1. general average Dr. Iva Savić
Maritime and Transport Law | May 10th 2018
general average

3. Maritime Accidents Damage or Loss to: Cause > Indemnification
Vessel and/or
Cargo,
and associated costs
= irregular damage
Cause > Indemnification
Accident > individual indemnification
Intentional Cause of Damage > General Average - joint indemnification

4. various interests in a sea voyage
party entitled to freight
cargo owners
the ship

5. Basic elements (i) General Average Elements:
extraordinary sacrifice or expense
intentional (voluntary) and reasonable act
made in a common adventure facing actual threat (at time of peril)
made to preserve imperilled property/interests (common benefit)

6. (a) extraordinary sacrifices and expenses
condition for the recovery in general average: “extraordinary”
General Average Sacrifices:
Cargo ejection into the sea (jettison of cargo)
Use of cargo as fuel
loss or damage to cargo (or ship) during fire extinction (fire damage not included)
Intentional stranding or de-stranding (damage to machinery)
Loss of freight

7. (A)…cont.’d General Average Expenses:
Salvage award and associated costs (special compensation not included)
Port of refugee costs (inward and outward port charges)
Included: towage, cargo and fuel unloading and re-loading costs; vessel repositioning, unloading and cargo manipulation, stowage, re-loading, port navigation, crew, interim repair costs
Sue and labor costs
Substituted expenses (additional costs)
if it is incurred to prevent greater expenses being incurred (amounting to general average)
Up to the amount of the general average expense avoided (ie, interim repair costs, docking costs, …)

8. rights to general average
law of the port of dischrge (termination of common adventure)
express provisions in B/L (or charterparties) – York Antwerp rules

9. york antwerp rules
enforcement: by law / by contract (express incorporation)
1974, 1994, 2004 versions
content:
A-G = general principles
I-XXII = particular instances of general average

10. General average Adjustment (i)
Useful Result Assessment – at the end of joint maritime venture
Only costs, damage and loss as a direct result of general average
Burden of Proof – on the party seeking indemnification through general average (12 months from the end of joint maritime venture)

11. General average Adjustment (ii)
Average Adjusters
Phases:
Chronology
Legal phases analysis
Dispatch – division basis

12. If, after general average and before the end of joint maritime venture, a total loss of individual interest occurs (vessel, cargo), are such interests obliged to contributed to the general average adjustment?
Is consequential loss included into general average (ie, demurrage costs, loss of market, delay costs, indirect loss, …)?

13. Division basis (i) - Creditor and Debtor Mass Determination
CREDITOR MASS
damaged or lost property - vessel, cargo, freight - and relevant costs > what needs to be indemnified, indemnification value
Property sacrificed in general average
difference in value of sacrificed property
General average expenses
General average adjustment costs
DEBTOR MASS
value of vessel, cargo, freight > value utilized for indemnification, contributory values
Property saved in general average
Value of damaged property
difference in value of sacrificed property
spreading the loss equally

14. Division basis (iI)
Contribution Coefficient Determination – dividing the creditor’s with debtor’s mass
Coefficient multiplied with vessel value = vessel contribution
Coefficient multiplied with cargo value = cargo contribution
Coefficient multiplied with freight value = freight contribution