AGREEMENT,
SCOPIC WILL OVERRIDE IT
– CONTRACTOR (SALVOR) HAS OPTION OF
INV0KING IT
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LOF 2000 & SCOPIC

• SCOPIC (CONTINUED)
– IT CAN BE INVOKED, REGARDLESS OF
CIRCUMSTANCES
– ONCE INVOKED, OWNERS OF VESSEL TO
PROVIDE SECURITY OF US$ 3M WITHIN 2
WORKING DAYS.
– SECURITY CAN BE INCREASED OR
DECREASED BY OWNERS & SALVOR ?
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LOF 2000 & SCOPIC

• SCOPIC (CONTINUED)
– AWARD AS PER ARTICLE 13
– IF AWARD UNDER ARTICLE 13 EXCEEDS
THE SECURITY, THEN THE EXCESS SHALL
BE DISCOUNTED BY 25%
– IF SALVOR IS UNSUCCESSFUL, EXPENSES +
25% IS CLAIMED UNDER SCOPIC

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LOF 2000 & SCOPIC

• SCOPIC (CONTINUED)
– APPENDIX A - EXPENSES
– APPENDIX B - SCR
– APPENDIX C - SPECIAL REPRESENTATIVE
– CODE OF PRACTICES EXIST AS FOLLOWS:
• P&I CLUBS AND UNDERWRITERS FOR FEES
• P&I CLUBS AND INTERNATIONAL SALVAGE
UNION
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LOF 2000 & SCOPIC

• SCOPIC (continued)
– SHIPOWNERS CASUALTY REPRESENTATIVE
(SCR)

– SPECIAL REPRESENTATIVE

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LOF 2000 & SCOPIC

Article 13 Article 14
LOF 5M 1M
1.3 ~ 2.0 M
Security 3M
SCOPIC 2M (-25%) 1.25M
4.5M

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TOWAGE

Contracts
UKSTC: UK Standard Towing Conditions
Variations for Deep Sea:
TOWCON: Lump sump payment
TOWHIRE: Daily rate

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TOWAGE

Two maxims!!!

Tug is Servant of the Tow (this depends on

how much control is there on tow)

Tug and Tow are One Vessel

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TOWAGE

Why choose towage or salvage????

In Towage:
Tow is liable (Subject to; who has the
control)
In Salvage:
Tug is liable
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TOWAGE

When contract of towage is frustrated,

salvage can become applicable
Further services would be based on salvage

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GENERAL AVERAGE

A ship fully loaded with cargo from NW Europe,

bound for Bombay in late 1950’s
Was carrying locomotives on deck – month July in
Arabian Sea
Lost locomotive over the side due to weather
What action did master take?

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 GENERAL AVERAGE

Ship with locomotives on deck

Lost due to weather Jettison

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GENERAL AVERAGE

• Accidental Losses: Partial Loss (Particular

average is an obsolete term) – (Falls on
the party that owns the property or has
insured the property)
• General Average: Intentional
expenditure, sacrifice or acts (Covered
mutually – vessels share paid for by the
underwriters)
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GENERAL AVERAGE

• Arrived Value (At the time of loss -

including the expenditure, sacrifice or
act, but excluding the accidental loss)
• Ship (A) + Bunkers (B) + Cargo (C, D, E,
F2) + Jettisoned Locomotive (F1)
• = 10.0 M

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GENERAL AVERAGE

• Values:
A = 5.0
B = 0.5
C = 2.0
D = 1.0
E = 0.75
F = 0.75 (F1 0.25, F2 0.5)

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GENERAL AVERAGE

• Contributions
A = 5.0 / 10.0 x 0.25 = 0.125
B = 0.5 / 10.0 x 0.25 = 0.0125
C = 2.0 /10.0 x 0.25 = 0.05
D = 1.0 / 10.0 x 0.25 = 0.025
E = 0.75 / 10.0 x 0.25 = 0.01875
F = 0.75 / 10.0 x 0.25 = 0.01875
Total = 0.25
The owner of GA property must contribute

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GENERAL AVERAGE

Average Adjuster works out the contributions

Master can exercise Possessory Lien if
contributions have not been paid
Alternately, may discharge cargo to a warehouse
or barge controlled by ship owner or operator
Owners can accept: Average Bond, Average
Deposit, Security, etc.

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SAFE PORTS

Approaches, Experience with ship type,

Nav aids, Approach channel, Swinging
room, Berth, Fenders, Mooring
arrangement, Climate and prevalent
weather
Facilities
Communications

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PORTS OF REFUGE

Is it a safe port?
Distance
Can we reach there safely and in time
Elements of nature en route
Facilities
Insurers and owners choice!!!!

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LOF 2000 & SCOPIC

The end
Thank you

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