Following an announcement by Lloyd’s of London in April this year, that they would be considering the possible closure of the Lloyd’s Salvage Arbitration Brand (LSAB), Lloyd’s has recently announced on the 21st July, that they will continue to operate the LSAB and associated Lloyd’s Open Form (LOF).
Our Jason Bennett, Salvage Director and Master Mariner comments on this recent development.
The continued operation of the LSAB and LOF is welcome news not only for the London and UK shipping market, but still as a key element in supporting global shipping and trade in its most demanding times.
There has been a substantial decline in the use of LOF over recent years. While some of this is attributable to changing dynamics, incident rates and adaptation of other options, there also remains a resistance in some sectors. This includes in circumstances where the form and the infrastructure behind it to ensure its impartiality, remain the ideal solution.
An increased focus and active review of the LOF will be assisted by Lloyd’s commitment to establishing a ‘LOF Market Working Group’, also announced on the 21st July. The objective of a working group is to support the Lloyd’s Salvage Group in developing the LSAB and LOF going forward, to meet a rapidly changing maritime market climate. This positive outcome is welcomed.
ABL has been at the forefront of supporting salvage and wreck removal projects of all sizes and types on behalf of P&I Clubs, Property Underwriters and Owners’ Interests. This has included provision of salvage advice during LOF casualty cases, support in LOF salvage arbitration proceedings and the largest global network of Special Casualty Representatives (SCR’s) for LOF cases where SCOPIC has been invoked.