SALVAGE

Salvage can be described as a service rendered to save maritime property in danger. Salvage can be characterized by the following:

1.    Salvage service must be voluntary

2.    Salvage property must be recognized maritime property

3.    Subject must be in danger

4.    Salvage must be successful.

Let us look at above … in detail-

1)   Vessel crew pilot cannot claim salvage as they are bounded by contract to protect the vessel and its cargo from danger. Tugs arranged previously for to wage cannot claim salvage. However tugs called in an emergency tacs claim salvage.

2)   Subject can be vessel cargo special equipment on board ship boundaries as any other maritime property out risk of being lost if salvage is not rendered. Provisions crews effect etc o not qualify for salvage

3)   Dangers must be ……… at commencement of salvage. However it might not be immediately present or imminent eg., a vessel which has lost its propeller is not if any immediate danger, if it is at sea however, if may taken lead to grounding.

4)   Salvage claim is paid out of the value of the property saved hence salvage must be successful (at least partly). Hence the term ‘No cure’ no pay viz if salvage operation is unsuccessful there can be no value to effect payment.

Beneficiaries of salvage are liable to pay salvage

These includes

1.    Owner of vessel

2.    Owner of any special equipment fitted on board

3.    Charters of vessel

4.    Owners of ‘salved’ cargo

5.    Owners of bankers on board

GENERAL AVERAGE ACT:

Principles and object of 6.A

That which has been … for the benefit of all shall be made good by the contribution of all.

The object of 6.A is to ensures that the owner of a vessel or cargo who has incurred an expenditure the vessel from a previous position receives a contribution o his loss from all those who have benefited from the action

The York Antwerp rules 1974, ……………….. act as “There is a 6 A out when and only when, any extraordinary sacrifice as expenditure is …………………. Made or incurred for the common safety for the purpose of preserving from peril the property involved in a common maritime adventure”

“ A common maritime adventure” is a voyage in which several parties have some financial interest. The policies to a common maritime adventure would include the ship owner.

(i)   General Average Adjustment

-        Assessment of each party’s contribution is caused on average adjustment

-        Governed by York Antwerp Rules 1974

-        The rules ensure that all the average adjustments. To as international standard

-        The adjustment is made by an average adjuster

-        The average adjuster is appointed by the ship owner to collect all the facts surroundings the incident to collect various parameters from various policies before the cargo is discharged and to ensure payment of contribution

-        The adjuster … have all the facts and figures at his disposal

-        In addition to calculating contributions due from each party he will be frequently requested to adjust any types of claim.

-        The declaration of G-A is normally made by shipowner, but in criteria countries any one of the interest parties may initiate an adjustment

-        A declaration must be made before cargo is discharged and to ensure payment of contribution

-        Ship owners will usually allow the discharge of cargo when owner interested parties to the ventures provided suitable security.

(ii)  Artificial 6.A: is the ….. of a claim for 6A when even when one of the fine basic principle found in Rule A of the York Antwerp Rules is not present

-        claims for 6A were originally for .. of cargo cutting away of anchor cables etc. carried out for the common safety in order to avoid imminent ship wreck caused by a peril of sea

-        The creation of artificial 6.A was part of slow evolution favouring ship owners

-        If peril was an essential ingredient of G.A if was reduced in importance by “Safe prosecution” rule and peril did not have to be immediate provided that it was real and not imaginary.

-        Some numbered rules and do not retain interpretation rule of Rule paramount. Thus it is not dear weather the principles in act 193 have precedence over the rules in out 194 or vice versa. Articles 203allows particles to opt out of changes 10 by agreeing to a different set of rules.

-        Because their was no specific peril read. In rule x(b) and x1(b) claims may be made for there is no peril. This is G/a by agreement as artificial G.A

(iii) Entitlement to 6/A: A claimant is entitled to obtain contribution from other parties to the common venture (cargo as the ship). But a carrier is not entitled to obtain contribution in 6A from cargo if the peril arises as a result of his actionable faults as negligence in law as that of his employees

(iv) Contestation to 6A: GA has been in subject to dissatisfaction for the following main 6 reasons

1.    Exoneration of carriers for the faults of master and crew under the hague of MV rules, carrier is exampled from liability for the negligence of its employee

2.    interpretation of rules: Numbered Rules …… lettered rules

3.    emergency of marine insurance has made GA reluctant

4.    Expenses and delay in adjustments

5.    Problems in collision of G A contribution

6.    Small G A