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2016 York-Antwerp Rules & CMI Guidelines

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2016 York-Antwerp Rules & CMI Guidelines

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YORK-ANTWERP RULES 2016 Rule of Interpretation Inthe adjustment of general average the following Rules shal ply tothe exchson of ey law and practic inconsistent herewit. "Except as provided by de Rule Paramount and the mmbored Rules, general average shall be adjusted according to theletered Rules Rae Paramount Inno ease sil here be ny allowance for serie or expire unless reasonbly mide or incre Rate. 1. Thee is genet average set when, and only when, any extraordinary serifice or expenditure is intetonlly apd reasonably made or icured forthe common safety for the purpose of preserving from pei the property involved in @ commen maritime advent 2 Genezal average stfces and expenditures shall be bore bythe diferent consbuting interes onthe basis hereinaler provided Role 1. Thereis a comm maritine adventure when one or more vessels ar towing or puting another vessel or vessels, provide tht they ae all ivelved in commercial sts ‘sd ot in salvage operation When measures ce taken to preserve the vessels snd tis cargoes, if any, om a common pri hse Rules shal apt. 2 IF the vessels a in common peril and ove is disconnocted ether 9 inrase the disconnecting ves! safety alone, othe salty of all vessels inthe commen maine ‘vent, the dxornetion wl bes general average at, 3. Where vessels involved ina common martin sdentire resort toa prt or pace of refg, allowance under tise Roles ray he made in raion to each ofthe vessel Subjeto fe provisions of paragraphs 3 and 4 of Rule G, allowances in general average shal ease atthe tme thatthe common maritime advent comes to ancnd. YorksAntwerp Rates 2016 Rate 1. Only sich losses damages or expenses which ae the det consequence of he general ‘verge actshallbe allowed as general average. 2 In-no cae call hore be any allowance in genral average for losses, damages or expenses icaed in respect of damage othe ewironment or in consequence ofthe ‘eape or rele of polatant sbstanses fom the property favolved in te commen ‘nartne advent, 3, Demurage, los of mate, and any loss or damage susaina or expense incured by season of delay, whether on the voyage or subsequently, and any indect loss ‘whatscever, shall nthe allowed as general aver. RaleD Rights to contribution ngenea average shall not be feta, though the event which gave rise to the ssarifiee or expediue may have been due tothe fat of ne ofthe paris to the common maritime adver, but hs shall ot prejude any emacs or defences Which may beopen aginst orto thpaty in respect of sul lt. ale E 1, The ons of pros upon the party emi in gone average to show ta the os oF ‘expense claimed propery allowable as general average 2 All parties to he common marine adventure shall, as soon as posible, supply pil of vale in respect oftheir cntutry interest an if elaming in gene verge, shal gir notice in writing to the average adjuster ofthe los or expense in respect of which fey claim contribution, nd supply evidence support hereof 3. Faling ntfs if ny party does not supply pica ia suppt ofa noted ihm, witha 12 mons of the texmittion of he common marine adventure oF yn fic expense, he were ter bal be tity Wealth ett ot the allowance onthe bass ofthe information available to te adjuster Patcals a ‘ale shal be provid within 12 mons of te temination ofthe carmen mastine adventure, fing which the aveage adjuster shall be at liberty to estimate the ‘contributory val on the same basis Sch estimates sal he communicated tothe party question in wsting. Estimates may only be chllenged within two moms of reeept ‘ofthe communication and anyon the rounds hat they ae mnie incomes. 4. Any pay tothe sommon markime adventure pursuing a recovery from ahi pty in rovgest of strifse or expenditure claimed io gonral average, shall so advise the sveage astra nthe event dt recovery is achieve, sal supply tothe average ‘jst fl partials of thereover within to months of recap ofthe recovery 2 York Antwerp Res 2016, ale F ‘Any atonal expense ncuredin place of nother expense which would have been llawable 5 general average salle deme tobe general nvrage as allowed without egal to the Saving any, to other interests, but only up to the amount ofthe general average expense ‘vod Rate 1. General average shal be adjusted as regards both los and contbuton upon the basis of ‘values the timeand place when and where the caanon maritime advent ends 2 This shal nt aff the determination ofthe pace at which the average austinent istobe prepared 3. When a ship i any port or pice in ircumstances which would give vie to an allowance in genal average under the povsions of Rules X sod XI, sd he cargo ot prt thereof is forwarded to destnton by other means, rights and Vibes in genera Average ll, sujet cargo interests being noted if ectiable, enn as nary a postiblethe same as they would have been i he shsene of such forwarding asf the ‘omnmen maritime adventure ad cotaued i the ein ship for so lng as jsifale ‘under the contac of eariage andthe apical aw. 4. The proportion atuching to cago ofthe allowances made in general average by reson of applying the third paragropt ofthis Rule shall be linitad tothe cost which would hye boon boro by the owners of argo ifthe cargo had been forwarded a tht expense. This init shal not apply to any allowances made unde Rae Rule Jetson of Cargo [No jatson of cargo sill be allowed as general average, unless such cargo i eared in accordance with the recognise custom of th trade, ‘ate L—Loss oF Damage by Saris forthe Common Salty Loss of or damage 1 the property involved inthe common mart adventze by oF ia