Towage and Salvage - Five minute briefing 

Learn more about salvage, towage, fees and agreements.

Salvage
If your boat is in real danger then a vessel or person coming to your aid to tow, pilot, navigate, advise or stand-by, can be termed as a salvageable act. Often the RNLI come to your aid, but because life-saving is their main function, they make no claim for salvage.

The amount a salvor is paid is determined by the risk they take and what life or property they save. Proving that real danger existed is down to the salvor. Danger is often proved by the state of the salvaged boat and the lack of ability of the skipper and crew and the conditions and the circumstances of the event.

Towage
If a boat is in difficulties and requires assistance from another vessel, the skipper should initially try to arrange a towage contract with the person coming to help.

Towage officially defined as a contract for assisting the voyage of a vessel when nothing more is required than ‘accelerating her progress’. There is very little chance of a tug claiming salvage if it is contracted to tow another unless the towing situation seriously deteriorates through conditions.

No Cure – No Pay
Try to agree a towage fee first, if not state, ‘No Cure No Pay’ because the overarching principle of salvage is that the property or part of it must be saved for a salvage fee or claim to be made.

Agreements
Simple forms of salvage agreement are available from the RYA and from Lloyd’s (Lloyd’s Open or Standard Form) where the salvage fee can be fixed by negotiation or arbitration after the event. They are useful to have on-board.

If you are in a stressful situation where communication is difficult ensure that any verbal agreement is witnessed by the crew and entered in the log.

If no agreement has been made, once ashore, again try to settle a fee for towage and get a receipt.

Control
Try to show that you still have some control of the situation by doing the following, if you can:

• Use your own line
• Help where you can in the operation
• If being towed, establish comms with the tug enroute
• Gather and record forecasts on route
• Keep an accurate log

This information can be used in your defence if the case goes to court or arbitration and can influence the outcome and salvage fee payable.

The Fee
To decide how much a salvor is rewarded, a court will consider:

• Dangers exposed to the salvor and assisted vessel
• Expertise displayed by the salvor
• What was salvaged and its value
• Damage caused by negligence of the salvors
• The state of the assisted craft and its crew

More
More in-depth information on this subject is available on the RYA website – Salvage and Towage and in RYA Commercial Regulations for Small Vessels (G105)

Written by: Simon Jinks on behalf of the RYA.