Salvage

When a casualty has occurred, the Leading Underwriter’s experience, contacts in salvage companies in all waters and network of agents are at the Master’s disposal. Co-operation with the Owners and Leading Underwriter should be established as early as possible. 

This co-operation and assistance that can be rendered from shore must be based on information from the vessel. Send a complete report to the Owners as soon as possible, detailing all information that may be of importance in assessing the situation. This includes the vessel’s exact position, description of the occurrence, information about the weather conditions and the cargo, etc. 

It is essential to include in the report the steps have been taken so far and what, in the Master’s judgement, should be done to salve the vessel. Of particular interest in this regard is the Master’s opinion about the efficiency of the available local assistance. This information is necessary to ensure speedy and effective assistance to the vessel. 

A salvage contract should not be signed until the Owners’ Leading Underwriter has been notified about the situation. Should the vessel be in imminent danger and salvage operations imperative without opportunity or time to contact the Owners, then sign a contract on the best possible terms with a salvor who is able to render adequate assistance. If a NO CURE - NO PAY contract is required, we recommend Lloyd’s Standard Form of Salvage Agreement, ref next page.

When the salvage has been completed a report must be prepared detailing the following:

  1. all circumstances in connection with the casualty, including vessel position, times of the separate stages of the salvage operation, weather conditions, etc.
  2. information about the salvors, their equipment, efficiency, efforts, damage sustained by them and any risks they have run, etc.

The report to be sent to the Owners together with verbatim extracts from the vessel’s logbooks. The report will become an important document at the subsequent negotiations for determining the size of the salvage award.