Charterers contribution to general average
documentation to the General Average adjuster, which can be a very time consuming task. Cargo value: 25.000.000 USD Ship value: 25.000.000 USD Total value: 50.000.000 USD Expenditure and sacrificed goods = 4.000.000 USD = 2% of combined value (ship and cargo) Cargo value shipped by assured = 1.000.000 USD Proportional contribution of the 2.2.1 General Average, salvage and salvage charges in respect of the Assured’s contribution to General Average and/or salvage and/or salvage charges in respect of the Assured’s interest in bunkers and/or other property (excluding cargo and/or containers) and/or hire and/or freight; and/or 2.2.2 Costs of averting or minimising loss • salvage costs/General Average contributions in respect of the member’s bunkers and freight at risk • survey, legal and other costs. The club’s damage to hull cover is automatically extended to include war and terrorism risks. Defence Defence cover assists charterer members with the costs of legal representation and expert support in P&I insurers normally provide cover in respect of general average (GA) contributions which are not recoverable from cargo or other interests and resulting from the shipowner’s breach of the contract of carriage. Charterers can find themselves with a liability for many P&I risks, but cargo claims are the most common area of exposure. Scope of Cover The terms of the cover are based on the Owners’ P&I Rules and the add-on for traders and cargo owners. 2.1 General Average, Salvage and Salvage Charges in respect of the Assured’s contribution to general average and/or salvage and/or salvage charges in respect of the Assured’s interest in bunkers and/or other property (excluding cargo and/or containers) and/or hire and/or freight; and/or 2.2 Costs of averting or minimising loss
by way of contribution to general average unless and until it has been decided This was construed as requiring the charterer to pay the sum ascertained to be
General Average Security - "Pay Now, Argue Later" June 2014 The recent case of St Maximus Shipping Co. Ltd v A.P. Moller-Maersk A/S1 is the latest in a run of judgments regarding the effect of guarantee instruments. documentation to the General Average adjuster, which can be a very time consuming task. Cargo value: 25.000.000 USD Ship value: 25.000.000 USD Total value: 50.000.000 USD Expenditure and sacrificed goods = 4.000.000 USD = 2% of combined value (ship and cargo) Cargo value shipped by assured = 1.000.000 USD Proportional contribution of the 2.2.1 General Average, salvage and salvage charges in respect of the Assured’s contribution to General Average and/or salvage and/or salvage charges in respect of the Assured’s interest in bunkers and/or other property (excluding cargo and/or containers) and/or hire and/or freight; and/or 2.2.2 Costs of averting or minimising loss • salvage costs/General Average contributions in respect of the member’s bunkers and freight at risk • survey, legal and other costs. The club’s damage to hull cover is automatically extended to include war and terrorism risks. Defence Defence cover assists charterer members with the costs of legal representation and expert support in
General average develoment and York-Antwerp Rules . contribute in general average as if the cargo would not have been delivered to https://www.bimco. org/~/media/Chartering/Special_Circulars/SC2007_01.ashx (05.04.2015)
Principle of General Average is that when a common maritime adventure is in imminent peril, even if a sacrifice is made prudently and deliberately, but the maritime adventure is not saved, there is no General Average. This follows the age-old principle of NO CURE NO PAY. GA Contribution is paid out of value of the property saved. Failing a prior termination of the adventure, the place where the adventure shall be deemed to end and at which the values for contribution to general average shall be calculated is the final port of discharge of the cargo carried under the charter but in the event of the prior loss of the vessel and freight, or either of them, the general average shall attach to any surviving interest or interests including freight advanced at the loading port deducting therefrom contingent expenses However, the cover provided by a P&I club will normally extend to contributions by cargo to General Average which are not legally recoverable solely by reason of a breach of the contract of carriage. The Time Charter . It is highly likely that the vessel will be placed off-hire (see for example NYPE Clause 15: delay due to average accident). GA Security: "pay now, argue later" The recent case of St Maximus Shipping Co. Ltd v A.P. Moller-Maersk A/S1 is the latest in a run of judgments regarding the effect of guarantee instruments.In the context of general average (GA), the decision will be of particular interest to adjusters, owners, insurers and admiralty practitioners alike and should be borne in mind when negotiating the wording
Charterers can find themselves with a liability for many P&I risks, but cargo claims are the most common area of exposure. Scope of Cover The terms of the cover are based on the Owners’ P&I Rules and the add-on for traders and cargo owners.
The Charterer’s contributions to general average, salvage and special charges; Loss or damage to fuel stores and supplies; Cargo owner’s cover for pollution and/or legal liabilities; War and strikes risks; Costs of removing off-specification bunkers likely to cause damage to the vessel’s engines and machinery Cover is available under Rule 41.a for claims that the Member has for contributions to general average, special charges or salvage that would be recoverable by the Member from the cargo interest or any other party to the marine adventure but for the fact that the incident has been caused by the actionable fault of the Member, i.e. by a breach of the contract of carriage by the Member as carrier. 9 In many cases, the relevant breach is a breach of the Member’s duty as carrier under the • salvage costs/General Average contributions in respect of the member’s bunkers and freight at risk • survey, legal and other costs. The club’s damage to hull cover is automatically extended to include war and terrorism risks. Defence Defence cover assists charterer members with the costs of legal representation and expert support in P&I insurers normally provide cover in respect of general average (GA) contributions which are not recoverable from cargo or other interests and resulting from the shipowner’s breach of the contract of carriage. Charterers can find themselves with a liability for many P&I risks, but cargo claims are the most common area of exposure. Scope of Cover The terms of the cover are based on the Owners’ P&I Rules and the add-on for traders and cargo owners. The Swedish Club's Charterers' Liability All-in-One Cover is available to time or voyage charterers, as well as slot and space charterers. It is particularly appropriate for risk-averse charterers in trades with relatively low claims frequency, but high claims severity, and who need high limits and flexible terms. The Swedish Club 2 Printed by PR-Offset AB, Gothenburg, Sweden Published February 2019 1905PR400B
Cover is available under Rule 41.a for claims that the Member has for contributions to general average, special charges or salvage that would be recoverable by the Member from the cargo interest or any other party to the marine adventure but for the fact that the incident has been caused by the actionable fault of the Member, i.e. by a breach of the contract of carriage by the Member as carrier. 9 In many cases, the relevant breach is a breach of the Member’s duty as carrier under the
General Average (Cl.26). 17. Freight shall be prepaid by the Charterers as specified in Box ees or owners of the goods shall contribute with the carrier in.
General Average (Cl.26). 17. Freight shall be prepaid by the Charterers as specified in Box ees or owners of the goods shall contribute with the carrier in. The Charterers shall deliver the cargo into the Vessel's holds at their expen- 116 contribute with the Carrier in general average to the payment of any sacri- General or particular average contributions or charges. 19.7. Salvage or towage services rendered to the Insured Vessel. 19.8. Representation of the Assured at