LOF (Lloyd's Open Form)

Lloyd's Open Form (LOF) is a type of maritime contract used for salvage operations at sea. It allows shipowners facing distress—like grounding or sinking—to hire salvors with a straightforward agreement. The salvors help recover the vessel and its cargo, and their payment is often based on the value of the salvaged property. LOF is unique because it allows for immediate assistance without detailed negotiation, making it easier and faster to respond to maritime emergencies. This flexibility helps protect both the vessel and the environment, ensuring prompt action to prevent further damage.