May 3, 2023

General Average and Cargo Insurance

General Average is a principle of maritime law that establishes that all sea cargo stakeholders (ship owner, shipper, etc.) evenly share any damage or losses that may occur. This is as a result of voluntary sacrifice of part of the 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 cost to tow a disabled vessel, would be shared pro rata by both the carrier and the cargo-owners. General average contributions are normally covered by insurance policies on the ship and the cargo interests. If the cargo is

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