General Average

General Average is a principle of maritime law, which exists independently of insurance. It arises whenever a sacrifice or property (ship, cargo, bunkers, freight etc.) or an extraordinary expenditure is reasonably and intentionally made or incurred for the common safety of the interests involved in a maritime adventure, and it may also arise in some instances of such expenditure voluntarily incurred for the common benefit. All parties involved in the maritime adventure will then pay a rateable contribution towards that so-called General Average loss. These days, most contracts for the carriage of goods by sea state that General Average should be adjusted in accordance with the York-Antwerp Rules. Average Adjusters are usually instructed to advise parties concerned, Shipowners, Charterers, Cargo Owners, Insurers and Insurance Brokers with regard to the General Average aspect, to collect General Average security, sometimes also Salvage security, to prepare Payment-on-Account Certificates towards the General Average expenditure incurred, to assist with Salvage settlement negotiations, to draw up the final General Average Adjustment, and to assist in effecting settlements thereunder. With well-established practices that developed through the years and an experienced and dynamic team running the latest technologies we have made sure that the principles of General Average can be applied on the biggest containers ships with minimum disruption to cargo operations.