Salvage

Salvage is the rescue of a ship, its cargo or other property from danger at sea — such as grounding, fire, sinking, collision or drifting disabled — and the legal principle that those who voluntarily save maritime property in peril are entitled to a reward. Salvage is carried out by professional salvage companies and, sometimes, by other vessels that come to assistance.

A core principle is “no cure, no pay”: traditionally the salvor is rewarded only if the salvage succeeds, with the reward reflecting the value saved and the difficulty and risk. The industry-standard contract is the Lloyd's Open Form (LOF), and modern provisions (the SCOPIC clause) address the special case of preventing environmental damage even where property cannot be saved. The salvage award is typically borne by the ship and cargo interests in proportion to the value saved, and is closely connected to general average and marine insurance. Salvage is a distinctive and vital part of maritime law and casualty response, aligning strong incentives to save endangered ships, cargo and the marine environment.