Salvage

Salvage is the body of maritime law and practice concerned with saving ships and property in peril on the water. Its central idea, developed over centuries, is that the law should encourage mariners to go to the aid of vessels in distress by rewarding those who succeed. A salvor who voluntarily and successfully rescues a ship or its cargo from real danger (where there was no pre-existing contractual duty to do so) is entitled to a salvage award, an amount reflecting the value of the property saved, the degree of danger, the skill and effort involved, and the risks the salvor took.

The traditional principle is 'no cure, no pay': the salvor is rewarded only if the salvage succeeds, and if the effort fails the salvor generally gets nothing. This is often formalised in a standard salvage contract, most famously Lloyd's Open Form, which lets rescuers begin work immediately with the amount of the award to be settled later by arbitration. Because pure 'no cure, no pay' could discourage salvors from tackling casualties that threaten the environment but have little saveable commercial value, modern practice added special provisions — such as the SCOPIC clause and the environmental award under the international Salvage Convention, that allow a salvor to be compensated for efforts to prevent or reduce environmental damage even where the property itself cannot be saved.

Salvage is distinct from towage, which is a contracted service to a ship that is not in danger, and from general average, though the two often interact, since salvage costs incurred for the common safety are typically brought into a general average adjustment. Salvage ranges from a passing ship helping a disabled vessel to major professional operations refloating grounded ships, fighting fires, and removing wrecks and their pollutants. The prospect of a reward, balanced by the risk of getting nothing, continues to sustain a professional salvage industry that is vital to safety and environmental protection at sea.