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their powers to select a salvor and an appropri-
                                                                                                                                   ate contract at the shipowner’s expense.
                                                                                                                                   Where time is of the essence, or there is an emer-
                                                                                                                                   gency, LOF remains the ‘contract of preference’
                                                                                                                                   for stakeholders. The ‘no cure-no pay’ princi-
                                                                                                                                   ple provides an additional incentive, and LOF
                                                                                                                                   is simple, effective and straightforward to use.
                                                                                                                                   However, there are concerns over alleged ‘his-
                                                                                                                                   toric’ abuse/misuse, the time taken to assess the
                                                                                                                                   salvage award, and uncertainty over the award
                                                                                                                                   and costs.
                                                                                                                                   The use of “side letters” can lead to further
                                                                                                                                   delays.
                                                                                                                                   Fewer LOF contracts might disincentivise salvors
                                                                                                                                   to continue investing in new technology or equip-
                                                                                                                                   ment, and these costs may eventually shift to the
                                                                                                                                   shipowners and their insurers.
                                                                                                                                   Coastal State ‘intervention’, or the threat of
                                                                                                                                   intervention, was recognised as positively influ-
                                                                                                                                   encing ‘faster or rapid’ decision-making when
                                                                                                                                   lengthy contractual negotiations were ongoing.
                                                                                                                                   Education and training must be targeted at the
                                                                                                                                   appropriate individuals.
          expected to remember or recognise the hazards   edly at a historic low, confirming a continued                           The lack of agreed practices and procedures
          associated with the cargo carried on board, the   decline in its use over recent decades. There was                      does not mitigate and even contributes towards
          occurrence has proven that such an important   also evidence of parties entering into alternative                        the likelihood of delays.
          aspect can be overlooked. For the crew’s safety,   contractual arrangements leading to delays in                         There needs to be effective communication and
          it is essential to remind them of the hazards of   the engagement of salvage services and, in some                       collaboration between all stakeholders who will
          the cargo carried.                      cases, pollution and wreck liabilities that might                                have a key role in casualty response.
          The risks associated with working in the vicinity   otherwise have been avoided. In light of this con-
          of a hazardous environment (cargo hold loaded   cern, the International Group of P&I clubs has                           In light of the above findings, the Report’s
          with coal) had not been identified, and a risk  conducted an independent, impartial and objec-                           main recommendations are as follows:
          assessment was not carried out. In addition, the   tive review that investigated the possible direct                     The International Chamber of Shipping (ICS),
          hazards associated with the coal cargo had been   and root causes for delay in these circumstances                       supported by H&M and P&I underwriters, should
          overlooked when the booby hatch maintenance   and what changes might be made to improve the                              remind operators of the need to ensure that, in
          was carried out.                        use of LOF.                                                                      compliance with ISM, their Masters, DPA, or
                                                  The final full report was presented to the Group                                 other nominated person(s), as named in the SMS,
          Lesson learned                          and subsequently published in July 2022. In                                      have the appropriate knowledge and experience
          The lessons learned from this incident are:  addition, a presentation was made at Lloyd’s                                with regard to the procurement and provision of
              –  The procedures for entering enclosed  in September 2022, and the findings are being                               salvage services and are given the authority to
              spaces should be executed as provided   considered in conjunction with Lloyd’s own                                   act promptly and decisively.
              by the company’s SMS                review of LOF.                                                                   The ICS may wish to consider submitting a paper
              –  Relevant drills, training, and information  In summary, the review carried out found that:                        to the IMO’s Marine Safety Committee (MSC)
              should be provided as outlined in the com-  Delays in the contracting and engagement of sal-                         requesting that any future amendments to Cir-
              pany’s SMS                          vage services are on the increase and might lead                                 cular 6 (Guidance on the Qualifications, Training
              –  No entry should be attempted  with-  to an escalation of a situation to a point where a                           and Experience Necessary for Undertaking the
              out  an  Enclosed  Space  Entry  Permit  significant loss or danger to life might occur.                             Role of The Designated Person) include refer-
              issued prior to entry by the master   The unfettered authority of the Master or Des-                                 ence to the provision of salvage services.
              or the nominated responsible person   ignated Person Ashore (DPA), and their timely                                  All interested parties should identify
              and completed by the crew mem-      response to an incident, are critical.                                           communication channels  with key decision
              bers tasked  with entering the space.  Some of the key stakeholders in a maritime inci-                              makers in the maritime authorities and endeav-
                                                  dent seek greater certainty over costs and often                                 our to keep each other informed of casualty
          POTENTIAL FOR DELAYS IN THE             opt for a non-LOF contract that can cause delays                                 response assessment, response methodology,
          CONTRACTING AND ENGAGEMENT OF           whilst parties engage in negotiations for a less                                 contractual options and progress being made.
          SALVAGE SERVICES IN MARINE              expensive option. Some maritime authorities                                      Any failure to liaise may lead to delays or result
          CASUALTIES                              confirmed that, in circumstances where delays                                    in State intervention with the added risk of being
          In 2020, traditional LOF contracts were report-  are unreasonable, they would be entitled to use
                                                                                                                                                                                     For more informat  ion please   co  ntact  :
                                                                                                                                                                                     gr.marineservices   sgs.  co  m
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