Legal Definitions - petty average

Petty Average refers to minor, routine expenses incurred by the master of a ship during a voyage that are necessary for the safe continuation of the journey or the preservation of the cargo. These expenses are typically borne by the cargo owners, often in proportion to their cargo's value, and are distinct from losses caused by accidents or perils of the sea. They represent customary operational costs rather than damage or loss.

Here are some examples to illustrate:

• Example 1: Pilotage Fees

  A container ship transporting consumer goods from one continent to another must navigate a particularly challenging estuary to reach its destination port. Local maritime regulations mandate that all large vessels employ a licensed harbor pilot for safe passage through this waterway. The fee paid to the pilot for their expertise and guidance is considered a petty average expense.

  Explanation: This fee is a standard, expected operational cost for ensuring the safe delivery of the cargo, not a loss due to an unforeseen incident. It is a routine expense passed on to the cargo owners.

• Example 2: Port and Lighthouse Dues

  Upon entering a foreign port to unload a shipment of automobiles, a vessel incurs standard port charges for docking facilities and mandatory lighthouse dues for the use of navigational aids maintained by the coastal authority. These charges are part of the regular costs associated with calling at that port.

  Explanation: These are customary, minor expenses that are part of the normal course of a voyage and are typically shared by the cargo owners as part of the overall shipping cost, fitting the definition of petty average.

• Example 3: Minor Mooring Assistance

  During a scheduled stop at an intermediate port for bunkering (refueling), the ship's master arranges and pays a small fee to a local tugboat crew for assistance with securely mooring the large vessel to the dock. This is a common practice in that specific port due to strong currents.

  Explanation: This is a small, expected operational expense for the safe handling of the ship and its cargo during a routine stop, falling under the category of petty average because it's a necessary, customary cost for the voyage's continuation.