What are the principles of modern salvage law, and what are entitlement, adjustment and contestation in general average?
Short answer
| Salvage | General average | |
|---|---|---|
| Who | an outside rescuer of property in danger | the interests of one adventure: ship, cargo, freight |
| Basis | no cure, no pay (article 12); reward on the article 13 criteria | a deliberate sacrifice for the common safety, under the York-Antwerp Rules |
| Who pays | the salved property, up to its value; article 14 or SCOPIC for an environmental threat | all saved interests, in proportion to contributory values |
| Decided by | Lloyd’s arbitration under the LOF | an average adjuster; disputes by arbitration or the courts |
- Salvage principles (1989): voluntary assistance to property in danger (article 1); no cure, no pay (12); reward on the article 13 criteria, never above the salved value; special compensation for an environmental threat (14); duty of care (8); the LOF (6).
- General average: a deliberate, reasonable sacrifice for the common safety of ship, cargo and freight, shared proportionately by the saved interests under the York-Antwerp Rules (jettison, flooding a hold against fire).
- A, entitlement: the party who suffered the sacrifice gets a rateable contribution by contributory value; the shipowner declares GA and takes a bond and guarantee before releasing cargo.
- B, artificial adjustment: the loss must be deliberate, not accidental; an average adjuster values the sacrifices, fixes contributory values and computes each contribution.
- C, contestation: disputing whether the act was voluntary, reasonable and for the common safety, the values or the apportionment; settled by negotiation, arbitration or the courts.
- India: salvage under MS Act 2025 Part XII (s.250); general average under the York-Antwerp Rules.
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.