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INSIGHTS erations. His most recent major project accomplishments include wreck remediation of the M/V Rena and the Ro/

Ro Amadeo 1 wreck removal. The American Salvage Asso- ciation (ASA) is indeed fortunate to have him at the helm, and MarineNews is similarly grateful to have him weigh in on the hottest response topics of the day. Listen in as Todd

Schauer schools us on ‘all things salvage.’

Todd Schauer

Give us an overview of the Salvage Industry in 2017 – the good and the bad – domestically and across the globe. What’s the number one thing on your plate today?

President,

The salvage industry has been plagued by market woes

American Salvage much like other segments of shipping and oil and gas pro- duction. The reported global salvage revenue in 2016 was

Association approximately 50% of the prior year and early 2017 was not much better – that represents a major tightening of odd Schauer is Director of Operations at Resolve the belt for salvage operators and it takes the fun out of

Marine Group, as well as President of the American maintaining an expensive salvage response capability. We

T

Salvage Association. After graduating from the U.S. have seen such cycles before that test the long term com-

Coast Guard Academy with a degree in Naval Architecture mitment of the salvage companies. Underwriters should in 1991, he followed that up with graduate degrees in Na- enjoy it while it lasts because the salvors will not soon for- val Architecture, Marine Engineering and Mechanical En- get this period.

gineering from the University of Michigan. And, while his considerable U.S. Coast Guard experience includes ship-

As we approach the end of this calendar year, what’s board engineering, marine safety, advanced engineering the latest on the LOF – is it dead, coming back, and emergency response, he is best known for his longtime changing? What is its future? If it goes away – what is role in the commercial salvage business. Schauer possesses the impact on the salvage business?

more than 25 years of success as a Project Manager, Sal- The LOF is certainly not dead. It remains a very com- vage Master, Naval Architect, and Marine Engineer; in- mon sense contract for emergency response that has stood cluding 20 years of salvage related experience, underscored the test of time and it is still used frequently in cases of by ? ve years of service on the USCG Salvage Emergency peril. However, market pressures and human intervention

Response Team (SERT), including acting as Team Leader. have led to a watering down effect. The depressed value

Todd’s certi? cation and experience as a Registered Profes- of ships has a direct negative impact on the potential for sional Engineer and understanding of Naval Architecture LOF salvage awards. Further, cut-throat market practices principles bring an added value to his ability in directing have led to a practice of LOF side letters between salvors, complex salvage operations. Beyond this, he served for 9 owners, and underwriters, modifying the terms, capping years on active duty with the U.S. Coast Guard including awards, etc. The beauty of the LOF has always been its sim- as an Engineer aboard the Polar Class Icebreaker POLAR plicity and thus the ability to immediately contract a salvor

STAR. Simply put, this salvage and response professional without rounds of contract negotiation. Unfortunately, all has done it all. Today, he is directly responsible for Re- sides are complicit in taking an otherwise perfect contract solve’s global salvage, wreck removal and ? re? ghting op- and modifying it to imperfection on a case by case basis.

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