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General average
General average
General average
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The owners of Hanjin Osaka, seen here transiting the Panama Canal in 2012, declared general average following an explosion.[1]

The law of general average is a principle of maritime law whereby all stakeholders in a sea venture proportionately share any losses resulting from a voluntary sacrifice of part of the ship or cargo to save the whole in an emergency. For instance, should the crew jettison some cargo overboard to lighten the ship in a storm, the loss would be shared pro rata by both the carrier[2] and the cargo-owners.

In the exigencies of hazards faced at sea, crew members may have little time in which to determine precisely whose cargo they are jettisoning. Thus, to avoid quarreling that could waste valuable time, there arose the equitable practice whereby all the merchants whose cargo landed safely would be called on to contribute a portion, based upon a share or percentage, to the merchant or merchants whose goods had been tossed overboard to avert imminent peril. General average traces its origins in ancient maritime law, and the principle remains within the admiralty law of most countries.

Etymology

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"Average" comes from French avarie and Italian avaria, tracing back to Arabic عَوَارِيَّة, ʕawāriyya, meaning "damaged goods". The use of the term in "general average" originally referred to incurred damages, but the meaning of the word developed into the additional modern senses of equitable distribution and arithmetic mean due to the principle.[3]

Ancient through early modern times

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It is provided by the Lex Rhodia that if merchandise is thrown overboard for the purpose of lightening a ship, the loss is made good by the assessment of all which is made for the benefit of all.

— Julius Paulus, Opinions of Paulus (c. AD 230)[4]

A form of what is now called general average was included in the Lex Rhodia, the Rhodes Maritime Code of c. 800 BC.[5] Julius Paulus quoted from the law around the turn of the 3rd century, and these quotes are preserved, and an excerpt is included in Justinian's 6th-century Digest of Justinian (part of the Corpus Juris Civilis), although the Lex Rhodia is itself now lost.[4][6]

After the fall of Rome, formal maritime law fell into disuse in Europe (maritime law scholar Jean Marie Pardessus suggests that the Digest of Justinian may have been entirely lost until a copy was discovered in Amalfi around 1135), although informal arrangements similar to the basic concept of general average was probably often followed as a practical matter.[6] The medieval Rolls of Oléron, probably a collection of judgments from a court in Bordeaux, provided (along with much else) guidance on what is now called general average, and was taken as authoritative in many parts of Europe: the Laws of Wisbuy, as well as laws of Flanders, the Hanseatic League, Amsterdam, Genoa, and Catalonia, appear to have been copied from the Rolls of Oléron.[6]

An ordinance published by King Louis XIV of France in 1681 influenced laws in the rest of Europe, with the definition used in the French code followed in similar terms in codes and ordinances promulgated in that century and the next in Hamburg, Prussia, Denmark, Sweden, Spain, Amsterdam, Rotterdam and Middelburg.[7]

York Antwerp Rules

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The 1890 Rules

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The first codification of general average was the York Antwerp Rules[8] of 1890.[5][7] American companies accepted it in 1949. General average requires three elements which are clearly stated by Justice Grier in Barnard v. Adams:

1st. A common danger: a danger in which vessel, cargo and crew all participate; a danger imminent and apparently "inevitable", except by voluntarily incurring the loss of a portion of the whole to save the remainder.

2nd. There must be a voluntary jettison, jactus, or casting away, of some portion of the joint concern for the purpose of avoiding this imminent peril, periculi imminentis evitandi causa, or, in other words, a transfer of the peril from the whole to a particular portion of the whole.

3rd. This attempt to avoid the imminent common peril must be successful.

The York-Antwerp Rules remain in effect, having been modified and updated several times since their 1890 introduction.[7]

Modern Rules

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The York Antwerp Rules were updated in 1994, 2004 and 2016.[9] A summary of the 2004 changes may be found here:[10][11]

The Hamburg Rules of 1978 provide for general average to apply to relevant costs incurred as a result of attempts to save life or property.[12]

New Jason clause

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United States law provides for taking the shipowner's fault into account, in contradiction of Rule D of the York–Antwerp Rules. Therefore, a New Jason Clause is often included in shipping contracts when US law may apply to the contract or trade. Such a clause specifies that shipowners will also be included in the general average even when the loss was caused by negligence of the shipowner or crew.[13][14]

Modern day

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Despite advances in maritime transport technology, the principle continues on occasion to be invoked:

