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The LOF – are clients warming up to it? How wide- Market pressures have prompted both consolida- spread is its use? What is its future? What if it tion and diversi? cation among the salvors. Tell us goes away – what is the ultimate impact on the why, how and where this is happening.

salvage business?

Consolidation is the recent story of the industry. Salvors

I don’t think clients are warming up to the LOF and the all carry very large overheads in the form of personnel, fa- opposite may well be true. What is getting lost by the re- cilities and portable and ? oating equipment at the ready luctance to utilize the LOF is the concept of duly reward- for emergencies. We are living in a time of declining ca- ing salvors for taking risks and also the incentive for salvors sualties and at the same time, heightened regulations and to re-invest in response capability and equipment. Taken at requirements for prompt and effective response. Further, a time when salvors are facing extreme response challenges the size and complexity of ships and cargo continues to including mega ship salvage issues, deep water salvage and grow putting further pressure on salvors to be prepared for pollution mitigation requirements, and the proliferation all variety of issues. Something has to give and recently it of LNG vessels, mega passenger vessels, etc., the need for has been the number of players in the market. Diversi? ca- re-investment has never been higher to assure that proper tion has been instrumental for many companies to stabilize response capability exists. Unfortunately, I believe that cash ? ow. I think we will continue to see dynamic moves many owners and underwriters have a short term focus within the industry and those with the best models for sur- driven by quarterly reports and it will likely take some very vival will emerge strong. expensive incidents such as mega containership ground- ings without the necessary container lightering capability

Can U.S. responders compete on a level playing ? eld in the international salvage markets? Give us a gar- to highlight the need to properly incentivize salvors via den variety example of where this has occurred.

pure salvage contracts and other means to develop the req-

Without a doubt the U.S. responders can compete in the uisite tools to meet the demands of the rapidly changing international market and do so every day. In fact, our U.S. shipping industry.

based ASA members represent a very large percentage of the major international salvors. Notable recent jobs performed by our members include the Costa Concordia in Italy, the

Rena in New Zealand, the Baltic Ace removal project in the North Sea, and the Amadeo 1 removal from Southern

Chile. The competitiveness of these salvage companies on the world scale is a tribute to their strength, capability and global network. Being better, smarter, faster, and more cost 15 www.marinelink.com MN

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