General Average

What is General Average in shipping?

General Average is an action taken to minimise the loss or damage to a vessel or goods being transported during a dangerous voyage. In the event of a danger, the captain of a ship or/and the shipowner reasonably and exceptionally take a decision to safeguard the vessel or some of the goods in the vessel by jettison when facing danger at sea.

In this very situation, the owner of the vessel declares General Average. And any losses incur by jettison will be proportionately shared by all stakeholders.