What does 'general average' refer to in Ocean Marine terminology?

'General average' is a principle in maritime law that refers specifically to a situation where a partial loss occurs due to the voluntary sacrifice of part of the cargo to save the rest of the ship and its remaining cargo from a greater peril. For instance, if a ship encounters a serious threat, such as a fire or flooding, and the captain decides to jettison some cargo to stabilize the vessel and ensure the safety of the crew and remaining cargo, those losses are considered general average.

Under this principle, all parties who benefit from the sacrifice are required to contribute to the loss, ensuring equitable distribution of the cost incurred for the emergency measures. This is distinct from total loss of cargo, as general average involves a calculated decision to protect the ship and remaining cargo, making it a collaborative financial obligation among the various stakeholders involved in the sea journey.

The concept does not encompass the complete loss of cargo, which is classified differently, nor does it concern the full value of insurance or loss of property in a broader sense. Instead, it is a specific metric applied within the context of shared responsibility among maritime stakeholders in cases of calculated sacrifice for the greater good.