Trade · 6 pages · 12 min
How general average splits a loss at sea
When a voyage is saved by a deliberate sacrifice, ship and cargo share the cost of that sacrifice.
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From the opening
General average is the rule that a voluntary loss, incurred to save a voyage from a common danger, is shared by the interests that were saved. The ship, the cargo, and the freight money contribute according to the values that benefited, rather than leaving the whole bill on whoever happened to be sacrificed. The opening covers sacrifice is shared by survivors, an adjuster states the shares, and security is posted before release.
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Inside
- Sacrifice is shared by survivors
- An adjuster states the shares
- Security is posted before release
- Particular average is not shared
- Where the idea stops applying
- A distinction worth keeping
Sources
- York-Antwerp Rules
- General average contribution