Salvage and General Average
Expert-defined terms from the Global Certificate in Maritime Law course at London School of Business and Administration. Free to read, free to share, paired with a globally recognised certification pathway.
Salvage #
Salvage
Salvage is the act of rescuing a ship or its cargo from peril at sea #
It involves the recovery of a vessel, its cargo, or both, from a dangerous situation such as sinking, fire, or running aground. Salvage operations can be carried out by specialized salvage companies or by other vessels in the vicinity. Salvage can be voluntary or contractually agreed upon. The salvor is entitled to a reward for their services, known as salvage award, which is determined based on various factors such as the value of the property saved, the skill and effort involved, and the risks undertaken.
Salvage operations can vary in complexity and can involve a range of techniques… #
Some common salvage methods include patching leaks, pumping out water, refloating a sunken vessel, or towing a disabled ship to safety. Salvage operations require specialized knowledge, experience, and equipment to ensure the safety of the salvors and the protection of the environment.
Salvage operations are governed by international conventions such as the Interna… #
Salvage law aims to encourage prompt and effective action to save lives, protect the environment, and prevent further damage to property. Salvage can be a lucrative business for salvage companies, but it also plays a vital role in ensuring the safety and security of maritime operations.
General Average #
General Average
General Average is a principle of maritime law that applies when a voluntary sac… #
The concept of general average dates back to ancient maritime practices and is recognized in most legal systems around the world. General Average requires that all parties involved in a maritime adventure must contribute proportionally to the losses incurred for the common good.
General Average is declared by the ship's master or owner when a deliberate act… #
This can include throwing cargo overboard to lighten the ship, jettisoning damaged goods, or incurring expenses for repairs or assistance. Once General Average is declared, all parties with a financial interest in the voyage, including the shipowner, cargo owners, and freight forwarders, are required to contribute to the losses based on the value of their respective interests.
The calculation of General Average contributions is based on the principle of "g… #
" This means that the value of the property saved, including the ship, its cargo, and any incurred expenses, is used to determine the proportionate shares of the contribution. General Average is a complex legal concept that requires careful analysis of the circumstances and documentation to ensure fair and equitable treatment of all parties involved.
General Average is governed by international conventions such as the York #
Antwerp Rules, which provide a standardized framework for calculating and apportioning General Average contributions. The rules set out the procedures for declaring General Average, determining the allowable expenses, and resolving disputes between the parties. General Average plays a crucial role in promoting cooperation and mutual assistance among shipowners, cargo owners, and other stakeholders in the maritime industry. It ensures that the costs and risks of maritime operations are shared fairly and transparently to prevent individual losses from jeopardizing the entire venture.