Salvage is the act of voluntarily rescuing a ship, cargo, or other maritime property from danger — grounding, fire, sinking risk, or other peril — with the salvor entitled to a reward if successful.
”No Cure, No Pay”
The foundational principle of most salvage law and standard salvage contracts (such as Lloyd’s Open Form) is “no cure, no pay” — if the salvage attempt fails to save the property, the salvor generally receives no payment, regardless of effort or cost incurred. This incentivizes salvors to only attempt genuinely achievable rescues and to work efficiently once engaged.
What Determines the Salvage Reward
Reward amounts, when a salvage succeeds, are typically determined by factors including:
- The value of property actually saved
- The degree of danger involved
- The skill and effort demonstrated by the salvor
- The value of equipment and resources the salvor risked or used
Salvage vs Towage
These are legally distinct — routine towage (assisting a vessel with no real danger present, such as standard port maneuvering) is a straightforward commercial service, while salvage specifically requires genuine danger to the property being assisted.
Environmental Salvage
Modern salvage law increasingly recognizes environmental protection as a factor — salvors who prevent or reduce pollution damage can be entitled to special compensation, even in cases where the traditional “no cure, no pay” outcome for the property itself might otherwise yield no reward.
Exam Relevance
Salvage law principles, particularly “no cure, no pay” and the distinction from towage, are standard Ship Knowledge topics in senior deck officer competency exams.