Lloyd's Open Form Default Salvage Clause LMA5654 Published

Jointly with the International Chamber of Shipping (ICS), the LMA has published the Lloyd's Open Form (LOF) Default Clause.

Following the Lloyd’s review of the role of the Lloyd’s Salvage Arbitration Branch, and the international feedback received, several workstreams were initiated to look at supporting Lloyd’s Open Form (LOF).

The clause and integral preface is the result of a joint initiative between the International Chamber of Shipping and the LMA and has involved consultation with representatives of all interested parties. It clarifies processes for owners and underwriters when a vessel requires non-customary towage services. In particular, it provides that LOF is the default contract when a vessel is in a situation of danger or potential danger requiring immediate salvage services.  

The recent introductory event outlining the evolution and advantages of the new clause was notably supported by the UK SOSREP.

Members will be aware that LOF itself was revised earlier this year and the Lloyd’s Open Form Default Salvage Clause supplements that work. As such, it will be reviewed in line with LOF.

All model clauses published by the LMA are purely illustrative and are distributed for the guidance of members, who are free to agree to different conditions or amend as they see fit. 

Click here to download the clause.
Arabella Ramage