General Average clauses

General Average clauses. There are generally two protective clauses in a charterparty dealing specifically with G/A. One states that if there is to be adjustment after a G/A act or sacrifice or expenditure, the adjustment is to be carried out according to the York-Antwerp Rules in some specified place, the law and practice of which will apply to the adjustment.

The other states that if any bills of lading are: issued under the C/P, these documents must also protect the owner in the same way. This means that there must not only be a reference to the C/P General Average clause and New Jason clause but the actual clause should be copied into the bill of lading.

Another clause, the “New Jason clause”, specifies that where any adjustment is made according to the law and practice of the U.S.A. (which is different for G/A from that in other “Common-law countries”, such as the U.K.) the shipowner can recover G/A contributions from the cargo interests even though the G/A event can be attributed to the owner’s negligence.

In the MULTIFORM charterparty the same clause deals with both these matters. In cl. 26 it is stated:

“General Average shall be settled according to the York/Antwerp Rules 1974 and shall be adjusted in . . . and paid in . . .

Where the adjustment is made in accordance with the law and practice of the United States of America, the following clause shall apply.

In the event of accident, danger, damage or disaster before or after the commencement of the voyage, resulting from any cause whatsoever, whether due to negligence or not, for which, or for the consequences of which, the carrier is not responsible by Statute, contract or otherwise, the goods, shippers, consignees or owners of the goods shall contribute with the carrier in general average to the payment of any sacrifice, losses or expenses of a general average nature that may be made or incurred and shall pay-salvage and special charges incurred in respect of the goods.

If a salving vessel is owned or operated by the carrier, salvage shall be paid as if the said salving vessel or vessels belonged to strangers. Such deposit as the carrier or his agents shall deem sufficient to cover the estimated contribution of the goods and any salvage and special charges thereon shall, if required, be made by the goods, shippers, consignees, or owners of the goods to the carrier before delivery.

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Written by Ship Inspection

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General average and marine insurance

General cargo contract