Skip to main content

Lloyd's Open Form

1. LOF provides a regime for determining the amount of remuneration to be awarded to salvors for their services in saving property at sea and minimizing or preventing damage to the environment. Originating from the late 1800s, it is probably the most widely used international salvage agreement of its kind in the world today.

2. It is a standard legal document for a proposed salvage operation.

3. It should be used when a marine environment is at risk and the master has insufficient time to request the owner to arrange salvage services on a pre-agreed rate of sum.

4. It is a single sheet(2 pages) document in a simple format(LOF 2000 form).

5. LOF 2000 form contains numbered boxes as below
  • Name of the salvage contractors
  • property to be salved (vessel name)
  • agreed place of safety
  • agreed currency
  • date of agreement place of agreement
  • Is SCOPIC clause is incorporated-- yes/no
  • name and signature of contractor
  • name and signature of master / on behalf of property
6. Lloyd‘s Open Form of Salvage Agreement or ―LOF, as it is more commonly known, has been revised ten times since it was first introduced in 1892.

7. The latest revision of the form is regarded as one of the more radical revisions which have so far occurred. It comprises a single sheet of paper incorporating a box lay-out in which essential information such as the name of the ship and the identity of the salvage contractors is to be inserted.

8. Below the box lay-out and on to the reverse side of the document, there are 12 lettered clauses and 2 information notices. Therefore the LOF 2000 is a more manageable document and easier to read and understand.

9. The LOF is basically ―No Cure No Pay‖ agreement. Article 13 deals with the criteria for the claims. The claims depend upon
  • Saved value
  • Skill and Effort applied
  • Measure of success
  • Nature and degree of danger
  • Time / Expense
  • Risk / Liabilities
  • Promptness of service
  • State of readiness
  • If any other vessels in operation Etc.
10. Article 14 talks about the special compensations to be paid to the salver even if they are not successful in their operation, as a measure of saving the environment. As per the article 14 the minimum special compensation will be ―out of pocket expenses plus 30% of that.

11. In any case article 13 can be duplicated, i.e, Award as per article 14 is more than article 13, and then the total award will be article 13 plus the difference between two. Claims as per article 13 are a part of GA and article 14 will be paid by P&I.

12. LOF -2000 has a supplementary clause called SCOPIC. SCOPIC is done as per tariff. It is a choice to the salver, but owner can deny. As per the SCOPIC when the salver gives a notice, owner has to give a bank guarantee to the salver to perform. The owner will appoint a Ship casualty representative (SCR) at the location for logging down all the day to day works and machinery operations done under SCOPIC.

Comments

Popular posts from this blog

Load Line & Why it is Important

Merchant ships have a marking on their hull know as the Plimsoll line or the Plimsoll mark, which indicates the limit until which ships can be loaded with enough cargo, internationally, the Plimsoll line on a ship is officially referred to as the international load line. Every type of ship has a different level of floating and the Plimsoll line on a ship generally varies from one vessel to another.  All vessels of 24 meters and more are required to have this Load line marking at the centre position of the length of summer load water line. There are two types of Load line markings:- Standard Load Line marking – This is applicable to all types of vessels. Timber Load Line Markings – This is applicable to vessels carrying timber cargo. These marks shall be punched on the surface of the hull making it visible even if the ship side paint fades out. The marks shall again be painted with white or yellow colour on a dark background/black on a light background.  The comp

Difference Between A, B & C-Class Divisions?

IMO Symbol A Class Division  IMO Symbol B Class Division  SOLAS has tables for structural fire protection requirement of bulkheads and decks. The requirements depend on the spaces in question and are different for passenger ships and cargo ships. The Administration has required a test of a prototype bulkhead or deck in accordance with the Fire Test Procedures Code to ensure that it meets the above requirements for integrity and temperature rise. Types of Divisions: "A" Class "B" Class "C" Class "A" Class: "A" class divisions are those divisions formed by bulkheads and decks which comply with the following criteria: They are constructed of steel or equivalent material They are suitably stiffened They are constructed as to be capable of preventing the passage of smoke and flame to the end of the one-hour standard fire test. they are insulated with approved non-combustible materials such that the average tempera

Pump Shaft Alignment Procedure

Types of shaft alignment methods: Visual Line-Up Straightedge/Feeler Gauge Rim and Face Cross Dial Reverse Dial Laser Visual Line-Up The visual line-up method is the most common method of alignment. Used in initial installations, visual line-up allows technicians to analyze the working conditions and feasibility of installation. Straightedge/Feeler Gauge Straightedges are used to determine the offset between coupling halves. Corrections are made under all four of the machines feet. Feeler gauges or taper gauges measure the gap between coupling halves at the bottom and top of the coupling. Rim and Face This method is similar in principle to using a straightedge and feeler gauge, but more accurate since dial indicators are used. The rim reading measures the offset between the coupling halves. The face reading measures the angular difference between the faces of the coupling. Changes are calculated with the same formula as the straightedge/feeler gauge met