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YORK ANTWERP RULES 2016

COMPARED WITH THE 1994 AND 2004 RULES

Introduction

The York-Antwerp Rules (YARs) govern general average cases by reason of being
incorporated into contracts of carriage. First instigated by an international conference in
York in 1864, their objective is to promote international uniformity in dealing with general
average and to make the process involved commercially effective. The Rules are
updated periodically under the auspices of Comite Maritime International (CMI), which is
made up of national Maritime Law Associations.

When the YARs were last updated in 2004 at Vancouver there was, for the first time, a
lack of consensus between the main commercial stakeholders regarding many of the
changes, with shipowning interests also taking the view that the proposed changes
were premature, given that the 1994 rules were only a decade old. The 2004 YARs
were therefore incorporated in relatively few contracts of carriage. CMI recognised that
the position was unsatisfactory, and at the 2012 CMI Conference in Beijing an
International Working Group (IWG) was set up to "carry out a general review of the
York-Antwerp Rules and to draft a new set of Rules to meet the requirements of ship
and cargo owners and their respective insurers.”

The IWG began by sending out a detailed questionnaire seeking feedback from
Maritime Law Associations and various representative bodies, including the
International Chamber of Shipping (ICS) and BIMCO, the International Union of Marine
Insurance (IUMI) and the leading average adjusters’ associations. The membership of
the IWG also reflected a wide range of participation in the review process:

Bent Nielsen (Denmark) (Chairman)


Richard Cornah (UK) (Association of Average Adjusters) (Co-Rapporteur)
Taco Van Der Valk (Netherlands) (Co-Rapporteur)
Andrew Bardot (UK) (International Group of P&I Clubs)
Ben Browne (UK) (International Union of Marine Insurance)
Frédéric Denèfle (France)
Jürgen Hahn (Germany)
Michael Harvey (UK) (Association Mondiale de Dispacheurs)
Kiran Khosla (UK) (International Chamber of Shipping)

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Jirou Kubo (Japan)


Sveinung Måkestad (Norway)
John O'Connor (Canada)
Peter Sandell (Finland)
Jonathan Spencer (USA)
Esteban Vivanco (Argentina)

The focus of the responses to the questionnaire was primarily on retaining the general
average system as a valuable means of dealing with losses and expenses following a
marine casualty, while ensuring that costs and delays involved in the process were
minimised wherever possible. The main commercial stakeholders' representatives, the
International Chamber of Shipping (ICS) and the International Union of Marine
Insurance (IUMI) faced the additional challenges of finding a basis for a durable
compromise on the issues that had proved to be contentious in 2004.

After a great deal of work since Beijing, the new York-Antwerp Rules 2016 were
approved by CMI in New York on 6 May, and are supported by both ICS/BIMCO and
IUMI.
_______________________

The YARs 2016 include a number of minor changes that include an amended
numbering system and greater consistency in the terms used for example the word
"allowed" is now used throughout in place of "admitted". These minor changes do not
alter the meaning of the Rules and we have therefore not highlighted them.

The significant changes and additions are shown in bold blue italic type. The 2016
Rules include variations in the text used in both the 1994 and 2004 Rules, however, in
the interests of clarity and in view of the much greater usage of the 1994 Rules, the
changes are indicated taking the 1994 Rules as the 'original' text.
_______________________

CMI have also approved a set of non-binding Guidelines that were drawn up by the IWG
to assist commercial interests who might be coming across general average matters for
the first time. These Guidelines are available on the CMI website and will be updated
periodically.

The responses to the IWG questionnaire and all subsequent working papers can be
found on the CMI website at www.comitemaritime.org, together with the final text of the
2016 Rules and the CMI Guidelines.

R.R. Cornah
Chairman, Richards Hogg Lindley
23rd May 2016

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Rule of Interpretation Rule of Interpretation Rule of Interpretation

In the adjustment of general average the In the adjustment of general average the In the adjustment of general average the
following Rules shall apply to the exclusion following Rules shall apply to the exclusion following Rules shall apply to the exclusion
of any Law and Practice inconsistent of any Law and Practice inconsistent of any law and practice inconsistent
therewith. therewith. therewith.

Except as provided by the Rule Paramount Except as provided by the Rule Paramount Except as provided by the Rule Paramount
and the numbered Rules, general average and the numbered Rules, general average and the numbered Rules, general average
shall be adjusted according to the lettered shall be adjusted according to the lettered shall be adjusted according to the lettered
Rules. Rules. Rules.

Rule Paramount Rule Paramount Rule Paramount

In no case shall there be any allowance for In no case shall there be any allowance for In no case shall there be any allowance for
sacrifice or expenditure unless reasonably sacrifice or expenditure unless reasonably sacrifice or expenditure unless reasonably
made or incurred. made or incurred. made or incurred.

Rule A Rule A Rule A

There is a general average act when, and only 1. There is a general average act when, and 1. There is a general average act when, and
when, any extraordinary sacrifice or only when, any extraordinary sacrifice or only when, any extraordinary sacrifice or
expenditure is intentionally and reasonably expenditure is intentionally and reasonably expenditure is intentionally and reasonably
made or incurred for the common safety for made or incurred for the common safety for made or incurred for the common safety for
the purpose of preserving from peril the the purpose of preserving from peril the the purpose of preserving from peril the
property involved in a common maritime property involved in a common maritime property involved in a common maritime
adventure. adventure. adventure.

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General average sacrifices and expenditures 2. General average sacrifices and 2. General average sacrifices and
shall be borne by the different contributing expenditures shall be borne by the different expenditures shall be borne by the different
interests on the basis hereinafter provided. contributing interests on the basis hereinafter contributing interests on the basis hereinafter
provided. provided.

Rule B Rule B Rule B

There is a common maritime adventure when 1. There is a common maritime adventure 1. There is a common maritime adventure
one or more vessels are towing or pushing when one or more vessels are towing or when one or more vessels are towing or
another vessel or vessels, provided that they pushing another vessel or vessels, provided pushing another vessel or vessels, provided
are all involved in commercial activities and that they are all involved in commercial that they are all involved in commercial
not in a salvage operation. activities and not in a salvage operation. activities and not in a salvage operation.

When measures are taken to preserve the When measures are taken to preserve the When measures are taken to preserve the
vessels and their cargoes, if any, from a vessels and their cargoes, if any, from a vessels and their cargoes, if any, from a
common peril, these Rules shall apply. common peril, these Rules shall apply. common peril, these Rules shall apply.

A vessel is not in common peril with another 2. A vessel is not in common peril with 2. If the vessels are in common peril and
vessel or vessels if by simply disconnecting another vessel or vessels if by simply one is disconnected either to increase the
from the other vessel or vessels she is in disconnecting from the other vessel or vessels disconnecting vessel’s safety alone, or the
safety; but if the disconnection is itself a she is in safety; but if the disconnection is safety of all vessels in the common maritime
general average act the common maritime itself a general average act the common adventure, the disconnection will be a
adventure continues. maritime adventure continues. general average act.

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3. Where vessels involved in a common
maritime adventure resort to a port or place
of refuge, allowances under these Rules
may be made in relation to each of the
vessels. Subject to the provisions of
paragraphs 3 and 4 of Rule G, allowances
in general average shall cease at the time
that the common maritime adventure comes
to an end.

Rule C Rule C Rule C

Only such losses, damages or expenses which 1. Only such losses, damages or expenses 1. Only such losses, damages or expenses
are the direct consequence of the general which are the direct consequence of the which are the direct consequence of the
average act shall be allowed as general general average act shall be allowed as general average act shall be allowed as
average. general average. general average.

In no case shall there be any allowance in 2. In no case shall there be any allowance in 2. In no case shall there be any allowance in
general average for losses, damages or general average for losses, damages or general average for losses, damages or
expenses incurred in respect of damage to the expenses incurred in respect of damage to the expenses incurred in respect of damage to the
environment or in consequence of the escape environment or in consequence of the escape environment or in consequence of the escape
or release of pollutant substances from the or release of pollutant substances from the or release of pollutant substances from the
property involved in the common maritime property involved in the common maritime property involved in the common maritime
adventure. adventure. adventure.

