Maintains the key feature of no cure no pay
The International Salvage Union (ISU) has welcomed the publication of the new edition of Lloyds Open Form (LOF).
The new edition of the contract, LOF 2011, has been published by Lloyds Salvage Arbitration Branch. It follows amendments to LOF 2000 and to the Lloyds Standard Salvage and Arbitration (LSSA) clauses.
LOF 2011 maintains the key feature of no cure no pay but there have been a number of changes, which aim to improve the contract in the light of developments.
Two new clauses have been added. The first enables publication of LOF Awards on the Lloyds Agency website. It is intended to make the process more transparent and inclusive. The second requires the salvage contractor to notify Lloyds within 14 days of their engagement to render services under LOF 2011.
Changes to the LSSA clauses include new provisions with regard to guarantees for the Arbitrator and Appeal Arbitrators fees and, again, publication of awards.
The Lloyds Salvage group which includes representatives from the salvage industry, shipowners and the insurance community (property and P&I) – has worked for the past 18 months to develop the new contract.
ISU president, Todd Busch, said: The ISU welcomes the publication of LOF 2011. It follows much hard work by salvors and the shipping industry and it is a contract fit for use in the modern shipping environment. Its essential features remain unchanged reflecting the fact that the underlying concept of the Lloyds Open Form has served the maritime and shipping industry well for over a century.
We believe that increasing openness and transparency is vital in all business and support publication of the awards. ISU will promote widely the use of LOF 2011.
Source: Tanker Operator
