{{about|the legal principle of maritime law|generalised average in Maths|Generalized mean|the carom billiards term|Glossary of cue sports terms#general average}} {{short description|Maritime law}} [[File:Hanjin Osaka on Gatun Lake.JPG|thumb|200px|The owners of Hanjin Osaka, seen here transiting the Panama Canal in 2012, declared general average following an explosion.<ref name=WOCD/>]] {{Admiralty law}}
The law of '''general average''' is a principle of maritime law whereby all stakeholders in a sea venture proportionately share any losses resulting from a voluntary sacrifice of part of the ship or cargo to save the whole in an emergency. For instance, should the crew jettison some cargo overboard to lighten the ship in a storm, the loss would be shared ''pro rata'' by both the carrier<ref>Note: the "carrier" is either the shipowner or the charterer.</ref> and the cargo-owners.
In the exigencies of hazards faced at sea, crew members may have little time in which to determine precisely whose cargo they are jettisoning. Thus, to avoid quarreling that could waste valuable time, there arose the equitable practice whereby all the merchants whose cargo landed safely would be called on to contribute a portion, based upon a share or percentage, to the merchant or merchants whose goods had been tossed overboard to avert imminent peril. General average traces its origins in ancient maritime law, and the principle remains within the admiralty law of most countries.
==Etymology== "Average" comes from French {{lang|fr|avarie}} and Italian {{lang|it|avaria}}, tracing back to Arabic {{langx|ar|عَوَارِيَّة|ʕawāriyya|label=none}}, meaning "damaged goods". The use of the term in "general average" originally referred to incurred damages, but the meaning of the word developed into the additional modern senses of equitable distribution and arithmetic mean due to the principle.<ref>{{Cite web |title=Average - Etymology, Origin & Meaning |url=https://www.etymonline.com/word/average |access-date=17 November 2025 |website=Online Etymology Dictionary}}</ref>
==Ancient through early modern times== {{Reduced pull quote |1=left |2=It is provided by the Lex Rhodia that if merchandise is thrown overboard for the purpose of lightening a ship, the loss is made good by the assessment of all which is made for the benefit of all. |3=Julius Paulus |4=''Opinions of Paulus'' ({{circa|AD 230}})<ref name=Duhaime_2/>}}
A form of what is now called general average was included in the Lex Rhodia, the Rhodes Maritime Code of {{Circa|800 BC}}.<ref name=Duhaime/> Julius Paulus quoted from the law around the turn of the 3rd century, and these quotes are preserved, and an excerpt is included in Justinian's 6th-century Digest of Justinian (part of the Corpus Juris Civilis), although the Lex Rhodia is itself now lost.<ref name=Duhaime_2/><ref name=Lowndes/>
After the fall of Rome, formal maritime law fell into disuse in Europe (maritime law scholar Jean Marie Pardessus suggests that the Digest of Justinian may have been entirely lost until a copy was discovered in Amalfi around 1135), although informal arrangements similar to the basic concept of general average was probably often followed as a practical matter.<ref name=Lowndes/> The medieval Rolls of Oléron, probably a collection of judgments from a court in Bordeaux, provided (along with much else) guidance on what is now called general average, and was taken as authoritative in many parts of Europe: the Laws of Wisbuy, as well as laws of Flanders, the Hanseatic League, Amsterdam, Genoa, and Catalonia, appear to have been copied from the Rolls of Oléron.<ref name=Lowndes/>
An ordinance published by King Louis XIV of France in 1681 influenced laws in the rest of Europe, with the definition used in the French code followed in similar terms in codes and ordinances promulgated in that century and the next in Hamburg, Prussia, Denmark, Sweden, Spain, Amsterdam, Rotterdam and Middelburg.<ref name=Cornah/>
==York Antwerp Rules== ===The 1890 Rules=== The first codification of general average was the York Antwerp Rules<ref name=AAAUSC_YAR/> of 1890.<ref name=Duhaime/><ref name=Cornah/> American companies accepted it in 1949. General average requires three elements which are clearly stated by Justice Grier in ''Barnard v. Adams'':
{{blockquote| 1st. A common danger: a danger in which vessel, cargo and crew all participate; a danger imminent and apparently "inevitable", except by voluntarily incurring the loss of a portion of the whole to save the remainder.
