ISU Publishes Annual Review and Statistics

Posted by Eric Haun
Monday, August 04, 2014
Photo: ISU

The International Salvage Union has published is Annual Review for 2013 which formally sets out the governance and work of the ISU which is the global trade association representing the interests of its members who are marine salvors.

The ISU Annual Review includes a summary of the annual statistics collected from its members to provide an overview of the state of the salvage industry. The 2013 figures show a substantial industry with total revenues, not profit, of more than $700 million, up from just over $600 million in the previous year. The numbers are for salvage and wreck removal cases where revenue was received in 2013 which may be from contracts agreed in previous years.

ISU members provided 196 salvage services in 2013 which was exactly the same as the previous year. There are fluctuations year on year but the general trend, in line with improvements in ship and operational safety, is a reduction in the number of services provided each year. In 2013, ISU members also carried out 48 wreck removal operations compared with a five year average of 33 such operations each year.

In 2013 revenue from Lloyd’s Open Form (LOF) cases and associated SCOPIC income combined with income from other salvage activity has risen slightly to $264 million from the previous year’s $237 million. Lloyd’s Open Form continues to be an important contract for salvors with 48 LOF services performed, up from 37 previously.

LOF revenues were $202 million in 2013 up from $186 million in 2012. In 2013, LOF revenue represented 76.6% of total salvage revenues, slightly down on the previous year’s 78.2% but slightly up on the five year average of 75.5%.

However the total salved value in LOF cases is down from US$1.65 billion to $1.23 billion with an average salved fund of $17.44 million. LOF revenues expressed as a percentage of the salved value are 16.3% in 2013 up from 11.23% previously. The five year average is 12.22%. These numbers are drawn from both settled cases and arbitrators’ awards.

The reason for the increase in LOF revenue as a percentage of the salved value in 2013 is that there has been a small increase in LOF cases and a very marked decrease in total salved funds. It indicates an increase in smaller value cases where it has been appropriate to reach a higher settlement or make a higher award to give the contractor a meaningful reward for their work.

Wreck removal income has increased significantly from some $300 million in 2012 to some $450 million in 2013. That is probably due to the impact of a small number of substantial, well-known cases. Wreck removal revenues have increased generally in the past decade and now account for a substantial portion of the industry’s annual income.

Commenting on the statistics, ISU President, Leendert Muller said, “We think that publication of this Annual Review demonstrates the ISU’s commitment to transparency and it will give our members and others in the shipping industry a sense of the work of the ISU over the past year. The ISU statistics show a vibrant industry providing valuable services to ship owners, property owners and their insurers. Total revenue from all sources has grown significantly in the past decade but there are still fluctuations in both the totals and within the sources of revenue each year. These are gross figures and, like most sectors of the shipping industry, our members’ costs have risen substantially.”

The statistics are returned anonymously by ISU members to an independent consultant for aggregation and analysis

The 2013 Annual Review can be viewed here: http://www.marine-salvage.com/pdfs/ISUAnnualReview2013.pdf

The 2013 statistics can be viewed here: http://www.marine-salvage.com/pdfs/ISUAnnualReviewandStatisticsJuly2014.pdf
 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter January 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Baltic Index Touches New Record Low

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying industrial commodities, registered a new all-time low on Monday on muted vessel demand.

Oversupplied Market Eyes Floating Storage Opportunities

Brent oil price reached lows of $27/bbl in mid-January, but has recovered over the past two weeks to above the $30/bbl mark. Nevertheless, volatility is expected

Norway will be Lithuania's 2016 Top Gas Supplier

Lithuania will import more gas from Norway than from former sole supplier Russia in 2016 after developing infrastructure to support liquefied natural gas (LNG) imports,

Casualties

US Warship Rescues Mariners in Distress

Nimitz-class aircraft carrier USS Dwight D. Eisenhower (CVN 69) (Ike) came to the rescue of distressed mariners at sea, February 7.   Ike received a distress

Three Dead on Pemex Platform, Fire Under Control

Three workers were killed and at least seven injured when a fire broke out on a Pemex oil processing platform in the Gulf of Mexico, but the latest in a string of incidents is now under control,

Anthem of the Seas to Port after Rough Night

Multiple media outlets including CBS News report that Royal Caribbean's new cruise ship Anthem of the Seas was hit by a strong strom, reportedly resulting in no

News

Hapag-Lloyd Sees Uptick of Incorrectly Declared Dangerous Goods

Year-on-year increase of 65 percent; more than 4,300 cases worldwide   Container shipper Hapag-Lloyd said it registered considerably more incorrectly declared dangerous goods last year,

US Warship Rescues Mariners in Distress

Nimitz-class aircraft carrier USS Dwight D. Eisenhower (CVN 69) (Ike) came to the rescue of distressed mariners at sea, February 7.   Ike received a distress

Baltic Index Touches New Record Low

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying industrial commodities, registered a new all-time low on Monday on muted vessel demand.

Subsea Salvage

European Consortium Launches Blue Nodules Project

On 1 February a European consortium launched a new Horizon 2020 project: Blue Nodules. This project addresses the challenge of creating a viable and sustainable

Svitzer, Guangzhou Port JV to provide Towage

Guangzhou Port Group and Svitzer signed an MOU (memorandum of understanding) with the intention of forming a joint venture providing towage and related marine services for the Port of Guangzhou.

 
 
Maritime Contracts Maritime Security Naval Architecture Navigation Pod Propulsion Port Authority Salvage Ship Repair Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0892 sec (11 req/sec)