consequence of acificr made for the conunon safety, and by water which goes down «ship's Jes opened or other opening made forthe purpose of making etison for the common safety, sal be allowed geet average. ‘Role I~ Estnguishing Fire on Shipbosed Damage done to a ship and cargo, or cir of thm, by water ot oherwise,ineluding damage by beaching or seating buming ship, in extinguishing «freon board the sip shal be lowed as geacral average: excep no allowance sll be rade for damage by smoke however enused or by bet ofthe fie. + York-Antwerp Rules 2016 ule Cutting Away Wreck Loss or damage susited by citing away wrock oF pars of the ship which have been previusly cared away or af efoctvely lot by eecdent shall not be allowed a general erage ale V- Voluntary Standing ‘Whe sip intentionally sua onshore fr the common safety, whether oF nt she ight ave boon driven on sore, te consequnt loss er damage to the property involve in the common rmritime advent allbe allow n genera average [Rule VI-Salvage Remuneration (2) Expeodtue incured by the partes to the common maritime adventure inthe nature of slugs, wheber under contactor otherwise, shall be allowed in general average ‘provide that he salvage oparasions wee cated out forthe pupase of preserving fom pal the prope involved in the common maritime adventre and subject fo the ‘rovision of pagans (6), ©) end (8) (©) Noting) above, where the patie tothe common maitime adventure have separ conracal or gal bity to savers slvage bl nly be allowed should any ofthe feloing ise (there ia mbsequetecident or ther sreumstancesresuling in los or damage 'ogropety ding the voyage tha es in sigan difrences between saved and contr vals, i) ere are siiticant general average series, (i) saved values re manifest inconeet and thee is significantly income spportonment of sage expenses, (Ge) _ my of he pic tote eaage hex pid sigifont proportion of salvage ds from ano party, (©) 2 signif proprtion of the putes have sified the savage claim on sbstntly dent ens, no regard being hd intrest, eueacycoetion a egal ‘on of ether theslr othe conbting interest, (©) Salvage expedinres refered to in paragraph (a) above shall include any sabage remunention in wich the sil nd efforts ofthe savor n greveting o minimising hmage to the evirment such a retard to in Article TS paragraph 1() ofthe Iniematonal Convention on Savage, 189 have been ken int account York-Anoverp Rules 2016 (© Special compensitin payable 1 a savor by the shipowner under Ace 14 of the Intemational Convention on Salvage, 1989 tothe extent specific in paragraph 4 of tht Ariel or under ay ear provision inl in substance (such s SCOPIC) shall ot be allowed in general average and shal ot be considered a salvage expenditure a refered ‘oinpangroph (of hs Ral [Rule VIt~ Damage to Machinery and Bollers Damage cause to any machinery and boilers ofa ship whichis ashore and in e postion of erin endeavouring treat, shall be allowed in general average whea show to have aise, fom an seta intention at the ship forthe commen safety at the risk of such damage; but wher a ship i flout mo loss of damage eased by working the propeling machinery and boilers shall any circumstances be allowed as ane vere. Role VIIL-Expenses Lightening a Ship when Ashore, and Consequent Damage ‘When ship ashore and cago snd ships fl and stores oe any of them are discharged as 2 ‘general average ac, the ex cost of lightning, Hight hie and esipping (inured), and ny lose or daage to the poopet involved in he common marine adventure in consequence ‘hereof, sal be allowed general verge. ale 1X Cargo, Ship's Materials and Stores Used fr Fue, Cargo ships materials nd stores, or any of them, ncessly ws for fe forte common saftyat atime of pei sal be allowed as general average, but when such an allowance is ‘nade fo the cost ofshi's material and stores the general average sl be crete wih he tstimated cot ofthe fel which would othersise have bon consed in prosteating the Intended voyane © Whenastip shall ave entered port er place of refge or shall ave retuned to ‘er prt or place of loading in consequence of accident, sacrifice or other extraordinary ‘Sreumstanes which render tat newesay Tor the cmon safty, he expense ‘entering such prc place stl be allowed as general average; and wen she shall have ‘sled theace With her erga cargo, of put of ithe comesponding expenses of leaving such pt or place consequent ypon such ety or rtum shall Hkewie be allowed as gener average When a ssp is at any port or place of refuge and is nacesarly removed ner prt or pice Beoase repairs cot be cared out inthe fist porto place, the provisions of ths le sal be appli to the seca prt or plea ft were sport oF Plsce of fefige ad the cost of Such removal incuding tomporry repels and twage shal be allowed is general average. The provisions of Rae XI sal be applied to the ‘rlengstion afte voyage ocasone hy Sich removal YorkAntwerp Rules 2016 ©) @ Theos handing onboard o discharging cao, fel or teres, wheter ata Pastor pce of ing, all r refuge, shall be allowed as genoa average when the ‘nandling ce discnrge was nocesary for the common sly oo enable damage to the hip cased hy stnifie or acident to be repaired ifthe eps were necessary forthe Safe prosecution of He voyage, except in caer where the damage to the ship is discover’ a port or place of lauding or call wiout any acide other cextoidinuy circumstances connected wit sch damage baving taken place during the voyage, The cos hang on bose or dcharging cargo, flo stores sal not be Allowable a general average when incued solely forthe purpose of restowage duc to shin during th voyage, unless such restowage is neesay fer the commen Safety (© Whenever the ccet of handling or discharging camo, fuel or sores is allowable as fsneral average, the