2nd. There must be a voluntary jettison, jactus, or casting away, of some portion of the joint concern for the purpose of avoiding this imminent peril, ''periculi imminentis evitandi causa'', or, in other words, a transfer of the peril from the whole to a particular portion of the whole.
3rd. This attempt to avoid the imminent common peril must be successful. }}
The York-Antwerp Rules remain in effect, having been modified and updated several times since their 1890 introduction.<ref name=Cornah/>
===Modern Rules=== The York Antwerp Rules were updated in 1994, 2004 and 2016.<ref>The text of the 1994 Rules, those still in widest use, may be found here: [http://www.tis-gdv.de/tis/bedingungen/gesetze/yar/yar_2004.pdf The full text of the 1994 Rules]{{Dead link|date=August 2025 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> A summary of the 2004 changes may be found here:<ref>[https://shippingandfreightresource.com/wp-content/uploads/2016/01/York-Antwerp-Rules.pdf A summary of the 2004 changes]</ref><ref>The 2016 Rules may be downloaded from the website of the Comité Maritime International, the custodian of the York-Antwerp Rules at [https://comitemaritime.org/work/york-antwerp-rules-yar/].</ref>
The Hamburg Rules of 1978 provide for general average to apply to relevant costs incurred as a result of attempts to save life or property.<ref>Lex Mercatoria, [https://web.archive.org/web/20091113080719/http://www.jus.uio.no/lm/un.sea.carriage.hamburg.rules.1978/doc.html United Nations Convention on the Carriage of Goods by Sea (The Hamburg Rules) Hamburg, 30 March 1978], Article 5.6, accessed on 3 September 2025</ref>
===New Jason clause=== United States law provides for taking the shipowner's fault into account, in contradiction of Rule D{{which|date=March 2026}} of the York–Antwerp Rules. Therefore, a ''New Jason Clause'' is often included in shipping contracts when US law may apply to the contract or trade. Such a clause specifies that shipowners will also be included in the general average even when the loss was caused by negligence of the shipowner or crew.<ref>https://securenow.in/insuropedia/new-jason-clause-marine-insurance-policies/ Article including a case study</ref><ref>https://www.standard-club.com/knowledge-news/remember-the-importance-of-the-new-jason-clause-3827/ Explanation by a P&I Club</ref>
==Modern day== Despite advances in maritime transport technology, the principle continues on occasion to be invoked: *The ''MV Hyundai Fortune'' declared general average following an explosion and fire in 2006 off the coast of ''Yemen''. *The ''M/V MSC Sabrina'' declared general average in effect after grounding in the Saint Lawrence river on 8 March 2008.<ref name=Cargolaw.com/> *The owners of the ''Hanjin Osaka'' declared general average following an explosion in the ship's engine room on 8 January 2012.<ref name=WOCD/> *Maersk declared general average for ''Maersk Honam'' after a fire in the Arabian Sea in March 2018.<ref name=MaerskHonamFire/> *The owners of the ''Northern Jupiter'' declared general average following an engine fire on 28 January 2020.<ref name=NorthernJupiter/> *Shoei Kisen, the owners of the ''Ever Given'', declared general average following the grounding of the vessel in the Suez Canal on 23 March 2021, resulting in a six-day shutdown of traffic in the canal until it was freed by 11 tugs and two dredgers.