Glossary Discription

General Average is a long-established maritime principle applied when extraordinary actions are taken during a sea voyage to protect the vessel and remaining cargo from a serious threat such as fire, grounding, or severe weather. If the ship’s master intentionally sacrifices part of the cargo, incurs emergency port expenses, or arranges rescue services to save the voyage, the financial impact is not borne by one party alone. Instead, the shipowner and all cargo owners contribute proportionally based on the value of their goods. In logistics, this principle ensures fairness and cooperation in maritime transport, making it essential for insurers, freight forwarders, and shippers to understand the financial implications of sea risks.

Key Characteristics:

• Shared Loss
• Emergency Action
• Maritime Rule
• Cost Distributed
• Risk Shared
• Cargo Sacrificed