What is General Average and why does it matter?

General Average (GA) is a principle rooted in maritime law since the Rhodian Sea Laws of around 800 BC.

It requires all cargo owners to share extraordinary costs incurred to save a vessel and its cargo, such as emergency port calls or firefighting.

This rule is embedded in every modern Bill of Lading, making it highly relevant for global supply chains.

How does GA affect shippers?

When GA is declared, an independent average adjuster calculates each party’s contribution.

Cargo is not released until security is provided, either through an insurer’s guarantee or a cash deposit. 

Immediate actions include submitting the Bill of Lading, invoice, and packing list, notifying insurers, and reviewing policy coverage for GA and salvage charges.

Recent cases in 2025

In September 2025, Maersk declared GA after a fire aboard the Marie Maersk, with cargo discharged at Tanjung Pelepas but held until security requirements were met.

Similarly, in November 2025, a fire on the ONE Henry Hudson in Los Angeles triggered GA to ensure continued operations flow after the incident.

Cargo release depended on completing GA formalities, prompting urgent action from shippers.

Lessons from past incidents

Historical examples such as the Ever Given grounding in 2021 and the Maersk Honam fire in 2018 show the complexity and scale of GA claims.

Some uninsured shippers were required to deposit over half their cargo’s value before release, underscoring the financial exposure when GA is invoked.