costs of storage, icing insurance if reasonably incur, Feloding and sowing of such ao, fel or stores sal likewise be allowed as general average. ‘The prvsions of Rule XI shall apply to the exta period of detention occasioned by sth loading orresowing, (When the ship is condemned ce does not procsed on her orginal voyage, storage expenses shall b allowed as geacral average enly up to the date of the ship's ‘condemnation or 9 the abandonment of the voyage cup to the date of completion oF | ischurgeof cage ithe condemnation or abandonment takes place before that dite Rule XI- Wages and Maintenance of Crew and Other Expenses Puting into and ata Port of Refuge, ete (©) Wages and maintenance of master, officers snl row retsonably incurred and fel and stores consumed daring the prolongation af the voyage oecasined by a ship entering pot or place ofrefge or returning to ee port or plice of loading shall be allowed 235 geoealaverap: whe th expenses of entering Sich prt a pac ae allowable in general average is uccordance with Rule X(0). ©) @__ When a sip shall have entered oF been detuned in any pat or place in consequence of aide, sasifceo ther ext oninary ciramstances which render that entry oF detetion necessry forthe common safety, to enable dunage tothe ship caused by sare o accident to be tepid ifthe repre were necessry for the safe prosecution of the vayag,the wages and msintenance ofthe master, officers and crew ressonblyincured during the eta period of detention in such port ot place unt the ship shal or shuld have been made ready to proceed upon her voy, Sha e allowed in general average York Antwerp Rules 2016 (i) Fuel and sores consumed during the extra period of deteation sal be allowed 8 gonorl average, except such fuel and stores ab are consumed in effecting repairs ot allowable in general average. (Gi) Por charges incured during the extra period of detention shall ikewise be allowed as gene average except sch charges as ae incured solely by reason of repeis nat allowable ia general erage (jv)__ Provide tht when damage to the ship is dtcoverd ata port or place of Toading of call without any scident or eter extraordinary cveumstance connected ‘with such damage having taken place during the voyage, then the wages and maintenance of master, offices an crew snd fel and sores consumed ad port ‘harges incurred during the extra detention fr repairs to damages so dtcovere sll ‘ot be allowable at general average, even ifthe reais ate necessary for the sale roscation of th voyags (8) __ When theship is condermed or doesnot proceed on he original voyage, the ‘wages and msinenanoe ofthe mster, officers andere ad fel and sores consuted ‘an prt charges shal be allowed as general average only upto the date of the ship's condemnation oro the abundanmeat ofthe voyage or up to th date of completion of| ‘charge of org ifthe condemnation o abandonment fakes ple before tat date (© @ __ Forthepupose of these Rules wages shall inca ll payments made too for the benefit ofthe muster, ffcers and crew, whether sich payments be imposed by law upon the shipowners or be made under the tr of artes of employment (G)__ For the purpose ofthese Rules, port charges shill neue all customary or titionl expert incured for he common safly or fo enable a vese o enter or ‘ean at poet of efige or call inthe circumstanes outlined in Rule XI(0\(). (8) The cost of memes undertaken to prevent or minimise damage tothe environment shall be allowed in general average whea incurred in any ofall ofthe following as pt oan operation petormed for the commen safety which, had it been Undertaken by a party outside the common marie adventure, would have entitled such party toa slvage reward; i) 8 conlton of enty into or departure from any port or place nthe clreumstenes proscribed in Rule Xa); (Gi) a8 2 conition of remnining at any post or place in the circumstances prescribed in Role XIb), provided that when there is at etal escape or release of | pollutant substances, the ost of ay adtional measures rquied on that account 10 a York AnowerpRales 2016 prevent or mininise pollution or environmental damage shill not be allowed as fener average; (Gs) cesar in connection withthe handing on board discharging, storing or reloading of cag, fel or stores whenever the eos of those opertions is allowable as snc average, Rae XII Damage o Cargo in Discharging, et. Damage to of loss of cag, fiel or sores sustained in consequence oftheir handing, ischarging toring reloing and towing shal be allowed as general aveag, when nd only hen the cost of thse meses respectively allowed a genes verge alle XU — Deductions from Cost of Repairs (9) Reps tobe alowed in general averge stall not be subject to deductions in respect ‘of ew fr ol” where old material or parts are replaced by new ules the ship i ‘over fieen years old in which case there shall bea deduction of one third. The ‘deductions shall be reputed by the age af the ship from the 3Ist December of the year ofcompletcn of eonsructon to the date ofthe general average at, excep for insulation, ie and similar bouts, commenications end navigational paras and ‘uipment, machinery and boilers for whch the detions sal be regulated by the age ofthe paticular pats to which they apply. (©) The dodotons sal be made only tom the cost ofthe new material or pts when finshed and ready to be installed in the shi. No deduction sal be mde in respect of provisions, stores anchors and chai cable, Drydock an slipway dues and cons of Shing the ship hall bellowed nfl, (©) The costs of clearing, prioting or costing of bottom shal not be allowed in general verge unless the bot has been painted or coated within the 24 months preceding the date of the gneral average actin which cae one hill of such costs shall be allowed