18 ms·

What I wonder about: how is such a rescue contract negotiated? There is likely willingness to pay, but it is difficult to judge what a reasonable price is, and

What I wonder about: how is such a rescue contract negotiated? There is likely willingness to pay, but it is difficult to judge what a reasonable price is, and it may not even be clear who is culpable in advance. Do they have contracts in advance with the shipping companies?

Someone 6y ago
https://en.wikipedia.org/wiki/Marine_salvage#Types_of_salvage https://en.wikipedia.org/wiki/Marine_salvage#Types_of_salvag...: In contract salvage the owner of the property and salvor enter into a salvage contract prior to the commencement of salvage operations and the amount that the salvor is paid is determined by the contract. This can be a fixed amount, based on a "time and materials" basis, or any other terms that both parties agree to. The contract may also state that payment is only due if the salvage operation is successful (a.k.a. "No Cure, No Pay"), or that payment is due even if the operation is not successful. By far the commonest single form of salvage contract internationally is Lloyd's Standard Form of Salvage Agreement (2011), an English law arbitration agreement administered by the Council of Lloyd's, London. That Lloyd’s contract (https://www.lloyds.com/~/media/files/the%20market/tools%20and%20resources/agency/salvage%20arbitration%20branch/agency_lof_2011.pdf https://www.lloyds.com/~/media/files/the%20market/tools%20an...) is concise (2 pages). It may incorporate the SCOPIC clause (https://www.lloyds.com/resources-and-services/lloyds-agency/salvage-arbitration-branch/scopic https://www.lloyds.com/resources-and-services/lloyds-agency/...), but that doesn’t seem long, either, even including its appendices.
- superjan 6y ago
  Thanks!
Aperocky 6y ago
I would imagine a cost plus contract?
DangerousPie 6y ago
I would assume that Egypt paid. They have by far the biggest incentive to clear the canal asap. They will presumably now enter a lengthy legal dispute to try and get their money back from the shipping company.
- tmathmeyer 6y ago
  My understanding is that the Suez Canal Authority will have to pay, but also that the SCA requires the use of "pilot" captains that maneuver the boats through the canal, which means that the issue was squarely the fault of the SCA.
ghouse 6y ago
So, like paying for emergency healthcare in the United States.

Someone 6y ago

https://en.wikipedia.org/wiki/Marine_salvage#Types_of_salvage https://en.wikipedia.org/wiki/Marine_salvage#Types_of_salvag...: In contract salvage the owner of the property and salvor enter into a salvage contract prior to the commencement of salvage operations and the amount that the salvor is paid is determined by the contract. This can be a fixed amount, based on a "time and materials" basis, or any other terms that both parties agree to. The contract may also state that payment is only due if the salvage operation is successful (a.k.a. "No Cure, No Pay"), or that payment is due even if the operation is not successful. By far the commonest single form of salvage contract internationally is Lloyd's Standard Form of Salvage Agreement (2011), an English law arbitration agreement administered by the Council of Lloyd's, London. That Lloyd’s contract (https://www.lloyds.com/~/media/files/the%20market/tools%20and%20resources/agency/salvage%20arbitration%20branch/agency_lof_2011.pdf https://www.lloyds.com/~/media/files/the%20market/tools%20an...) is concise (2 pages). It may incorporate the SCOPIC clause (https://www.lloyds.com/resources-and-services/lloyds-agency/salvage-arbitration-branch/scopic https://www.lloyds.com/resources-and-services/lloyds-agency/...), but that doesn’t seem long, either, even including its appendices.

superjan 6y ago
Thanks!

Aperocky 6y ago

I would imagine a cost plus contract?

DangerousPie 6y ago

I would assume that Egypt paid. They have by far the biggest incentive to clear the canal asap. They will presumably now enter a lengthy legal dispute to try and get their money back from the shipping company.

tmathmeyer 6y ago
My understanding is that the Suez Canal Authority will have to pay, but also that the SCA requires the use of "pilot" captains that maneuver the boats through the canal, which means that the issue was squarely the fault of the SCA.

ghouse 6y ago

So, like paying for emergency healthcare in the United States.