In the case of a ship sinking, what determines salvage costs?

The determination of salvage costs primarily hinges on the negotiation between the shipowner and the salvager. This process allows both parties to arrive at a mutually agreed upon compensation for the services provided during the salvage operation. The nature of salvage is inherently contract-based; thus, it facilitates the possibility for negotiation reflecting the specifics of the case—such as the complexity of the salvage operation and the risks involved.

In practice, the salvage award can depend on various factors, including the value of the property saved, the difficulty of the service, and the level of risk the salvager undertakes. However, the salvor and the owner must come to an arrangement based on these factors, which is reflective of the fundamental principles of maritime commerce.

While maritime law does provide a framework and set guidelines for salvage operations and awards, it does not dictate fixed amounts; instead, it leaves substantial room for negotiation. The flexibility of this arrangement allows for tailored solutions based on the unique circumstances of each incident, which is a crucial aspect of maritime practice.