  • The MV Hyundai Fortune declared general average following an explosion and fire in 2006 off the coast of Yemen.
  • The M/V MSC Sabrina declared general average in effect after grounding in the Saint Lawrence river on 8 March 2008.[15]
  • The owners of the Hanjin Osaka declared general average following an explosion in the ship's engine room on 8 January 2012.[1]
  • Maersk declared general average for Maersk Honam after a fire in the Arabian Sea in March 2018.[16]
  • The owners of the Northern Jupiter declared general average following an engine fire on 28 January 2020.[17]
  • Shoei Kisen, the owners of the Ever Given, declared general average following the grounding of the vessel in the Suez Canal on 23 March 2021, resulting in a six-day shutdown of traffic in the canal until it was freed by 11 tugs and two dredgers.[18][19]
  • Evergreen Marine, the owners of the Ever Forward, declared general average on 31 March 2022 following the grounding of the vessel in Chesapeake Bay.[20][21]
  • The owners of the MV Dali, which hit and demolished the Key Bridge in Baltimore in 2024, declared General Average on the 17th April 2024[22]
  • General Average was declared on 28 November 2025 after the 21 November fire aboard M/V ONE HENRY HUDSON in Los Angeles.[23]

References

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See also

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Further reading

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Revisions and contributorsEdit on WikipediaRead on Wikipedia

General average

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from Grokipedia
General average is a longstanding principle of maritime law under which all parties to a common sea adventure—typically shipowners, cargo owners, and freight interests—proportionally share the financial losses arising from any extraordinary sacrifice or expenditure intentionally made to preserve the vessel, cargo, and other property from an imminent peril. This equitable doctrine ensures that no single party bears the full burden of such voluntary actions, promoting fairness and cooperation in hazardous maritime ventures. Originating in ancient Mediterranean trade practices, the concept traces its roots to Rhodian law around the 7th century BCE, where it was codified in the maxim "The value of the property saved contributes to the relief of the loss." It was later incorporated into Roman civil law through Justinian's Digest in the 6th century CE and influenced medieval European maritime codes, such as the 12th-century Rolls of Oléron, before becoming embedded in English common law by the 18th century. Efforts toward international standardization began in the 19th century, culminating in the York-Antwerp Rules, first adopted in 1864 in York, England, and revised multiple times (notably in 1890, 1924, 1950, 1974, 1994, 2004, and 2016) by the Comité Maritime International to harmonize application across jurisdictions. These rules, while not a binding convention, are widely incorporated into contracts of carriage, bills of lading, and insurance policies, defining general average acts as "any extraordinary sacrifice or expenditure reasonably made or incurred in time of peril for the common safety for the purpose of preserving from peril the property involved in a common maritime adventure." At its core, general average applies only when specific conditions are met: there must be a real danger to the common adventure, the sacrifice or expense must be voluntary and reasonable, it must successfully avert the peril, and it must directly benefit all interests involved. Classic examples include jettisoning cargo to lighten a stranded vessel, cutting away masts during a storm, or incurring costs for salvage operations or refuge in a port of distress. Unlike particular average, which covers accidental losses borne solely by the affected owner, general average distributes the burden based on the contributory values of the saved property, assessed at the voyage's end and adjusted by specialized professionals known as average adjusters. In practice, the vessel owner often advances the costs and secures liens on cargo until contributions are received via bonds, guarantees, or deposits from cargo interests. Today, general average remains relevant in global shipping despite modern technologies reducing perils, as it underpins risk-sharing in marine insurance and fosters trust among stakeholders. However, its administration can be complex and time-consuming—often taking years—due to disputes over seaworthiness, fault, and valuation, leading to calls for simplification or replacement with comprehensive insurance mechanisms. The New Jason Clause, commonly included in contracts, allows recovery even if negligence by the shipowner contributes to the peril, provided it does not bar liability under statutes like the U.S. Carriage of Goods by Sea Act. Overall, the principle continues to adapt through ongoing revisions to the York-Antwerp Rules, ensuring its role in equitable maritime loss apportionment.

