When a ship or its cargo is in peril, the first person on scene can earn millions—or nothing—depending on how well they understand salvage law.
Quick definition (TL;DR)
Salvage is a voluntary, successful service that preserves maritime property in peril, entitling the salvor to a reward proportional to the value saved—and, since 1989, to the environmental risk avoided. Wikipedia
1. The legal pillars you need to know
| Pillar | Governing text | What it decides | Why it matters to wreck divers |
|---|---|---|---|
| International | International Convention on Salvage 1989 (IMO) | Sets global criteria (voluntary + in peril + success) and 10‑factor award formula (Art. 13). | Applies on high seas & most coastal States. Number Analytics |
| Contract | Lloyd’s Open Form (LOF 2024) | “No cure—no pay,” arbitration in London; special comp. for pollution prevention. | How professional salvors strike deals in minutes. LloydsWatson Farley & Williams |
| National (UK) | Merchant Shipping Act 1995 Part IX + Receiver of Wreck | Reporting, detention of wreck, and payment of salvage; unclaimed wreck vests in Crown after 1 year. | Governs anything you lift in British waters. Legislation.gov.ukWikipedia |
| General maritime law (US example) | Judge‑made rules; same 3 criteria, adds “pure vs contract salvage.” | U.S. courts award 5–60 % of value; can seize artefacts in rem. | Relevant if you dive abroad or sell finds in the U.S. Bluestein Law Firm |
(Not sure what counts as a wreck? Read Shipwreck 101 #1 – What Counts as a Shipwreck.)
2. The three classic conditions
- Property must be in peril – A stranded, sinking or derelict hull qualifies; a sound yacht asking for a tow does not.
- Service must be voluntary – No pre‑existing duty or contract (unless LOF is signed after the peril arises).
- Success is required – At least some value saved; partial success still counts.
Miss one of the three and you’re doing towage or wreck removal—not salvage. Wikipedia
3. How an award is calculated (Article 13 factors)
| Factor | Example on a wreck dive |
|---|---|
| Value of property saved | Market value of bronze prop + insured hull |
| Skill & efforts of salvors | Cutting tangled trawl nets off a prop in swell |
| Time used & expenses incurred | 12 h bottom time, gas, vessel hire |
| Environmental protection | Preventing oil release from a bunker tank |
| Degree of danger | Depth, weather window, munitions on board |
| …plus 5 other considerations (promptness, availability, etc.) |
A judge, arbitrator or LOF tribunal weighs all 10 factors; awards typically run 5–60 % of the property’s post‑salvage value. Number AnalyticsWikipedia
4. The step‑by‑step salvage workflow
- Find & document – Side‑scan flag, video proof.
- Secure a contract – Often LOF via satellite phone; if none, salvage proceeds under general law.
- Mark & report
- UK waters: File an MSF 622 form with the Receiver of Wreck within 28 days. Wikipedia
- Recover & deliver – To a place of safety (not necessarily ashore).
- Arbitration / court – Determines award or title if owner untraceable.
- Distribution – After one year unclaimed, UK wreck becomes property of the Crown; salvor may get up to 100 % reward.
(See How Wrecks Are Located: Sonar & ROVs for the tech behind Step 1.)
5. Special cases you’ll run into
| Scenario | Legal twist | Practical tip |
|---|---|---|
| War wreck or state vessel | Sovereign immunity—can’t be salvaged without flag‑State consent, ever. | Check Lloyd’s Warships list before cutting. |
| Environmental hazard | Art. 14 Salvage Convention allows “special compensation” even if nothing is saved. | Keep oil‑spill kits; document mitigation efforts. |
| Treasure wreck >100 yrs | May be underwater cultural heritage → permits or outright prohibition. | Cross‑check UNESCO list & national registers. |
| Abandoned yacht nearby | If owner truly abandons, salvor may take title after due process. | Log attempts to contact via MMSI, marina records. |
6. Salvage vs. finds & marine archaeology
- Finds law (terra‑firma treasure‑trove) differs: ownership often vests in the State immediately.
- Archaeological permits supersede salvage rights on designated historic wrecks.
- Best practice: treat artefacts as samples for heritage authorities; claim an award later.
7. Real‑world examples
- Costa Concordia (Italy, 2012‑14) – Largest salvage award in history: ~€1 billion cost, paid via insurance pools.
- SS Central America gold (USA, 1980s) – Federal court applied 90/10 split (salvor/owners) due to extreme depth risk.
- HMS Edinburgh gold (Barents Sea, 1981) – UK MoD retained sovereignty but paid 45 % value to salvors for recovery.
Each case shows Article 13 factors in action—value, risk, environmental stakes.
References
Number Analytics Legislation.gov.uk Lloyds Wikipedia Wikipedia Watson Farley & Williams Bluestein Law Firm
Updated 30 July 2025
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