COST OF SALVAGE-A COMPARATIVE FORM APPROACH

Abstract

The most important principle of salvage is the “No Cure-No Pay” basis, if there is no recovery, there is no payment, whatever the expense of the operation. However, this principle has changed in recent years to reflect the public interest in prevention of damage to the environment (Mudric, 2010). The salvor can now contract in such a way that he is shielded from loss when responding to high risk or low value casualties (so called as “No Cure-Some pay”). Salvage is a high-profit business and high-risk as well in the world. The case of the Costa Concordia - by no means one of the largest cruise ships - has highlighted many things, not least that, despite technological advances, casualties will continue to happen and they can happen to mega ships. Different forms of salvage contract will result in different salvage awards. The aim of this article is to provide a methodology to measure the costs of salvage from the perspective of shipowner.