Legal Definitions - GA

GA stands for General Average.

General Average is a fundamental principle in maritime law where all parties involved in a sea voyage – the ship owner and the owners of the cargo on board – proportionally share the losses incurred when a voluntary sacrifice is made to save the entire venture from an imminent peril. This means that if a portion of the ship or cargo is intentionally damaged or sacrificed to prevent a greater loss to the whole, everyone whose property was saved contributes to compensate those whose property was sacrificed.

• Example 1: Fire on a Container Ship

  A large container ship is crossing the Pacific Ocean when a fire breaks out in one of its cargo holds. To prevent the fire from spreading and destroying the entire vessel and all its contents, the captain orders the crew to flood the burning hold with seawater. This action successfully extinguishes the fire, saving the ship and the vast majority of the cargo. However, the cargo in the flooded hold is completely ruined. Under General Average, the owners of the undamaged cargo, along with the ship owner, would contribute proportionally to compensate the owner of the destroyed cargo, as the sacrifice of that cargo saved everyone else's property.

• Example 2: Vessel Runs Aground

  During a severe storm, a cargo vessel carrying various goods runs aground on a sandbar near a treacherous coast. The ship is stuck, and there's a significant risk it could break apart or capsize, leading to the total loss of the ship and all cargo. To lighten the vessel and allow it to be refloated, the captain makes the difficult decision to jettison (throw overboard) several containers of non-essential, heavy machinery. This voluntary sacrifice of cargo allows the ship to be pulled free and continue its voyage with the remaining cargo intact. The owners of the jettisoned machinery would be compensated through General Average contributions from the ship owner and the owners of the cargo that was successfully delivered.

• Example 3: Storm Damage and Mast Jettison

  A bulk carrier encounters an exceptionally violent storm at sea, causing the ship to list dangerously and threatening to capsize. To stabilize the vessel and prevent it from overturning, the captain orders the crew to cut away and jettison the ship's mast and rigging, which are contributing to the instability. This drastic measure saves the ship and its valuable cargo of grain from total loss. The cost of replacing the mast and rigging, which was a voluntary sacrifice to save the entire venture, would be shared proportionally by the ship owner and all the cargo owners under the principle of General Average.