Fundamentals

Definition

General average is a longstanding principle in maritime law whereby a voluntary and extraordinary sacrifice of part of the ship, cargo, or freight, or an extraordinary expenditure, is made to avert a common peril threatening the entire maritime adventure, with the resulting losses shared proportionally among all parties who benefit from the preservation of the property involved. This definition is codified in statutes such as section 66(2) of the English Marine Insurance Act 1906, which states: "There is a general average act where any extraordinary sacrifice or expenditure is voluntarily and reasonably made or incurred in time of peril for the purpose of preserving the property imperilled in the common adventure." Similarly, Rule A of the York-Antwerp Rules provides that "There is a general average act when, and only when, any extraordinary sacrifice or expenditure is intentionally and reasonably made or incurred for the common safety for the purpose of preserving from peril the property involved in a common maritime adventure," serving as a widely adopted international framework for its application. The key elements of general average include voluntariness, extraordinariness, and common safety. The act must be voluntary, meaning it is an intentional decision not compelled by fault or negligence, such as deliberately jettisoning cargo to lighten the vessel during a storm. It must also be extraordinary, involving measures or costs beyond those routine to normal navigation or operations. Finally, the sacrifice or expenditure must serve the common safety by protecting the collective interests of the ship, cargo, and freight from imminent peril, ensuring the adventure's continuation. General average is distinct from particular average, where losses are borne solely by the owner of the affected property without contribution from others. In particular average, damage or loss—such as from accidental causes—is individual and not shared, whereas general average mandates proportional contributions from all benefited parties to equitably distribute the communal sacrifice for the venture's overall preservation. The term "general average" derives from "general" indicating communal sharing, with "average" originating as an ancient term meaning "loss" or damage, traced through Arabic ‘awār (meaning damaged goods), French avarie, and Latin/Italian avaria, ultimately rooted in Rhodian sea law as incorporated into Roman jurisprudence in the Digest of Justinian (14.2.1).

Principles and Rationale

The principle of general average is grounded in three fundamental elements: sacrifice, contribution, and success. Sacrifice entails the deliberate damage to, jettisoning of, or expenditure on property to safeguard the vessel and its cargo from a shared peril, such as throwing overboard cargo to lighten the ship during a storm. Contribution mandates that all beneficiaries of the sacrifice—shipowners, cargo owners, and other stakeholders—proportionally share the resulting losses according to the value of their respective interests at the end of the voyage. Success requires that the sacrifice effectively averts the peril, preserving the common adventure and enabling the claim for shared compensation. The rationale for general average lies in its promotion of cooperation during maritime emergencies, where individual self-interest might otherwise lead to suboptimal outcomes, such as abandoning the venture; by ensuring equitable loss-sharing, it encourages collective action and sustains the economic viability of sea trade. Ethically, it embodies principles of fairness and mutual security, preventing one party's disproportionate burden and fostering trust among participants in high-risk endeavors. This system, based on simple equity, traces its conceptual origins to ancient maritime practices but remains a timeless mechanism for resolving shared risks without reliance on modern insurance alone. Economically, general average contributes to lower insurance premiums through its predictable framework for loss allocation, which minimizes disputes between property and liability insurers and supports stable commercial practices. It also incentivizes prudent decision-making by ship masters, as the assurance of shared recovery discourages reckless actions while rewarding reasonable sacrifices that minimize overall harm. In this way, it functions as an inherent form of mutual insurance, enhancing the efficiency of maritime operations by aligning incentives for risk mitigation. Application of general average is contingent on specific prerequisites to ensure legitimacy and proportionality. There must be an imminent common peril threatening the entire maritime adventure, such as a risk of sinking or stranding that affects all property involved. The sacrifice or expenditure must be an intentional act undertaken by the master or crew, deliberately aimed at the common safety rather than arising from negligence or accident. Finally, the action must be reasonable and proportionate to the danger, judged by the circumstances at the time, with the burden of proof on the claimant to demonstrate these elements.

