Salvage Charges Clause

The Salvage Charges Clause is a common provision in international trade and marine insurance, typically found in charter parties, bills of lading, or insurance policies, to clarify the party responsible for and the method of calculating expenses incurred from salvage operations (e.g., towing, wreck removal, pilotage). Its core meaning is: when a ship or cargo encounters a maritime peril and a third-party salvor successfully renders assistance, the salved party must pay salvage remuneration based on the 'no cure, no pay' principle. Usage scenarios include general average contribution, insurance claims, and charter party disputes. Precautions: Salvage charges differ from general average—the former refers only to the salvor's remuneration, while the latter covers sacrifices or expenses incurred for the common safety; salvage charges are usually indemnified by the insurer as particular average, but if general average is involved, they must be handled according to contribution rules. Compared with a 'Salvage Clause,' the Salvage Charges Clause focuses more on payment of expenses rather than the salvage obligation itself. Foreign trade practitioners should clarify whether the contract incorporates the '1989 International Convention on Salvage' and confirm whether insurance covers salvage charges to avoid disputes.