General average guide · 9 min read

General average: the process and the documents

Updated 5 November 2026

A tugboat at sea under a blue sky — Photo: hdbernd on Unsplash

General average is a way of sharing an extraordinary sacrifice or expense made to save a ship, its cargo and its freight from a common danger. The owner declares it, security is collected, an average adjuster collects the documents and prepares the adjustment. This guide sets out the steps, the documents each step needs, who provides them and where files usually have gaps.

How a general average file is built

A general average (GA) file has five steps. At the casualty, the master acts to save the voyage and records what was done and why. At the declaration, the owner declares general average and appoints an average adjuster. At the security step, cargo interests give an average bond, their insurers give a guarantee, or a deposit is paid, and the cargo is released. At the collection step, the owner, the cargo interests and the other parties send the adjuster their documents and values. At the adjustment, the adjuster sets out which losses and expenses are allowed and how each interest contributes.

The steps overlap. Documents for sacrifices and expenses arrive for months, and the adjustment itself can take a long time. A file that is complete for one step can still be incomplete for the next, so check each step separately.

Invented example. A container ship runs aground on a sandbank in the approaches to a port. Two tugs refloat her. The master asks for a port of refuge, and the ship is towed there. Some containers are discharged to lighten her, and some cargo is damaged by seawater. The owner declares general average. Cargo interests receive a notice and a request for an average bond and the commercial invoice. A temporary repair is made before the voyage resumes. Each of these steps leaves at least one document in the file.

What general average is, and what it is not

Under Rule A of the York-Antwerp Rules there is a general average act when an extraordinary sacrifice or expenditure is intentionally and reasonably made or incurred for the common safety, to preserve from peril the property involved in a common maritime adventure. Typical examples are jettison of cargo, damage done by firefighting, the cost of a tow or a refloating, and the expenses of a port of refuge. The loss is then shared between ship, cargo and freight in proportion to their values.

General average differs from other heads that can arise from the same casualty. Particular average is a loss that stays with the interest that suffered it. Salvage is a reward for services to the property, which can itself be part of the general average. Sue and labour is the cost of measures to avert or reduce a loss that the insurance covers. The same casualty can also produce hull claims and P&I claims. See our guides on hull and machinery claims and P&I claims. Whether a particular item is allowed in general average is set out in the adjustment, under the rules the contract names.

A general average claim step by step

The master takes the decision to act for the common safety and records it in the logbook, with the reason and the time.
The master reports to the owner. The owner informs the hull underwriters and the P&I club.
The owner declares general average and appoints an average adjuster. Notices go to cargo interests, often through the carrier or the adjuster.
Cargo interests sign the average bond and send the commercial invoice, the bill of lading and the other documents the notice asks for.
The cargo insurer gives the average guarantee. For uninsured cargo the adjuster may ask for a cash deposit instead.
Once the security is in, the carrier releases the cargo.
The owner, the surveyors and the other parties collect the documents for the sacrifices and expenses: vouchers, invoices, survey reports, salvage and towage documents.
The adjuster fixes the contributory values of ship, cargo and freight and prepares the adjustment. Copies go to the interests and their insurers.
Interests pay or receive their share. Deposits are settled and security is released.

The checklist by stage

Document	Who provides it	What it shows	Stage
Master's statement and sea protest, where made	Master	The master's account of the casualty and the decisions taken	Casualty
Deck logbook and engine room logbook extracts	Owner, from the ship	Positions, orders, times and the reasons for each action	Casualty
Survey reports on cause, damage and refloating	Surveyors appointed by owner or underwriters	What happened, what was damaged and what was done	Casualty
Declaration of general average	Owner	That general average is declared, with date and place of the casualty	Declaration
Appointment of the average adjuster	Owner	Who adjusts the general average and from when	Declaration
Notice to cargo interests	Owner, carrier or adjuster	What cargo interests must send and by when	Declaration
Average bond	Cargo interest	The cargo interest's undertaking and contact details, so the adjuster can reach it later	Security
Average guarantee	Cargo insurer	The insurer's promise to pay the contribution, usually up to an agreed amount	Security
Cash deposit and receipt	Cargo interest, uninsured cargo; adjuster or the owner's agent	The amount paid in lieu of a guarantee, and the date	Security
Commercial invoice and packing list	Cargo interest	The value of the cargo and what was shipped	Security and collection
Bill of lading	Carrier; cargo interest	The contract of carriage and the cargo shipped	Security and collection
Charter party and other contracts, where relevant	Owner, charterer	Terms that decide how general average is handled, including the rules that apply	Collection
Salvage agreement and award	Salvors, owner	The terms of the salvage and the reward	Collection
Towage and refloating invoices	Tug owners, owner	The cost of tow and refloating	Collection
Port of refuge accounts: port dues, agency, discharge, storage, reloading	Owner, agents, terminal	The expenses at the port of refuge, with vouchers	Collection
Crew wages and maintenance, fuel and stores while in port of refuge	Owner	Costs during the stay, split into what is claimed	Collection
Temporary repair invoices and surveyor's report	Yard, owner, surveyor	The cost of temporary repairs and why they were needed	Collection
List of jettisoned or damaged cargo and survey reports	Surveyor, cargo interest	Which cargo was sacrificed or damaged, and its value	Collection
Value of the ship at the end of the voyage	Owner	The ship's contributory value, often supported by a valuation	Collection
Freight at risk	Owner, carrier	The freight that contributes	Collection
Cargo values at destination	Cargo interests, from the commercial invoices	The contributory values of the cargo	Collection
General average adjustment	Average adjuster	The allowed losses and expenses, the contributory values and each share	Adjustment
Statements of account, payments and release of deposits	Adjuster, interests, insurers	Who paid or received what, and when	Adjustment