Historical Development

Ancient and Medieval Origins

The principle of general average, involving the voluntary sacrifice of property to save a maritime venture with proportional sharing of losses among all parties, has its earliest codified roots in the Rhodian Sea Law, dating back to approximately 800 BCE. This ancient Greek maritime code, known as the Nomos Rhodion Nautikos, established the foundational rule of jettison—throwing overboard cargo or goods during peril to lighten the vessel—with the costs borne equally by ship, cargo, and freight interests. The Lex Rhodia de jactu, a key provision, was preserved and referenced in the Roman Digest of Justinian in the 6th century CE (D. 14.2), where it emphasized communal contribution to avert common danger, preventing any party from profiting at another's expense. In Roman law, these principles were further integrated into the Digest, compiled under Emperor Justinian I around 533 CE, which included fragments from classical jurists discussing average rules derived from Rhodian customs. The Digest codified the requirement for proportional contributions from all stakeholders in cases of deliberate sacrifice, such as jettisoning cargo during storms to preserve the ship and remaining goods, underscoring a contractual obligation in sea carriage. This framework influenced Byzantine adaptations, notably in the Basilica, a late 9th-century compilation initiated under Emperor Basil I and completed under Leo VI (around 888–893 CE), which incorporated Digest provisions (B. 53.3 and B. 53.8) while prioritizing Rhodian Sea-Law elements for general average unless explicitly contradicted, adapting them to the empire's ongoing Mediterranean trade. Medieval European adaptations proliferated along trade routes, where general average principles facilitated risk-sharing in perilous voyages. In the 11th to 12th centuries, Italian city-states like Amalfi incorporated these rules into statutes such as the Tabula Amalfitana (circa 12th century), which addressed jettison and loss apportionment in Mediterranean commerce, reflecting practical applications in stormy seas or piracy threats. Northern examples include the Hanseatic League's customs from the 13th to 15th centuries, influenced by Wisby Laws, which standardized average practices through guild arbitration for Baltic and North Sea trade. Key events, such as jettison during ancient voyages—like those referenced in the Acts of the Apostles (event circa 59–60 CE) amid a storm off Malta or Old Testament accounts (Jonah 1:5)—illustrated early use in Mediterranean routes, where crews cast lots and sacrificed goods to survive gales. The transition to common law occurred through Norman-influenced codes like the Rolls of Oléron (12th century), based on customs from the Isle of Oléron, which recognized jettison and mast-cutting as general average acts requiring shared liability. By the 14th century, early English admiralty courts adopted these via the Oléron Rules, handling disputes in ports and establishing precedents for proportional adjustments in maritime ventures, bridging Mediterranean traditions to Northern European practice.

Early Modern Evolution

During the 16th and 17th centuries, general average principles were integrated into Dutch and English maritime law amid the expansion of global trade, building on medieval foundations such as the Rolls of Oléron. In the Netherlands, Charles V's Ordinance of 1551 provided one of the earliest codifications in Northern Europe, defining general average as the equitable distribution of extraordinary losses or damages incurred for the common safety of ship and cargo, with contributions apportioned based on value at the voyage's end. This was refined by Philip II's Ordinance of 1563, which allowed shipmasters a right of retention over cargo as security for contributions while excluding losses due to negligence or fault. English law, influenced by Roman and continental sources, began applying general average more systematically during this period, particularly in voyages of the East India Company, where jettison of cargo during perils like storms in the spice trade routes necessitated shared sacrifices to preserve the vessel and remaining goods. In the 18th century, advancements in France and England further formalized general average adjustments to address growing commercial complexities. The French Ordinance of Marine, promulgated in 1681 under Louis XIV, codified general average as any extraordinary sacrifice or expenditure deliberately made for the common safety of the ship, cargo, and freight, requiring proportional contributions from all interests valued at the port of discharge after deductions for consumed goods and advances. This ordinance, drawing from customary practices, held insurers liable for general average costs and influenced European maritime codes by emphasizing reasonableness and common benefit. In England, courts under Chief Justice Lord Mansfield during his tenure (1756–1788) and beyond standardized equity-based sharing through rulings that reinforced the principle of mutual contribution for sacrifices benefiting the entire adventure, promoting uniformity in commercial disputes. Key jurists shaped theoretical underpinnings during this era; French scholar Balthazard-Marie Emerigon, in his 1783 Traité des Assurances et des Contrats à la Grosse, advanced doctrines on average adjustments by stressing natural justice in apportioning losses, influencing both continental and common law traditions. Similarly, English and American writer Stevens, through works in 1817 and 1822 on marine insurance, elaborated contribution principles, advocating for underwriter guarantees over mere bonds to ensure enforceability in transatlantic trade. By the 19th century, prior to international codification, the rise of steamships and larger cargoes heightened the complexity of general average claims, as faster voyages and diverse commodities amplified disputes over valuation and fault. In the United States, where English principles were adopted with local adaptations, cases involving sacrifices on whaling ships in the 1830s—such as jettison during Arctic perils—reinforced common law approaches to equitable sharing, emphasizing contributions from all saved interests regardless of intermediate ownership changes. These developments addressed persistent challenges in colonial trade routes, including jurisdictional inconsistencies across ports, enforcement delays in distant territories, and valuation disputes exacerbated by fault allegations or complex risk allocations in multi-party ventures.

