Definition and Elements of General Average
General Average
Definition and Elements of General Average: The Principle of Mutual Sacrifice in Maritime Trade
Maritime trade has been the main driver of international commerce for centuries. However, sea transport is fraught with dangers due to weather conditions, technical malfunctions, pirate attacks, collisions, and other unforeseen risks.
Faced with these dangers, the ship captain sometimes has to make extraordinary decisions to save the ship, the cargo, and the freight.
As a result of these decisions, the ship or part of the cargo may be sacrificed, or extraordinary expenses may be incurred.
In Turkish law, this situation is called general average . This concept is regulated within the framework of both the Turkish Commercial Code (TTK) and the York–Antwerp Rules , and has been applied in international maritime shipping for many years.
1. Definition of General Average
According to Article 1272 of the Turkish Commercial Code, general average is:
“General average is defined as any extraordinary sacrifices and expenses knowingly and reasonably undertaken to avert a common danger when the ship, cargo, and freight are faced together.”
This definition gives us three basic criteria:
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Common Hazard: The ship, cargo, and freight must all be exposed to the same hazard.
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Conscious Sacrifice or Expenditure: This must be done deliberately in order to eliminate the danger.
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Exceptional: It must be outside the scope of normal sailing activities.
2. Elements of General Average
For an event to be considered general average, the following elements must occur simultaneously.
2.1. Common Hazards
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The ship, the cargo it is carrying, and the freight must all be simultaneously facing a real, imminent, and serious danger.
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The general average provisions do not apply if the danger concerns only the ship or only the cargo.
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Example: The risk of a ship capsizing during a storm is a common danger for the ship, the cargo, and the freight.
2.2. Conscious and Deliberate Sacrifice
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The action taken must be deliberate in order to eliminate the danger .
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Self-sacrifice differs from harm that occurs accidentally or during routine operations.
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Example: Jettisoning (throwing some of the containers overboard to prevent the ship from sinking).
2.3. Extraordinary
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The measures taken or expenses incurred should not fall within the scope of normal operational activities.
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Daily maintenance, refueling, or routine port fees are not considered extraordinary.
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Example: To escape a pirate attack, deviating from the planned route, seeking refuge in a safe harbor, and paying additional port fees.
2.4. Purpose of Eliminating the Hazard
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The sacrifice or expenditure should aim to eliminate the direct threat.
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Even if the danger is not completely eliminated, if the measure taken has reasonably reduced the danger, it still falls within the scope of general average.
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Example: Water being pumped into the cargo holds to extinguish a fire on a ship, resulting in damage to the goods.
2.5. Reasonableness
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The measure taken reasonable .
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Incurring excessive and unnecessary expenses when less risky or costly solutions exist violates the principle of reasonableness.
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The reasonableness assessment is based on the information available at the time of the event; information obtained later is not taken into account.
3. Case Studies of General Average
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Jettison: The act of throwing a portion of the cargo overboard to lighten a ship during a storm.
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Flooding of the ship: Water being pumped into the holds to extinguish a fire, resulting in damage to the goods.
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Change of course: Heading to an unexpected port for emergency repairs.
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Pirate threat: Obtain enhanced security services or hire an additional escort vessel.
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Towage: The payment of extraordinary towing fees to rescue a grounded vessel.
4. Legal Regulation and Implementation
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Turkish Law: Articles 1272–1285 of the Turkish Commercial Code regulate general average, its conditions, and the sharing of expenses.
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International Practice: The York–Antwerp Rules are preferred, especially in international freight transport.
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It provides detailed lists of which types of sacrifices and expenses qualify as general average.
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It determines the methods of cost sharing.
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5. The Principle of Sharing
General average expenses and losses are shared proportionally according to the value of the vessel, cargo, and freight.
First, the value of all assets is determined, and then each party's share is calculated based on the total value.
Example Calculation:
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Total value: 10,000,000 TL
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Cost: 1,000,000 TL
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Ship value: 50% → 500,000 TL
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Load value: 40% → 400,000 TL
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Freight: 10% → 100,000 TL
6. The Importance of Evidence and Documents
For a general average claim to be accepted:
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Captain's report (logbook)
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General average notification
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Invoice and payment documents
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Bills of lading
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Photographs and videos of the incident
must be included. Missing documents may result in the loss of the right to share them.
7. Conclusion
General average is an important legal principle in maritime trade that embodies the principle of common sacrifice in the face of a common danger . Sacrifices made without fully establishing the necessary elements cannot be considered within this scope. Therefore, captains, shipowners, and cargo owners must act within the framework of both the Turkish Commercial Code and international regulations, and must collect all necessary documents after the incident.
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