General averageGeneral average

York-Antwerp rulesYork-Antwerp rules

General average is usually adjusted General average is usually adjusted under above rules.under above rules.

Latest 2004 rules, but 1994 rules Latest 2004 rules, but 1994 rules more favourable to shipowners.more favourable to shipowners.

Unlike Hague-Visby rules, these are Unlike Hague-Visby rules, these are not incorporated into national not incorporated into national legislation, but voluntarily accepted legislation, but voluntarily accepted by shipowners, shippers and by shipowners, shippers and insurers.insurers.

Simple definitionSimple definition

‘‘‘‘ ‘‘‘‘ That which has been sacrificed for That which has been sacrificed for the benefit of all shall be made good the benefit of all shall be made good by the contribution of all involved in by the contribution of all involved in a maritime adventure’’’’’a maritime adventure’’’’’

Parties of a maritime adventure Parties of a maritime adventure could be: ship owner, cargo owner or could be: ship owner, cargo owner or owners no matter how small the owners no matter how small the consignment, bunker owner, consignment, bunker owner, equipment owner.equipment owner.

Elements of general averageElements of general average1.1. There must be a sacrifice or expenditure.There must be a sacrifice or expenditure.

2.2. Sacrifice or expenditure must be Sacrifice or expenditure must be extraordinary.extraordinary.

3.3. Sacrifice or expenditure must be Sacrifice or expenditure must be intentionally made or incurred.intentionally made or incurred.

4.4. Sacrifice or expenditure must be Sacrifice or expenditure must be reasonable. ( jettison minimum) reasonable. ( jettison minimum)

5.5. Sacrifice or expenditure must be made Sacrifice or expenditure must be made for common safety. for common safety.

6.6. Sacrifice or expenditure must be made Sacrifice or expenditure must be made for the purpose of preserving the for the purpose of preserving the property from peril.property from peril.

Sacrifice or expenditureSacrifice or expenditure

Sacrifice: cargo jettisoned to refloat Sacrifice: cargo jettisoned to refloat or to correct dangerous list, or to correct dangerous list, machinery damage sustained during machinery damage sustained during refloating.refloating.

Expenditure: cost of salvage Expenditure: cost of salvage expenditure, cost of entering, staying expenditure, cost of entering, staying at and leaving a port of refuge. at and leaving a port of refuge.

extraordinaryextraordinary

Must not be every day loss or Must not be every day loss or expense in running a ship.expense in running a ship.

Losing an anchor to prevent Losing an anchor to prevent grounding in not ex. Ord., because grounding in not ex. Ord., because that is what anchor is supposed to that is what anchor is supposed to do. Loosing anchor while refloating is do. Loosing anchor while refloating is extra ordinary.extra ordinary.

Damage to engine while running Damage to engine while running aground is not, while same damage aground is not, while same damage while refloating is extra ordinary.while refloating is extra ordinary.

Intentional sacrifice.Intentional sacrifice.

Beaching a leaking ship is intentional Beaching a leaking ship is intentional Running aground while asleep is not Running aground while asleep is not

intentional, so damage done while intentional, so damage done while running aground is not part of GA. running aground is not part of GA. But costs of refloating are But costs of refloating are intentional.intentional.