International Salvage Union welcomes SCOPIC renewal
The International Salvage Union has welcomed the introduction of increased tariff rates under the SCOPIC (Special Compensation P&I Club) Clause system of remuneration for salvage services. The new rates, agreed by the International Group of P&I Clubs and endorsed by property underwriters and owners, took effect on 1 July and will continue until 31 December 2010. The new tariff will apply to LOF agreements entered into after July 1. Under the new tariff arrangements, SCOPIC rates for tugs and other craft have increased by 25 per cent. Rates for salvors’ own portable salvage equipment have increased by 15 per cent and rates for personnel have increased by an additional five per cent, following an earlier increase of 10 per cent 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 1 July increases for tugs, other craft and portable salvage equipment represent the first updating of rates in these areas since 1999. 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.”