Salvage Agreement

It is understandable that the shipowner, who is facing an accident, wants the salvo to arrive on the scene as quickly as possible, to complete the rescue efficiently and efficiently and to ensure that the rescue premium is as low as possible. But in reality, such a result is not always possible. In general, LOF bonuses based on salvo values can be very expensive compared to TOWCON or other fixed-price rescue contracts. That`s the nature of no cure-no pay. No shipowner wishes to impose the salpr̩s on the terms of the LOF, unless necessary. Instead, they would prefer to use rescue contracts, calculated on a daily or flat-rate basis. However, when a vessel is in a dangerous and urgent situation where time is of the utmost, the LOF remains the most preferred rescue contract, as it can be the safest way to protect the crew, property and the environment. However, before making such a decision, a shipowner should take into account the key elements Рurgency and danger. Pursuing innovation is a good thing. For shipowners, new concepts of modification and/or revision of the terms of rescue contracts are always welcome. The industry should continue to work hard to end the debate over the choice of an appropriate rescue contract. But it is not easy to change this long-standing conservative mentality.

Finally, it is essential to use the right contract for the right circumstances. The form of Lloyd`s Open, formally “The normal form of Lloyd`s rescue agreement,” commonly known as LOF, is a standard contract for a planned sea rescue operation. Since the end of the 19th century, Lloyd`s of London has been the most widely used form for international recovery operations. [1] [2] Innovations in LOF 1980 have brought about a major change in environmental recovery. The court said that the bailout agreement had been ratified by Greece in 1996, meaning that the situation would be no different under Greek law. Since the shipowner is the agent of the owners of cargo carried by the vessel and the extent of his authority is set by law, it is not necessary to specifically authorize cargo owners to enter into an arbitration agreement (as it appears in the LOF 2000). Lloyd`s was not uncomfortable with the arbitration reform proposals. The meeting closed on the grounds that a new draft standard form should be developed to replace all existing forms.

The development was entrusted to Sir Henry Johnson of Waltons, who attended the meeting. It became the first Lloyd`s Standard Form of Salvage Agreement, which was published in January 1908. The agreement provided that the representatives were required to inform Lloyd`s, once the services were completed, of the amount they needed in terms of security.