MEO Class I · Oral · asked at MMD Kochi

What is salvage, what are its types, and what do LOF, Articles 13 and 14 and SCOPIC provide?

Short answer

flowchart TD
  A["Property in danger"] --> B["LOF signed: no cure, no pay"]
  B --> C{"Useful result?"}
  C -->|Yes| D["Article 13 reward, up to the salved value"]
  C -->|No| E["No reward (Article 12)"]
  A --> F["Environmental threat"]
  F --> G["Article 14 special compensation: expenses, up to 30% more; or the SCOPIC tariff with P&I security"]
  • Salvage (Convention 1989, Article 1): assisting a vessel or property in danger; a successful salvor earns a reward; Article 12 no cure, no pay.
  • Types: contract (usually LOF; the master may sign, Article 6) or voluntary; property versus life salvage (no reward from the persons saved, a share of the property reward).
  • LOF: Lloyd’s Open Form, no cure, no pay, the reward fixed later by Lloyd’s arbitration in London so work starts at once; with the SCOPIC option.
  • Article 13 criteria: salved value, environmental skill, success, danger, skill, time and expenses, liability risk, promptness, equipment; never exceeding the salved value.
  • Article 14: where the vessel or cargo threatened the environment and the Article 13 reward is inadequate, the salvor recovers expenses, up to 30% more if damage was prevented, exceptionally up to 100%.
  • SCOPIC and Article 8: a pre-agreed tariff backed by P&I security replaces Article 14; Article 8 is the paramount duty of care to the environment.

Full answer

The full answer explains each point step by step, with the regulations and figures behind it and the discussion from other candidates. It is in the MEO Class I section of the Marine One forum, open to members enrolled for the MEO Class I exam.