General Average

General Average is a maritime law principle that requires all parties involved in a sea venture to share the losses from a voluntary sacrifice made to save the vessel and its cargo. It ensures that when property is intentionally damaged or sacrificed to protect the integrity of the voyage, the resulting losses are evenly distributed among all stakeholders.

The concept of General Average dates back to ancient maritime practices and was codified in the Rhodian Law. It was formally recognized in English law with the development of maritime insurance principles.

In modern law, General Average is invoked in maritime shipping contracts and insurance policies, particularly under the York-Antwerp Rules. It provides a mechanism for equitable loss sharing among shipowners, cargo owners, and insurers in cases of shared risk during a voyage.

• If a ship is in danger of sinking and the captain orders the cargo of expensive goods to be jettisoned to save the vessel, all parties must share the loss of that cargo.
• In the case of a fire on board a vessel, if the crew decides to breach the ship's hull to extinguish the fire and prevent further damage, those costs may be apportioned among the cargo owners.

• The Eurygenes (1868) 4 P.C. 121