Declaration and security

The owner declares general average and appoints an average adjuster. The notice to cargo interests says what to send and in what form. The common set is an average bond, the commercial invoice and the bill of lading, and for insured cargo an average guarantee from the cargo insurer. Cargo interests should not give the insurer's guarantee themselves. The insurer completes it. Uninsured cargo may need a cash deposit, and the adjuster fixes the amount. The cargo is usually held until the documents and the security are in.

Follow the adjuster's notice for your casualty. Forms, amounts and deadlines differ from one casualty to the next. File the bond, the guarantee or the deposit receipt, and the date each one was sent.

Sacrifices and expenses

Each item in the adjustment needs a document behind it. A sacrifice is a loss: cargo thrown overboard, cargo damaged by water used to fight a fire, machinery damaged in a refloating. It is supported by survey reports, a list of the cargo affected and its values. An expense is a cost: salvage, towage, port of refuge charges, crew wages during the stay, temporary repairs. It is supported by vouchers, invoices and proof of payment.

Under the York-Antwerp Rules 2016, port of refuge expenses are in Rule X, crew wages and maintenance in Rule XI, salvage in Rule VI and temporary repairs in Rule XIV. Rule numbers and wording differ between the 1994, 2004 and 2016 versions. Check the version your contract names. The adjuster decides how each item is treated, and the file should give the adjuster everything needed to do that.

Contributory values and the adjustment

The adjuster shares the allowed losses and expenses between ship, cargo and freight according to their values at the end of the voyage. For cargo the starting point is the commercial invoice value, with freight and insurance added under the rules. For the ship it is her value at the place and time the voyage ended. These values are why the adjuster asks for invoices and valuations, and why a missing one holds up the whole adjustment.

An adjustment can take a long time, because documents arrive in stages and each interest has its own values. Keep every version of an invoice or a valuation that changes. The adjuster may compare them.

Time limits

Under Rule XXIII of the York-Antwerp Rules 2016, an action to recover a contribution in general average must be brought within one year of the date the adjustment was issued, and in any case within six years of the end of the common maritime adventure. This rule is not in the 1994 text, so the version the contract names matters. A court in England held in the Star Antares case that the 2016 Rules applied under the contract before it. Confirm the time limit for your claim. Our guide on time bars in cargo claims covers the cargo side.

Common gaps in a general average file

No signed average bond, or one without contact details for the cargo interest.
A guarantee that came from the cargo owner and not from the insurer.
The commercial invoice missing, or a copy that does not show the value or the terms of sale.
Vouchers for port of refuge expenses that cover a lump sum without a breakdown.
Logbook extracts that cover the hour of the casualty and not the time before and after.
Survey reports for the jettisoned or damaged cargo missing, or without values.
Earlier versions of invoices or valuations lost once a revised one has arrived.
Proof of payment of the owner's expenses missing.

Not legal or insurance advice. This checklist describes common practice. Whether a loss is general average, which rules apply, which security is needed and which time limits run depend on the contract, the rules it names and the governing law. Check them for each claim and take advice from your adjuster, insurer or lawyer where needed.

FAQ

Who declares general average?

The shipowner, usually through the master or the managers. The owner also appoints the average adjuster. The adjuster then prepares the adjustment under the rules the contract names.

Does cargo insurance cover the contribution?

Cargo insurance normally covers general average contributions under its general average clause, within the sum insured. That is why the insurer gives the guarantee. Check your policy.

Why is cargo held after a casualty?

Because the carrier has a claim against the cargo for its share. The carrier usually releases the cargo once the security is in place and the documents the notice asks for have arrived.

How long does an adjustment take?

It depends on the casualty and on how quickly the documents arrive. A large casualty can take years to adjust. A complete file at the start shortens the wait.

Dossima files these documents into one claim file per casualty, keeps every version and shows what is still missing. The decision stays with you.

Sources

Public sources this guide relies on. Check the current text before you rely on a rule.