The concept of General Average in Shipping

In the shipping industry, the concept of general average refers to a situation where a ship and its cargo are exposed to a common danger and the ship or cargo is intentionally sacrificed for the benefit of the whole. When this occurs, the costs incurred in saving the ship and the remaining cargo are divided among all of the parties involved, including the vessel owner, the cargo owner, and the insurer. This division is called a general average contribution. The process of receiving cargo after a general average event can be complex and will typically involve the port agent working with the vessel owner and the cargo receivers to determine the value of the sacrificed cargo, collect and distribute the general average contributions, and arrange for the release of the remaining cargo. It is recommended that cargo receivers seek the advice of a shipping lawyer or other professional to ensure that their interests are protected.