Rule XIV — Temporary Repairs (©) Where temporary repairs ae effected to a sip at a port of loading, call or refuge, for the common ster, or of damage used by gnecl average sarfc, the cot of such repairs shall be allwed a general average, (©) Where temporary reps of accidental duage ae effete in order to ensble the ‘common maritime adventure tobe complet, the cot of soc reps shal be alowed ‘5 gonral average witout pad to the saving, if any, to other interests but nly up fo the sving in experse which would have boon ina and allowed in gener! everage if sch eps had net Ben eat thre, a York Anbuerp Ras 2016: (©) No deductions “new for olf” shall be made fom the cost of temporary repairs allowable us general werage, Rule XV ~ Loss of Freight Loss of fight aig fm damage to or Joss of cargo stall be allowed as goneral average, tithe when caused by ¢ general average at, when the damage tor loss of cago i allowed _Deuction sal be made from te amount of gross tit lost of the charges which the oer {hereof wouldve ineured to eam such fight, but has, consequence of the sacrifice, not insure, ale XVI Amouat tobe lowed for Cargo Lost or Damaged by Sacrifice © @__ The amet to be allowed a8 general average fr damage to or ls of cargo ‘scrifced shal be the lass which has been sustained thereby based onthe vale at he time of discharge, aceiined from the commercial avoze rendered tothe recive ri ‘here is no such invoice frm the shipped vale. Such commercial invoice may be demo by the arage adjuster to rele the vale athe tine of discharge iespecive ofthe place of inl delivery under te contract of eaige (The yaloat the ne of discharge shill ncude the cost of insurance and fight except insofar as machi iat the ilk of nterent ther tan the cargo. (©) When cago so damage is sod and the amount ofthe damage has not been otherwise ‘greg he loss tobe allowed in general average shill be the ifrene tween the et proses of lead the net sound value us compute inthe fist paragraph of his Ral. Role XVI Contributory Vals (©) @_ The contrition toa general average shall be made upon the seta net vacs ofthe property atthe termination of the common maritime adventure except that the ‘alwe of earg salle the value atthe time of discharge, ascevtamed rom the ‘commercial invoice rendered tothe receiver a if there is no such voice fom the Shipped value. Sich commercial voice may be deemed by the average adjuster reflect the value at the time of discharge inespetve of the place of final dsivery under tho contact of erie (‘The value of the cago shal include the east of insurance and fit unless tnd insofar ss such fight at he rt of interests oter than the cago, deducting thereftom any loss or damage suffered by the cargo prior to or at the time of charge. Any crgo may be excluded from contributing to general average should ‘the average adj consider thatthe costo ncn iin the edjsent would be Tike tobe disproportionate to its eventual eontribution. 9 York Antwerp Rales 2016 (ii) The value of the ship shall be assessed witbout taking into coount the beneficial or detimanal effet of any demise or time charpy to which tho ship maybe commit. (©. To these yaluos sal be added the amount allowed a¢ gener] average for property scrifice,ifno already inlided, dedvtion being made om the feght and passage money at risk ofsuch charges and erew”s wages as would not have Been inctmed tating the freigt had the ship and cargo been totaly lost at the date of the general verge set and Fave not been allowed as general average; deduction bing also made fiom the value of the property of all extra changes incurred in respoct thereof subeoquelyt he general average acl, except Such charges as are allowed in general verge, Where payment fr salvage services has not ben allowed as general average ty reason of paagraph (0) of Rae VI, deductions in respect of peynont fr salvage secvioge shall be limited fo the amount paid to the salves including interest and salvos oss, (©) Inthe crmstnces envisaged in he thi paragraph of Rule G, the eargo and other property shall cotibute onthe basis of ts value upon delivery original destination Unless sold of cherwisedispood of short of tht destination, and the ship shall ‘contbate upon ts acta net vale a he ine of competion of discharge of cargo. () Where cargo is sold short of destination, however, shall contribute upon the actual st proceeds of ile, withthe ation of any amount allowed as general average. (©) Mail, pasenges” luggage snd accompanied personal effets and accompanied ‘vate motor voices shal ot contibute to general average. Rall XVIL— Damage Ship ‘The amount to be allowed general average fr damage or los to the ship, ber mochinry sor per caso bya genral average at shall bes follows (2) Whenrepaietorreplaced, ‘The sctusl reasonable ost of reping or replacing such damage or loss, subject to ldocsions in accordance with Rae XIE (©) When not repaired or replaced, ‘The retonable deprecation arising from such damage or loss, but not excending the cetmined cot ofrepsis. Bu where he ship ian actual ttl oss or when the ens of| ‘epars of the dnage would exeod the vale ofthe ship when repaid, the amet fo ‘allowed ee ger average hall be th dilerence betveen the estimated sound valve ‘ofthe ship fer ceduting thereto the estinated cost of epaiting dae which snot 10. York-Annvorp Rules 2016 ‘ever averge and the vale ofthe ship inher damaged state which may be messured by the net pocues of lesan Rule XIX Undeclared or Wroagfally Declared Cargo (@) Damage or loss caused to goods loaded witout the knowledge ofthe shipowner ar his gent orto goods willy misdesribed atthe time of shiprant shall not be allowed a= ‘sneal verge ta such goods shall rein iabl to contribu, sed, (©) Where goods have been wrongly declare tthe tine