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What is General Average?

A great deal can occur during a cargo vessel’s voyage, whether on the open sea or passing through straits and coastal areas. An unexpected storm, hidden sandbar, or sudden fire are all obstacles that a cargo ship can encounter without warning. To survive these perils and resume the voyage, it can take extraordinary efforts by those on board, as well as those that are called in to assist. Parties involved must act quickly and make split-second decisions to save the ship, crew, and cargo aboard. These efforts can often come at a cost. Aside from the cost of lost goods, there are expenses involved in saving the voyage. This is where the concept of General Average comes into play.