General Average.. what exactly is it?

Imagine a cargo ship full of containers on its voyage and something unexpected happens during the trip, anything from:

  • Theft of Goods
  • Loss or Damage
  • Sinking, Capsizing, Container dumping
  • Loading and Unloading incidents
  • Warehousing and storage issues
  • Fire

General Average is a principle of maritime law that essentially establishes that all sea cargo stakeholders (owner, shipper, etc.) evenly share any damage or losses that may occur as a result of voluntary sacrifice of part of the vessel or cargo to save the whole in an emergency.

A good ...

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Owner of ‘Ever Given’ declares General Average – Marine insurance matters!

As the investigation into the grounding of the Ever Given in the Suez Canal began last week, the vessel’s Japanese owner, Shoei Kisen, has declared General Average.

The grounding of the Ever Given is shaping up as potentially the most complex ‘general average’ (GA) claim of all time, with litigation potentially involving 20,000 teu and up to 20 cargo interests per container.

Lloyd’s List has reported that Egypt is looking to claim around $1bn in compensation for the casualty that closed the Suez Canal for six days last ...

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Marine insurance – Why is it important? How can we help?

What was once thought of as a rare occurrence has turned into a almost fortnightly issue facing shippers. Over 3,000 containers have been lost at sea since the ONE Apus incident late last year which saw over 1800 containers lost overboard and thousands of others damaged.

This particular unprecedented container collapse could end up costing $200 million in cargo damage, according to an estimate from a general average surveyor. Although General average has not been declared as of yet, it cannot be ...

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