• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.77
• /
• pp.169-193
• /
• 2018

Salvage has been allowed as general average since 1974. However, the adoption of YAR 2004 which had reflects cargo interest's position has made salvage unallowable in general average. The YAR do not have the force of a convention and only apply by mutual agreement between the parties to the contract of carriage. Thus, it is important that any changes to the Rules have the consent of major stakeholder. However, shipowners generally refuged to accept the incorporation of the 2004 Rules. The revised 2016 Rules is the result of compromise between the ship and cargo interests. YAR 2016 Rule VI has the premise that salvage is allowable as general average. However, with regard to the types of salvage that are payable independently by ship and cargo such as under Lloyd's Open Form it does not allow these type of salvages as general average and reapportion them, unless causes significantly inequitable result and meets five conditions. In addition, it makes the adjuster's task much easier as it avoids the deduction in respect of salvage payment can readily be calculated by total amount paid to the salvor. The salvage issue to be dealt with in YAR 2016 reduces the complexity, cost and delay in adjusting general average.