General Average is a centuries-old maritime law principle: if a deliberate, reasonable sacrifice is made to save a vessel and its cargo from a common danger, the resulting loss is shared proportionally among all parties whose cargo was aboard and benefited from that sacrifice — not borne solely by whoever’s cargo was actually sacrificed.
Classic Example
If cargo must be jettisoned (thrown overboard) to lighten a grounded vessel and save it from total loss, the owner of the jettisoned cargo doesn’t bear that loss alone — every cargo owner aboard, whose goods were saved by the sacrifice, contributes proportionally to compensate them.
Requirements for a Valid General Average Act
- Common peril — a real danger threatening the ship and cargo together, not just one party’s goods
- Voluntary sacrifice or expenditure — a deliberate decision, not an accident
- Reasonable action — the sacrifice must be a reasonable response to the danger
- Success — the venture must ultimately be saved, at least in part, for General Average to apply
The Process
Following a General Average event, a General Average Adjuster is typically appointed to calculate each party’s proportional contribution based on the value of property saved — a specialized, often lengthy process governed by international rules (commonly the York-Antwerp Rules).
Why It Still Matters
General Average remains legally significant today — cargo interests are typically required to provide a General Average bond or guarantee before their cargo is released, ensuring their proportional contribution is secured even while the full adjustment process is ongoing.
Exam Relevance
General Average principles and requirements are a standard Ship Knowledge/Cargo Work topic in deck officer competency exams.