CHARTER PARTIES

GENCON – Clause 12

General Average and New Jason Clause

CLAUSE 12

12. General Average and New Jason Clause	178
General Average shall be adjusted in London unless otherwise agreed in Box	179
22 according to York-Antwerp Rules 1994 and any subsequent modification	180
thereof. Proprietors of cargo to pay the cargo's share in the general expenses	181
even if same have been necessitated through neglect or default of the Owners'	182
servants (see Clause 2).	183
If General Average is to be adjusted in accordance with the law and practice of	184
the United States of America, the following Clause shall apply: "In the event of	185
accident, danger, damage or disaster before or after the commencement of the	186
voyage, resulting from any cause whatsoever, whether due to negligence or	187
not, for which, or for the consequence of which, the Owners are not	188
responsible, by statute, contract or otherwise, the cargo shippers, consignees	189
or the owners of the cargo shall contribute with the Owners in General Average	190
to the payment of any sacrifices, losses or expenses of a General Average	191
nature that may be made or incurred and shall pay salvage and special charges	192
incurred in respect of the cargo. If a salving vessel is owned or operated by the	193
Owners, salvage shall be paid for as fully as if the said salving vessel or vessels	194
belonged to strangers. Such deposit as the Owners, or their agents, may deem	195
sufficient to cover the estimated contribution of the goods and any salvage and	196
special charges thereon shall, if required, be made by the cargo, shippers,	197
consignees or owners of the goods to the Owners before delivery."	198

All charter parties and bills of lading contain a clause which is related to the regulation of general average. General average is (nearly always) settled according to York-Antwerp Rules 1994.

Where general average is to be settled is indicated in box 22

The official definition of general average according to Rule A the York-Antwerp Rules is:

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

The emphasis must fall on the bold printed words. With a general average act, the common interest, viz. conservation of ship and cargo takes a prominent place. The sacrifices or expenditures which are decided, occur in the common interest, so that it goes without saying that each interested party must bear a proportional part of the damage, respectively expenditure, which otherwise would be born by one party only.

The general average operation must be knowingly carried out by the master and must be reasonably defendable, in other words, good faith must stand first.

Examples of general average:

Jettison of cargo in order to save the ship.
Extinguish of fire on board, which, among other things, leads to damage to the cargo.
Damage to the engines attempting to refloat a stranded ship on its own.

Clause 12 of the GENCON charter party is based on the last paragraph of Rule A and on D of York-Antwerp the Rules 1994.

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

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

In close relation with clause 12 General Average of the GENCON charter party (or of each other charter party, where applicable) stands the New Jason Clause which has been commented on in the Chapter Bills of Lading.

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