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Does anyone have a reputable resource for how General Average actually works under today's international law? Some questions I'm curious about are: (1) What c
by RandomBK 4y ago
Does anyone have a reputable resource for how General Average actually works under today's international law?
Some questions I'm curious about are:
(1) What constitutes an "emergency"? If the ship is stuck but not otherwise in imminent danger, would GA apply? It would appear to me that Evergreen could safely transport the cargo off the ship, but would rather just throw it overboard to save time and effort. Doesn't that just unnecessarily pass the costs on to cargo-owners?
(2) Many places refer to the idea that GA only applies if jettisoning cargo actually saves the ship. It sounds like the ship is really stuck - if they jettison cargo but the ship still doesn't budge, would that nullify GA?
(3) Is the GA liability limited by the declared value of your own cargo on that ship? What happens if the total declared value of the "saved" cargo is less than the value of the "discarded" cargo?
(4) Do cargo-owners have an option to say "you know what, I don't really want my cargo anymore" and avoid paying GA?
(5) What country would have jurisdiction over any litigation in this instance? Would it be the country whose territorial waters this happened in, the flag country of the ship, the country of ownership of the ship, contract-defined, etc?
- dmurray 4y agoI'm not an expert but 3 and 4 seem to have been answered: the point of GA is everyone gets X% of their cargo value back, and we decide what X is. Either you get X in cash, or you pay 100-X into the fund. So yes, your liability is limited to 100% of your cargo, and you wouldn't generally want to exercise any option to walk away from it. (Maybe you would in some edge cases around fraud, or financing difficulties, or where the market value of your cargo has suddenly declined).