York-Antwerp Rules

Inception and 1890 Rules

The development of the York-Antwerp Rules began in the late 19th century amid growing international efforts to standardize maritime law, particularly general average practices that varied significantly across nations. In the 1870s and 1880s, Belgian maritime associations, centered in Antwerp, initiated discussions on codifying general average, building on earlier attempts like the 1877 Antwerp rules and the failed 1885 Antwerp diplomatic conference hosted by the Belgian government. These efforts culminated in the first formal adoption of the York-Antwerp Rules in 1890 at the International Law Association's conference in York, England, with the name reflecting the Anglo-Belgian collaboration—York for the adoption site and Antwerp for the preparatory work. The rules aimed to unify disparate national laws, such as those in the United States, United Kingdom, and continental Europe, which had led to inconsistencies in loss allocation during maritime perils. The 1890 York-Antwerp Rules comprised 18 articles that outlined the scope of general average sacrifices, expenditures, and contributions. Key provisions addressed sacrifices, including jettison of cargo (Rule II, allowing compensation for losses intentionally made for common safety) and damage from water used to extinguish fires or prevent ingress (Rules II and III). Allowances covered port of refuge expenses, such as discharge, storage, and reloading of cargo (Rule X), crew wages during detention (Rule XI), and handling costs (Rule VIII). General principles emphasized that only extraordinary sacrifices or expenditures intentionally made for the common safety qualified (implicit in Rules I-VII), with no allowance for jettison of deck cargo (Rule I) or damage from cutting away masts unless for safety (Rule IV). Contributions were calculated based on the actual net values of property at the end of the voyage (Rule XVII), promoting equity among ship, cargo, and freight interests. Innovations in the 1890 Rules included standardized terminology, such as defining compensable acts as those for the "common safety," and introducing contributory values assessed upon arrival condition rather than pre-loss estimates, which addressed ambiguities in early modern case law like English and American precedents. These rules were widely adopted by incorporating them into bills of lading and charter parties, facilitating smoother international trade by reducing disputes over loss sharing. However, limitations persisted, as the rules lacked specific provisions for collision liabilities or comprehensive fire scenarios beyond basic extinguishment (Rule III), and they predated the widespread use of modern hull insurance structures.

Subsequent Revisions and Modern Versions

The York-Antwerp Rules underwent several revisions following their 1890 inception to address emerging maritime practices and legal challenges. The 1924 revision, adopted at the Hague Conference by the Comité Maritime International (CMI), simplified the calculation of allowances for damage from fire extinguishing efforts and incorporated provisions for losses due to collisions and sacrifices for common safety, reflecting advancements in shipboard safety measures. Post-World War II reconstruction prompted the 1950 revision, which updated the rules to account for modern vessel designs and wartime experiences, including refinements to the net value basis for contributions to ensure fairer apportionment of sacrifices. Subsequent updates in 1974 refined salvage-related provisions by introducing a dedicated Rule VI for salvage remuneration and increasing the interest rate on general average claims to 7%, while the 1994 version amended six lettered principles and eleven numbered rules to exclude allowances for environmental cleanup costs and streamline expense recoveries. The 2004 revision further adjusted contributory values and allowable expenses, focusing on procedural efficiencies amid growing international trade volumes. The most recent iteration, the York-Antwerp Rules 2016, comprises seven lettered rules (A-G) outlining core principles and 23 numbered rules detailing specific scenarios, approved by the CMI in New York to modernize adjustments for contemporary shipping. As of 2025, these remain the current version. Key provisions include exemptions for low-value cargo under Rule XVII(a)(ii), allowing adjusters to exclude items from contributions if handling costs exceed potential recoveries, thereby reducing administrative burdens. The rules also address specialist cargo handling through allowances for reasonable expenses in Rule X and temporary repairs in Rule XIV, while permitting environmental sacrifices—such as measures to avoid oil spills—as general average acts if intentionally made for common safety under Rule A. Over time, the rules evolved to include wages, , , and stores consumed during voyage prolongations at ports of refuge (Rule XI), adapting to operational realities like extended detours. This inclusion, alongside the net value basis for contributions refined thereafter, better accommodates by valuing containerized at net arrived amounts, excluding unearned freight at owners' . These adaptations facilitate equitable in multi-party container scenarios without overhauling the foundational . The York-Antwerp Rules are incorporated into the majority of international maritime contracts, serving as the standard for general average adjustments in global sea trade and forming the basis for guidelines from organizations like the United Nations Conference on Trade and Development (UNCTAD) and the International Maritime Organization (IMO). Despite their widespread use, the rules face criticisms for growing complexity in multimodal transport contexts, where sea, road, and rail interfaces complicate sacrifice assessments and require clearer apportionment mechanisms. Additionally, the manual adjustment process has prompted calls for digital tools to accelerate valuations and collections, potentially reducing delays and costs in container-dominated trades.

