2. • Any extraordinary sacrifice or expenditure
• Intentionally, reasonably made or incurred
• for the common safety
• for preserving from peril
• property involved in a common maritime
adventure.
3. York Antwerp Rules
• YAR not a convention
• Incorporation by reference in Contract of
Carriage.
4. General Average Loss
… and General Average loss takes the form of:
• SACRIFICE - loss or damage to physical
property
Eg: jettison or cargo / extinguishing fire /
damage to
vessel’s machinery in refloating
• EXPENDITURE - for the purchase of services
Eg: port of refuge expenses, refloating costs.
5. Examples
• SACRIFICE
• Ship: Refloating damage
• Fire extinguishing damage
• Cargo: Jettison
• Fire extinguishing damage
6. Examples
• EXPENDITURE
• Lightening grounded vessel
• Entry to Port of Refuge
• Handling cargo to do repairs
• Detention expenses during repairs
7.
8. Basis Of Contribution
GA Sacrifices / Expenditure are
apportioned over Net Arrived
Values at destination
9. GA Security
• BOND (Receiver)
• AVERAGE GUARANTEE (Insurer) or
• CASH DEPOSIT (Receiver)
10. GA Adjustment - How and Where
• • Average Adjuster needs to be appointed
• • Terms set out in contractual agreement
• • Charter Party and / or Bill of Lading
incorporates York Antwerp Rules and place
where GA to be settled
• • The GA mechanism functions irrespective of
fault or breach of contract, Legal arguments
occur later.
11. Benefits Of GA
• • Universally accepted
• • In major casualties the sharing of costs can
prevent abandonment
12.
13. When the Casualty Occurs
• Obtain details of casualty from the Master
• • Appoint / consult Average Adjuster
• • Inform Hull Underwriters and P&I Club
• • Assess the situation, identify the options and
make decisions
• • Inform Cargo Interests
14. Prior to Arriving at Destination
• • Why is a GA security required?
• • What form of GA security is required?
• • Average Bond ( and commercial invoice)
& Average Guarantee or Cash Deposit
