York-Antwerp Rules - Simplified

A. General Principles (Lettered Rules A-G) Rule A – Definition of General Average • Key Principle: A GA act must involve an intentional and reasonable sacrifice or extraordinary expense to preserve the ship and cargo from a common peril. • Example: Jettisoning cargo to refloat a grounded ship. • Exclusions: Losses due to negligence or ordinary wear and tear do not qualify. Rule B – Apportionment of Losses • Key Principle: GA contributions are shared by all parties (ship, cargo, freight) based on their saved values. • Example: If cargo worth $1M is sacrificed to save a ship worth $10M, the cargo owner can claim GA from the shipowner and other cargo interests. Rule C – Direct Consequences Only • Key Principle: Only direct losses from a GA act are recoverable; indirect losses (e.g., market loss due to delay) are excluded. • Example: If firefighting damages cargo, that loss is recoverable, but lost profits due to late delivery are not. Rule D – Fault & Liability • Key Principle: GA claims are allowed even if the peril was caused by fault (e.g., negligence), but the party at fault may be liable for damages. • Example: If a ship strands due to poor navigation, GA still applies, but the shipowner may face claims for negligence. Rule E – Burden of Proof • Key Principle: The party claiming GA must prove that the loss qualifies under the rules. • Example: A cargo owner must show that jettisoned goods were deliberately sacrificed to save the voyage. Rule F – Substituted Expenses • Key Principle: If an expense avoids a larger GA cost, it can be claimed as GA. • Example: Towing a damaged ship to a port instead of waiting for repairs at sea (which would cost more). Rule G – Duration of General Average • Key Principle: GA covers the entire maritime adventure, from loading to final discharge. • Example: If cargo is damaged during an intermediate stop for repairs, it may still be included in GA. B. Specific Rules (Numbered Rules 1-23) 1. Jettison of Cargo • Cargo thrown overboard to save the voyage is GA, but cargo lost due to improper stowage is excluded. 2. Loss or Damage by Sacrifices • Damage caused directly by a GA act (e.g., water damage from firefighting) is recoverable. 3. Extinguishing Fire on Shipboard • Firefighting damage (to cargo, machinery, etc.) is GA, but smoke damage alone is not unless caused by extinguishing efforts. 4. Cutting Away Wreck • If a ship’s wreck (e.g., a broken mast) is cut away to prevent danger, the loss is GA. 5. Voluntary Stranding • Deliberately grounding a ship to avoid sinking is GA, but if the stranding was accidental, it does not qualify. 6. Salvage Remuneration • Salvage costs (e.g., paying a rescue vessel) are GA if incurred to save the entire voyage. 7. Damage to Machinery & Boilers • Only damage from intentional efforts (e.g., overheating engines to escape danger) is GA—normal breakdowns are excluded. 8. Expenses Lightening & Reloading • Costs of unloading cargo to refloat a ship (and reloading it later) are GA. 9. Cargo Used as Fuel: If cargo (e.g., coal) is burned as fuel due to shortages, its value is GA. 10. Expenses at Port of Refuge • Costs of entering a port for safety (e.g., due to damage) are GA, including: o Port fees o Temporary repairs o Crew wages during detention 11. Wages & Maintenance of Crew in Refuge • Crew wages and living costs during unnecessary delays (e.g., waiting for repairs) are not GA, but wages during essential repairs are. 12. Damage to Cargo in Unloading • If cargo is damaged during necessary unloading (e.g., to repair the ship), it is GA. 13. Deductions from Cost of Repairs • Repairs must account for "new for old"—only the actual loss is claimed (no betterment). 14. Temporary Repairs • If temporary repairs are done to proceed safely, the cost is GA (but permanent repair costs are deducted if they overlap). 15. Loss of Freight • If freight is lost due to GA acts (e.g., cargo sacrificed), the carrier can claim GA for the lost revenue. 16. Amount Made Good for Cargo Lost • The value of sacrificed cargo is based on its market value at discharge, minus costs saved (e.g., unpaid freight). 17. Contributory Values • GA contributions are calculated based on the net saved values of the ship, cargo, and freight at voyage completion. 18. Damage to Ship • Repairs to damage caused by GA acts (e.g., engine strain during escape) are recoverable. 19. Undeclared or Wrongfully Declared Cargo • Undervalued or misdeclared cargo contributes based on its actual value, and the owner may face penalties. 20. Provision of Funds (Commission & Interest) • A 2% commission is allowed on GA disbursements, and interest may apply on delayed contributions. 21. Treatment of Cash Deposits • Security deposits for GA must be held in a joint account and adjusted once final contributions are calculated. 22. Time Bar for Contributions • Claims must be made within one year (or as agreed) after the GA adjustment is issued. 23. Composite Shipments (Containerized Cargo)