General Average (GA)
General average is the maritime law principle that an extraordinary sacrifice or expense, intentionally made to save ship and cargo from a common danger, is shared by all parties in proportion to the value of their interests. Examples are towing a grounded vessel or fighting a fire. Settlement usually follows the York-Antwerp Rules and is calculated by an average adjuster. Cargo owners must provide security before their goods are released, so uninsured owners can face a heavy bill.
Related terms
- Particular Average
Particular average is a partial loss that affects only a particular interest and is not shared, such as some cartons damaged by seawater or crushed during discharge.
- Cargo Insurance (Marine Cargo Insurance)
Cargo insurance protects the cargo owner against loss of or damage to goods during sea, air or land transport.
- Total Loss
A total loss occurs when goods are entirely lost or so damaged that they no longer are the thing insured, called an actual total loss.
- Bill of Lading (B/L)
A bill of lading is the ocean transport document issued by the carrier or its agent.