pi_circular Insurance & claimsSafety & casualty Skuld
Circular issued by International Group clubs Executive Summary of the Group’s Review into the Potential for Delays in the Contracting and Engagement of Salvage Services in Marine Casualties. Background In 2020, the use of traditional LOF contracts was reported to be at a historic low confirming a continued decline in its use over recent decades. There was also evidence of parties entering into alternative contractual arrangements leading to delays in the engagement of salvage services and, in some cases, pollution and wreck liabilities that might otherwise have been avoided. In light of this concern, the Group commissioned the former SOSREP, Hugh Shaw, to conduct an independent, neutral and objective review that investigated the possible direct and root causes for delay in these circumstances and what changes might be made to improve use of LOF. Hugh Shaw’s final full report was presented to the Group and subsequently published in July 2022. It can be freely downloaded by clicking here. A presentation was made at Lloyd’s by Hugh in September 2022 and the findings are being considered in conjunction with Lloyd’s own review of LOF. Key Findings In summary the review carried out found that: Delays in the contracting and engagement of salvage services are on the increase and might lead to an escalation of a situation to a point where a significant loss and/or danger to life might occur. The unfettered authority of the Master or Designated Person Ashore (DPA), and their timely response to an incident, are critical. Some of the key stakeholders in a maritime incident seek greater certainty over costs and often opt for a non-LOF contract that can cause delays whilst parties engage in negotiations for a less expensive option. Some maritime authorities confirmed that, in circumstances where delays are unreasonable, they will be entitled to use their powers to select a salvor and an appropriate contract at the shipowner’s expense. Where time is of the essence or there is an e
Potential for Delays in the Contracting and Engagement of Salvage Services in Marine Casualties
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