The International Salvage Union (ISU) has released its 2023 industry statistics, highlighting a revenue increase to $398 million, up from $241 million in 2022, with notable growth in wreck removal income.
According to ISU, the 2023 ISU statistics show a historic low level of LOF cases – 16 for ISU members – generating income of US$ 29 million. This by some degree the smallest number of both LOF cases and income in the past 30 years. Revenue from LOF cases amounted to 15 per cent of all emergency response revenue and LOF cases accounted for 10 per cent of emergency response cases in 2023. SCOPIC revenue at US$ 9 million in 2023 was down from US$ 21 million previously.
Key figures
- Gross revenue for ISU members – US$ 398 million (2022, US$ 241 million)
- 184 services provided (2022, 149 services)
- Lloyd’s Open Form (LOF) – 16 cases (2022, 26). LOF revenue down at US$29 million (2022, US$ 66 million)
- Wreck removal income – US$ 193 million from 30 services (2022, US$ 55 million from 32 services)
All numbers are gross income from which all the contractors’ costs must be paid. Numbers are for income in the year received not the year when the service was provided.
ISU President John Witte noted that the 2023 ISU statistics indicated a modest recovery from the historically low levels seen in 2022. He remarked that wreck removal income had risen to $193 million from a low of $55 million the previous year, emphasizing its importance to ISU members and highlighting that the increase returned the industry’s income distribution to a typical balance of approximately 50:50 between emergency response and wreck removal.
Witte further expressed disappointment at the small number of LOF cases for ISU members in 2023, describing it as a continuation of a long-term downward trend widely recognized within the industry. He explained that ISU had been working with Lloyd’s and other stakeholders over the past three years to find ways to revive LOF usage. Furthermore, Witte stressed ISU’s commitment to promoting LOF and maintaining income through awards under Article 13 of the Salvage Convention, despite the growing challenges reflected in these statistics.
Revenue in 2023 from operations conducted under contracts other than LOF was US$ 167 million. The average revenue from each non-LOF contract was US$ 1.2 million. Additionally, wreck removal is an important source of income for members of the ISU and in 2023 there was US$ 193 million from 30 operations.
Professional salvors protect the environment, reduce risk and mitigate loss. They also keep trade moving – which is demonstrated so clearly when there are large containership cases like the Baltimore bridge incident earlier this year.
… Witte highlighted
