Shipowners oppose salvor eco-bonus demands at Beijing admiralty law meeting
THE International Salvage Union (ISU) is lobbying to a change to the 1989 International Salvage Convention to provide more money to its members for their "environmental protection" efforts. But the International Chamber of Shipping (ICS), representing 80 per cent of merchant tonnage, opposes this, saying today's system "provides for a generous financial reward to salvors".
They were discussing reform proposals that might affect IMO Salvage Convention, the Lloyd's Open Form (LOF) and/or the Special Compensation P and I Club Clause (SCOPIC) at the recent Beijing conference of the Comite Maritime International (CMI), an Antwerp-based admiralty law association.
The ISU believes that the current system does not allow for merit-based awards for services to avoid or minimise damage to the environment. It supports the LOF contract with its "no cure, no pay" contract, but did not allow for negotiation of fees. But it believes the SCOPIC does not allow the salvor to recover only a fixed bonus regardless of the degree of success.
The introduction of Special Compensation in the mid-'80s - following a spate of high profile vessel casualties - took note of the "no cure, no pay" rule which allowed the salvor to at least recover expenses when there was no threat of damage to the environment. Should a standalone environmental award be included in addition to traditional property award, there is bound to be a delay and complication from assessment as seen with US natural resource damage cases, said the ICS in response.
Such a complicated and drawn out process would be in no one's interest, not least the salvors, who in any event have previously expressed great satisfaction with the current SCOPIC regime," said ICS insurance committee chairman Matheos Los. Additionally, a proposed revision to the York Antwerp Rules (YAR) of general average, which allows the crew in an emergency to toss overboard goods, and that merchants whose cargo landed safely would be called on to contribute a portion, based upon a share or percentage, of those lost, would jeopardise what is now a uniform global maritime law.