of shipment at value whichis lower an thee ral value any general averge loss or daage sal be allowed onthe bss oftheir docled valu, but uch goods sl eontbute onthe bass of hi cu val, Rule XX Provision of Funds (@) The capital os sustained bythe owners of goods sold fo the purpose of raising finds to defy gencal verge disbursements sll bellowed in general averg. (©) Thecasof insuring general average disbursements shall be allowed in general average. ‘ule XXI Interest on Losses Allowed in General Average (2) tmerest shall be allowed on expen, secrifces and allowances in general average uni the mont afer the de of issue of the general average adjust de Allowance being nade fr any payment on account bythe cntiutory inert or fom ‘the general average dpe find ©) The rte for caleting intrest acrang ding each calendar year sal be the 12- ‘month ICE TIBOR forthe curecy in which the uustnen is prepared s atnouncod ‘onthe ist banking day ofthat sendy, eens by four pecenags pat I the jstments prepared ina ewency for which no ICE. LIBOR is announce, the rate ‘hal ete [2-mnth US Dell ICE LIBOR, increased by four percentage points. Rule XXII Treatment of Cash Deposits (©) Where eash deposits have buen collected in respect of general average, salvage or special charges, sich sums shal be remited fortvith tothe average adjuster who shall deposit the sums into a special account, earning interest where possible, in the ame of the average adjustr (©) Thespecil account sal be constituted in accordance withthe law regarding cient or tha party funds eplicable in the domicile ofthe average adjuster. The account shall, be held separately rom the average adjste's own Tus, in test or in compliance vt similar ues aw providing for he administration of th funds of hid puts, on o © Role XXII —Time Bar for Cont @ o YorkAnowerp Res 2016 ‘The sums so depsite, together with accrued interest, if an, shl be held as security for payment to the pates ented thereto, ofthe general average, salvage or special ‘chaigsinrespet of which the deposits have been collected, Payments on account ot ‘efi of deposts may only be made when sch payment te cere in weting by the average adjuster ad ole othe depositor requesting ther approval. Upon the ‘eet ofthe depositors approval, o othe absence of sich approval within a period ‘090 days, the average aduser may deduct he smount of he payment on account or th final onto fom the deposit. All posits and payments ee sefunds shall be without prejudice to the ultimate lability of the pies ing Lo General Average Subject always any mandatory rule on ine Finitation consined i any applicable law (9 Anyrighso general average contbuton including any righ to elim under ipeeral average bonds and gunrantos, shall be extinguished unless an action is ‘brought bythe purty claiming soc contribution within a period of one yea afte the ite upon hich the general average adjustment issue However, inno case shall sch an action be Bought aller sk your rom the date of termination ofthe common marie advent. (3) ‘Those pers may be extended ithe partis so agree ater te temination of ‘th common mare adventure, “This rule slall cot apply as beeen the partis t the general average and their respective inure, oe (FINAL TEXT APROVED BY CMI ASSEMBLY 6 MAY 2016) “These guidelnes are intended to assist in dealing wih genera average cases and to provide! = gonorl background infomation [guidance ast recognised est practice [Shute of procedures foc of sideline ‘These guidlines do not form part of tho York Anlvorp Rules: they are not binding and ae not landed fo overdo of ae in any way the provsons of he Yor ‘Antwerp Rules, to corrats of eariage or any govern ureaetons. eiow and amerdmant The fat elilon of the Cll Guidelines has been adopt bythe plenary session of the 42nd Inerstional Conferanes of Cll in New York May’ 2018, and uty approve bythe Ascombly of CM In order to monitor the working and etocivenes ofthe CM Gudeines, a Standing Commitee shal 3 contest vont of ‘A chamsn nominated bythe Assembly of CM ‘ropresrtatve nominated by tho Inoratonal Chamber of Shipping © fepresentatve nomeated bythe ntrnaenal Union of Marine Insurance © Five adfonal members nominated bythe Aesomby of CM ‘Tho. Standing Sommétco may recommend changes to the Guidstnes as eumstances ste, which shall be submited tothe Assembly of CM for approval, (FINAL TEXT APROVED BY Cll ASSEMBLY 6 MAY 2016) (CMI GUIDELINES RELATING TO GENERAL AVERAGE CONTENTS A) INTRODUCTION 1. Objectives 2 Efecto qudtnes 5 Review ad amendment 5) BASIC PRINCIPLES Background Yorker Rules General Average events ‘Auster of Gonaral Average Example agustnent CConrst ct camage (©) GENERAL AVERAGE SECURITY DOCUMENTS 4. Genera erage security 2 Savage surly 4. Clim ocamentaton ) ROLE OF THE ADJUSTER, 4. Appolnment of austrs 2. Best race of adustors E) ROLE OF THE GENERAL INTEREST SURVEYOR F)_YORK-ANTWERP RULES 2016 4. Rule Vim Savage 2. Rie XXil~ eaten of Cash Deposits (FINAL TEXT APROVED BY Cll ASSEMBLY 6 MAY 2016) 5) BASIC PRINCIPLES 1. Backoround “The pine of yoneral average has Hog In the east days of marie rade, {nd based on simp equity: one merchants cargo i jtioned fo save th sh fd he rst ofthe cargo, te spowner and oer cxgo terete would al eontibue {oak good he va fhe jettooned cargo. The werd “average” Isa modival tm ‘moaning “los: Thus a "goera” average involved a8 the rests on a voyage, \iheres 3 “parla” average affects only one rest As the doctne developed ‘anus pes of ses were aed To hat of ison; perhaps the most pera top was the recognton ‘hat expenure of mangy was rile no ferent fom the ‘Socios of propty, I was iced sma cecurstanoea and forthe same purpose, General average varied ints dovelopment inthe ferent leasng marine counties, 50 that by tho lator part of ha Toth