General Average — The Cost Cargo Owners Don't See Coming

General Average is one of the oldest principles in maritime law: when sacrifice or extraordinary expense is incurred to save a vessel and her cargo from common peril, every interest on board contributes proportionally to the loss. In the EV era it has become an expensive surprise for cargo interests that thought their cargo insurance was enough.

How a vehicle-carrier GA unfolds

• A fire is declared on board; the master takes extraordinary measures (towage, salvage, jettison) to save the vessel.
• Within days, GA is declared by the shipowner and a general-average adjuster is appointed.
• Every cargo owner whose vehicles are still on board is asked for a GA security guarantee before cargo is released.
• The adjusted contribution can run into a percentage of cargo value, payable months later.

Where the surprise lands

A cargo owner who thought their marine cargo insurance ended at "delivered safely or claim paid" finds out that GA contributions are a separate exposure. If the policy schedule didn't explicitly include GA cover, the owner pays out of pocket. Premiums for cargo policies that include GA are noticeably higher in 2026 than they were in 2022 — directly traceable to the casualty record.

Sources

• York-Antwerp Rules 2016 — foundational General Average framework.
• CMI (Comité Maritime International) — "General Average: Practitioner Guide."
• Lloyd's — Average Bond / GA Security standard forms.
• IUMI Cargo Committee — Annual Reports.
• BIMCO — "General Average: Practical Guidance for Cargo Interests."