Demurrage, loss of market, and any loss or 3. Demurrage, loss of market, and any loss or 3. Demurrage, loss of market, and any loss
damage sustained or expense incurred by damage sustained or expense incurred by or damage sustained or expense incurred by
reason of delay, whether on the voyage or reason of delay, whether on the voyage or reason of delay, whether on the voyage or

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subsequently, and any indirect loss subsequently, and any indirect loss subsequently, and any indirect loss
whatsoever, shall not be admitted as general whatsoever, shall not be allowed as general whatsoever, shall not be allowed as general
average. average. average.

Rule D Rule D Rule D

Rights to contribution in general average Rights to contribution in general average Rights to contribution in general average
shall not be affected, though the event which shall not be affected, though the event which shall not be affected, though the event which
gave rise to the sacrifice or expenditure may gave rise to the sacrifice or expenditure may gave rise to the sacrifice or expenditure may
have been due to the fault of one of the have been due to the fault of one of the have been due to the fault of one of the
parties to the adventure, but this shall not parties to the adventure, but this shall not parties to the common maritime adventure,
prejudice any remedies or defences which prejudice any remedies or defences which but this shall not prejudice any remedies or
may be open against or to that party in may be open against or to that party in defences which may be open against or to
respect of such fault. respect of such fault. that party in respect of such fault.

Rule E Rule E Rule E

The onus of proof is upon the party claiming 1. The onus of proof is upon the party 1. The onus of proof is upon the party
in general average to show that the loss or claiming in general average to show that the claiming in general average to show that the
expense claimed is properly allowable as loss or expense claimed is properly allowable loss or expense claimed is properly allowable
general average. as general average. as general average.

All parties claiming in general average shall 2. All parties claiming in general average 2. All parties to the common maritime
give notice in writing to the average adjuster shall give notice in writing to the average adventure shall, as soon as possible, supply
of the loss or expense in respect of which adjuster of the loss or expense in respect of particulars of value in respect of their
they claim contribution within 12 months of which they claim contribution within 12 contributory interest and, if claiming in
the date of the termination of the common months of the date of the termination of the general average, shall give notice in writing
maritime adventure. common maritime adventure. to the average adjuster of the loss or
expense in respect of which they claim
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contribution, and supply evidence in support
thereof.

Failing such notification, or if within 12 3. Failing such notification, or if within 12 3. Failing notification, or if any party does
months of a request for the same any of the months of a request for the same any of the not supply particulars in support of a
parties shall fail to supply evidence in support parties shall fail to supply evidence in support notified claim within 12 months of the
of a notified claim, or particulars of value in of a notified claim, or particulars of value in termination of the common maritime
respect of a contributory interest, the average respect of a contributory interest, the average adventure or payment of the expense, the
adjuster shall be at liberty to estimate the adjuster shall be at liberty to estimate the average adjuster shall be at liberty to
extent of the allowance or the contributory extent of the allowance or the contributory estimate the extent of the allowance on the
value on the basis of the information value on the basis of the information basis of the information available to the
available to him, which estimate may be available to him, which estimate may be adjuster. Particulars of value shall be
challenged only on the ground that it is challenged only on the ground that it is provided within 12 months of the
manifestly incorrect. manifestly incorrect. termination of the common maritime
adventure, failing which the average
adjuster shall be at liberty to estimate the
contributory value on the same basis. Such
estimates shall be communicated to the
party in question in writing. Estimates may
only be challenged within two months of
receipt of the communication and only on
the grounds that they are manifestly
incorrect.

4. Any party to the common maritime


adventure pursuing a recovery from a third
party in respect of sacrifice or expenditure
claimed in general average, shall so advise
the average adjuster and, in the event that a
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recovery is achieved, shall supply to the
average adjuster full particulars of the
recovery within two months of receipt of the
recovery.

Rule F Rule F Rule F

Any additional expense incurred in place of Any additional expense incurred in place of Any additional expense incurred in place of
another expense which would have been another expense, which would have been another expense which would have been
allowable as general average shall be deemed allowable as general average shall be deemed allowable as general average shall be deemed
to be general average and so allowed without to be general average and so allowed without to be general average and so allowed without
regard to the saving, if any, to other interests, regard to the saving, if any, to other interests, regard to the saving, if any, to other interests,
but only up to the amount of the general but only up to the amount of the general but only up to the amount of the general
average expenses avoided. average expense avoided. average expense avoided.

Rule G Rule G Rule G

General average shall be adjusted as regards 1. General average shall be adjusted as 1. General average shall be adjusted as
both loss and contribution upon the basis of regards both loss and contribution upon the regards both loss and contribution upon the
values at the time and place when and where basis of values at the time and place when basis of values at the time and place when
the adventure ends. and where the adventure ends. and where the common maritime adventure
ends.

This rule shall not affect the determination of 2. This rule shall not affect the determination 2. This rule shall not affect the determination
the place at which the average statement is to of the place at which the average statement is of the place at which the average adjustment
be made up. to be made up. is to be prepared.

When a ship is at any port or place in 3. When a ship is at any port or place in 3. When a ship is at any port or place in
circumstances which would give rise to an circumstances which would give rise to an circumstances which would give rise to an
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allowance in general average under the allowance in general average under the allowance in general average under the
provisions of Rules X and XI, and the cargo provisions of Rules X and XI, and the cargo provisions of Rules X and XI, and the cargo
or part thereof is forwarded to destination by or part thereof is forwarded to destination by or part thereof is forwarded to destination by
other means, rights and liabilities in general other means, rights and liabilities in general other means, rights and liabilities in general
average shall, subject to cargo interests being average shall, subject to cargo interests being average shall, subject to cargo interests being
notified if practicable, remain as nearly as notified if practicable, remain as nearly as notified if practicable, remain as nearly as
possible the same as they would have been in possible the same as they would have been in possible the same as they would have been in
the absence of such forwarding, as if the the absence of such forwarding, as if the the absence of such forwarding, as if the
adventure had continued in the original ship adventure had continued in the original ship common maritime adventure had continued
for so long as justifiable under the contract of for so long as justifiable under the contract of in the original ship for so long as justifiable
affreightment and the applicable law. affreightment and the applicable law. under the contract of carriage and the
applicable law.

The proportion attaching to cargo of the 4. The proportion attaching to cargo of the 4. The proportion attaching to cargo of the
allowances made in general average by allowances made in general average by allowances made in general average by
reason of applying the third paragraph of this reason of applying the third paragraph of this reason of applying the third paragraph of this
Rule shall not exceed the cost which would Rule shall not exceed the cost which would Rule shall be limited to the cost which would
have been borne by the owners of cargo if the have been borne by the owners of cargo if the have been borne by the owners of cargo if the
cargo had been forwarded at their expense. cargo had been forwarded at their expense. cargo had been forwarded at their expense.
This limit shall not apply to any allowances
made under Rule F.

Rule I – Jettison of Cargo Rule I – Jettison of Cargo Rule I – Jettison of Cargo

No jettison of cargo shall be made good as No jettison of cargo shall be allowed as No jettison of cargo shall be allowed as
general average, unless such cargo is carried general average, unless such cargo is carried general average, unless such cargo is carried
in accordance with the recognised custom of in accordance with the recognised custom of in accordance with the recognised custom of
the trade. the trade. the trade.

