Under the new tariff arrangements, SCOPIC rates for tugs and other craft have increased by 25%. Rates for salvors’ own portable salvage equipment have increased by 15% and rates for personnel have increased by an additional 5%, following an earlier increase of 10% in this area, introduced on January 1 2006. The latter increase was the first since SCOPIC remuneration for high risk/low value salvage operations was introduced in 1999. The July 1 increases for tugs, other craft and portable salvage equipment represent the first updating of rates in these areas since 1999.

Commenting on the increases, ISU President Hans van Rooij said, ‘SCOPIC rates apply in only one in five Lloyd’s Form casualty salvage operations, in those circumstances where the prospects for an appropriate ‘Article 13’ Salvage Award, the traditional form of remuneration, appear remote.

‘The importance of SCOPIC is that it provides the all important financial incentive when salvors are confronted with cases which might otherwise lack financial viability. Given society’s zero tolerance of pollution, it is important that salvors have this incentive to respond to all casualty related pollution threats, even when property values are low and the risks are high.

‘The fact that the International P&I community has agreed to an increase in the SCOPIC Tariff confirms this system’s valuable role in preventing damage to the marine environment. The decision also contributes to the maintenance of high levels of salvage service. I welcome this positive outcome of talks with our industry partners; P&I Clubs, shipowners and property insurers.’

The discussions leading to the agreement of tariff increases also involved a request by the ISU to remove the restriction on earnings in the SCOPIC Clause in respect of portable salvage equipment owned by a salvor. The ISU had hoped to persuade the P&I Clubs to accept that the ‘cap’ on earnings is a continuing disincentive for a salvor to invest in equipment, since there is no such ‘cap’ applying to hired in equipment. Unfortunately, agreement on this point was not reached. For the present, this earnings ‘cap’ (1.5 times the retail cost of the particular item of equipment at the termination of the SCOPIC services) will remain a part of the SCOPIC Clause.

One of the conditions of the current review was that the ISU recognise P&I Club concerns that the provisions of SCOPIC did not provide the Clubs with any protection to enable them to make a claim against a salvor in the event that he was negligent in the performance of salvage. The ISU had always taken the view, which it still holds, that SCOPIC, being an English Law agreement, is subject to all provisions of the 1989 Salvage Convention. However, to address the concerns of the Clubs, the ISU has agreed to the amendment of SCOPIC by incorporating Article 18 of the 1989 Salvage Convention into the Clause. This Article deals with any salvor’s negligence.

A further point agreed in the recent discussions is that the parties to the SCOPIC Clause will work to introduce a mutually acceptable review procedure in good time for the next review.