General average
New vocabulary for this science popularization
General average
Definition
General average refers to the special sacrifice and expense paid for the common safety when the ship's cargo or other property encounters a common danger in the same sea voyage, which is directly caused by deliberately and reasonably taking measures.
How to confirm general average?
The establishment of general average must meet certain conditions, that is, the maritime danger must be common and real, the measures of general average must be beneficial, reasonable and effective, and the loss of general average must be special and abnormal, and directly caused by the measures of general average.
Once the general average is established, according to the Maritime Code, the carrier may retain the relevant goods within a reasonable limit without providing proper security before paying the general average contribution to the carrier, and the carrier will send a letter to the cargo party, which will specifically indicate that the shipowner will not release the goods unless the cargo party provides a guarantee satisfactory to the shipowner
Take a chestnut
A cargo ship caught fire on its way to the port of destination
The shipmaster declares general average,
And appoint a third-party general average adjustment company to handle the matter
The shipping company will collect information first
The third party agency will first give the calculation method of general average, and require the freight forwarding company (hereinafter referred to as Company A) to provide a letter of guarantee and payment as soon as possible.
On the second day after receiving the general average, Company A will receive the instructions and letters from the third party.
If the goods of Company A are LCL goods, the third-party organization will also require Company A to provide HBL (bill of lading) and packing list invoice for each order. If insurance is purchased, insurance documents are also required.
If the customer has purchased insurance, the insurance company is required to fill in the Average guarantee letter, and the insurance company is required to send the letter to the third party organization in person. The third party organization does not accept the delivery from the freight forwarder.
If the customer does not purchase insurance, he/she needs to fill in the Average BOND letter and pay the third party according to the margin calculated by (value of goods+ocean freight) * (10-20%).
（The average expense range is about 10% - 20%）
It can be seen that it is really important to buy insurance for the goods
After receiving the deposit, the average adjuster will check the Average BOND provided by the customer and the letter of guarantee from the insurance company at the same time. When both are complete, the average adjuster will notify the shipowner to arrange the release and update the list of released cabinets。
The freight forwarding company can inquire on its own on the website (a third-party organization) that deals with this matter, and some important information will be uploaded on it。
When this problem occurs, the freight forwarding company will generally give the inquiry website and account number to all the guests in this batch, and the guests can also directly inquire on it。
Fans who haven't understood this tweet，
Take your time，
LUCKY would like to summarize the above。
Summary of general average
1、The proportion to be borne is assessed by a third party organization, and the proportion of CASE amount varies with the proportion；
2、If no insurance is purchased, it shall be borne by the owner；
3、If insurance has been purchased, it shall be guaranteed by the insurance company；
4、Once the general average is established, the carrier may detain the relevant goods before the general average contribution is paid according to the Maritime Code.
So the best solution is to purchase cargo transportation insurance for the goods to be transported.
Tell important things three times (not enough)
For goods with high value, try to purchase transportation insurance
For goods with high value, try to purchase transportation insurance
For goods with high value, try to purchase transportation insurance