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Rule II – Loss or Damage by Sacrifices for Rule II – Loss or Damage by Sacrifices for Rule II – Loss or Damage by Sacrifices for
the Common Safety the Common Safety the Common Safety

Loss of or damage to the property involved in Loss of or damage to the property involved in Loss of or damage to the property involved in
the common maritime adventure by or in the common maritime adventure by or in the common maritime adventure by or in
consequence of a sacrifice made for the consequence of a sacrifice made for the consequence of a sacrifice made for the
common safety, and by water which goes common safety, and by water which goes common safety, and by water which goes
down a ship’s hatches opened or other down a ship’s hatches opened or other down a ship’s hatches opened or other
opening made for the purpose of making a opening made for the purpose of making a opening made for the purpose of making a
jettison for the common safety, shall be made jettison for the common safety, shall be jettison for the common safety, shall be
good as general average. allowed as general average. allowed as general average.

Rule III – Extinguishing Fire on Rule III – Extinguishing Fire on Rule III – Extinguishing Fire on
Shipboard Shipboard Shipboard

Damage done to a ship and cargo, or either of Damage done to a ship and cargo, or either of Damage done to a ship and cargo, or either of
them, by water or otherwise, including them, by water or otherwise, including them, by water or otherwise, including
damage by beaching or scuttling a burning damage by beaching or scuttling a burning damage by beaching or scuttling a burning
ship, in extinguishing a fire on board the ship, ship, in extinguishing a fire on board the ship, ship, in extinguishing a fire on board the ship,
shall be made good as general average; shall be allowed as general average; except shall be allowed as general average; except
except that no compensation shall be made that no allowance shall be made for damage that no allowance shall be made for damage
for damage by smoke however caused or by by smoke however caused or by heat of the by smoke however caused or by heat of the
heat of the fire. fire. fire.

Rule IV – Cutting Away Wreck Rule IV – Cutting Away Wreck Rule IV – Cutting Away Wreck

Loss or damage sustained by cutting away Loss or damage sustained by cutting away Loss or damage sustained by cutting away
wreck or parts of the ship which have been wreck or parts of the ship which have been wreck or parts of the ship which have been
previously carried away or are effectively lost previously carried away or are effectively lost previously carried away or are effectively lost
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by accident shall not be made good as general by accident shall not be allowed as general by accident shall not be allowed as general
average. average. average.

Rule V – Voluntary Stranding Rule V – Voluntary Stranding Rule V – Voluntary Stranding

When a ship is intentionally run on shore for When a ship is intentionally run on shore for When a ship is intentionally run on shore for
the common safety, whether or not she might the common safety, whether or not she might the common safety, whether or not she might
have been driven on shore, the consequent have been driven on shore, the consequent have been driven on shore, the consequent
loss or damage to the property involved in the loss or damage to the property involved in the loss or damage to the property involved in the
common maritime adventure shall be allowed common maritime adventure shall be allowed common maritime adventure shall be allowed
in general average. in general average. in general average.

Rule VI – Salvage Remuneration Rule VI – Salvage Remuneration Rule VI – Salvage Remuneration

(a) Expenditure incurred by the parties to the a. Salvage payments, including interest (a) Expenditure incurred by the parties to the
adventure in the nature of salvage, whether thereon and legal fees associated with such common maritime adventure in the nature of
under contract or otherwise, shall be allowed payments, shall lie where they fall and shall salvage, whether under contract or otherwise,
in general average provided that the salvage not be allowed in General Average, save only shall be allowed in general average provided
operations were carried out for the purpose of that if one party to the salvage shall have paid that the salvage operations were carried out
preserving from peril the property involved in all or any of the proportion of salvage for the purpose of preserving from peril the
the common maritime adventure. (including interest and legal fees) due from property involved in the common maritime
another party (calculated on the basis of adventure and subject to the provisions of
salved values and not General Average paragraphs (b), (c) and (d)
contributory values), the unpaid contribution
to salvage due from that other party shall be
credited in the adjustment to the party that
has paid it, and debited to the party on whose
behalf the payment was made.

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(b) Notwithstanding (a) above, where the
parties to the common maritime adventure
have separate contractual or legal liability
to salvors, salvage shall only be allowed
should any of the following arise:

(i) there is a subsequent accident or


other circumstances resulting in loss or
damage to property during the voyage that
results in significant differences between
salved and contributory values,

(ii) there are significant general


average sacrifices,

(iii) salved values are manifestly


incorrect and there is a significantly
incorrect apportionment of salvage
expenses,

(iv) any of the parties to the salvage has


paid a significant proportion of salvage due
from another party,

(v) a significant proportion of the


parties have satisfied the salvage claim on
substantially different terms, no regard
being had to interest, currency correction or
legal costs of either the salvor or the
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contributing interest.

Expenditure allowed in general average shall b. Salvage payments referred to in paragraph (c) Salvage expenditures referred to in
include any salvage remuneration in which (a) above shall include any salvage paragraph (a) above shall include any salvage
the skill and efforts of the salvors in remuneration in which the skill and efforts of remuneration in which the skill and efforts of
preventing or minimising damage to the the salvors in preventing or minimising the salvors in preventing or minimising
environment such as is referred to in Art. 13 damage to the environment such as is damage to the environment such as is
paragraph 1(b) of the International referred to in Art. 13 paragraph 1(b) of the referred to in Article 13 paragraph 1(b) of the
Convention on Salvage, 1989 have been International Convention on Salvage 1989 International Convention on Salvage, 1989
taken into account. have been taken into account. have been taken into account.

(b) Special compensation payable to a salvor c. Special compensation payable to a salvor (d) Special compensation payable to a salvor
by the shipowner under Art. 14 of the said by the shipowner under Art. 14 of the said by the shipowner under Article 14 of the
Convention to the extent specified in Convention to the extent specified in International Convention on Salvage, 1989 to
paragraph 4 of that Article or under any other paragraph 4 of that Article or under any other the extent specified in paragraph 4 of that
provision similar in substance shall not be provision similar in substance (such as Article or under any other provision similar
allowed in general average. SCOPIC) shall not be allowed in General in substance (such as SCOPIC) shall not be
Average and shall not be considered a allowed in general average and shall not be
salvage payment as referred to in paragraph considered a salvage expenditure as referred
(a) of this Rule. to in paragraph (a) of this Rule.

Rule VII – Damage to Machinery and Rule VII – Damage to Machinery and Rule VII – Damage to Machinery and
Boilers Boilers Boilers

Damage caused to any machinery and boilers Damage caused to any machinery and boilers Damage caused to any machinery and boilers
of a ship which is ashore and in a position of of a ship which is ashore and in a position of of a ship which is ashore and in a position of
peril, in endeavouring to refloat, shall be peril, in endeavouring to refloat, shall be peril, in endeavouring to refloat, shall be
allowed in general average when shown to allowed in general average when shown to allowed in general average when shown to
have arisen from an actual intention to float have arisen from an actual intention to float have arisen from an actual intention to float
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the ship for the common safety at the risk of the ship for the common safety at the risk of the ship for the common safety at the risk of
such damage; but where a ship is afloat no such damage; but where a ship is afloat no such damage; but where a ship is afloat no
loss or damage caused by working the loss or damage caused by working the loss or damage caused by working the
propelling machinery and boilers shall in any propelling machinery and boilers shall in any propelling machinery and boilers shall in any
circumstances be made good as general circumstances be allowed as general average. circumstances be allowed as general average.
average.

Rule VIII – Expenses Lightening a Ship Rule VIII – Expenses Lightening a Ship Rule VIII – Expenses Lightening a Ship
when Ashore, and Consequent Damage when Ashore, and Consequent Damage when Ashore, and Consequent Damage

When a ship is ashore and cargo and ship’s When a ship is ashore and cargo and ship’s When a ship is ashore and cargo and ship’s
fuel and stores or any of them are discharged fuel and stores or any of them are discharged fuel and stores or any of them are discharged
as a general average act, the extra cost of as a general average act, the extra cost of as a general average act, the extra cost of
lightening, lighter hire and reshipping (if lightening, lighter hire and re-shipping (if lightening, lighter hire and reshipping (if
incurred), and any loss or damage to the incurred), and any loss or damage to the incurred), and any loss or damage to the
property involved in the common maritime property involved in the common maritime property involved in the common maritime
adventure in consequence thereof, shall be adventure in consequence thereof, shall be adventure in consequence thereof, shall be
admitted as general average. allowed as general average. allowed as general average.

