December 2015
INTERNATIONAL SALVAGE UNION
ISU President defends reputation of salvage industry ISU President, John Witte, has re-stated the ISU’s determination to protect the reputation of the salvage industry. Speaking at the ISU’s annual lunch for marine media he reminded reporters of the vital services that ISU members provide - saving life, protecting the environment and saving property. ISU’s most recent financial statistics (2014) show that in Lloyd’s Open Form cases alone, ISU members salved US$1.2 billion of other peoples’ property - both ship and cargo - that was in peril at sea. Members undertook some 250 services. Mr Witte said there were a number of issues of concern like places of refuge, the fewer Lloyd’s Open Forms that are used these days and the risk of unfair criminalisation and responder immunity.
Mr Witte said that there had been an open forum discussion at this year’s ISU Annual Meeting in New York at which it was clear there was general agreement among ISU members that there is a reputational risk which is damaging the industry as a whole.
industry. But what we cannot have is general assumption that salvors are not to be trusted. After all, in many situations peoples’ lives depend on our actions.”
He said: “I can’t stand here today with a quick fix because that would be to diminish the challenge. But I can say that the ISU Executive Committee and management team are determined to do what is necessary to ensure that being a professional salvor is seen as an honourable role providing vital services to the shipping industry. There will inevitably be commercial disputes between clients and their contractors, it happens in all
He said: “My main concern is much wider than those issues. It is to do with the reputation of the salvage industry. For some years we have become more and more aware that others in the shipping industry have a perception that some salvors are not behaving in the way they should – both with other contractors and with their clients: the owners and insurers. “Now, whether it is true or not, there is an old saying that “perception is reality” and so we need to address it. Trust and transparency should be the foundation of good business relationships.”
Top: ISU President, John Witte. Below: ISU Executive Committee members and reporters at the ISU annual lunch for marine journalists.
Salvage and Wreck Conference discusses future of LOF A Salvage and Wreck Conference panel considered salvage contacts, in particular, Lloyd’s Open Form (LOF). (See picture page 2) The opening question was whether the “LOF crisis had been over-hyped”. There was general agreement on the panel – including ISU General Manager, Mark Hoddinott – that there was no crisis, though numbers of LOFs had clearly declined. George Tsavliris, Principal of Tsavliris
Salvage, gave a robust defence of the contract but said mistakes had been made. He explained the principle ISUalso President John Witte of LOF awards containing an element of “encouragement” to ensure salvors could invest and be ready to provide services. Jim Allsworth of C Solutions said that LOF was a “great contract”. But he added that the issue was to do with understanding when it was appropriate to use LOF and there had been abuses on both sides. Rob Whaley, senior Partner, 1
marine, Jardine Lloyd Thompson said that underwriters should not pressurize masters to not take LOF, only the master should take the decision whether to accept a LOF. Adrian Moyles, a casualty lawyer at Gard, said that the contract should be based on trust and when trust goes, people will not use LOF. Conference Chairman, Andrew Chamberlain, summed up by reminding the delegates that: “without a salvage (Continues P2)