Lloyd’s of London announced at the end of April that it would be reviewing its Salvage Arbitration Branch (‘SAB’), which provides the support framework to administer and coordinate the Lloyd’s Open Form of Salvage Agreement (‘LOF’).
AqualisBraemar LOC’s (‘ABL’) salvage and wreck removal team, noted with interest this decision and the potential impact the closure of SAB could have on the LOF and consequentially, its implication on future maritime safety and salvage operations.
The LOF provides an impartial regime for determining the amount of remuneration to be awarded to salvors for their services in saving property at sea and minimising or preventing damage to the environment.
The SAB has played a pivotal role in ensuring the independence, integrity and trust of the LOF process, which has been the preferred contract of the professional salvage community since its inception in 1908. As such, the way in which LOF is managed remains a key element in both the global salvage response to major shipping incidents and in maintaining London’s position as a centre of maritime excellence and safety.
There is a view in the industry, that the review process of SAB could significantly undermine the reputation of LOF, and potentially precipitate a more significant process where Lloyd’s steps away from LOF altogether.
“Our heritage at AqualisBraemar LOC is rooted in The Salvage Association and its commitment to always ‘seek the truth’ to support the maritime industry in upholding the highest standards of safety in any marine operation. We understand that salvage is a complex undertaking, and no two projects are ever the same. SAB’s impartial administration of LOF ensures a consistent approach to any salvage situation. With that in mind, we will want to see assurance that any future change does not undermine trust in the salvage process, or its commitment to safety and environment.”Jason Bennett, Director Salvage, London
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.
As a company, we will continue to monitor Lloyd’s review process with keen interest.
If you would like to hear more about AqualisBraemar LOC’s capabilities and experience in salvage and wreck removal operations, please register below to join the upcoming Discover AqualisBraemar LOC Salvage webinar:
Container Ship Casualty Management Today
3rd June, 09:00 AM BST
Dirk Jan Osinga, Jason Bennett, Vaughan Williams