Two Distinct Institutions — Towage and Salvage
In the Maritime Code, towage and salvage are located in different chapters and governed by different regimes, yet in practice they often intersect. Towage denotes a planned service resting on a contract, while a salvage operation is any act rendered in any waters to assist persons, a vessel or other property in danger. The rules on salvage extend also to a ship sailing under the Georgian naval ensign. Where a service is formalised by a towage contract, the towage norms apply to it; where an act is performed under conditions of danger, it may fall within the salvage regime instead.
The Towage Contract — Form and Mandatory Content
Under the contract of maritime towage, the owner of a vessel, for remuneration, assumes the obligation to tow a vessel or other floating object from one port to another, to tow a vessel or other floating object for a defined period of time or over a defined distance, or, where necessary, to carry out manoeuvring or standby service. The type of the contract is thus determined by its object — carriage between ports, time or distance towage, or a one-off manoeuvring operation.
The contract must be concluded in writing, and the law prescribes its mandatory content: it must indicate the ports of dispatch and destination, the time of towage, the rights and duties of the parties, liability for breach of the contract, the characteristics of the towed objects which may affect the safety of the towage, and other circumstances which the parties consider it necessary to record. The written form and the full reflection of these particulars are decisive in a dispute — in maritime conditions, the agreed position of the parties can be reconstructed only from a complete document.
Allocation of Damage During Towage
Where, during towage, damage is caused to the towed vessel or other floating object, to property on them or to cargo, and the towed vessel is steered by the captain of the towing vessel, liability rests with the owner of the towing vessel, unless a different agreement exists between the parties and unless the owner proves its innocence. Furthermore, the owner of the towing vessel bears no liability for such damage where the towage takes place in ice conditions and it is not proved that the damage was caused by the towing vessel.
The period of liability is also precisely defined: the owner of the towing vessel is liable from the moment the vessel or other floating object is taken under tow at the initial point, and is released when the towed vessel or object is placed at the berth of the final point of the towage or brought to anchor. In other words, damage inflicted outside that time frame no longer falls under the liability provided by the towage contract.
The Salvage Operation and the Reward
The institution of salvage is built on the principle of reward, but a reward is not granted in every case. By law, no reward is due for salvage services performed for a vessel in distress notwithstanding the direct and reasonable prohibition of such services by its captain, and for salvage actions arising from a contract of maritime towage. The first case concerns the good faith of the salvor's conduct, and the second reflects the contractual towage regime described above — no double payment is made for one and the same act.
At the same time, a reward is granted even where the vessel carrying out the salvage operations belongs to the owner of the vessel saved — saving one's own property with one's own vessel can also ground a reward if the other conditions of the salvage notion are met. Salvors are rewarded in the currency accepted for the salvage, a detail that orders the practical side of payments in international rescues.
Special Compensation for Protecting the Environment
One of the modern dimensions of salvage is the protection of the environment. The shipowner pays the salvor special compensation for preventing or minimising damage to the environment, on top of the expenses incurred by the salvor, by way of an increment of not more than 30 per cent of those expenses. Where a court or arbitration, taking into account the circumstances of the case and the relevant provisions of the Code, considers it just, it may decide that the special compensation be increased up to 100 per cent of the expenses incurred by the salvor. Salvage operations with an ecological purpose thus receive an additional incentive in law.
Frequently Asked Questions
What is a salvage operation?
Any act rendered in any waters to rescue persons, a vessel or other property in danger; the rules also extend to ships sailing under the naval ensign.
When is a salvor not rewarded?
Where the service was performed despite the captain's direct and reasonable prohibition, and where the action arises from a maritime towage contract.
Who answers for damage caused during towage?
Where the towed vessel is steered by the towing vessel's captain, damage is borne by the towing vessel's owner unless otherwise agreed and unless innocence is proved; in ice conditions that liability is lifted.
For what period is the tower liable?
From the moment of taking under tow at the initial point until placement at the berth of the final point or anchoring.
How large is the ecological compensation?
An increment of not more than 30 per cent of the expenses incurred, and, by decision of a court or arbitration, up to 100 per cent of the expenses.
How We Help on Legal.ge
Towage and salvage matters begin with the form of the contract, the period of liability and the rules on reward, and end with proof of the factual circumstances. We will examine your documents, assess the prospects of a damage claim or a salvage reward, and propose the correct legal strategy. Contact us on Legal.ge — in maritime disputes an exact step is worth a great deal.