Ever wonder how contributions are calculated when GA is declared in sea freight? Let’s dive into the concept of General Average (GA), a principle in maritime law where all parties in a sea venture proportionally share the loss resulting from voluntary sacrifices made to save the voyage.


Briefly, a common voyage (common adventure) = a common loss.

Here’s a practical example to illustrate:
📦 Total Cargo Value: EUR 25 million
🚢 Ship Value: EUR25 million
🔥 GA Sacrifice: EUR4 million
📦 Shipper’s Cargo Value on Board: EUR1 million

Calculation steps:
1. Calculate the Total Value at Risk:
Total Cargo Value + Ship Value = EUR25M + EUR25M = EUR50 million

2. Calculate the Percentage of Shipper’s Cargo Value Against Total Value:
(Shipper’s Cargo Value / Total Value at Risk) x 100 = (EUR1M / EUR50M) x 100 = 2%

3. Calculate proportional contribution of the shipper for GA sacrifices and expenditure:

Cargo Contribution: 2% x EUR4 million (GA expenditure) = EUR 80,000

 But here’s the silver lining:
 If shippers have marine cargo insurance, these expenses are covered 100%, even under the most restrictive cover of ICC C. This means shippers can have peace of mind, knowing their financial interests are protected no matter what.

Logistics operators should be aware that Carrier Liability not equal General Average responsibilities.
The logistics companies should not pay on behalf of the shipper GA expenses in order cargo would be released by salvors.