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Determination of remuneration for salvage at sea

2020-07-20

Maritime rescue refers to the act of requesting other ships to rescue ships, people, cargo, and floating property on water that are in danger and unable to rescue themselves in any waters.

The determination of remuneration for maritime salvage is generally negotiated by both parties. If negotiation fails, litigation or arbitration may be initiated. When remuneration for maritime salvage is determined, the following circumstances should be considered:

1. The value of the rescued property, under normal circumstances, the salvage remuneration should not exceed one third of the rescued property;

2. The nature and extent of the danger taken by the rescued ship, passengers, crew, cargo, and rescuers and rescue ships;

3. The rescue effect of the rescuer, no effect and no remuneration;

4. The time spent by the rescuer in the rescue work, the cost and the losses suffered;

5. The technical measures and skills adopted by the rescuer for the rescue and the rescue tools invested;

6. Liability risks and other risks taken by the rescuer or rescue equipment;

7. Timeliness of rescue provided by the rescuer;

8. The effectiveness and the state and value of the rescuer’s ships and equipment in a ready-to-use state;

9. The nature of the rescuer.

In the rescue process, the rescuer's own fault causes the loss of the property that must be rescued, the rescue remuneration should be reduced; if the rescuer commits theft or other frauds, the rescue remuneration should be reduced, or even lose the right to claim remuneration.

After the rescue operation is completed, the rescuer has the right to request the rescued party to provide a guarantee for the rescue remuneration. Before the guarantee is obtained, the rescuer shall have a lien on the rescued property.


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