General average is a global maritime industry loss mitigation convention whereby ship owners and cargo interests proportionately contribute to fully reimburse those in the venture who sustained loss or damage in preventing the total loss of a vessel, crew and its cargo.
It requires 4 simultaneous conditions:
- Sacrifice or expenditure
- Decided voluntarily
- Consent to avoid danger
- Decided for the common good of the vessel and cargo
In this case, all the shippers having cargo on the ship must participate in the expenses, in proportion to the values saved, after a decision of a claim adjuster who will fix the contribution rate of each party.
