General average
GA
Meaning
General average is the rule that when sacrifices or costs are incurred to save a voyage, all parties (ship, cargo and freight) share them in proportion to their values.
Also written as York-Antwerp Rules
General average explained
If a ship has to be towed to safety after a fire, for example, the cost is declared as general average and cargo owners must contribute before their cargo is released, usually by providing security. It is governed by the York-Antwerp Rules.
Related terms
P&I club
A P&I (protection and indemnity) club is a mutual insurer covering shipowners' third-party liabilities, such as cargo claims, pollution and crew injury.
Hull and machinery
Hull and machinery (H&M) insurance covers physical loss of or damage to the ship itself, such as from collision, grounding or machinery breakdown.