The SCOPIC Clause as a Major Development in Salvage Law

6 Pages Posted: 14 Jul 2015

See all articles by Ilian Djadjev

Ilian Djadjev

University of Groningen, Students

Date Written: July 7, 2015

Abstract

The SCOPIC clause (Special Compensation P&I Club Clause) provides an alternative remuneration to salvors, which is computed differently to the awards provided in Article 13 and Article 14 of the International Convention on Salvage (1989). In essence, SCOPIC provides agreed tariff rates under the form of a remuneration as an indemnity for the salvage services performed and the salvor’s investments in the operation. The award afforded by SCOPIC, although being a modification of the Article 14 Special Compensation, is based on different principles than those underlying the respective provision of the Convention. The major aim of the current paper is to give a comprehensive explanation of the clause and its features. It will also clarify the development and the operation of the SCOPIC clause and will underline the advantages which it provides to the area of marine salvage. To understand the essence of the SCOPIC clause, one has to be familiar also with the awards available under Articles 13 and 14, and, therefore, a comparison between the three will be made. Thus, it will be illustrated that, depending on the award chosen, there could be a different outcome for all the parties involved in the salvage operation.

Keywords: SCOPIC, salvage, LOF, P&I, shipping, carriage

JEL Classification: K12, K39, L91, L92, L99

Suggested Citation

Djadjev, Ilian, The SCOPIC Clause as a Major Development in Salvage Law (July 7, 2015). Available at SSRN: https://ssrn.com/abstract=2627798 or http://dx.doi.org/10.2139/ssrn.2627798

Ilian Djadjev (Contact Author)

University of Groningen, Students ( email )

Groningen
Netherlands

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