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Salvage Laws: How to Be a Modern-Day Pirate

Editor: Swetha TM ||

Picture this: you’re walking along a sunny beach, the waves crashing on your feet, when you
spot something shiny buried in the sand. As you dig it up, you realize it’s an ancient chest, filled
with gold coins and sparkling jewels. Your heart races with excitement – you’ve just discovered a
hidden treasure! But before you start planning how to spend your treasure, you need to know
about the fascinating world of maritime law that governs such discoveries. Let’s dive into a
thrilling tale from 1994 to understand how you can legally plunder from a shipwreck, and why
the law can’t do much about it.

A Stormy Night and a Million-Dollar Decision

Our story begins in 1994 with NASA transporting an ET-70 fuel tank from New Orleans to Cape
Canaveral, destined for the Kennedy Space Center. This wasn’t a simple drive down the highway
– it involved a two-boat operation: an ocean-going barge named Poseidon and its tugboat
escort, the J.A. Orgeron. Everything was smooth sailing until they hit a tropical storm off the
coast of Florida. The tugboat lost power, and the Poseidon, with its massive fuel tank acting like
a sail, began dragging the powerless tugboat further out to sea.
With the storm raging, the crew of the J.A. Orgeron sent out an SOS to the Coast Guard. But the
Coast Guard was swamped with its own rescue missions and couldn’t help. The tugboat crew
faced a tough decision: cut the barge loose and save themselves, or risk being pulled into the
open ocean. They chose survival, releasing the barge and its precious cargo into the stormy
waters.

Enter the Heroes: The Crew of the Cherry Valley

This could have been a disastrous end to NASA’s expensive fuel tank, but a nearby oil tanker
named the Cherry Valley came to the rescue. Its captain believed he could help and attached
tow lines to the tugboat and barge, managing to drag them safely back to Port Canaveral. This
act of bravery wasn’t just about being a good Samaritan – it was also a savvy move under the
law of maritime salvage.

Maritime Salvage

The concept of maritime salvage has been around for centuries. It’s a legal principle that
rewards those who voluntarily save a ship or its cargo from peril. Unlike pirates who plunder
without any legal backing, salvors operate under a set of rules that entitle them to a portion of
the recovered treasure. To claim a salvage reward, three conditions must be met:

  • Real Peril: The ship and its cargo must be in actual danger. This isn’t about dragging a boat
    ashore on a sunny day – it’s about real, life-threatening situations.
  • Voluntary Service: The rescue must be voluntary. The salvor cannot be under any contractual
    obligation to save the ship. This rules out the Coast Guard and salvage firms hired for the job.
  • Success: The salvage must be successful. If the salvor fails to recover any cargo, they don’t
    get paid – no matter how much effort or risk they took.
    The Cherry Valley crew met all three criteria perfectly. The barge was in real peril, their service
    was voluntary, and they successfully salvaged the cargo. As a result, they were entitled to a
    reward. The crew took the tugboat to court in Louisiana and were awarded a whopping $6.4
    million – an eighth of the value of the barge and its cargo. They didn’t just save the day; they
    sailed away with a hefty sum, turning a potential disaster into a profitable venture.

Maritime Salvage and the Economy

Maritime salvage is more than just an adventurous pursuit; it plays a significant role in the global
economy. According to a 2019 report by the International Salvage Union, the global salvage
industry generates approximately $500 million annually. This figure reflects the critical
importance of salvaging operations in protecting valuable cargoes and minimizing losses. For
instance, the cargo aboard a single container ship can be worth tens of millions of dollars, and
the successful salvage of such a vessel prevents significant economic loss.
Moreover, the economics of salvage are driven by high stakes. Salvage rewards are typically a
percentage of the recovered value, often ranging from 10-25%, but can go as high as 50% in
particularly risky operations. This incentive structure encourages salvors to undertake
dangerous missions, knowing that a successful operation can yield substantial financial
rewards. The $6.4 million awarded to the Cherry Valley crew is a testament to this economic
model, demonstrating how lucrative salvage operations can be.

The Law of Salvage vs. The Law of Finds

Maritime law is complex and fascinating, especially when it comes to shipwrecks and sunken
treasures. Besides the law of salvage, there’s also the law of finds.
Law of Salvage: Encourages rescuers to save ships and cargo in distress. The salvor must
surrender the recovered property to the lawful owner, who then compensates the salvor with a
reward. This reward is typically 10-25% of the property’s value but can be as high as 50% in
some cases.
Law of Finds: Applies when a shipwreck has been abandoned for years without any recovery
attempts by the owner. In such cases, the discoverer can claim the entire value of the recovered
goods. However, this is rare due to the Abandoned Shipwreck Act of 1987, which gives all rights
to shipwrecks within U.S. waters to the United States government.

Salvage vs. Theft: Knowing the Difference

The world of maritime salvage is filled with exciting stories. One notable example is the 2007
grounding of the MSC Napoli off England’s south coast. Containers from the ship washed
ashore, leading to a frenzy of looting by locals. This event highlighted the fine line between
salvage and theft, emphasizing the importance of intention in maritime law. To legally claim
salvage, one must clearly demonstrate the intent to rescue and return the property to its owner.
Salvaging maritime property isn’t a free-for-all. Intent plays a crucial role. Simply taking found
goods can be seen as theft unless the salvor contacts the property owner and claims a salvage
reward. This distinction is vital in maritime law, ensuring that salvors are rewarded for their
efforts without crossing into illegal territory.

The Financial Implications of Salvage

The financial implications of salvage operations are profound. Salvors often invest significant
resources in their missions, including fuel, equipment, and manpower. These costs can be
substantial, and the no-cure, no-pay principle means that salvors bear the financial risk of their
endeavours.
Successful salvages, however, can yield impressive returns. For instance, in 2020 alone, the
global salvage industry was valued at approximately $1.5 billion. High-profile salvage
operations, such as the Costa Concordia, cost over $1 billion but resulted in substantial
compensation for the salvors. This reflects the high stakes and potential rewards of the industry.

Conclusion

So, next time you find yourself at the beach, keep an eye out for any signs of hidden treasures.
With the right knowledge and a bit of luck, you could become a modern-day salvor, turning a day
at sea into an adventure filled with legal plunder. Just remember the rules: ensure there’s real
peril, act voluntarily, and succeed in your rescue. The ocean is vast and full of secrets, waiting
for brave adventurers to uncover its treasures. Happy hunting!

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