How are salvage awards calculated under maritime law?

Under maritime law, salvage awards are not fixed by a single formula but are determined by evaluating several key factors that reflect the difficulty and success of the rescue operation.1

When fixing the amount of a salvage award, authorities consider the following elements:

• Effort and Skill: The extent of the efforts required, as well as the skill and energy displayed by the salvors.1
• Values Involved: The total value of the property salvaged (vessel, cargo, etc.) and the value of the equipment or vessels employed by the salvors to render the service.1
• Risk and Danger: The risks incurred by the salvors during the operation and the degree of peril from which the property was rescued.1

While professional salvors often operate under contract, the general principle of salvage requires that the effort be successful to some degree for an award to be granted. The salvor holds a maritime lien on the property, ensuring they have a legal claim to compensation before the property is returned to its owner.21