- Freight Action

The matter of "General Average" is probably little known to most Shippers and Consignees, unless they have had experience of it.

However, it can be a major problem effecting the delivery of your products.

Briefly, if a ship owner experiences losses or damage to his ship whilst carrying your cargo, he is entitled to claim from the cargo owners.

"General Average" is a claim against all cargo owners, averaged out using a percentage of the cargo value to recoupe the shipowners loss.

This could mean an unexpected bill to the cargo owner, which they will be obliged to pay in order to obtain release of their cargo.

It is possible to protect against the ramifications of "General Average" with Marine Insurance Cover, as this is a condition covered in a Marine Policy.

Therefore all buyers and sellers should ensure suitable insurance cover is in place to protect their interests.

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The recent wreck of the "MSC Napoli" has brought the risks to cargo at sea into our homes.

Apart from many months needed to salvage the ship and its cargo there will be considerable delay in insurance settlements until all the survey work has been completed.

The nett effect will be that settlements will be delayed and this could cause a financial burden on the Shippers and serious delays to orders.

Our professional body " BIFA" have articles on this subject on their website, which you can visit at;