contury substantial dilerences ented ni and Pract fraughout fhe word In Wow of the ntematonal saracter of sipping the {Szaavartages ofthis wero cbvbus, and tore bogan the series of atenpts fo oblln International unflomity.An nematonal Conference eld in ork n 1864 predoced the York os, tic were revised at Antwerp i 1677 to become the fst set of Yor Antwerp Fis, In modern cone, ae well 9s continuing to provide an equitable remedy when Property s saad fer the common good, he pines af gneral average, a now fmbodied in the YorcAniverp Russ, aco cote to pefom a ust function In hoping to dene portant borders tha ie between + Mators tat trm pro he shipowners! reasonable obigatons to cary ot the Corrected voyage and these loses and expenses that arse In eucepinal reumstncoe + Property and latity Insurers as their dering responses mect ant ‘somotines mere, nto context fa serious casa ath of thee felt areas benoit om the resol of esabshe lw and pracoe that general avege proves, ping io securo a dogico of catty that savas {he objecbe of earner toes Ile mporantto apreiato that ho York-Anwerp Rus donot hawe the satus of 2 ‘ternational convention, They ake eet ony by belng Ieaporated It contacts of afelghiment. The Roles are updated peradealy under tho auspices of Come Martine Intematoral whieh s made up of naonal Martine Law Associ Flo of the Yor Antwerp Rules tines a general average act as flows “Thee 9 ane erage ct whon, and only whan ny exbainay “Serfen or efpente ie enna reason mado ot aed fo Io com aay fr to pups of presoring fom po! te peer Inve na commen manne sent (FINAL TEXT APROVED BY CM ASSEMBLY 6 MAY 2016) Yor Antwer ues “To Yorksrtwor Rus consi of etre nes (4-6) and 28 numbered rues. The letored rts sel out varous bead principles ast whet constiuis genera average The nanbered rues deal wih spc Instances of sacca snd expenditure and Set faut etaiod gudneecenoemng alowanoes ete Boas spat, te Yorctrver Res hve receied Wo man Opes of “Common sty alances: satis of propry (such 3s Hoding cargo holt {0 gt she" f expendi euch ae salvage or tghering a veeea) tet sade ‘of scuted whl the ep aed cargo wore atu inthe gr of pen. “Comenon bent slowances: once a vessel is at port of rfgo, expenses nocoseary fe enable the ship to Tenure the voyage sey (DU nt ihe cast of ‘eparing cides damage tothe ship) for example, the cost of deharging, ‘Song and tloading cargo as nececsry fo cary Al fopare, pot args, and wagos et ding dlenton far eps and outward pst charges ‘Te York: Arwer lot ao prefaced by 2 Rus of ntxpretaton which gvas proty to the numbered ts hen tare a coit wth he lteres rls For example, Re (Ceres isses due to delay but Rule XI eae tat coral detention expanoes al port of elu (eg. pst charges, wages and maintenance) can be abowed; Rule XI {ales ry ovs the lettered Fue Gand such expenses cn thartore bo alone. he YorcAntwep Rules aso indude a Rule Paramount ater the Rule of Interpretation whch ats 8 fll In.no case shat re be apy afonance or sce or expend uns ataraby ase oreo “Te burden of prof es onthe pry claiming in general average to prove tha oth the (general average stand the amour of any sowance ate ressonabe. is suggested {hath apphing bis ule Bere can bo ne absolute winders of Yeasenabences™ and {haa skaton mtb ded on fe pacar facts roveing ot he fre ad lace (FINAL TEXT APROVED BY Cll ASSEMBLY 6 MAY 2016) ‘Sonera Average events ‘The folowing te snple examples of potential general average statins [cass eis _ Sa Daga a eS ET HoUgH ORE tat Les of er aage ocr tough jie ein of ie ‘ese, (ost sting an elosing ey argo co dcharges Pot ofrtige expenses [Ha Damages sip ar cag de to es enh are] Pat etreigeopenes [Siig a eae ay | eo erp oe Por frie expenses ‘Hear esata ctor, — | Po ge expe eraser eng | Towage Pat lig eabape may es be alow a pra | oape nan fhe ave ceases. Adusent of neal average ‘The baie princes ae 1. Property tisk Generali, lhe property that ie voted nthe voyage (o “common marine ‘ner and eat isk athe tine ofthe cccurance Quin fis to the general lverage at oqured to cntrauo fo tho goerl average esses and expenses “Tho contbion fs based on a po ata den according o to value ef at oper athe end ofthe voyage 2 Contrary values ‘The shvingof general average sactices and expanses is achiove bya pro rata iin ever what he York Antwerp Rules reer 0 as “Conor Vates “Tao bass fer auton of contbutory values and general average loses is he rue of te propery foe cuneate fermnation of he aavertre, Expanees Incued in expoc of he propery afer th general average act othe than those whieh ate lowed In general average) rust bo deducted In ariving at te ovate vais. This ensures that rept conto according to te actual ‘et benefit hs ezeve, by deducting the expenses tha had to bear to reaco {he benefit gting to property a desthaton ‘Since vatues are assessed as atthe end of the voyage, lg flows thatthe ‘amotnt of contibton may be varied by futher oss or damage to he property (FINAL TEXT APROVED BY CMI ASSEMBLY 6 MAY 2016) botiwcon tho tio ofthe general average act and the axa desiaion. For ‘example, the property tal loot do oa sbeequont aon tv have no cortutery vue an wl nt cottie tothe general sera56 “eemination athe voyage Normally he ‘eammen matine advent is cansidred to be teminated on completion ef dscharge of cargo atthe pot of destnaton. If are Is 2 ‘sandonmet ofthe voyage at a tered por thn the advent termites ‘at por, because of a casual. the whol cargo fs forwarded fom at inksmesite pot by anaher vessel the cost of awarding may be alowsbe ee genaral sverige, subject to cela Set ot in Rules F and Gof to Yorsntvery Rules Equa of contribution Equality of contibuion mst be maintained between the omer of te property Sauificed sn the owner of he property saves. In prac tise achove bythe ‘eves of