Salvage and towage are easily confused because both involve one vessel assisting another, but they are legally opposite in almost every respect. SALVAGE is the voluntary rescue of a vessel or its cargo from an impending marine peril, rewarded by an award out of the property saved. Under the Salvage Law, a valid claim requires several elements to concur. There must be a VALID OBJECT of salvage — a vessel, her cargo, freight, or the like. The property must be in a MARINE PERIL, meaning a real and reasonably apprehended danger, though it need not be immediate or absolute. The service must be VOLUNTARY, that is, rendered by someone under no pre-existing legal or official duty to act; the crew of the imperilled ship cannot claim salvage for saving their own vessel, and neither can someone acting under a contract to do exactly that. And the service must be SUCCESSFUL, in whole or in part. That last element is the famous NO CURE, NO PAY principle: a salvor who labours heroically but saves nothing receives nothing. The award is fixed by agreement or by the court, and the factors considered include the degree of danger, the value of the property saved, the risk incurred by the salvors, the skill and time expended, and the value of the property employed in the salvage. Where a vessel is abandoned and later saved, the law provides for the disposition of the property and the salvor's share, including provisions on advertisement and on what happens when the owner does not appear. TOWAGE, by contrast, is a CONTRACT: one vessel undertakes to pull or push another, and payment is due for performing the service whether or not any peril existed and whether or not the enterprise ultimately succeeds. Because it is contractual, the ordinary law of obligations applies, and the tug owes the diligence its contract and the circumstances require rather than the extraordinary standard of a common carrier; a tug is generally regarded as a private carrier as to the tow. The practical importance of the distinction is money and risk allocation: a salvor gambles on success for a potentially large award measured by the value saved, while a tug is paid its contract price and bears the ordinary consequences of breach.
Salvage: The Elements
- A VALID OBJECT — a vessel, cargo, freight, or the like;
- A MARINE PERIL — real and reasonably apprehended, though not necessarily immediate;
- VOLUNTARY service — by someone under no pre-existing duty; and
- SUCCESS, in whole or in part.
No Cure, No Pay
The success requirement is the defining rule: a salvor who labours heroically and saves nothing receives NOTHING. The crew of the imperilled ship cannot claim salvage for saving their own vessel, and neither can anyone acting under a contract to do exactly that.
How the Award Is Measured
Fixed by agreement or by the court, weighing the degree of danger, the value of the property saved, the risk to the salvors, the skill and time expended, and the value of the property employed in the salvage.
Towage Is the Opposite
TOWAGE is a CONTRACT to pull or push another vessel. Payment is due for performing the service — whether or not any peril existed and whether or not the venture succeeded. The ordinary law of obligations applies, and a tug is generally a PRIVATE carrier as to its tow, owing the diligence its contract and the circumstances require rather than extraordinary diligence.
Why the Distinction Matters
A salvor gambles on success for a potentially large award measured by the value saved. A tug is paid its contract price and bears the ordinary consequences of breach.
Frequently Asked Questions
What is required for a valid salvage claim? A valid object of salvage, a real marine peril, service rendered voluntarily by someone under no pre-existing duty, and success in whole or in part.
What does no cure, no pay mean? That a salvor is rewarded only if the salvage succeeds. A salvor who expends great effort but saves nothing receives no award.
Can a ship's own crew claim salvage? No. The crew of the imperilled vessel are under a duty to save their own ship, so their service is not voluntary and cannot ground a salvage claim.
How is towage different from salvage? Towage is a contract to pull or push a vessel, paid for performing the service regardless of peril or success, and governed by the ordinary law of obligations rather than the salvage rules.
This commentary is for general informational purposes only and does not constitute legal advice. For guidance specific to your situation, please consult a licensed attorney.
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