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FrançaisGeneral average (GA)
A voluntary sacrifice or extraordinary expense incurred during waterborne transit to protect all interests from an impending peril. The main principle behind general average is that when sacrifice is made to save the interests of all parties involved in transportation, the party who makes the sacrifice must be compensated by all parties who stand to benefit from the sacrifice or expenditure. For instance, when cargo is jettisoned to save a vessel from sinking, all parties whose cargo was not thrown overboard must contribute to reimburse those parties whose cargo was. Carriers will require some form of security (promissory note) or insurance company guarantee bond prior to releasing cargo, in order to enforce each party´s contribution. While this can be a burden for owners of uninsured cargo, insurance companies provide such guarantees for cargoes they insure.