New Jason Clause

The New Jason Clause originated in the early 1910s as a response to U.S. court decisions under the Harter Act of 1893, which limited shipowners' ability to claim general average contributions if negligence by the master or crew contributed to the peril. A pivotal case was The Jason (1912), where the U.S. Supreme Court upheld the validity of a contractual provision allowing such contributions if the shipowner exercised due diligence, thereby protecting owners from absolute bars on recovery due to fault. This led to the adoption of the original "Jason Clause" in bills of lading to override common law restrictions that would otherwise deny general average benefits in fault scenarios. The clause's standard content, as commonly incorporated in U.S. maritime contracts, requires shippers, consignees, or cargo owners to contribute to general average sacrifices, losses, or expenses—even if arising from the master's negligence—provided the carrier is not liable under statute, contract, or otherwise, excluding willful default. Its typical wording states: "In the event of accident, danger, damage or disaster before or after the commencement of the voyage, resulting from any cause whatsoever, whether due to negligence or not, for which the Carrier is not responsible by statute, contract or otherwise, the goods, Shippers, Consignees or owners of the goods shall contribute with the Carrier in general average to the payment of any sacrifices, losses or expenses of a general average nature that may be made or incurred." This provision also addresses salvage payments and potential deposits required before cargo delivery. The clause evolved with a 1922 revision, known as the "New Jason Clause," to better align with emerging international standards, including the York-Antwerp Rules of 1924, which exclude fault considerations in general average declarations under Rule D. It was further integrated into the U.S. Carriage of Goods by Sea Act (COGSA) of 1936, which incorporates the Hague Rules and endorses such clauses in bills of lading for outbound shipments from U.S. ports, ensuring their enforceability. This statutory backing modernized the clause for broader application in voyage charters and common carriage. The primary purpose of the New is to balance competing interests in fault-based jurisdictions like the U.S., where might otherwise exempt owners from contributions if is proven, thereby promoting equitable risk-sharing in maritime ventures. It ensures that interests contribute proportionally to general average losses despite non-willful errors by the master or , fostering stability in shipping operations. Today, the New Jason Clause remains mandatory in many U.S. contracts of carriage, particularly under COGSA, to safeguard shipowners' rights in general average adjustments. It contrasts with stricter no-fault approaches in some European legal systems, where statutes or rules like those in the York-Antwerp framework allow contributions irrespective of carrier fault without needing contractual overrides.