Rule IX – Cargo, Ship’s Materials and Rule IX – Cargo, Ship’s Materials and Rule IX – Cargo, Ship’s Materials and
Stores Used for Fuel Stores Used for Fuel Stores Used for Fuel

Cargo, ship’s materials and stores, or any of Cargo, ship’s materials and stores, or any of Cargo, ship’s materials and stores, or any of
them, necessarily used for fuel for the them, necessarily used for fuel for the them, necessarily used for fuel for the
common safety at a time of peril shall be common safety at a time of peril, shall be common safety at a time of peril shall be
admitted as general average, but when such allowed as general average, but when such an allowed as general average, but when such an
an allowance is made for the cost of ship’s allowance is made for the cost of ship’s allowance is made for the cost of ship’s
materials and stores the general average shall materials and stores the general average shall materials and stores the general average shall
be credited with the estimated cost of the fuel be credited with the estimated cost of the fuel be credited with the estimated cost of the fuel
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which would otherwise have been consumed which would otherwise have been consumed which would otherwise have been consumed
in prosecuting the intended voyage. in prosecuting the intended voyage. in prosecuting the intended voyage.

Rule X – Expenses at Port of Refuge, etc. Rule X – Expenses at Port of Refuge, etc. Rule X – Expenses at Port of Refuge, etc.

(a) When a ship shall have entered a port or a. (i) When a ship shall have entered a port or (a) (i) When a ship shall have entered a port
place of refuge or shall have returned to her place of refuge or shall have returned to her or place of refuge or shall have returned to
port or place of loading in consequence of port or place of loading in consequence of her port or place of loading in consequence of
accident, sacrifice or other extraordinary accident, sacrifice or other extraordinary accident, sacrifice or other extraordinary
circumstances which render that necessary circumstances which render that necessary circumstances which render that necessary
for the common safety, the expenses of for the common safety, the expenses of for the common safety, the expenses of
entering such port or place shall be admitted entering such port or place shall be allowed entering such port or place shall be allowed
as general average; and when she shall have as general average; and when she shall have as general average; and when she shall have
sailed thence with her original cargo, or a part sailed thence with her original cargo, or a part sailed thence with her original cargo, or a part
of it, the corresponding expenses of leaving of it, the corresponding expenses of leaving of it, the corresponding expenses of leaving
such port or place consequent upon such such port or place consequent upon such such port or place consequent upon such
entry or return shall likewise be admitted as entry or return shall likewise be allowed as entry or return shall likewise be allowed as
general average. general average. general average.

When a ship is at any port or place of refuge (ii) When a ship is at any port or place of (ii) When a ship is at any port or place of
and is necessarily removed to another port or refuge and is necessarily removed to another refuge and is necessarily removed to another
place because repairs cannot be carried out in port or place of refuge because repairs cannot port or place because repairs cannot be
the first port or place, the provisions of this be carried out in the first port or place, the carried out in the first port or place, the
Rule shall be applied to the second port or provisions of this Rule shall be applied to the provisions of this Rule shall be applied to the
place as if it were a port or place of refuge second port or place of refuge as if it were a second port or place as if it were a port or
and the cost of such removal including port or place of refuge and the cost of such place of refuge and the cost of such removal
temporary repairs and towage shall be removal including temporary repairs and including temporary repairs and towage shall
admitted as general average. The provisions towage shall be allowed as general average. be allowed as general average. The
of Rule XI shall be applied to the The provisions of Rule XI shall be applied to provisions of Rule XI shall be applied to the
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prolongation of the voyage occasioned by the prolongation of the voyage occasioned by prolongation of the voyage occasioned by
such removal. such removal. such removal.

(b) The cost of handling on board or b. (i) The cost of handling on board or (b) (i) The cost of handling on board or
discharging cargo, fuel or stores whether at a discharging cargo, fuel or stores whether at a discharging cargo, fuel or stores, whether at a
port or place of loading, call or refuge, shall port or place of loading, call or refuge, shall port or place of loading, call or refuge, shall
be admitted as general average, when the be allowed as general average, when the be allowed as general average when the
handling or discharge was necessary for the handling or discharge was necessary for the handling or discharge was necessary for the
common safety or to enable damage to the common safety or to enable damage to the common safety or to enable damage to the
ship caused by sacrifice or accident to be ship caused by sacrifice or accident to be ship caused by sacrifice or accident to be
repaired, if the repairs were necessary for the repaired, if the repairs were necessary for the repaired, if the repairs were necessary for the
safe prosecution of the voyage, except in safe prosecution of the voyage, except in safe prosecution of the voyage, except in
cases where the damage to the ship is cases where the damage to the ship is cases where the damage to the ship is
discovered at a port or place of loading or call discovered at a port or place of loading or call discovered at a port or place of loading or call
without any accident or other extraordinary without any accident or other extraordinary without any accident or other extraordinary
circumstances connected with such damage circumstances connected with such damage circumstances connected with such damage
having taken place during the voyage. having taken place during the voyage. having taken place during the voyage.

The cost of handling on board or discharging (ii) The cost of handling on board or (ii) The cost of handling on board or
cargo, fuel or stores shall not be admissible as discharging cargo, fuel or stores shall not be discharging cargo, fuel or stores shall not be
general average when incurred solely for the allowable as general average when incurred allowable as general average when incurred
purpose of restowage due to shifting during solely for the purpose of restowage due to solely for the purpose of restowage due to
the voyage, unless such restowage is shifting during the voyage, unless such shifting during the voyage, unless such
necessary for the common safety. restowage is necessary for the common restowage is necessary for the common
safety. safety.

(c) Whenever the cost of handling or c. Whenever the cost of handling or (c) Whenever the cost of handling or
discharging cargo, fuel or stores is admissible discharging cargo, fuel or stores is allowable discharging cargo, fuel or stores is allowable
as general average, the costs of storage, as general average, the costs of storage, as general average, the costs of storage,
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including insurance if reasonably incurred, including insurance if reasonably incurred, including insurance if reasonably incurred,
reloading and stowing of such cargo, fuel or reloading and stowing of such cargo, fuel or reloading and stowing of such cargo, fuel or
stores shall likewise be admitted as general stores shall likewise be allowed as general stores shall likewise be allowed as general
average. The provisions of Rule XI shall be average. The provisions of Rule XI shall be average. The provisions of Rule XI shall
applied to the extra period of detention applied to the extra period of detention apply to the extra period of detention
occasioned by such reloading or restowing. occasioned by such reloading or restowing. occasioned by such reloading or restowing.

But when the ship is condemned or does not But when the ship is condemned or does not (d) When the ship is condemned or does not
proceed on her original voyage, storage proceed on her original voyage, storage proceed on her original voyage, storage
expenses shall be admitted as general average expenses shall be allowed as general average expenses shall be allowed as general average
only up to the date of the ship’s only up to the date of the ship’s only up to the date of the ship’s
condemnation or of the abandonment of the condemnation or of the abandonment of the condemnation or of the abandonment of the
voyage or up to the date of completion of voyage or up to the date of completion of voyage or up to the date of completion of
discharge of cargo if the condemnation or discharge of cargo if the condemnation or discharge of cargo if the condemnation or
abandonment takes place before that date. abandonment takes place before that date. abandonment takes place before that date.

Rule XI – Wages and Maintenance of Rule XI – Wages and Maintenance of Rule XI – Wages and Maintenance of
Crew and Other Expenses Bearing up for Crew and Other Expenses Putting in to Crew and Other Expenses Putting in to
and in a Port of Refuge, etc. and at a Port of Refuge, etc. and at a Port of Refuge, etc.

