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Understanding Carrier Liability vs. General Average


In the complex  world of logistics , it’s crucial to recognize that Carrier Liability is not synonymous with General Average (GA) responsibilities.

Carrier Liability pertains to the responsibilities a carrier holds for the goods during transit. This typically involves ensuring the safe delivery of the cargo and addressing any claims for loss or damage directly attributable to the carrier’s negligence.

On the other hand, General Average (GA) is a principle rooted in maritime law where all parties in a sea venture proportionally share any losses resulting from voluntary sacrifices of part of the ship or cargo to save the whole in an emergency.

The stakes in misinterpreting these terms can be enormous.

 I’ll share an example from my past professional experience: GA was declared during a voyage. Although the shipper’s cargo remained unharmed, the salvors required a contributory fee to release it. This led to confusion—the shipper mistakenly believed this fee was the logistics operator’s liability.


But here’s the twist: the logistics operator, under pressure from an important client, didn’t grasp how GA works and ended up paying the GA contribution.

Such a misunderstanding can be costly and damaging, both financially 💸 and in terms of client trust.

Let’s stress the importance: The freight forwarders are not liable for General Average expenses —but they must understand when these situations occur and how to manage them effectively.

And here’s some great news for shippers: Having marine cargo insurance means you don’t need to worry about GA. Even the most restricted coverage, ICC (C), fully covers GA.

Let’s simplify logistics risks together!
At Sureforth Insurance Consultancy, we help logistics, shipping companies and cargo owners navigate the complexities of logistics company liabilities, and cargo in transit insurance. With our deep industry expertise, we simplify the complex to ensure your business operates confidently and securely. 

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