Modern Application

Adjustment and Calculation

The declaration of general average begins with the master or shipowner issuing a notice of the general average act immediately following the extraordinary sacrifice or expenditure made for the common safety of the ship, cargo, and freight. This notice informs all parties involved, such as cargo owners and insurers, and initiates the requirement for security, typically in the form of a bond or deposit, before cargo release at the destination port. An independent average adjuster, appointed by the shipowner, plays a central role in the valuation and overall process, acting impartially to assess losses, collect evidence, and prepare the adjustment statement. The adjuster verifies the general average act's allowability under rules such as York-Antwerp Rule A, which requires the sacrifice or expenditure to be intentional and reasonable, and compiles documentation including surveys, invoices, and insurer settlements. The adjustment process follows structured steps: first, an inventory of the sacrifice is conducted at the time of the act, documenting lost or damaged property through logs, weigh-ins, or expert surveys to establish the initial loss amount. Next, post-arrival valuation determines contributory values at the termination of the adventure, typically the port of discharge, where the ship's market value, cargo's arrived net value (based on invoices or shipped value, including prepaid freight and insurance), and freight earnings are assessed, excluding landing charges and duties. Finally, the apportionment statement is prepared, often taking 6 to 12 months or longer due to the collation of international data and verifications, detailing each party's share and including deductions for salvage recoveries or insurance subrogations. Contributory value for each interest is calculated as the sum of the ship's value, cargo value, and freight at risk, adjusted for any general average allowances received. The contribution for each party is then determined proportionally using the formula: GA Contributioni=Loss Amount×Individual Contributory ValueiTotal Contributory Values\text{GA Contribution}_i = \frac{\text{Loss Amount} \times \text{Individual Contributory Value}_i}{\text{Total Contributory Values}} where the Loss Amount is the total general average sacrifice or expenditure, Individual Contributory Valuei_i is the value of the ith party's interest, and Total Contributory Values is the aggregate of all property values at the adventure's end; this ensures pro rata sharing scaled by each party's interest. York-Antwerp Rule G governs the basis, requiring adjustment in the currency of the contributory values at the place and time the adventure ends, promoting uniformity in monetary units. For complex container claims, specialized software aids adjusters in modeling values, tracking multi-party interests, and simulating apportionments to handle the intricacies of thousands of individual cargo items. A representative example involves the jettison of cargo to refloat a grounded vessel: suppose 100 tons of steel worth $200,000 is sacrificed, alongside $350,000 in expenditures (e.g., $300,000 repairs and $50,000 port costs), yielding a total loss amount of $550,000 against total contributory values of $10,000,000 (ship $5M, cargo $4M, freight $1M). The shipowner's contribution would be ($550,000 × $5,000,000) / $10,000,000 = $275,000, while a cargo owner with $30,000 in value contributes ($550,000 × $30,000) / $10,000,000 = $1,650, shared proportionally among all benefited parties after salvage deductions.

Contemporary Relevance and Challenges

General average remains a cornerstone of maritime law in the modern shipping industry, applied in incidents where extraordinary sacrifices or expenditures are made to preserve the vessel and cargo from common peril. Although declarations occur relatively infrequently, their frequency has increased in recent years due to rising incidents of strandings and blockages involving large container ships. A prominent example is the 2021 grounding of the Ever Given in the Suez Canal, which blocked global trade routes for six days and resulted in a general average declaration with total claims estimated at up to $2 billion, including salvage and related costs shared among ship, cargo, and freight interests. In 2024, general average was declared following the MV Dali's collision with the Francis Scott Key Bridge in Baltimore, apportioning costs for salvage, wreckage removal, and disruptions. Similarly, vessel fires such as on the Maersk Frankfurt (July 2024) and Marie Maersk (September 2025) led to declarations, underscoring ongoing risks in container shipping. Contemporary challenges to general average stem from evolving maritime operations and risks that test the principle's traditional boundaries. Multimodal transport, combining sea, road, and rail, blurs the distinction between maritime and non-maritime perils, complicating the application of general average, which is inherently tied to sea voyages under rules like York-Antwerp. Cyber risks pose another hurdle, as increasing digitization of shipping systems heightens vulnerability to attacks that could disrupt operations, raising questions about whether responses to such threats qualify as intentional, voluntary sacrifices required for general average claims. Similarly, the advent of autonomous ships challenges the "voluntary" element, as decisions traditionally made by human masters may be algorithm-driven, potentially undermining the doctrinal foundation of shared liability. Climate-related perils, intensified by global warming such as more severe storms and droughts affecting routes like the Panama Canal, are likely to increase the incidence of general average events by amplifying extraordinary risks to vessels. International variations in general average application create further complexities in global trade. In the United States, the Carriage of Goods by Sea Act (COGSA) incorporates the York-Antwerp Rules but is supplemented by the New Jason Clause in bills of lading, which protects shipowners from unseaworthiness defenses in general average claims, provided due diligence is exercised. In contrast, the United Kingdom adheres more strictly to the York-Antwerp Rules without such broad protections, requiring shipowners to prove seaworthiness to recover contributions, leading to more disputes. Efforts toward harmonization, such as the Rotterdam Rules adopted in 2008, include provisions limiting general average liability for carriers in breach of contract but remain unratified, with only a handful of signatures and no widespread entry into force. Recent cases illustrate general average's adaptability to modern threats. In the 2010s, Somali piracy led to numerous declarations, such as the 2010 hijacking of the MT Polar in the Gulf of Aden, where a $7.7 million ransom payment was deemed a general average expenditure, with the UK Supreme Court in 2024 upholding cargo interests' liability for contributions despite war risks insurance covering the owners. COVID-19 port delays, while not typically triggering full declarations, raised potential general average issues for extraordinary expenditures like extended quarantines or diversions, though most were resolved under force majeure clauses rather than shared sacrifice principles. Looking ahead, general average faces a dual trajectory: potential decline from advanced risk management technologies reducing incidents, offset by rising extreme weather events driving more claims. Average claim values typically range from $10 million to $50 million for mid-sized incidents, though mega-cases like the Ever Given skew higher, often insured through general average security bonds that guarantee contributions—commonly set at 50-100% of cargo value—before release of goods. Integration of blockchain technology offers promise for faster adjustments by enabling instant, transparent posting of bonds and immutable records of sacrifices, potentially streamlining the often protracted process. The York-Antwerp Rules 2016 provisions continue to provide a framework for such innovations, emphasizing reasonable expenditures.

