Marine Log - March 2008 - (Page 59)

Opinion Lloyds Open Form: continued from p. 60 ing as the marine community has tested the methodology by experience. It still leaves whole the no-cure, no-pay concept LOF embodied in Article 13 of the Salvage Convention while giving the salvor the opportunity to modify his risk by the time and material option of Scopic. The most important contribution of LOF and the Scopic option is that it serves well in a high risk, high visibility casualty. Everyone knows the terms and rates in advance. Contracting can be effected in a matter of minutes by all parties. Keeping in mind that time is always critical in any salvage, LOF plus Scopic gives the parties the flexibility of agreeing to the contract and sorting out minor details later. In actual practice, Scopic, because of its accepted pre-existing rate approval by the marine community, has 100 Years in the making had its use expanded beyond LOF to wreck removals and less time sensitive salvage as well. While the use of LOF, as it presently exists, is on the rise, the international salvage community still sees a need for “With the continuing shift of focus to the protection of the environment, the salvage community believes it should be fairly compensated for its efforts.” additional changes. Today’s change relates to the concept of Environmental Salvage. With the continuing shift of focus to, in the first instance, the protection of the environment, the salvage community believes it should be fairly compensated for its efforts. The present discussions between the International Salvage Union (ISU) and the International Group of P&I clubs and other interested parties is to have the Environmental Salvage Award clause be added to the LOF similar to the way the Scopic clause presently appears. To be applicable, it will need to be invoked by the salvor at the start of the operation. The award to the salvor, based upon the results of an arbitration in London, will come from a monetary pool, created by the owner and his underwriter, based upon the gross tonnage of the vessel involved in the casualty. While still in its infancy, it appears as though the concept of Environmental Salvage will ultimately find its way into the next generation of the LOF salvage agreement. Based upon a review of the history of the LOF, it appears as though it will remain the contract of choice for the marine salvage community. It not only is based in history, but has the ability to change as conditions require and it only gets better with age. ML MARINELOG.COM for: • News updates • Latest MARINE LOG conference programs • On-line Buyers’ Guide • Previews of future features • U.S. Shipbuilding Contracts • On-line renewal ofyour Marine Log subscription . . . and much more! www.marinelog.com MARCH 2008 MARINE LOG 59 http://www.marinelog.com http://www.marinelog.com

Table of Contents Feed for the Digital Edition of Marine Log - March 2008

Marine Log - March 2008 Contents Editorial Second Thoughts Update Inside Washington Navy's Toughest Battle Building Future Fleet Less Fuel, Lower Emissions A New Generation of Mariners Training for the Future LNG Security: Resources Needed Models of Perfection Tech News Newsmakers Contracts Events Infodirect Website Directory ML Marketplace Opinion

Marine Log - March 2008

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