ISU calls for “Environmental Salvage Awards”

Speaking at the ISU’s Associate Members’ Day conference in London in April, he said the cost of failure to prevent pollution can run into billions. Over 120 delegates attended the London conference. The ISU President said: “It is time to work together to review a set of outmoded legal obligations, recognising that the primary goal in most salvage operations today is to prevent pollution. These services deserve much greater recognition and we now need a more equitable system for remunerating the salvor. We also believe that more focus on environmental salvage will be financially beneficial to all concerned. An investment in Environmental Salvage Awards would be far outweighed by a reduction in pollution claims costs. The ISU would welcome the opportunity to put this to the test, by introducing Environmental Salvage Awards for a trial period.” Arnold Witte continued: “Fears that this would mean a huge increase in salvage costs are groundless. Additional costs would apply only when significant pollution damage is avoided. In fact, we believe the Clubs would save money by backing Environmental Salvage Awards. In our view, the best way forward is to work on a new edition of Lloyd’s Form, LOF 2010, to incorporate Environmental Salvage Awards.” Speakers at the conference also included John Reeder QC, the Appeal Arbitrator. His paper acknowledged the centenary of Lloyd’s Form and considered the contract’s 21st Century significance. In his introduction he observed: “We are now eight years into the 21st Century and things look pretty challenging at the moment.” He stressed the importance of ensuring that Awards are seen to be fair to both parties. He then made the point that LOF is a contract with inherent flexibility: “LOF can be adapted to cater for different conditions and it can be made to meet most needs of the maritime community.” The situation in UK waters was reviewed by Robin Middleton, who recently completed eight years as UK SOSREP (Secretary of State’s Representative). He made the point that, under the current UK approach, any appropriate location can be designated a place of refuge – even in an area of environmental sensitivity – if that is seen to be in the national interest.