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The Legal Complexities of Marine General Average Claims

In the world of maritime shipping, few concepts are as old—and as complex—as General Average. Rooted in ancient maritime law, General Average dictates that when a ship faces a peril and a sacrifice is made to save the voyage, all parties with a financial interest in the cargo share the cost of that loss. In principle, it’s about fairness. In practice? It’s often legally dense, logistically messy, and full of financial tension.

When General Average is declared—typically due to a jettisoned container, engine fire, grounding, or salvage operation—all parties (cargo owners, charterers, and insurers) must contribute toward the cost of that sacrifice. But determining who owes what, how much, and whether the sacrifice was truly justified can quickly spiral into months of dispute and delay.

That’s where Arete Adjusting enters the equation.

In a claim landscape filled with legal nuance, financial exposure, and global stakeholders, Arete Adjusting brings order to complexity. We’re committed to helping to understand the General Average process and handle it efficiently.

Here are some of maritime history’s most significant General Average (GA) claims, highlighting the events that led to substantial shared losses among stakeholders. These cases underscore the complexities and massive financial implications of General Average maritime shipping claims. They highlight the importance of understanding GA principles and ensuring adequate insurance coverage to mitigate potential losses:

1. Ever Given – Suez Canal Blockage (2021)
In March 2021, the Ever Given, a massive container ship, ran aground in the Suez Canal, halting one of the world’s busiest trade routes for six days. The incident led to a General Average declaration, potentially becoming the largest GA claim in history due to the extensive salvage operations and the vast number of cargo interests involved.

2. Maersk Honam – Fire in the Arabian Sea (2018)
A severe fire broke out on the Maersk Honam in March 2018, resulting in the loss of several crew members and significant cargo damage. The vessel’s owner declared General Average, with cargo owners required to contribute to the extraordinary expenses incurred during the salvage operations.

3. Dali – Baltimore Bridge Collapse (2024)
In March 2024, the container ship Dali collided with the Francis Scott Key Bridge in Baltimore, causing its collapse. The ship’s owner declared General Average to share the substantial salvage and recovery costs among cargo owners.

4. Prestige – Oil Spill off the Coast of Spain (2002)
In November 2002, the oil tanker Prestige sank off the coast of Galicia, Spain, spilling approximately 60,000 tonnes of heavy fuel oil. The disaster caused extensive environmental damage and complex legal proceedings, with General Average principles invoked during the claims process.

5. MOL Comfort – Structural Failure in the Indian Ocean (2013)
The MOL Comfort broke apart in the Indian Ocean in June 2013 due to structural failure, leading to the loss of the vessel and its cargo. The incident resulted in a General Average claim, with cargo owners contributing to the losses incurred.

Arete’s Role: Translating Complexity into Action

When General Average is declared, an average adjuster is formally appointed to assess the situation, determine valid sacrifices, and allocate costs among stakeholders. However, for many cargo owners and insureds, that process can feel like trying to read maritime law in another language.

That’s where Arete Adjusting steps in—not as the average adjuster but as a critical bridge between the adjuster’s technical work and the client’s practical needs.

We coordinate directly with the appointed adjuster and help translate their requests—often highly technical and time-sensitive—into clear, actionable steps for our clients. We identify when cargo owners need to be involved, especially in cases where freight forwarders pass that responsibility along, and guide them through what’s required.

From assisting with salvage guarantees and financial securities to helping clients understand documentation demands, Arete supports those who may be unfamiliar with the General Average process and walks with them every step of the way.

Thanks to our strong industry relationships, we know the key players. That means when General Average is triggered, we can help manage expectations, align timelines, and reduce confusion before it can slow things down.

In short: Arete doesn’t adjust the average—we ensure our clients understand it, meet their obligations, and confidently move forward.

Contact Arete Adjusting today—where precision meets principle.

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