Welcome
Service oriented Freight Forwarding
that you can count on !
-------------------
A network of offices and agents throughout the world to serve you.
General Average - What is it ?
GENERAL AVERAGE:
Loss resulting from a voluntary sacrifice of any part of the vessel or cargo, or an expenditure to safeguard the vessel and the rest of the cargo. When such a loss occurs, it is paid on a pro rata basis by the ship owner and all cargo owners.
------
When a marine casualty arises, steps may need to be taken to protect or save the ship and cargo from serious damage or total loss. The steps taken may result in expenditure being incurred and/or deliberate loss or damage to some of the property at risk, but result in the saving of other property.
Example: A ship has suffered a fire in the cargo hold. Water is poured into the hold to extinguish the fire and prevent it spreading through the ship and cargo. Other cargo that was in the hold but not on fire is damaged by the water used to extinguish the fire. Who pays?
General Average is designed to provide an equitable distribution of these losses or sacrifices between the Parties that have benefited.
All the property that has been saved at the completion of the voyage contributes to the financial compensation for the water damage suffered. But how is the compensation determined?
The YORK ANTWERP RULES have been developed to provide a uniform approach to the handling of General Average losses. Many contracts of carriage provide for the application of these Rules. Where they do not apply General Average claims and compensation are determined by local law.
At the time the voyage is completed the level of the sacrificial losses will not normally be known. Shipowners will usually call for security from cargo interests against which the assessed contributions can be enforced. The amount of the claim is usually calculated by Average Adjusters, appointed by Shipowners. The contribution of each Party is calculated pro rata to the value of their property at the end of the voyage.
Call HUB Freight if you would like a quote on cargo
insurance.
Import & Export ocean cargo service. Specializing in Asia / Far East cargo.
Rail transportation. Inbound / outbound, International & domestic.
Local and long distance cartage & trucking.
Heavy & Oversize specialists
Air import & export services to almost any major airport.
Tel: 847-690-1000 --- Fax: 847-690-1011 --- E-Mail info@hubfreight.com