(a) Wages and maintenance of master, a. Wages and maintenance of master, (a) Wages and maintenance of master,
officers and crew reasonably incurred and officers and crew reasonably incurred and officers and crew reasonably incurred and
fuel and stores consumed during the fuel and stores consumed during the fuel and stores consumed during the
prolongation of the voyage occasioned by a prolongation of the voyage occasioned by a prolongation of the voyage occasioned by a
ship entering a port or place of refuge or ship entering a port or place of refuge or ship entering a port or place of refuge or
returning to her port or place of loading shall returning to her port or place of loading shall returning to her port or place of loading
be admitted as general average when the be allowed as general average when the shall be allowed as general average when
expenses of entering such port or place are expenses of entering such port or place are the expenses of entering such port or place
allowable in general average in accordance allowable in general average in accordance are allowable in general average in
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with Rule X(a). with Rule X(a). accordance with Rule X(a).

b. For the purpose of this and the other Rules


wages shall include all payments made to or
for the benefit of the master, officers and
crew, whether such payments be imposed by
law upon the shipowners or be made under
the terms of articles of employment.

(b) When a ship shall have entered or been c. (i) When a ship shall have entered or been (b) (i) When a ship shall have entered or
detained in any port or place in consequence detained in any port or place in consequence been detained in any port or place in
of accident, sacrifice or other extraordinary of accident, sacrifice or other extraordinary consequence of accident, sacrifice or other
circumstances which render that necessary circumstances which render that necessary extra-ordinary circumstances which render
for the common safety, or to enable damage for the common safety, or to enable damage that entry or detention necessary for the
to the ship caused by sacrifice or accident to to the ship caused by sacrifice or accident to common safety, or to enable damage to the
be repaired, if the repairs were necessary for be repaired, if the repairs were necessary for ship caused by sacrifice or accident to be
the safe prosecution of the voyage, the wages the safe prosecution of the voyage, fuel and repaired, if the repairs were necessary for
and maintenance of the master, officers and stores consumed during the extra period of the safe prosecution of the voyage, the
crew reasonably incurred during the extra detention in such port or place until the ship wages and maintenance of the master,
period of detention in such port or place until shall or should have been made ready to officers and crew reasonably incurred
the ship shall or should have been made proceed upon her voyage, shall be allowed in during the extra period of detention in such
ready to proceed upon her voyage, shall be general average, except such fuel and stores port or place until the ship shall or should
admitted in general average. as are consumed in effecting repairs not have been made ready to proceed upon her
allowable in general average. voyage, shall be allowed in general average.

Fuel and stores consumed during the extra (ii) Fuel and stores consumed during the
period of detention shall be admitted as extra period of detention shall be allowed as
general average, except such fuel and stores general average, except such fuel and stores
as are consumed in effecting repairs not as are consumed in effecting repairs not
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allowable in general average. allowable in general average.

Port charges incurred during the extra period (ii) Port charges incurred during the extra (iii) Port charges incurred during the
of detention shall likewise be admitted as period of detention shall likewise be allowed extra period of detention shall likewise be
general average except such charges as are as general average except such charges as are allowed as general average except such
incurred solely by reason of repairs not incurred solely by reason of repairs not charges as are incurred solely by reason of
allowable in general average. allowable in general average. repairs not allowable in general average.

Provided that when damage to the ship is (iii) Provided that when damage to the ship (iv) Provided that when damage to the
discovered at a port or place of loading or call is discovered at a port or place of loading or ship is discovered at a port or place of
without any accident or other extraordinary call without any accident or other loading or call without any accident or other
circumstances connected with such damage extraordinary circumstance connected with extraordinary circumstance connected with
having taken place during the voyage, then such damage having taken place during the such damage having taken place during the
the wages and maintenance of master, voyage, then fuel and stores consumed and voyage, then the wages and maintenance of
officers and crew and fuel and stores port charges incurred during the extra master, officers and crew and fuel and
consumed and port charges incurred during detention for repairs to damages so stores consumed and port charges incurred
the extra detention for repairs to damages so discovered shall not be allowable as general during the extra detention for repairs to
discovered shall not be admissible as general average, even if the repairs are necessary for damages so discovered shall not be
average, even if the repairs are necessary for the safe prosecution of the voyage. allowable as general average, even if the
the safe prosecution of the voyage. repairs are necessary for the safe
prosecution of the voyage.

When the ship is condemned or does not (iv) When the ship is condemned or does not (v) When the ship is condemned or does
proceed on her original voyage, the wages proceed on her original voyage, fuel and not proceed on her original voyage, the
and maintenance of the master, officers and stores consumed and port charges shall be wages and maintenance of the master,
crew and fuel and stores consumed and port allowed as general average only up to the officers and crew and fuel and stores
charges shall be admitted as general average date of the ship’s condemnation or of the consumed and port charges shall be allowed
only up to the date of the ship’s abandonment of the voyage or up to the date as general average only up to the date of the
condemnation or of the abandonment of the of completion of discharge of cargo if the ship’s condemnation or of the abandonment
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voyage or up to the date of completion of condemnation or abandonment takes place of the voyage or up to the date of
discharge of cargo if the condemnation or before that date. completion of discharge of cargo if the
abandonment takes place before that date. condemnation or abandonment takes place
before that date.

(c) For the purpose of this and the other (c) (i) For the purpose of these Rules
Rules wages shall include all payments made wages shall include all payments made to or
to or for the benefit of the master, officers for the benefit of the master, officers and
and crew, whether such payments be imposed crew, whether such payments be imposed
by law upon the shipowners or be made by law upon the shipowners or be made
under the terms of articles of employment. under the terms of articles of employment.

(ii) For the purpose of these Rules, port


charges shall include all customary or
additional expenses incurred for the
common safety or to enable a vessel to
enter or remain at a port of refuge or call
in the circumstances outlined in Rule
XI(b)(i).

(d) The cost of measures undertaken to d. The cost of measures undertaken to (d) The cost of measures undertaken to
prevent or minimise damage to the prevent or minimise damage to the prevent or minimise damage to the
environment shall be allowed in general environment shall be allowed in general environment shall be allowed in general
average when incurred in any or all of the average when incurred in any or all of the average when incurred in any or all of the
following circumstances: following circumstances: following circumstances:

(i) as part of an operation performed for (i) as part of an operation performed for the (i) as part of an operation performed for
the common safety which, had it been common safety which, had it been the common safety which, had it been
undertaken by a party outside the common undertaken by a party outside the common undertaken by a party outside the common
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maritime adventure, would have entitled such maritime adventure, would have entitled such maritime adventure, would have entitled
party to a salvage reward; party to a salvage reward; such party to a salvage reward;

(ii) as a condition of entry into or departure (ii) as a condition of entry into or departure (ii) as a condition of entry into or
from any port or place in the circumstances from any port or place in the circumstances departure from any port or place in the
prescribed in Rule X(a); prescribed in Rule X(a); circumstances prescribed in Rule X(a);

(iii) as a condition of remaining at any port (iii) as a condition of remaining at any port (iii) as a condition of remaining at any
or place in the circumstances prescribed in or place in the circumstances prescribed in port or place in the circumstances
Rule XI(b) provided that when there is an Rule XI(c), provided that when there is an prescribed in Rule XI(b), provided that
actual escape or release of pollutant actual escape or release of pollutant when there is an actual escape or release of
substances the cost of any additional substances the cost of any additional pollutant substances, the cost of any
measures required on that account to prevent measures required on that account to prevent additional measures required on that
or minimise pollution or environmental or minimise pollution or environmental account to prevent or minimise pollution or
damage shall not be allowed as general damage shall not be allowed as general environmental damage shall not be allowed
average; average; as general average;

(iv) necessarily in connection with the (iv) necessarily in connection with the (iv) necessarily in connection with the
discharging, storing or reloading of cargo discharging, storing or reloading of cargo handling on board, discharging, storing or
whenever the cost of those operations is whenever the cost of those operations is reloading of cargo, fuel or stores whenever
admissible as general average. allowable as general average. the cost of those operations is allowable as
general average.