<ref name=EverGivenGrounding/><ref>{{Cite web |url=https://www.avalonrisk.com/GeneralAverageDeclaredEverGiven_040221.html |title="General Average Declared for Ever Given" |access-date=2021-04-27 |archive-date=2021-04-12 |archive-url=https://web.archive.org/web/20210412005441/https://www.avalonrisk.com/GeneralAverageDeclaredEverGiven_040221.html |url-status=dead }}</ref> *Evergreen Marine, the owners of the Ever Forward, declared general average on 31 March 2022 following the grounding of the vessel in Chesapeake Bay.<ref>{{Cite web |date=2022-04-01 |title=Evergreen Marine declares General Average on stuck ship - Reinsurance News |url=https://www.reinsurancene.ws/evergreen-marine-declares-general-average-on-stuck-ship/ |access-date=2022-04-06 |website=ReinsuranceNe.ws |language=en}}</ref><ref>{{Cite web |date=2022-03-31 |title=Evergreen declares General Average on stricken Ever Forward |url=https://theloadstar.com/evergreen-declares-general-average-on-stricken-ever-forward/ |access-date=2022-04-06 |website=The Loadstar}}</ref> *The owners of the ''MV Dali'', which hit and demolished the Key Bridge in Baltimore in 2024, declared General Average on the 17th April 2024<ref name="balt-sun-1">{{cite web |title=Dali’s owner declares ‘general average’ in Key Bridge disaster. What does that mean? |url=https://www.baltimoresun.com/2024/04/17/key-bridge-dali-general-average/ |website=Baltimore Sun |access-date=17 April 2024 |date=17 April 2024}}</ref> *General Average was declared on 28 November 2025 after the 21 November fire aboard ''M/V ONE HENRY HUDSON'' in Los Angeles.<ref>{{Cite web|title=(Update #2) General Average Declared for M/V ONE HENRY HUDSON 095W {{!}} ONE United States|url=https://us.one-line.com/news/update-2-general-average-declared-m-v-one-henry-hudson-095w|website=us.one-line.com|access-date=2025-12-01}}</ref>
==References== <references> <ref name="WOCD">{{Cite news |date=2012-02-13 |title=General average declared after ship engine explosion - FreightWaves |url=https://www.freightwaves.com/news/general-average-declared-after-ship-engine-explosion |archive-url=http://web.archive.org/web/20210730094359/https://www.freightwaves.com/news/general-average-declared-after-ship-engine-explosion |archive-date=2021-07-30 |access-date=2026-05-31 |work=FreightWaves |language=en-US}}</ref> <ref name="AAAUSC_YAR">[http://www.usaverageadjusters.org/YAR.htm The Association of Average Adjusters of the United States and Canada: YAR] {{webarchive |url=https://web.archive.org/web/20090923144615/http://www.usaverageadjusters.org/YAR.htm |date=September 23, 2009 }}</ref> <ref name="Duhaime">{{cite web |url=http://www.duhaime.org/LegalDictionary/Y/YorkAntwerpRules.aspx |title=York-Antwerp Rules Definition |work=Duhaime's Law Dictionary |access-date=April 9, 2016 |archive-date=June 23, 2017 |archive-url=https://web.archive.org/web/20170623164124/http://www.duhaime.org/LegalDictionary/Y/YorkAntwerpRules.aspx |url-status=dead }}</ref> <ref name="Duhaime_2">{{cite web |url=http://www.duhaime.org/LawMuseum/LawArticle-383/Lex-Rhodia-The-Ancient-Ancestor-of-Maritime-Law-800--BC.aspx |title=Duhaime's Timetable of World Legal History |work=Duhaime's Law Dictionary |access-date=April 9, 2016 |archive-date=June 24, 2021 |archive-url=https://web.archive.org/web/20210624195657/http://www.duhaime.org/LawMuseum/LawArticle-383/Lex-Rhodia-The-Ancient-Ancestor-of-Maritime-Law-800--BC.aspx |url-status=dead }}</ref> <ref name="Cornah">{{cite web |url=https://www.ctplc.com/media/72273/The-Road-to-Vancouver-The-Development-of-the-York-Antwerp-Rules.pdf |archive-url=https://web.archive.org/web/20160423024702/https://www.ctplc.com/media/72273/The-Road-to-Vancouver-The-Development-of-the-York-Antwerp-Rules.pdf |url-status=dead |archive-date=2016-04-23 |title=The road to Vancouver – the development of the York-Antwerp Rules |author=Richard Cornah |date=April–May 2004 |work=Journal of International Maritime Law |access-date=April 9, 2016}}</ref> <ref name="Lowndes">{{cite book |last=Lowndes |first=Richard |title=The law of general average: English and foreign. |url=https://archive.org/details/lawgeneralavera00lowngoog |access-date=April 10, 2016 |year=1873 |publisher=Stevens and Sons (1873), Gale (2010) |isbn=978-1240154715 |pages=[https://archive.org/details/lawgeneralavera00lowngoog/page/n62 1]-10}}</ref> <ref name="Cargolaw.com">{{cite web |url=http://www.cargolaw.com/2008nightmare_msc_sabrina.html |title="River Rescue" |work=Cargolaw.com |publisher=The Law Offices of Countryman & McDaniel |access-date=April 10, 2016}}</ref> <ref name="MaerskHonamFire">{{cite web |url=https://www.lloydsloadinglist.com/freight-directory/news/General-average-declared-for-stricken-Maersk-Honam-vessel/71536.htm |title=General average declared for stricken Maersk Honam vessel |last=Todd |first=Stuart |publisher=Lloyd's Loading List |date=March 15, 2018 | access-date=March 23, 2018}}</ref> <ref name="NorthernJupiter">{{cite web |url=https://www.one-line.com/sites/g/files/lnzjqr776/files/2020-01/Customer%20Advisory%20for%20Northern%20Jupiter%20Voy.949N%20%28update-20200123%29_0.pdf |title=Declaration of General Average AU1/ MV Northern Jupiter Voy.949N}}</ref> <ref name="EverGivenGrounding">{{cite web |url=https://theloadstar.com/lengthy-wait-for-cargo-as-ever-given-owner-declares-general-average/ |title=Lengthy wait for cargo as Ever Given owner declares General Average}}</ref> </references>
==See also== * Protection and indemnity insurance clubs
==Further reading== *{{cite book |last1=Cornah |first1=Richard |last2=Sarll |first2=Richard |editor-last=Shead |editor-first=Joshua |title=Lowndes & Rudolf: The Law of General Average and the York-Antwerp Rules |year=2018 |edition=15th |publisher=Sweet & Maxwel |isbn=978-0414057043}} *{{cite book |last1=Cornah |first1=Richard |last2=Reeder |first2=John |editor-last=Cooke |editor-first=Julian |title=Lowndes & Rudolf: The Law of General Average and the York-Antwerp Rules |year=2013 |edition=14th |publisher=Sweet & Maxwel |isbn=978-0414028463}} *{{cite book |last=Rose |first=Francis |title=General Average: Law and Practice |series=Maritime and Transport Law Library |year=2005 |edition=2nd |publisher=Informa Law (Routledge) |isbn=978-1843114185}} *{{cite book |last=Grime |first=Robert |title=Shipping Law|year=1991 |url=https://archive.org/details/shippinglaw0000grim |url-access=registration |series=Concise College Texts |publisher=Sweet & Maxwell |isbn=0 421 21130X}} *{{cite book |last=Baughan |first=Simon |title=Shipping Law|year=2015|edition=6th |publisher=Routledge |isbn=978 0 415 71219 4}} *{{cite book |last=Mandaraka-Shephard |first=Aleka |title=Maritime Law|year=2015|edition=3d |publisher=Routledge }}
==External links== *[https://web.archive.org/web/20160304001150/http://www.duhaime.org/LegalDictionary/G/GeneralAverage.aspx Definition of General Average, Duhaime's Law Dictionary] *{{Cite EB1911|first=Thomas Gilbert |last=Carver|wstitle=Average|volume=3}}
{{Insurance}} {{Authority control}}
Category:Maritime law Category:Marine insurance