General average
A maritime institution sharing between ship and every cargo the sacrifice made to save the venture, whatever goods were actually sacrificed.
March 2021: the Ever Given sits aground in the Suez Canal for six days, its owner declares general average, and thousands of cargo owners must post security before they see their containers again. General average is one of the oldest institutions of maritime law. It applies when an extraordinary sacrifice or expenditure is made on purpose for the common safety of the venture: jettisoning part of the cargo, grounding the ship deliberately, engaging tugs. All the saved interests then share the burden in proportion to their value. The owner of the jettisoned goods therefore does not bear alone a loss that benefited everyone. The rule is also an incentive: it lets the master decide quickly without weighing one shipper's interests against another's. In practice it is heavy and slow. An average adjuster values the saved interests, each consignee must post security before recovering its goods, and final settlement often takes years. The York-Antwerp Rules, revised periodically, set out the detail by contract. For cargo insurance, a general average declaration is a major event: it ties up the goods and triggers a cover distinct from the one for the damage suffered.
The container ship Ever Given was aground in the Suez Canal from March 23 to 29, 2021. The owner declared general average, and the thousands of owners of goods on board had to post security before recovering their containers.
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