Marine Log - March 2008 - (Page 60)

Opinion BY JOHN A. WITTE, JR. March 2008 Vol. 113 No. 3 Lloyds Open Form: 100 Years in the making T his year, Lloyd’s Open Form (LOF) celebrates its 100 years of service to the marine industry. It remains the contract form of choice of the salvage community when attempting to contract for an emergency salvage operation. Even a document as steeped in historical precedent and the age old law of the sea must, to be truly effective, have the ability to adapt to the needs of our everchanging world, from both the perspective of regulatory responsiveness as well as the perception of what we as a society consider a success. In short, has the passage of time diminished the ability of the LOF to perform as it did 100 years ago? A quick review of the history of the LOF may assist us in determining the answer. LOF, is the internationally accepted contract form to define the rights of the parties under the classic no-cure, no-pay salvage concept. Before rapid global communication, before size and speed became paramount in shipping, and before shipping became a highly regulated industry, the salvor would arrive, take charge, take risk and be paid a percentage of the value he salvaged or saved. He undertook a salvage project with the expectation that he would be paid based upon the value of the property remaining after the salvor successfully cured the problem and removed the risk of the encountered marine peril. LOF was the prime and favored salvage contract in one form or another for over 100 years. As years passed and the concern shifted from the recovery of property to the protection of the environment, the contract- ing needs of a salvor also that his efforts have changed. While the moneprevented or minitary value of the salvor’s mized damage to the effort is still determined by environment. The negotiation or arbitration special compensation in London after the salvage is limited in geographis complete, the fact that ic scope, is dependent the regulatory environment on a percentage forced salvors to initially assessment, requires focus on protection of the a proven threat to the environment instead of the environment and is, in traditional focus of cargo short, complicated in recovery, in some instances, administration. Out of to the detriment of cargo the misunderstanding and vessel itself, began to President of the ASA and confusion relating result in lower monetary John A. Witte Jr. to this application of awards to the salvor. Article 14, to reward As environmental liabilithe salvor for polluties became ever more important in a tion vigilance and the expense attendant casualty response, all parties in atten- thereto, came the Scopic remedy. dance began to feel uncomfortable, as the Scopic is a supplemental remedy availtraditional focus of a salvor was forced to able and electable by the salvor at any shift from cargo recovery to environmen- time under the LOF contract. The salvor tal protection. The salvor was restricted need only give written notice to the ownin his activities. He no longer exercised ers of the vessel to invoke the option. total control. Regulatory and environ- Once invoked by the salvor the owner mental considerations seriously impact- may at his sole option appoint a ed his actions to preserve property value. shipowner’s casualty representative For the LOF contract form to remain (SCR) to monitor pre-agreed and preresponsive to the ever-growing needs of published Scopic tariff rates as well as the regulatory environment, as well as methodology employed. It is important to the salvage community, something had note that the SCR’s job is to assist by to change. best endeavor in the successful salvage of The first giant step undertaken to the vessel. He does not, however, replace change LOF and salvage was the Sal- the salvage master who shall at all times vage Convention of 1989. It was promul- be in overall control of the operation. gated under the auspices of IMO. Article The value and use of Scopic is expand14 of that convention provides for special compensation to the salvor in the event continued on p. 59 MARINELOG ISSN 08970491 A Simmons-Boardman Publication 345 Hudson Street, New York, N.Y. 10014 Tel: (212) 620-7200 Fax: (212) 633-1165 Website: http://www.marinelog.com Advertising Sales UNITED STATES New York Sales Office 345 Hudson St., 12th floor New York, NY 10014 Roland Espinosa Sales Director Tel (212) 620-7225 Fax (212) 633-1165 E-mail: respinosa@sbpub.com U.S. GULF COAST Jeff Sutley Tel (212) 620-7233 Fax (212) 633-1165 E-mail: jsutley@sbpub.com WORLDWIDE Europe & Australia Representative Donna Edwards, International Sales Manager e-mail: dedwards@sbpub.com Marine Log (UK) Hillreed House, 54 Queen Street, Horsham, West Sussex RH13 5AD UK Tel: +44 1403 275935 Fax: +44 1403 260633 Korea Young-Seoh Chinn JES Media International 2nd Fl. 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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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