General average facts for kids

The law of general average is an old rule in maritime law (laws about the sea). It means that if a ship is in big trouble at sea, and some cargo or part of the ship has to be sacrificed (like thrown overboard) to save the rest, then everyone involved in the journey shares the loss. This includes the ship owner and all the people whose cargo was on the ship. They all pay a fair share of the cost of the lost items.

For example, imagine a ship caught in a terrible storm. To stop it from sinking, the crew might have to throw some heavy cargo into the sea. This saves the ship and the rest of the cargo. Under general average, the owner of the cargo that was thrown overboard doesn't lose everything alone. Instead, everyone whose cargo arrived safely, and the ship owner, all contribute money to cover that loss. This way, no one person carries the whole burden of saving the ship.

This idea is very old! It goes back to ancient times. The Code of Hammurabi (around 1750 BC) had rules about saving ships. The ancient Greeks on the island of Rhodes also had a law called the Lex Rhodia (around 800-1000 BC) that talked about this idea of sharing losses. This principle is so important that it's a basic idea behind all insurance today.

When dangers happen at sea, the crew often has to act very quickly. They don't have time to figure out whose cargo they are throwing away. So, to avoid arguments and save time, this fair practice developed. It ensures that everyone helps out when a sacrifice is made to save the whole ship from danger. This ancient rule is still part of sea laws in most countries today.

History of General Average

From Ancient Times to Early Modern Days

The idea of general average was part of the ancient Lex Rhodia, a set of sea laws from the island of Rhodes around 800 BC. A Roman lawyer named Julius Paulus Prudentissimus wrote about this law around 230 AD. His writings were later included in a big collection of Roman laws called the Digest of Justinian in the 6th century. Even though the original Lex Rhodia is now lost, we know about it from these old Roman texts.

After the Roman Empire ended, formal sea laws in Europe were not used as much. However, people probably still shared losses informally, because it just made sense. Later, in the Middle Ages, a collection of judgments called the Rolls of Oléron (from a court in France) gave guidance on general average. These rules became very important and were copied by many other places in Europe, like the Hanseatic League and cities in Italy and Spain.

In 1681, King Louis XIV of France published an important law that influenced sea laws across Europe. The definition of general average in this French law was then used in similar laws in other countries like Germany, Denmark, Sweden, and the Netherlands.

Modern Rules: The York-Antwerp Rules

The First Rules in 1890

The first time the rules for general average were officially written down and agreed upon was in 1890. These were called the York-Antwerp Rules. American companies started using them in 1949.

For general average to apply, three main things must happen:

• Common Danger: The ship, its cargo, and the crew must all be in immediate danger. It must seem like the danger cannot be avoided unless part of the ship or cargo is sacrificed.
• Voluntary Sacrifice: Something must be willingly thrown overboard or damaged to avoid this danger. This means the danger is moved from the whole ship to just a part of it.
• Success: The attempt to avoid the danger must work! The rest of the ship and cargo must be saved.

The York-Antwerp Rules are still used today. They have been updated several times since 1890 to keep them current with modern shipping.

Updates to the Rules

The York-Antwerp Rules were updated in 1994, 2004, and 2016. The 1994 rules are still the most widely used. You can find the 2016 rules on the website of the Comité Maritime International, which is the group that looks after these rules.

General Average Today

Even with all the new technology in shipping, general average is still used sometimes when big problems happen at sea. Here are some recent examples:

• The MV Hyundai Fortune declared general average in 2006 after an explosion and fire near Yemen.
• The M/V MSC Sabrina declared general average in 2008 after it got stuck in the Saint Lawrence River.
• The owners of the Hanjin Osaka declared general average in 2012 after an explosion in the ship's engine room.
• Maersk declared general average for the Maersk Honam in 2018 after a fire in the Arabian Sea.
• The owners of the Northern Jupiter declared general average in 2020 after an engine fire.
• Shoei Kisen, the owners of the Ever Given, declared general average in 2021. This happened after the ship got stuck in the Suez Canal, blocking traffic for six days.
• Evergreen Marine, the owners of the Ever Forward, declared general average in 2022 after the ship got stuck in Chesapeake Bay.

See also

In Spanish: Avería para niños