acing to he eartrbutoy values of opty loa or damaged by genet Ssverage sactlee te amount abowed (or ade gee) In goeral average in Tospoct ofthat sare, Ite were nt dane the cur of jtisned cago wou recete benatin the fom of ney om to genera average or lee of goods ‘without partepating in or conaang othe ganeral average losoes, a can be ‘een fom the ellowing example ‘Assume tat cargo 8 worth 1,00 ie soeflced fr the common safely. A gar ‘verage of 100 apportioned ver the values of sip and avd exo (wich ‘a al 1,000) his wore betwoon onl hoe partes arived, he Ngues Wau Be Shon 000 pays 308 argo Aon io 333 Gayo on eo ° are Con 000° 338 3000 pays 1.00 “The rest ofthis apportionment is that ater paying thei contibuons to 8 the ‘hipownay ard merchants A and C would have property whan effecive value of {58 whereas marcha B woul recove cath amosmtingf 000. The ses Inet, so: meshant & seo makes a notion! etibuion to the, genera ‘vorage on he amaunt ofthe ose made god to him in general average, tat = shison 41000 pays 250 Cage Aon ‘000 pays 250, Cage 8 on 41000 felon ter 260, Cage Con 41000_" pays _ 250, 4000 pays 4000 ‘By making Cargo B “contibuta’ on the basis ofthe amount made good he wll rate 1 0086250 = 760, and everyone snow ithe sare psiin, (FINAL TEXT APROVED BY CMI ASSEMBLY 6 MAY 2016) ‘Seams adstent ‘General Average shipowners fost ad oxponsos Costofrepaofcamageto vessels machinery ss 250.000 ‘ned eatng options Cost of dechaning, stoi in ghar, ond 00,000 Feoedg cage decagedoattenveszek Sahage pate gs xeon vest 4.180000 Ccorgp ours ses Vale of argo jeteonad nef tect ss so0000 Dara o carn caueed by fred charge, 00900 Seg and a, 200 000 ust, 100,000 ‘Apportoned Ship Ded vidie a destnaton in image USS6,750000 ‘on, ‘At sows & ganea sverage fr esting 30,000 conage. Uss7oengo0 fin” USS 700.000 ‘cargo Fe ve ar dducon USS'9400000, (sa cama. ‘Adé_ohonance genet ‘rerage repel Jason el doraye oe 1 fered ‘enor #22000 eoagy + 8400000 Ussoroo90n0 Fm" usse.109600 (ener ergy on 10% othe conta ves) (FINAL TEXT APROVED BY Cll ASSEMBLY 6 MAY 2016) Balance under the austen Tho Shipownee Feoshes ced fr gunetalsuerage lenses sndespeneas, USS 1.500000 Pays gone avrg canton. 700000 Barco torecove US$ annaoa oye goer ura contr, uss s.4aa.c00 eosis ce fer snr rape losses. 00000 anos topay vss aonoo0 Sonat ot canians ‘Te pars to th adventure usualy make special provision nthe contrac of caage regarding general average, the most corenan bag 2 clause lo the efet tat gone ‘average ist be adjusted in sccrdance with the YoreAntwers Rules, Sieh Stpulatons may be comand in te charpy, ay, or he is of adn, orn both camer, there ging contractual oct the Rae Flo D of the Yoke Antwerp Rules ges exist recogni tothe fact that general ‘average ests espoctve fu breach of enact by sy ofthe pas. lows that normaly the pocedues fer prctocing the rights ofthe partes In genes! average must be observed even whan fs suspected thal sch a fait or breach haa taken Place. Equal, tre existence of a goeral average shuaton does not prejiicn any "ahs defences ta reopen to partes, fr exampo wih roar to carpe camage of loping breach contact as grounss for na paying a general average cotruion. ‘The ging of gone voragesecury inthe customary tam sa promise to pay any general average cantibuon that fond to broly art ng hea ‘here has been a causative tract ef eotrct the corto canna be eo descr, and arg interests may have grounds for declining to pay thar eorribatn e geneta ‘erage (FINAL TEXT APROVED BY Cll ASSEMBLY 6 MAY 2016) ©) GENERAL AVERAGE PROCEDURES 1. General Average secur Mos jrisictons recognise that the shipowner can exercise a lon (Le. retuse to aow (FINAL TEXT APROVED BY Cll ASSEMBLY 6 MAY 2016) ‘The burden of pra ts with any party wishing to claim goneal average sacties and crcences, and YarAnvesp Rue nls tne kis fr submiting ens. ‘Aer colting seeunly the average aster wil ned norman fem cargo iret Iorderte + cal ne contibutory value of the cargo. ‘+ aks any alowancos in goeral average that ae ue o cago. (Cage intrest wi gonerallynood to submit th following infomation fo the aust: 2) Acopy of he commercial (CI) incioe. argo as been sold on terms oer {han GIF th fight vice ana raurance prema datas my be equed 1) Data of any damage that has occured 6 cargo during he voyage, nus: ‘+ survey mpors stating the cause and extent of damage, + the carp insurer’ stioment (Ff appable) ‘Te damage to cago will be deducted om tho sound vale o reach the cotbtony value, is wil ermine how much he caro's general average contsbton wil be. if lny‘of the damage le slowatle se general average (eg. water damage ding te: {ighing operators) cet wil be given nthe adjustment. [ROLE OF THE AVERAGE ADJUSTER REGARDING GENERAL AVERAGE “Te let of te adustent Inthe major ol tsctons the hangs ofan average adjuster repacing amounts payable tho pare to @ matime advertute ae nt legal binding, unk wih 2 tivation war The majorty a adjustnonts are aecoped by to pats (subject © §ny RulaD defxcee) onthe bass of he professional standing and expertise of he adjuster Best pacton of average adustrs ‘Average adjusts work under dlerentrequsory and professional regimes, however {he folouing elements of bat pracic appoar to bo vivre ad are endored by {he leading profesional aesocatons, 2.4 respective ofthe tently ofthe Insucng party, the average adjuster Is ‘xpaciadto eet in an meatal and indopendent miner oar acl aly {ot partes ivolved na conimon marine adventure 22 Inallcasesthe average aster shout: (FINAL TEXT APROVED BY CWI ASSEMBLY 6 MAY 2016) (@) Gvo particulars in prominent positon inthe agustment ofthe cause or ‘auaes contained in the charter party andor bie of lading that relat fo the adjustment of general average of sch clause of clauses exis, hela land pradice obtahing