Salvage Award
A5. Maritime Law, private and commercialDefinition
Reward fixed under Salvage Convention 1989 criteria or LOF arbitration.
A salvage award rewards the voluntary, successful rescue of a ship or cargo in danger, fixed by reference to the criteria in Article 13 of the Salvage Convention 1989: salved value, salvors’ skill and effort, danger, time, and expense. The reward cannot exceed the salved value, which is why the Convention added Article 14 special compensation, and the industry the SCOPIC clause, to cover salvors who avert environmental damage but salve little property. Lloyd’s Open Form arbitration is the usual forum for assessing the award.
Source: Salvage Convention 1989 Art.13