Rule XII – Damage to Cargo in Rule XII – Damage to Cargo in Rule XII – Damage to Cargo in
Discharging, etc. Discharging, etc. Discharging, etc.

Damage to or loss of cargo, fuel or stores Damage to or loss of cargo, fuel or stores Damage to or loss of cargo, fuel or stores
sustained in consequence of their handling, sustained in consequence of their handling, sustained in consequence of their handling,
discharging, storing, reloading and stowing discharging, storing, reloading and stowing discharging, storing, reloading and stowing
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shall be made good as general average, when shall be allowed as general average, when shall be allowed as general average, when
and only when the cost of those measures and only when the cost of those measures and only when the cost of those measures
respectively is admitted as general average. respectively is allowed as general average. respectively is allowed as general average.

Rule XIII – Deductions from Cost of Rule XIII – Deductions from Cost of Rule XIII – Deductions from Cost of
Repairs Repairs Repairs

Repairs to be allowed in general average a. Repairs to be allowed in general average (a) Repairs to be allowed in general
shall not be subject to deductions in respect shall not be subject to deductions in respect average shall not be subject to deductions in
of “new for old” where old material or parts of “new for old” where old material or parts respect of “new for old” where old material
are replaced by new unless the ship is over are replaced by new unless the ship is over or parts are replaced by new unless the ship
fifteen years old in which case there shall be fifteen years old in which case there shall be is over fifteen years old in which case there
a deduction of one third. The deductions a deduction of one third. The deductions shall be a deduction of one third. The
shall be regulated by the age of the ship from shall be regulated by the age of the ship from deductions shall be regulated by the age of
the 31st December of the year of completion the 31st December of the year of completion the ship from the 31st December of the year
of construction to the date of the general of construction to the date of the general of completion of construction to the date of
average act, except for insulation, life and average act, except for insulation, life and the general average act, except for
similar boats, communications and similar boats, communications and insulation, life and similar boats,
navigational apparatus and equipment, navigational apparatus and equipment, communications and navigational apparatus
machinery and boilers for which the machinery and boilers for which the and equipment, machinery and boilers for
deductions shall be regulated by the age of deductions shall be regulated by the age of which the deductions shall be regulated by
the particular parts to which they apply. the particular parts to which they apply. the age of the particular parts to which they
apply.

The deductions shall be made only from the b. The deductions shall be made only from (b) The deductions shall be made only from
cost of the new material or parts when the cost of the new material or parts when the cost of the new material or parts when
finished and ready to be installed in the ship. finished and ready to be installed in the ship. finished and ready to be installed in the
No deduction shall be made in respect of ship. No deduction shall be made in respect
provisions, stores, anchors and chain cables. of provisions, stores, anchors and chain
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Drydock and slipway dues and costs of cables. Drydock and slipway dues and costs
shifting the ship shall be allowed in full. of shifting the ship shall be allowed in full.

No deduction shall be made in respect of


provisions, stores, anchors and chain cables.

Drydock and slipway dues and costs of


shifting the ship shall be allowed in full.

The costs of cleaning, painting or coating of c. The costs of cleaning, painting or coating (c) The costs of cleaning, painting or
bottom shall not be allowed in general of bottom shall not be allowed in general coating of bottom shall not be allowed in
average unless the bottom has been painted average unless the bottom has been painted general average unless the bottom has been
or coated within the twelve months preceding or coated within the twelve months preceding painted or coated within the 24 months
the date of the general average act in which the date of the general average act in which preceding the date of the general average act
case one half of such costs shall be allowed. case one half of such costs shall be allowed. in which case one half of such costs shall be
allowed.

Rule XIV - Temporary Repairs Rule XIV - Temporary Repairs Rule XIV - Temporary Repairs

Where temporary repairs are effected to a a. Where temporary repairs are effected to a (a) Where temporary repairs are effected to
ship at a port of loading, call or refuge, for ship at a port of loading, call or refuge, for a ship at a port of loading, call or refuge, for
the common safety, or of damage caused by the common safety, or of damage caused by the common safety, or of damage caused by
general average sacrifice, the cost of such general average sacrifice, the cost of such general average sacrifice, the cost of such
repairs shall be admitted as general average. repairs shall be allowed as general average. repairs shall be allowed as general average.

Where temporary repairs of accidental b. Where temporary repairs of accidental (b) Where temporary repairs of accidental
damage are effected in order to enable the damage are effected in order to enable the damage are effected in order to enable the
adventure to be completed, the cost of such adventure to be completed, the cost of such common maritime adventure to be
repairs shall be admitted as general average repairs shall be allowed as general average completed, the cost of such repairs shall be
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without regard to the saving, if any, to other without regard to the saving, if any, to other allowed as general average without regard to
interests, but only up to the saving in expense interests, but only up to the saving in expense the saving, if any, to other interests, but only
which would have been incurred and allowed which would have been incurred and allowed up to the saving in expense which would
in general average if such repairs had not in general average if such repairs had not have been incurred and allowed in general
been effected there. been effected there. Provided that, for the average if such repairs had not been effected
purposes of this paragraph only, the cost of there.
temporary repairs falling for consideration
shall be limited to the extent that the cost of
temporary repairs effected at the port of
loading, call or refuge, together with either
the cost of permanent repairs eventually
effected or, if unrepaired at the time of the
adjustment, the reasonable depreciation in the
value of the vessel at the completion of the
voyage, exceeds the cost of permanent
repairs had they been effected at the port of
loading, call or refuge.

No deductions “new for old” shall be made c. No deductions “new for old” shall be made (c) No deductions “new for old” shall be
from the cost of temporary repairs allowable from the cost of temporary repairs allowable made from the cost of temporary repairs
as general average. as general average. allowable as general average.

Rule XV – Loss of Freight Rule XV – Loss of Freight Rule XV – Loss of Freight

Loss of freight arising from damage to or loss Loss of freight arising from damage to or loss Loss of freight arising from damage to or loss
of cargo shall be made good as general of cargo shall be allowed as general average, of cargo shall be allowed as general average,
average, either when caused by a general either when caused by a general average act, either when caused by a general average act,
average act, or when the damage to or loss of or when the damage to or loss of cargo is so or when the damage to or loss of cargo is so

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cargo is so made good. allowed. allowed.

Deductions shall be made from the amount of Deduction shall be made from the amount of Deduction shall be made from the amount of
gross freight lost, of the charges which the gross freight lost, of the charges which the gross freight lost, of the charges which the
owner thereof would have incurred to earn owner thereof would have incurred to earn owner thereof would have incurred to earn
such freight, but has, in consequence of the such freight, but has, in consequence of the such freight, but has, in consequence of the
sacrifice, not incurred. sacrifice, not incurred. sacrifice, not incurred.

Rule XVI – Amount to be Made Good for Rule XVI – Amount to be Allowed for Rule XVI – Amount to be Allowed for
Cargo Lost or Damaged by Sacrifice Cargo Lost or Damaged by Sacrifice Cargo Lost or Damaged by Sacrifice

The amount to be made good as general a. The amount to be allowed as general (a) (i) The amount to be allowed as general
average for damage to or loss of cargo average for damage to or loss of cargo average for damage to or loss of cargo
sacrificed shall be the loss which has been sacrificed shall be the loss which has been sacrificed shall be the loss which has been
sustained thereby based on the value at the sustained thereby based on the value at the sustained thereby based on the value at the
time of discharge, ascertained from the time of discharge, ascertained from the time of discharge, ascertained from the
commercial invoice rendered to the receiver commercial invoice rendered to the receiver commercial invoice rendered to the receiver
or if there is no such invoice from the shipped or if there is no such invoice from the shipped or if there is no such invoice from the shipped
value. The value at the time of discharge value. The value at the time of discharge value. Such commercial invoice may be
shall include the cost of insurance and freight shall include the cost of insurance and freight deemed by the average adjuster to reflect the
except insofar as such freight is at the risk of except insofar as such freight is at the risk of value at the time of discharge irrespective of
interests other than the cargo. interests other than the cargo. the place of final delivery under the contract
of carriage.
(ii) The value at the time of discharge
shall include the cost of insurance and freight
except insofar as such freight is at the risk of
interests other than the cargo.