at ihe piace where the adventure ends” Whore ‘config provisions exist the auser should expan appropiate deta ‘he reason for te bats of agustment chosen () Seto the fact hat gv sot tho gonera average (©, Whee the York-Antwerp Rules apply, idonty the etered andlor ‘hat are rebed upon in taking the allowancos Inthe (@) Expcn_In appropiate det the choice of ourency In which the ‘adjustments based (©) Mako appropiate enguiies to whother any recovery relating tothe ‘casual boing undertaken, and ‘set ou the reut of those enquiie nth ‘stant (On equa, and when praceabo, the acster should make avaable copes cof roperts and iweicas rosea upon inte preparation ofthe acustment (FINAL TEXT APROVED BY CMI ASSEMBLY 6 MAY 2016) ROLE OF THE GENERAL INTEREST SURVEYOR ‘The “General nero” or “G.A. Surveyor may be appointed by the Shipowners on behalf ofa partes volved nthe common mace adventure, usual ely he larger casuattes or where cago sactfions are el fo be involved, The Shipowner ie responable fr salemont of the GA. Surveyors charges, which ae alowed a= SGanotl Average, but te GA. survyor Is expoctd fo act in an independent and Irpartl manner when recording the facts and mang Fecommendatons. The GA. Suvejrs rol Is not to investigate the croumstances lading up fe 3 ener average station (eg he cause of 2 fe) ul one the suston exit, NS fol is gonealy 2 allows 4) To adie al partis onthe steps necessary to ensure the common safety of ship and cre, 2) To menirthe sops actual taken bythe parts to ensure tal proper regard Istaken of he General tres. 5) To evow Senefal Average expendtue cured and advise the Adjusts as {to vnatherte ost ef and ressonatle, 4) TolMenttyand quantify any Ganeral Average scrc ship or cargo. 5) To ensure that General Average damage is minimized wherever possible i by reconationing or solo of damaged cargo. Except cases’ of extreme ltgeney er where commenicatons ere affeut, ery sigifeantacton th regard to carga (9. arranging fos ale aa Port of Rete) must be taken In ‘onsatiswith he enced i cargo ‘The authoty aid funds to mske debursements will gonerlly come from he ‘Shipewnes, usualy va the Master er the Local Agents. Tho GA Surveyor Meefore he ne autho oder ant parte course of ton and Nis le an aaveary he." However, the GA. Suveyers imparel poston and his Influence on the ‘venkualreament ofthe expondtie ll gve Ne sdice coneidrabio weigh wth ‘he ober partesiwawved The GA. Sunveyr shoud slea be aware that several cher Surveyors may bein itendance on behalf of pats inorsts and that, for reasons of ecanary, ‘vpteston of repoting shou be avolsea. In the event of any deustansing 3 ‘he dogth of investigation requted from the GA Surveyor, the Auster should be ‘orlacted fr gutance, Tne G.A. Surveyors eflecbely appoint to act on bea of {he whe General Average community, any of whem ae genera eile a ve aris exchanges of eorespondenes snd oper A (FINAL TEXT APROVED BY Cll ASSEMBLY 6 MAY 2016) ‘YORK ANTWERP RULES 2016 ul = Salvace ‘Tho wording of Rule Vi paragraph (2) 1 now to the York Antwerp Rules 2016. ales ftom concems tha the ship and cargo have aoady pat savage saparatly (for examplo unser Live's Open Form) bases on saved values at emanation of fe ars service), alonng salvage as general average and e-appetoning over ‘ontbuoryvales (at destination) may gve iz to adultonl cost and delays, whe ‘making no lnlieart dfeence tots proportion payable by each pay ‘A vatty of measures to meet these concems have been considered, ranging frm complete exclusion of salage to using a fed. percentage mechanism. Such measures wre found, dung extensive CMI discussione to preduco inoqutabic resus or were impessble 'o apply scoss the range of eases encountered in rate, Iwas pointed ost that many leading adjustrs wil when appropiats,propoee tthe pate that if weappartonment of salvage a8 general average Wl ot prodion 8 ‘meaningful change in te figures or wil ba dsproportontaly cosy, the salvage shouldbe omited rom te adjustment ts then upto We pares to deci whether t Shou be inlided or not. However, tae considered thats meane shoud be found tomate hc prastce more nora! and tou expres eter hat woul hap 1 ‘neue that th allowance and re-spperinment of salvage 98 goneal average (where already paid separaely by sp and cargo ete) weuld nly occur in eases whore here waza sound equitable or truncal baa for dang 80. “The average adpstrs il stile requis to exercise thelr profesional judgement apphing parr (b)bocauso several of the extra (rv) that are led rea ‘aw fo be taker 351 what should be dermod fo be sgnfieant nth content of a Paiouar caso. Because ef tho wie range of case thatthe YokAnwerp Riles Epp to, twas st consiored deshabl oor a xe dion of how “gent Should be constued, ater than to not that he objective of the new case Was 0 rede the ie and ost of tho adjustnant process wheres possible todo so when assessing whsther there isa signifcat diferonce between settemens and wards fr the purposes of Rule Vb the adjuster shoult have rogad only to tho base auard of setloment against all sled interests before curency adsrent ores, cost of calectng secur and al pares’ logl costs, ‘Rule 22 Testment of Cash Deno Under Rule XI) the adustr is roquted to hold dapess in @ speci aeount canst in essordanea wth the lw Yegaring holding shent or thd party fonds ‘hal appes ine domicie ofthe appara average aduter. Unies othervise provided for by the appcale law, CM recommends that any speck ezount shoul have the folng Yeates: = Funds shout! be held separately tom the normal operating accounts ofthe acest Funds should be protected inthe event of bquidatlon ofthe cosaton of the ‘average ads business, = The holding bank shows! provide requ statoments that show al trnsactons oa

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