The “General Average” Rules in Maritime Industry

The “General Average” Rules in Maritime Industry “General Aver age” is a phrase used in the marine industry to describe shares in a common loss at the time of accidents. According to the rule, the distribution of losses between the parties caught up in any maritime adventure in the event of an unusual sacrifice or if the expenses are made deliberately with proper explana tion that the causes involv ed preserving other property from risk of being misplaced or lost. The sections of General Average under the ork Antwerp !ules "##$ has been simplified and presented in this write%up. These are& % 'hen a loss is d eemed A loss under general average is considered only if the sacrifice is logically made for the intention of preserving the property involv ed as a matter of common safety or reason of sacrifice is extraordinary . (or example % )apsi*e due to stormy weather condition, shifting of cargo resulting in unnecessary listing of vessel. % +reserving the cargo or vessel 'hen two or more than two vessels are used for commercial purposes and are towing or pushing, then general averag e is applicable if the vessels get disconnected from one another to protect the vessel and the cargo. % !i sk is eual in each part y- s share The share of each party under general average should not be set on using a faulty approach. The risk created by all should be same in every aspect. f the action of one party has led to the loss, legal steps can be taken for those actions. % )laims due to delay General average is applicable only for those losses that are directly connected with the value of the cargo or the vessel. Any claims crop up due to the delay , expense or loss occurring due to market loss or any other loss should not be considered into general average. % 'hen a vessel or car go is damage d

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Transcript of The “General Average” Rules in Maritime Industry

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7/23/2019 The “General Average” Rules in Maritime Industry

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The “General Average” Rules in Maritime Industry

“General Average” is a phrase used in the marine industry to describe shares in a common loss at the time of accidents.

According to the rule, the distribution of losses between the parties caught up in any maritime adventure in the event of

an unusual sacrifice or if the expenses are made deliberately with proper explanation that the causes involved preservin

other property from risk of being misplaced or lost. The sections of General Average under the ork Antwerp !ules "##$

has been simplified and presented in this write%up. These are&

% 'hen a loss is deemed

A loss under general average is considered only if the sacrifice is logically made for the intention of preserving the proper

involved as a matter of common safety or reason of sacrifice is extraordinary. (or example % )apsi*e due to stormy weath

condition, shifting of cargo resulting in unnecessary listing of vessel.

% +reserving the cargo or vessel

'hen two or more than two vessels are used for commercial purposes and are towing or pushing, then general average

applicable if the vessels get disconnected from one another to protect the vessel and the cargo.

% !isk is eual in each party-s share

The share of each party under general average should not be set on using a faulty approach. The risk created by all shoul

be same in every aspect. f the action of one party has led to the loss, legal steps can be taken for those actions.

% )laims due to delay

General average is applicable only for those losses that are directly connected with the value of the cargo or the vessel.Any claims crop up due to the delay, expense or loss occurring due to market loss or any other loss should not be

considered into general average.

% 'hen a vessel or cargo is damaged