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When cargo so damaged is sold and the b. When cargo so damaged is sold and the (b) When cargo so damaged is sold and the
amount of the damage has not been otherwise amount of the damage has not been otherwise amount of the damage has not been otherwise
agreed, the loss to be made good in general agreed, the loss to be allowed in general agreed, the loss to be allowed in general
average shall be the difference between the average shall be the difference between the average shall be the difference between the
net proceeds of sale and the net sound value net proceeds of sale and the net sound value net proceeds of sale and the net sound value
as computed in the first paragraph of this as computed in the first paragraph of this as computed in the first paragraph of this
Rule. Rule. Rule.

Rule XVII - Contributory Values Rule XVII - Contributory Values Rule XVII - Contributory Values

The contribution to a general average shall be a. (i) The contribution to a general average (a) (i) The contribution to a general
made upon the actual net values of the shall be made upon the actual net values of average shall be made upon the actual net
property at the termination of the adventure the property at the termination of the values of the property at the termination of
except that the value of cargo shall be the adventure except that the value of cargo shall the common maritime adventure except that
value at the time of discharge, ascertained be the value at the time of discharge, the value of cargo shall be the value at the
from the commercial invoice rendered to the ascertained from the commercial invoice time of discharge, ascertained from the
receiver or if there is no such invoice from rendered to the receiver or if there is no such commercial invoice rendered to the receiver
the shipped value. invoice from the shipped value. or if there is no such invoice from the
shipped value. Such commercial invoice
may be deemed by the average adjuster to
reflect the value at the time of discharge
irrespective of the place of final delivery
under the contract of carriage.

The value of the cargo shall include the cost (ii) The value of the cargo shall include the (ii) The value of the cargo shall include
of insurance and freight unless and insofar as cost of insurance and freight unless and the cost of insurance and freight unless and
such freight is at the risk of interests other insofar as such freight is at the risk of insofar as such freight is at the risk of
than cargo, deducting therefrom any loss or interests other than the cargo, deducting interests other than the cargo, deducting

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damage suffered by the cargo prior to or at therefrom any loss or damage suffered by the therefrom any loss or damage suffered by
the time of discharge. cargo prior to or at the time of discharge. the cargo prior to or at the time of
discharge. Any cargo may be excluded
from contributing to general average
should the average adjuster consider that
the cost of including it in the adjustment
would be likely to be disproportionate to its
eventual contribution.

The value of the ship shall be assessed (iii) The value of the ship shall be assessed (iii) The value of the ship shall be
without taking into account the beneficial or without taking into account the beneficial or assessed without taking into account the
detrimental effect of any demise or time detrimental effect of any demise or time beneficial or detrimental effect of any
charterparty to which the ship may be charterparty to which the ship may be demise or time charterparty to which the
committed. committed. ship may be committed.

To these values shall be added the amount b. To these values shall be added the amount (b) To these values shall be added the
made good as general average for property allowed as general average for property amount allowed as general average for
sacrificed, if not already included, deduction sacrificed, if not already included, deduction property sacrificed, if not already included,
being made from the freight and passage being made from the freight and passage deduction being made from the freight and
money at risk of such charges and crew’s money at risk of such charges and crew’s passage money at risk of such charges and
wages as would not have been incurred in wages as would not have been incurred in crew’s wages as would not have been
earning the freight had the ship and cargo earning the freight had the ship and cargo incurred in earning the freight had the ship
been totally lost at the date of the general been totally lost at the date of the general and cargo been totally lost at the date of the
average act and have not been allowed as average act and have not been allowed as general average act and have not been
general average; deduction being also made general average; deduction being also made allowed as general average; deduction being
from the value of the property of all extra from the value of the property of all extra also made from the value of the property of
charges incurred in respect thereof charges incurred in respect thereof all extra charges incurred in respect thereof
subsequently to the general average act, subsequently to the general average act, subsequently to the general average act,
except such charges as are allowed in general except such charges as are allowed in general except such charges as are allowed in
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average or fall upon the ship by virtue of an average or fall upon the ship by virtue of an general average. Where payment for
award for special compensation under Art. 14 award for special compensation under Art. 14 salvage services has not been allowed as
of the International Convention on Salvage, of the International Convention on Salvage, general average by reason of paragraph
1989 or under any other provision similar in 1989 or under any other provision similar in (b) of Rule VI, deductions in respect of
substance. substance. payment for salvage services shall be
limited to the amount paid to the salvors
including interest and salvors’ costs.

In the circumstances envisaged in the third c. In the circumstances envisaged in the third (c) In the circumstances envisaged in the
paragraph of Rule G, the cargo and other paragraph of Rule G, the cargo and other third paragraph of Rule G, the cargo and
property shall contribute on the basis of its property shall contribute on the basis of its other property shall contribute on the basis
value upon delivery at original destination value upon delivery at original destination of its value upon delivery at original
unless sold or otherwise disposed of short of unless sold or otherwise disposed of short of destination unless sold or otherwise
that destination, and the ship shall contribute that destination, and the ship shall contribute disposed of short of that destination, and the
upon its actual net value at the time of upon its actual net value at the time of ship shall contribute upon its actual net
completion of discharge of cargo. completion of discharge of cargo. value at the time of completion of discharge
of cargo.

Where cargo is sold short of destination, d. Where cargo is sold short of destination, (d) Where cargo is sold short of
however, it shall contribute upon the actual however, it shall contribute upon the actual destination, however, it shall contribute
net proceeds of sale, with the addition of any net proceeds of sale, with the addition of any upon the actual net proceeds of sale, with
amount made good as general average. amount allowed as general average. the addition of any amount allowed as
general average.

Mails, passengers’ luggage, personal effects e. Mails, passengers’ luggage, personal (e) Mails, passengers’ luggage and
and accompanied private motor vehicles shall effects and accompanied private motor accompanied personal effects and
not contribute in general average. vehicles shall not contribute to general accompanied private motor vehicles shall
average. not contribute to general average.

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Rule XVIII – Damage to Ship Rule XVIII – Damage to Ship Rule XVIII – Damage to Ship

The amount to be allowed as general average The amount to be allowed as general average The amount to be allowed as general average
for damage or loss to the ship, her machinery for damage or loss to the ship, her machinery for damage or loss to the ship, her machinery
and/or gear caused by a general average act and/or gear caused by a general average act and/or gear caused by a general average act
shall be as follows: shall be as follows: shall be as follows:

(a) When repaired or replaced, a. When repaired or replaced, (a) When repaired or replaced,

The actual reasonable cost of repairing or The actual reasonable cost of repairing or The actual reasonable cost of repairing or
replacing such damage or loss, subject to replacing such damage or loss, subject to replacing such damage or loss, subject to
deductions in accordance with Rule XIII; deductions in accordance with Rule XIII; deductions in accordance with Rule XIII;

(b) When not repaired or replaced, b. When not repaired or replaced, (b) When not repaired or replaced,

The reasonable depreciation arising from The reasonable depreciation arising from The reasonable depreciation arising from
such damage or loss, but not exceeding the such damage or loss, but not exceeding the such damage or loss, but not exceeding the
estimated cost of repairs. But where the ship estimated cost of repairs. But where the ship estimated cost of repairs. But where the ship
is an actual total loss or when the cost of is an actual total loss or when the cost of is an actual total loss or when the cost of
repairs of the damage would exceed the value repairs of the damage would exceed the value repairs of the damage would exceed the value
of the ship when repaired, the amount to be of the ship when repaired, the amount to be of the ship when repaired, the amount to be
allowed as general average shall be the allowed as general average shall be the allowed as general average shall be the
difference between the estimated sound value difference between the estimated sound value difference between the estimated sound value
of the ship after deducting therefrom the of the ship after deducting therefrom the of the ship after deducting therefrom the
estimated cost of repairing damage which is estimated cost of repairing damage which is estimated cost of repairing damage which is
not general average and the value of the ship not general average and the value of the ship not general average and the value of the ship
in her damaged state which may be measured in her damaged state which may be measured in her damaged state which may be measured
by the net proceeds of sale, if any. by the net proceeds of sale, if any. by the net proceeds of sale, if any.

