Contentious issues tend to catch headlines but there is also a lot of highly successful cooperative work that goes on behind the scenes.'

One such example of such cooperation between salvors, shipowners and insurers is the imminent introduction of a new fixed cost arbitration system for smaller Lloyds Form cases. The introduction of a short form of arbitration on a documents only basis for cases where security is less than £1m is an important step that will do much to enhance LOF cost effectiveness.

The procedure will be available upon request for larger cases provided the arbitrator regards it as desirable and reasonable in the given circumstances. The new system is based on a schedule of fixed costs for Lloyds, the arbitrator and the recoverable costs of the party.

During the first quarter of this year talks continued on the revision of SCOPIC Special Compensation rates. Hand van Rooij said, 'These discussions are always difficult and they may well continue for some time yet. It is not surprising that the various parties to SCOPIC have differing views on this matter.

What is more important, however, is that no one is questioning the fundamental value of SCOPIC, which works to the benefit of all concerned.

'I have no doubt that there would have been more major spills without SCOPIC in place.

This system encourages salvors to respond to all casualties, even when there appears to be little prospect of a satisfactory conventional salvage award.'

Since SCOPIC was introduced there have been 525 Lloyds Form cases and 156 (30%) have incorporated SCOPIC. The fact that only five SCOPIC cases were referred to arbitration suggests satisfaction on all sides.

Nevertheless, the continued decline in the salvage workload remains a major concern for the ISU. Hans van Rooij concluded, 'With this in mind, we are now exploring a new remuneration concept for environmental services.

We call this 'parallel remuneration'.

The existing LOF/SCOPIC system, rewarding property recovery, would remain in place but with a new Environmental Award to reward the salvor providing environmental services. We plan to develop our ideas on this front during 2005.'

MJ Information No: 20513