References

  1. https://unctad.org/system/files/official-document/c4isl58_en.pdf
  2. https://docs.rwu.edu/cgi/viewcontent.cgi?article=2403&context=law_ma_jmlc
  3. https://www.aimu.org/aimupapers/General%20Average-Recent%20Trends%20and%20Challenges-10-05-2023.pdf
  4. https://axaxl.com/fast-fast-forward/articles/fair-share-understanding-the-marine-industrys-general-average-principle
  5. https://scholarship.law.georgetown.edu/cgi/viewcontent.cgi?article=3630&context=facpub
  6. https://repub.eur.nl/pub/95765/General-Average_978-94-6251-123-1.pdf
  7. https://comitemaritime.org/wp-content/uploads/2023/01/CMI-GA-Guidelines-short-form.pdf
  8. https://comitemaritime.org/wp-content/uploads/2019/01/CMI-GA-GUIDELINES-finalAssembly.pdf
  9. https://www.scirp.org/journal/paperinformation?paperid=117925
  10. https://library.oapen.org/bitstream/handle/20.500.12657/60773/978-3-031-04118-1.pdf?sequence=1&isAllowed=y
  11. https://www.researchgate.net/publication/352905847_Lex_Rhodia_de_iactu_and_general_average
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  13. https://memp.ace.fordham.edu/sources/the-laws-of-oleron/
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  20. https://api.pageplace.de/preview/DT0400.9781351853361_A30638704/preview-9781351853361_A30638704.pdf
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  27. https://static.igpandi.org/igpi_website/media/article_attachments/York-Antwerp_rules_adopted_by_the_CMI.pdf
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  29. https://nau.com.sg/container-shipping-separate-yar/
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  38. https://www.swedishclub.com/rules-and-exceptions/part-two-comments/chapter-2-risks-covered/rule-4-liabilities-in-respect-of-cargo/section-7-general-average/
  39. https://www.munichre.com/specialty/global-markets-uk/en/solutions/cargo-insurance/what-is-general-average.html
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  41. https://atlanticprojectcargo.com/insights/what-is-general-average-in-maritime-insurance-and-how-to-calculate-general-average/
  42. https://www.claimable.com/who-is-it-for/cargo-shipping-companies/
  43. https://www.chrobinson.com/en-us/resources/blog/how-general-average-could-ruin-your-ocean-cargo-deliveries
  44. https://safety4sea.com/cm-ever-given-the-grounding-that-changed-the-worlds-view-of-shipping/
  45. https://logisticswall.com/category/blog/general-average-declared-for-marie-maersk-understand-general-average-and-guidelines-for-shippers
  46. https://www.flexport.com/blog/general-average-navigating-hidden-maritime-costs-and-cargo-delays/
  47. https://www.mdpi.com/2077-1312/13/4/762
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  49. https://commercial.allianz.com/news-and-insights/expert-risk-articles/shipping-red-sea-impact.html
  50. https://www.hellenicshippingnews.com/remember-the-importance-of-the-new-jason-clause/
  51. https://www.mondaq.com/uk/marine-shipping/87805/the-rotterdam-rules-frequently-asked-questions
  52. http://seatransport.org/wp-content/uploads/2019/06/SV_87-Piracy-Does-it-give-rise-to-a-claim-for-General-Average-1.pdf
  53. https://www.hilldickinson.com/insights/articles/supreme-court-finds-cargo-interests-liable-general-average-contribution-arising
  54. https://www.allynintl.com/news-publications/entry/general-average-everyone-chips-in-whether-you-like-it-or-not
  55. https://www.marinelink.com/news/blockchain-insurance429260
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