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Rule XIX – Undeclared or Wrongfully Rule XIX – Undeclared or Wrongfully Rule XIX – Undeclared or Wrongfully
Declared Cargo Declared Cargo Declared Cargo

Damage or loss caused to goods loaded a. Damage or loss caused to goods loaded (a) Damage or loss caused to goods loaded
without the knowledge of the shipowner or without the knowledge of the Shipowner or without the knowledge of the shipowner or
his agent or to goods wilfully misdescribed at his agent or to goods wilfully misdescribed at his agent or to goods wilfully misdescribed at
time of shipment shall not be allowed as time of shipment shall not be allowed as the time of shipment shall not be allowed as
general average, but such goods shall remain general average, but such goods shall remain general average, but such goods shall remain
liable to contribute, if saved. liable to contribute, if saved. liable to contribute, if saved.

Damage or loss caused to goods which have b. Damage or loss caused to goods which (b) Where goods have been wrongfully
been wrongfully declared on shipment at a have been wrongfully declared on shipment declared at the time of shipment at a value
value which is lower than their real value at a value which is lower than their real value which is lower than their real value, any
shall be contributed for at the declared value, shall be contributed for at the declared value, general average loss or damage shall be
but such goods shall contribute upon their but such goods shall contribute upon their allowed on the basis of their declared value,
actual value. actual value. but such goods shall contribute on the basis
of their actual value.

Rule XX – Provision of Funds Rule XX – Provision of Funds Rule XX – Provision of Funds

A commission of 2 per cent. on general (No allowance for commission.)


average disbursements, other than the wages
and maintenance of master, officers and crew
and fuel and stores not replaced during the
voyage, shall be allowed in general average.

The capital loss sustained by the owners of (a) The capital loss sustained by the owners (a) The capital loss sustained by the owners
goods sold for the purpose of raising funds to of goods sold for the purpose of raising funds of goods sold for the purpose of raising funds
defray general average disbursements shall to defray general average disbursements shall to defray general average disbursements shall
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be allowed in general average. be allowed in general average. be allowed in general average.

The cost of insuring general average (b) The cost of insuring average (b) The cost of insuring general average
disbursements shall also be admitted in disbursements shall also be allowed in disbursements shall be allowed in general
general average. general average. average.

Rule XXI – Interest on Losses Made Good Rule XXI – Interest on Losses Allowed in Rule XXI – Interest on Losses Allowed in
in General Average General Average General Average

Interest shall be allowed on expenditure, a. Interest shall be allowed on expenditure, (a) Interest shall be allowed on expenditure,
sacrifices and allowances in general average sacrifices and allowances in general average sacrifices and allowances in general average
at the rate of 7 per cent. per annum, until until three months after the date of issue of until three months after the date of issue of
three months after the date of issue of the the general average adjustment, due the general average adjustment, due
general average adjustment, due allowance allowance being made for any payment on allowance being made for any payment on
being made for any payment on account by account by the contributory interests or from account by the contributory interests or from
the contributory interests or from the general the general average deposit fund. the general average deposit fund.
average deposit fund.

b. Each year the Assembly of the Comite (b) The rate for calculating interest
Maritime International shall decide the rate of accruing during each calendar year shall be
interest which shall apply. This rate shall be the 12-month ICE LIBOR for the currency
used for calculating interest accruing during in which the adjustment is prepared as
the following calendar year. announced on the first banking day of that
calendar year, increased by four percentage
points. If the adjustment is prepared in a
currency for which no ICE LIBOR is
announced, the rate shall be the 12-month
US Dollar ICE LIBOR, increased by four

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percentage points.

Rule XXII – Treatment of Cash Deposits Rule XXII – Treatment of Cash Deposits Rule XXII – Treatment of Cash Deposits

Where cash deposits have been collected in Where cash deposits have been collected in (a) Where cash deposits have been
respect of cargo’s liability for general respect of cargo’s liability for general collected in respect of general average,
average, salvage or special charges such average, salvage or special charges, such salvage or special charges, such sums shall
deposits shall be paid without any delay into deposits shall be paid without any delay into be remitted forthwith to the average
a special account in the joint names of a a special account in the joint names of a adjuster who shall deposit the sums into a
representative nominated on behalf of the representative nominated on behalf of the special account, earning interest where
shipowner and a representative nominated on shipowner and a representative nominated on possible, in the name of the average
behalf of the depositors in a bank to be behalf of the depositors in a bank to be adjuster.
approved by both. The sum so deposited approved by both. The sum so deposited
together with accrued interest, if any, shall be together with accrued interest, if any, shall be
held as security for payment to the parties held as security for payment to the parties
entitled thereto of the general average, entitled thereto of the general average,
salvage or special charges payable by cargo salvage or special charges payable by cargo
in respect of which the deposits have been in respect of which the deposits have been
collected. Payments on account or refunds of collected. Payments on account or refunds of
deposits may be made if certified to in deposits may be made if certified to in
writing by the average adjuster. Such writing by the average adjuster. Such
deposits and payments or refunds shall be deposits and payments or refunds shall be
without prejudice to the ultimate liability of without prejudice to the ultimate liability of
the parties. the parties.

(b) The special account shall be


constituted in accordance with the law
regarding client or third party funds
applicable in the domicile of the average
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adjuster. The account shall be held
separately from the average adjuster’s own
funds, in trust or in compliance with
similar rules of law providing for the
administration of the funds of third
parties.

(c) The sums so deposited, together with


accrued interest, if any, shall be held as
security for payment to the parties entitled
thereto, of the general average, salvage or
special charges in respect of which the
deposits have been collected. Payments on
account or refunds of deposits may only be
made when such payments are certified in
writing by the average adjuster and
notified to the depositor requesting their
approval. Upon the receipt of the
depositor’s approval, or in the absence of
such approval within a period of 90 days,
the average adjuster may deduct the
amount of the payment on account or the
final contribution from the deposit.

(d) All deposits and payments or refunds


shall be without prejudice to the ultimate
liability of the parties.

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Rule XXIII – Time Bar for Contributions Rule XXIII – Time Bar for Contributing to
to General Average General Average

a. Subject always to any mandatory rule on (a) Subject always to any mandatory rule
time limitation contained in any applicable on time limitation contained in any
law: applicable law:

(i) Any rights to general average contribution (i) Any rights to general average
including any rights to claim under general contribution including any rights to claim
average bonds and guarantees, shall be under general average bonds and
extinguished unless an action is brought by guarantees, shall be extinguished unless
the party claiming such contribution within a an action is brought by the party claiming
period of one year after the date upon which such contribution within a period of one
the general average adjustment was issued. year after the date upon which the general
However, in no case shall such an action be average adjustment is issued. However, in
brought after six years from the date of no case shall such an action be brought
termination of the common maritime after six years from the date of termination
adventure. of the common maritime adventure.

(ii) These periods may be extended if the (ii) These periods may be extended if
parties so agree after the termination of the the parties so agree after the termination
common maritime adventure. of the common maritime adventure.

b. This rule shall not apply as between the (b) This rule shall not apply as between
parties to the general average and their the parties to the general average and their
respective insurers. respective insurers.

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