The slides, written out
AI-drawn illustration. Simplified to explain the idea, not to scale.
Slide 1 · GENERAL
GENERAL
AVERAGE ACT
(York-Antwerp Rules)
Understanding General Average,
Sacrifice & Expenditure
Slide 2 · RULE A EXPLAINED
RULE A EXPLAINED
WHAT IS A
GENERAL AVERAGE ACT?
A General Average Act occurs when
an extraordinary sacrifice or expenditure
is intentionally and reasonably made
for the common safety to preserve
property involved in a common
maritime adventure.
1
COMMON
SAFETY
Act must be for the
safety of all interests
– ship, cargo and
freight.
2
INTENTIONAL
It is a deliberate
choice, not
an accident.
3
REASONABLE
The act or expenditure
must be justifiable
with evidence.
4
EXTRAORDINARY
It is outside the
normal costs of
running the voyage.
RULE PARAMOUNT
In no case shall there be any allowance for
sacrifice or expenditure unless reasonably
made or incurred.
Slide 3 · SACRIFICE VS EXPENDITURE
SACRIFICE VS EXPENDITURE
SACRIFICE vs.
EXPENDITURE
Both are done for the common safety.
SACRIFICE
(Voluntary loss of property)
A direct loss of property
intentionally made for
the common good.
EXAMPLES
Jettison of Cargo
Throwing cargo overboard
to lighten the ship.
Intentional Stranding
Deliberately running the ship
aground to save the vessel
and cargo.
Use of Ship's Stores as Fuel
Using cargo or bunkers in an
emergency to reach a place
of safety.
EXPENDITURE
(Cash outlay for common safety)
A cash expenditure
incurred for the
common good.
EXAMPLES
Costs of Refloating
Hiring tugs, winches, flotation
equipment, including costs of
unsuccessful attempts.
Port of Refuge Expenses
Port dues, pilotage, extra
stevedoring, wages and
maintenance of crew, etc.
Salvage Remuneration
Salvage remuneration (including
where services are provided
under LOF) may be allowable
in General Average subject to
Rule VI.
SACRIFICE
= Property Lost
VS
EXPENDITURE
= Money Spent
Slide 4 · THE KEY DISTINCTION
THE KEY DISTINCTION
GENERAL AVERAGE
PARTICULAR AVERAGE
Know the Difference. Make the Right Call.
GENERAL AVERAGE (GA)
PARTICULAR AVERAGE (PA)
Intentional act
Deliberate sacrifice or expenditure
NATURE
Accidental event
Fortuitous loss or damage
Common safety
For the safety of all interests
(ship, cargo & freight)
PURPOSE
Individual loss
Affects one interest only
Shared by all
Cost is apportioned among all
contributing interests
COST BEARING
Borne by one
Loss lies where it falls
Extraordinary act
Outside the normal expenses
of the voyage
EXAMPLE
Fortuitous damage
e.g., storm damage to cargo
in one hold
Claim through GA adjustment
and contribution
SETTLEMENT
Claim under individual
insurance policy
(Hull & Machinery / Cargo)
THE DECISION TREE
Did the Master deliberately cause the loss
or incur the cost to save the whole
maritime adventure?
YES
NO
Was it an accidental event
causing partial loss to
one interest?
YES
NO
GENERAL
AVERAGE
Shared contribution
from all interests.
PARTICULAR AVERAGE
Loss borne by the
damaged interest.
NOT APPLICABLE
Not a GA or PA
situation.
REMEMBER
GENERAL AVERAGE = Deliberate + Common Safety + Shared Contribution
PARTICULAR AVERAGE = Accidental + Individual Loss + Separate
Insurance Claim
Drafted by SailR from our daily lessons. AI-drawn illustration. Simplified to explain the idea, not to scale. Last updated 19 Oct 2026.
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