HANSA 02-2019

Schifffahrt | Shipping
© Campbell Johnston
icy to their underwriters for consideration
and notify their P&I insurers but the
hull underwriters need a little time to assess
whether or not the vessel is actually
a constructive total loss. In the meantime,
the salvage contract continues to
run and SCOPIC increases on a daily basis.
Ultimately, though they also have to
accept that notice will be given by P&I
of five days to terminate SCOPIC or the
possibility that the salvage contract itself
can come to an end as there is no prospect
of successfully salving the property
with value. Local authorities may,
however, insist that the LOF contract remains
in place and salvors need to ensure
that they have good dialogue with
the owners, hull underwriters and particularly
the P&I insurers to constantly
assess costs and progress generally, plus
what spread of equipment should remain
on site.
In our scenario, after a period of a week
or so, the underwriters accept that the
vessel is a constructive total loss under
the hull policy and agree to pay her hull
insurance value to the owners.
With a total loss now agreed with the
hull underwriters, the P&I club will now
want to take a very active role in terms of
wreck removal and also want to discuss
with the salvor bringing the LOF contract
and SCOPIC to an end and move
»Everybody wants results
and it is disappointing for a salvor who has
secured an LOF contract to find that that contract
comes to an end as a result of bad weather«
towards a wreck removal. A salvor who
has been involved in the project does
have a slight advantage over other potential
bidders for a wreck removal contract
and the P&I club will be well aware
of this.
Familiarity with the status of the casualty
and having equipment already mobilised
and on site can result in a financial
saving for P&I insurers funding the
wreck removal. The key therefore for any
salvor and any sub-contractors is to ensure
that throughout the operation there
is full and proper dialogue with the
owners and their insurers. And to anticipate
likely scenarios and work to them
in terms of offering alternative services
with a view to keeping outlay down but
also ensuring that, sufficient equipment
Alistair Johnston
etc is there and on site in the event that
a decision is promptly made for a wreck
removal.
Everybody wants results and obviously
it is always disappointing for a salvor
who has secured an LOF contract to find
that that contract comes to an end as a
result of bad weather etc causing further
damage to a vessel unexpectedly. That is
one of the risks but salvors will look to
counter the financial impact of this and
endeavour to use the advantages that they
have in terms of being on site to their advantage.
Author:
Alistair Johnston
Director, Campbell Johnston Clark
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HANSA International Maritime Journal – 156. Jahrgang – 2019 – Nr. 2 37