The Business of Salvage

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The Business of Salvage, Part 3

Choosing a salvor is much like selecting any other vendor. There are good ones and poor ones, there are professionals and amateurs, there are honest ones and crooked ones. Now, however, is the time to do your homework, not when you are ten miles offshore and taking on water. Do a little research now. Here are a few guidelines:

Salvage Experience - As mentioned above, experience is a key factor. Make sure that you are, in fact, hiring a company with significant salvage experience. Time permitting, don't be afraid to ask for references. Many's the time that more damage was caused by the actions of the salvor than by the actual sinking itself. I know of one so-called salvage company that dragged a sunken sailboat over the bottom (rocks and all), finally using a huge tow truck to drag it up on the beach. The damage that the vessel sustained during that operation far exceeded that caused by the sinking.

Hazardous Materials Containment Experience - Does the company have equipment (containment boom, available vacuum trucks, etc.), supplies (sorbent boom, sorbent pads, etc.) and certified HAZMAT personnel?

Equipment Availability - Does the company own its equipment or are they a "yellow pages" salvor? Do they have the necessary salvage equipment, including: air bags, compressors, dive gear, patching materials, pumps, etc?

Financial Stability - Salvage claims take time to resolve. Make sure any salvor you chose can afford to wait a reasonable time for settlement. Try, if possible, to deal with a company whose name you recognize.

The standard contract used by most professional salvors is the Lloyd's Open Form (ver. 1980, 1990, 1995) or other open form based on the International Salvage Convention of 1989. However, many salvage companies, including us here at Sea Tow/Sea Spill, actually prefer to establish prearranged pricing with insurance companies and marine surveying companies.

If you do ever find yourself or your vessel in peril while underway (and I sincerely hope you never do), here's the procedure to follow:

1) Stay calm. Get everyone on the boat to put on life jackets.

2) Issue a "Mayday" call on channel 16 on your VHF radio (for the correct procedure, see the March 1996 issue of the Waterway Times.) The Coast Guard will answer your call and probably move you to channel 22. DO NOT let anyone else interfere with your communications with the Coast Guard. Some unscrupulous towers/salvors have been known to deliberately move an unsuspecting boater to their own working channel in order to secure the salvage job. In doing so, they endanger your life and your property. The precious minutes that are lost can mean the difference between life and death, success and failure. Let the Coast Guard take charge. They are experienced in handling distress calls and have the resources available to coordinate rescue operations.

3) Try to determine the cause of the problem. For example, a common cause of flooding is hose failure. The simple acts of shutting down the engine and closing all sea cocks can stop the inflow of water. The Coast Guard will assist you with correct emergency procedures.

4) The Coast Guard may ask you if you have a preference for a commercial assistance company. State your preference. Chances are that, within minutes, you will be surrounded by commercial salvors each claiming that they will save you money and possibly slandering the abilities of the others. I've always found that any company that speaks negatively of its competition is usually guilty of what they claim the other to be. That aside, remember that you are in an emergency situation. Making good, sound decisions is difficult under the best of circumstances, nearly impossible is this situation. If you've done your homework as suggested above, you'll make the right choice.

If your vessel sinks or is sinking at a dock, you have a responsibility to take quick and decisive action. Dockside sinkings account for the majority of salvage related pollution problems. The potential environmental impact is great because of the protected nature of canals and inland waterways. Pollutants don't dissipate as quickly as they do offshore. Be sure to hire a salvor with trained, certified personnel and a wide range of containment equipment.

Hopefully, in the event of an emergency, you now have enough information to protect yourself from those who might take advantage of your situation or leave you susceptible to claims of environmental damage and the resulting fines. However, should you have questions regarding any of the issues discussed here, don't hesitate to call your insurance company or a maritime attorney.

This article was written by Sea Tow Captain Les Hall