General Average and Damages and Expenses

Damages and Expenses Included in General Average: Legal Framework and Application

In maritime transport, the sacrifices and extraordinary expenses incurred for the benefit of all parties in the face of risks faced by the ship, cargo, and freight together are called general average

In Turkish law, this concept 1272–1285 of the Turkish Commercial Code (TTK) . In international maritime law, the York–Antwerp Rules provide concrete examples of general average damages and expenses.

One of the most important elements of general average is clearly defining which damages and expenses are covered. Only in this way can a fair sharing be achieved between the parties.

1. General Characteristics of Losses and Expenses Under General Average

For a loss or expense to be assessed under general average, it must meet the following criteria:

Common Hazard: The ship, cargo, and freight must all have been simultaneously exposed to a serious hazard.
Deliberate and Reasonable Sacrifice: It must be a planned and reasonable sacrifice made in order to avert the danger.
Exceptional: It must arise from an unexpected and necessary situation outside of normal travel operations.
Common Interest: Any expenditure or sacrifice should benefit all parties involved.

If these elements are absent, the transaction or damage will not be considered within the scope of general average.

2. Types of Damages Included in General Average

2.1. Physical Damages

Jettisoning: The deliberate act of throwing a portion of the cargo overboard to maintain the ship's balance during a storm.
Firefighting Damages: Warehouses being flooded with water during a fire, resulting in damage to goods.
Deliberate Damage to the Ship: The ship is deliberately grounded in shallow water to prevent sinking, causing damage to its hull.

2.2. Indirect Physical Damages

Damage During Salvage: Damage to the vessel or cargo occurring during towing or salvage operations.
Consequences of the Danger Elimination Action: For example, tipping over cargo containers during a maneuver to prevent a pirate attack.

3. Types of Expenses Included in General Average

3.1. Direct Costs

According to the Turkish Commercial Code and the York–Antwerp Rules, direct costs are those expenses directly related to the event and aimed at eliminating the risk

Salvage Operations: Contractual salvage payments made to recover a vessel and its cargo.
Towing and Pilotage Fees: Payments made to tow a distressed vessel to a safe port.
Firefighting Costs: Firefighting, equipment, and personnel expenses.

3.2. Indirect Costs

Port Charges: Fees paid for berthing, mooring, sheltering, and crane services at a port of unexpected refuge.
Loading/Unloading Costs: Temporary unloading and storage of the cargo to eliminate the hazard.
Temporary Repair Costs: Necessary temporary repairs carried out to allow the continuation of the journey after the danger has passed.
Crew Overtime and Provisions: Overtime and provision expenses for crew in emergency situations.

4. Examples Covered by the York–Antwerp Rules

The York–Antwerp Rules are frequently referenced in international practice and list the damages and expenses included in general average item by item:

Rule I (Jettison): Dropping cargo overboard
Rule II (Sacrifice of Ship): Deliberately damaging a ship.
Rule VI (Salvage Payments): Salvage payments
Rule VII (Damage to Machinery): Damage resulting from the overuse of machinery and boilers to eliminate hazards.
Rule XI (Expenses at Port of Refuge): Extraordinary expenses incurred at the port of refuge.

5. Losses and Expenses Not Included in General Average

Some expenses are not covered by general average:

Normal operating and maintenance costs
Expenses incurred solely by the cargo owner to protect their own cargo
Repair costs arising from a technical malfunction of the ship, unrelated to a common hazard
Insurance premiums, penalties and compensation

6. The Importance of Documents

In order for an expense to be apportioned under general average, it must be documented

Captain's report (logbook)
Invoice and payment documents
Bills of lading and freight contracts
Rescue contracts
Port fee receipts
Photo and video recordings

The contribution request may be rejected if the necessary documents are incomplete.

7. Legal and Commercial Significance

Fair Risk Sharing: Ensures that all stakeholders share the cost fairly in a shared risk.
Insurance Relationship: P&I clubs and cargo insurance companies generally cover general average contributions.
Dispute Resolution: Documented costs and damages are easily shared, reducing litigation.

8. Conclusion

General average losses and expenses constitute a safeguard mechanism protecting the common interests of the parties in maritime trade. Accurate determination of these losses and expenses is possible under both the Turkish Commercial Code and the York–Antwerp Rules . The complete collection of post-incident documents and proof of a direct link between the expenses and the common risk are vital for the acceptance of a contribution claim.

Gozdenur Turna

maritime law, ship insurance, general average, York-Antwerp Rules

Law Articles