Mon, Oct

Examples of general average


Examples of general average. The following are examples of extraordinary sacrifices intentionally and reasonably made for the common safety and allowed as general average:

(a) A vessel is aground and her engine and equipment are damaged in efforts to refloat the vessel.

(b) A fire occurs in the hold of a vessel and a hole is cut in another of her holds to gain access to the fire and put it out. The cargo not on fire may also be damaged.

(c) Cargo is jettisoned for the common safety in time of peril.

(d) Cargo burnt as fuel (e.g., fuel oil in the ship’s tanks) if there is a shortage of bunkers.

(e) Cargo not on fire is damaged by water being used to extinguish other cargo, which is on fire.

If cargo is lost and as a result the shipowner cannot collect the freight which is payable at destination, the freight is sacrificed equally with the cargo and is allowed as GA.

The following are examples of extraordinary expenditure intentionally and reasonably incurred for the common safety:

(a) The expense of hiring lighters for storing cargo in which efforts to refloat a vessel take place.

(b) The expense of hiring a tug with fire-fighting equipment to extinguish a fire on board a vessel.

(c) Port of refuge expenses.

(d) Salvage charges.