General Average – Explained

General Average – Explained

General Average – Could it affect your Cargo?

Are you covered in the event of General Average being declared?

What is General Average? Imagine a situation at sea such as a fire, severe storm or another life threatening situation, the master of the ship (as a last resort) might be forced to throw overboard some or all of its cargo to save part or all of the ship.

When this happens, the ship’s master declares a legal principle of Maritime Law termed “General Average”.  Under this principle all the parties involved will be asked to proportionally share the losses resulting from the sacrifice.

All parties including everyone whose cargo has landed safely would be called on to contribute a portion, based upon a share or percentage to the companies whose cargo was jettisoned in order to avert the danger to the ship or crew.

Although statistics show that it is not a common occurrence it can be a very costly one if you do not have “all risks” marine insurance cover in place.If you have your own “all risks” marine insurance policy or Isca covers your “all risks” marine insurance then the insurance companies will cover the General Average costs, but good idea to check.

When General Average is declared by the ship’s master, the Shipping Line concerned will not release the cargo until cargo owners put up a cash bond or their insurance company puts up a General Average guarantee.

Need more information give us at call.

Isca Forwarding

Isca Forwarding are a UK based independent Freight Forwarder who have unrivalled logistics experience.  We provide international sea freight, air freight and road freight services for commercial businesses and the personal effects markets.


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© 2018 ISCA Forwarding Ltd. All rights reserved.