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Marine Salvage: Emergency Response and Wreck Removal
 
Emergency Response

Emergency response salvage applies to situations where the casualty and cargo retain sufficient value to justify the cost of the operation and subsequent repairs.  These cases are typically handled under Lloyd’s Open Form (LOF), either with or without the SCOPIC clause, or via time-and-materials agreements such as BIMCO Wreckhire.

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When the casualty and cargo lack adequate value, the LOF allows for the Special Compensation P&I Clause (SCOPIC) to be invoked, ensuring the salvor remains incentivized.  Under SCOPIC, the salvor is compensated based on a pre-agreed tariff schedule with a fixed 25% uplift.  A Special Casualty Representative (SCR) is appointed to monitor the operation and ensure transparency and cost control on behalf of all stakeholders.

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Article 14 of the 1989 Salvage Convention introduced special compensation where salved funds are insufficient for a fair salvage award under Article 13.  SCOPIC evolved this model by standardizing rates and enhancing underwriter access to real-time operational information.  In LOF/SCOPIC cases, Article 13 awards are reduced by 25% of the amount by which they exceed SCOPIC remuneration, providing a safeguard against runaway claims.

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Although the use of LOF has declined in recent years, the growing size and complexity of modern vessels have made salvage operations more technical, costly, and subject to increased scrutiny.  Regulatory authorities are imposing stricter oversight, driven by environmental and political pressures.  In this environment, success depends on rapid mobilization, strategic coordination, calm and informed decision-making, and having the right team on the ground.

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IMC maintains a team of seasoned salvage consultants, naval architects, civil engineers, and an approved Special Casualty Representative (SCR) with proven track records and available for immediate deployment.  We have supported numerous high-profile casualties, including:

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  • Major hurricane-related casualties (groundings, capsizes, and sinkings)

  • Fires and total losses on container ships and car carriers, particularly those involving lithium batteries

  • Bridge allisions and collapses.

 

Our consultants have extensive experience throughout the Americas and are recognized specialists in handling salvage cases within U.S. jurisdiction.  Supported by our compliance team, we offer a deep understanding of the unique regulatory environment of the United States Coast Guard and the Incident Command System.  Familiarity with these frameworks is critical to ensuring that salvage operations in U.S. waters proceed smoothly, safely, and cost-effectively.

 
Wreck Removal

When a casualty is no longer economically viable for salvage, it is classified as a wreck.  If it poses a hazard to navigation or the environment, authorities will typically issue a wreck removal order.  The 2007 Nairobi International Convention provides the legal framework for the prompt and effective removal of wrecks within a coastal state’s Exclusive Economic Zone (EEZ), adding significant regulatory complexity to the process.

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Wreck removal projects are generally awarded through an Invitation to Tender (ITT).  Submissions must be evaluated not only on price, but also on operational feasibility and likelihood of success.  Preferred contract structures include BIMCO Wreckstage and Wreckfixed agreements.  A thorough technical evaluation conducted by professionals with deep experience is essential to identify realistic proposals, avoid inflated pricing, and minimize the risk of failure.

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IMC’s consultants, including former Salvage Masters, are ideally positioned to evaluate technical bids, identify overly optimistic or impractical approaches, and guide clients toward the most credible and commercially sound options.  This results in cost savings, operational reliability, and reduced risk exposure.

 
Additional Services
Beyond field operations, IMC provides expert witness support, assistance in dispute resolution and arbitration, and practical solutions for complex or unusual salvage and wreck removal challenges.  Our multidisciplinary team provides the technical expertise and commercial acumen necessary to safeguard client interests at every stage of the operation.
 
IMC Salvage Consultants and SCR:
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