Scribd Logo
Upload

Welcome to Scribd!

  • 19 views

    General Average Calculation

    Uploaded by

    NhatAnh DaoPhan
    bài tập general average

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    General Average Calculation

    Uploaded by

    NhatAnh DaoPhan
    19 views2 pages
    bài tập general average

    Original Title

    General_Average_Calculation (1)

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    bài tập general average

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    19 views2 pages

    General Average Calculation

    Uploaded by

    NhatAnh DaoPhan
    bài tập general average

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    General Average Calculation

    Overview and Key Concepts


    General Average is a principle of maritime law where all stakeholders in a sea venture
    proportionately share any losses resulting from voluntary sacrifices of part of the ship or
    cargo to save the whole in an emergency.

    Expenses Qualifying for Compensation


    Expenses and sacrifices that qualify for compensation under general average include:

    1. Sacrifices of Cargo: Jettisoning of cargo to lighten the vessel.


    2. Sacrifices of Ship's Equipment: Cutting away a mast, anchors, or other equipment.
    3. Sacrifices of Freight: Loss of freight revenue due to cargo jettisoned or destroyed.
    4. Expenditures During the Emergency
     Costs of refloating a stranded ship.
     Port of refuge expenses, including costs of entering, staying, and leaving a port
    of refuge to repair damages preventing the voyage from continuing.
     Cargo handling and storage charges at the port of refuge.

    Valuation for Contribution


    The value of the vessel, freight proceeds, containers, cargo, and bunker fuel needs to be
    assessed to determine each stakeholder's contribution to the general average
    expenses. These values are generally calculated as follows:

    1. Vessel: Current market value at the end of the voyage or at the place where
    the adventure ends.
    2. Freight Proceeds: Gross freight at risk, including freight on cargo sacrificed.
    3. Containers: Market value at the end of the voyage or the port of discharge.
    4. Cargo: Market value at the destination, adjusted for damages incurred during
    the voyage.
    5. Bunker Fuel: Current market value of the remaining bunker fuel.

    Pro Rata Spread of Expenses


    The total general average expenses are spread among the parties involved (shipowner,
    cargo owners, etc.) in proportion to the value of their property at risk. The calculation
    process includes:

    1. Determine the Total Contributory Value: Sum of the values of the vessel,
    freight proceeds, containers, cargo, and bunker fuel.
    2. Calculate Each Party's Proportionate Share: Each party's contribution to the
    general average is calculated based on their share of the total contributory value.

    Formula Application
    Using the formula:
    𝐿
    𝐶 = ∗ 𝑉
    𝐶𝑉
    General Average Calculation

    Where:
    - C is the contribution of each interest.
    - L is the total loss (general average loss).
    - CV is the total contribution value.
    - V is the value of each interest (e.g., ship, each cargo).

     Example Calculation with the Given Values:


    Assuming:
    - Total Loss (L): $500,000
    - Total Contribution Value (CV): $19,700,000
    - Values of Each Interest:
     Vessel (V): $10,000,000
     Freight Proceeds (V): $1,000,000
     Containers (V): $500,000
     Cargo (V): $8,000,000
     Bunker Fuel (V): $200,000

    Calculating Contributions:

     Vessel Contribution: C_Vessel = (500,000 / 19,700,000) * 10,000,000 ≈ 253,807.65


     Freight Proceeds Contribution: C_Freight = (500,000 / 19,700,000) * 1,000,000
    ≈ 25,380.76
     Containers Contribution: C_Containers = (500,000 / 19,700,000) * 500,000
    ≈ 12,690.38
     Cargo Contribution: C_Cargo = (500,000 / 19,700,000) * 8,000,000 ≈ 203,076.92
     Bunker Fuel Contribution: C_Bunker = (500,000 / 19,700,000) * 200,000 ≈ 5,076.92

    Summary of Contributions
    - Vessel: $253,807.65
    - Freight Proceeds: $25,380.76
    - Containers: $12,690.38
    - Cargo: $203,076.92
    - Bunker Fuel: $5,076.92

    These calculations distribute the general average loss of $500,000 proportionally among
    the various interests based on their respective values. Each party contributes according to
    the value of their property involved in the maritime venture.

    You might also like