New Lloyd's Open Form 2024
Lloyd's Salvage Arbitration Branch has released a new Lloyd's Open Form of Salvage Agreement ("LOF 2024"), as well as a new Lloyd’s Salvage Arbitration Clause ("LSAC 2024").
The LOF is the world's most widely used salvage contract on a no-cure, no-pay basis in the marine industry. It provides a framework for determining the remuneration to be awarded to salvors for their services in saving property at sea and minimising or preventing damage to the environment.
The main change in the LOF 2024 is that the salvor and the owners of the salved property will now be obliged to report ESG data, salved values and settlement data to Lloyd's following the salvage operation:
"(i) ESG Data. Within 60 days of the termination of the services under this Agreement a completed Environmental, Social & Governance data collection form.
(ii) Salved Values. Within 60 days of the termination of the services under this Agreement details of the value of the property salved (the “salved values”)
(iii) Settlement Data. Within 60 days of a settlement concluded with any or all of the parties to this Agreement details of the settlement."
This is designed to enable Lloyd's to collect and publish, in aggregated and anonymous form, such information relating to all LOF services, whether the parties settle or proceed to arbitration.
The main change in the LSAC 2024 is that the fixed cost arbitration procedure ("FCAP") is replaced by a fast-track documents-only ("FTDO") procedure, which will apply:
- Where the security demand is USD 10m or less, unless the arbitrator orders otherwise
- Where the security demand is more than USD 10m, if the arbitrator orders that the FTDO procedure shall be applied