In
the adjustment of general average the following Rules shall apply to the
exclusion of any Law and Practice inconsistent therewith.
Except
as provided by the Rule Paramount and the numbered Rules, general average shall
be adjusted according to the lettered Rules.
In
no case shall there be any allowance for sacrifice or expenditure unless
reasonably made or incurred.
There
is a general average act, and only when, any extraordinary sacrifice or
expenditure is intentionally and reasonably made or incurred for the common
safety for the purpose of preserving from peril the property involved in a
common maritime adventure.
General
average sacrifices and expenditures shall be borne by the different
contributing interests on the basis hereinafter provided.
There
is a common maritime adventure when one or more vessels are towing or pushing
another vessel or vessels, provided that they are all involved in com-mercial
activities and not in a salvage operation.
When
measures are taken to preserve the vessels and their cargoes, if any, from a
common peril, these Rules shall apply.
A
vessel is not in common peril with another vessel or vessels if by simply
disconnecting from the other vessel or vessels she is in safety; but if the
disconnec-tion is itself a general average act the common mar-itime adventure
continues.
Only
such losses, damages or expenses which are the direct consequence of the
general average act shall be allowed as general average.
In
no case shall there be any allowance in general average for losses, damages or
expenses incurred in respect of damage to the environment or in consequence of
the escape or release of pollutant substances from the property involved in the
common maritime adventure.
Demurrage,
loss of market, and any loss or damage sustained or expense incurred by reason
of delay, whether on the voyage or subsequently, and any indirect loss
whatsoever, shall not be admitted as general average.
Rights
to contribution in general average shall not be affected, through the event
which gave rise to the sacrifice or expenditure may have been due to the fault
of one of the parties to the adventure, but this shall not prejudice any
remedies or defences which may be open against or to that party in respect of
such fault.
The
onus of proof is upon the party claiming in general average to show that the
loss or expense claimed is properly allowable as general average.
All
parties claiming in general average shall give notice in writing to the average
adjuster of the loss or expense in respect of which they claim contribution
within 12 months of the date of the termination of the common maritime
adventure.
Failing
such notification, or if within 12 months of a request for the same any of the
parties shall fail to supply evidence in support of a notified claim, or
particulars of value in respect of a contributory interest, the average
adjuster shall be at liberty to estimate the extent of the allowance or the
contributory value on the basis of the information available to him, which
estimate may be challenged only on the ground that it is manifestly incorrect.
Any
additional expense incurred in place of another expense which would have been
allowable as general average shall be deemed to be general average and so
allowed without regard to the saving, if any, to other interests, but only up
to the amount of the general average expense avoided.
General
average shall be adjusted as regards both loss and contribution upon the basis
of values at the time and place when and where the adventure ends.
This
Rule shall not affect the determination of the place at which the average
statement is to be made up.
When
a ship is at any port or place in circumstances which would give rise to an
allowance in gen-eral average under the provisions of Rules X and XI, and the
cargo or part thereof is forwarded to destination by other means, rights and
liabilities in general average shall, subject to cargo interests being notified
if practicable, remain as nearly as possible the same as they would have been
in the absence of such forwarding, as if the adventure had continued in the
original ship for so long as justifiable under the con-tract of affreightment
and the applicable law.
The
proportion attaching to cargo of the allowances made in general average by
reason of applying the third paragraph of this Rule shall not exceed the cost
which would have been borne by the owners of cargo if the cargo had been
forwarded at their expense.
No
jettison of cargo shall be made good as general average, unless such cargo is
carried in accordance with the recognized custom of the trade.
RULE
II.-LOSS OR DAMAGE BY SACRIFICES FOR THE COMMON SAFETY Loss of or damage to the
property involved in the common maritime adventure by or in consequence of a
sacrifice made for the common safety, and by water which goes down a ships
hatches opened or other opening made for the purpose of making a jettison for
the common safety, shall be made good as general average.
Rule III.
EXTINGUISHING FIRE ON SHIPBOARD
Damage
done to a ship and cargo, or either of them, by water or otherwise, including
damage by beaching or scuttling a burning ship, in extinguishing a fire on
board the ship, shall be made good as general average; except that no
compensation shall be made for damage by smoke however caused or by heat of the
fire.
Loss
or damage sustained by cutting away wreck or parts of the ship which have been
previously carried away or are effectively lost by accident shall not be made
good as general average.
When
a ship is intentionally run on shore for the common safety, whether or not she
might have been driven on shore, the consequent loss or damage to the property
involved in the common maritime adven-ture shall be allowed in general average.
(a)
Expenditure incurred by the parties to the adventure in the nature of salvage,
whether under contract or otherwise, shall be allowed in general average
provided that the salvage operations were carried out for the purpose of
preserving from peril the property involved in the common maritime adventure.
Expenditure
allowed in general average shall include any salvage remuneration in which the
skill and efforts of the salvors in preventing or minimizing damage to the
environment such as is referred to in Article 13 paragraph 1(b) of the
International Convention on Salvage, 1989 have been taken into account.
(b)
Special compensation payable to a salvor by the shipowner under Article 14 of
the said Convention to the extent specified in paragraph 4 of that Article or
under any other provision similar in substance shall not be allowed in general
average.
Rule VII.
DAMAGE TO MACHINERY AND BOILERS
Damage
caused to any machinery and boilers of a ship which is ashore and in a position
of peril, in endeavouring to refloat, shall be allowed in general average when
shown to have arisen from an actual intention to float the ship for the common
safety at the risk of such damage; but where a ship is afloat no loss or damage
caused by working the propelling machinery and boilers shall in any circumstances
be made good as general average.
Rule VIII.
EXPENSES LIGHTENING A SHIP WHEN ASHORE, AND CONSEQUENT DAMAGE
When
a ship is ashore and cargo and ships fuel and stores or any of them are
discharged as a general average act, the extra cost of lightening, lighter hire
and reshipping (if incurred), and any loss or damage to the property involved
in the common maritime adven-ture in consequence thereof, shall be admitted as
gen-eral average.
Rule IX.
CARGO, SHIPS MATERIALS AND STORES USED FOR FUEL
Cargo,
ships materials and stores, or any of them, necessarily used for fuel for the
common safety at a time of peril shall be admitted as general average, but when
such an allowance is made for the cost of the ship's materials and stores the
general average shall be credited with the estimated cost of the fuel which
would otherwise have been consumed in prosecuting the intended voyage.
Rule X.
EXPENSES AT PORT OF REFUGE, ETC.
(a)
When a ship shall have entered a port or place of refuge or shall have returned
to her port or place of loading in consequence of accident, sacrifice or other
extraordinary circumstances which render that necessary for the common safety,
the expenses of entering such port or place shall be admitted as gen-eral
average; and when she shall have sailed thence with her original cargo, or a
part of it, the corresponding expenses of leaving such port or place consequent
upon such entry or return shall likewise be admitted as general average.
When
a ship is at any port or place of refuge and is necessarily removed to another
port or place because repairs cannot be carried out in the first port or place,
the provisions of this Rule shall be applied to the sec-ond port or place as if
it were a port or place of refuge and the cost of such removal including
tempo-rary repairs and towage shall be admitted as general average. The
provisions of Rule XI shall be applied to the prolongation of the voyage
occasioned by such removal.
(b)
The cost of handling on board or discharging cargo, fuel or stores whether at a
port or place of loading, call or refuge, shall be admitted as general average,
when the handling or discharge was necessary for the common safety or to enable
damage to the ship caused by sacrifice or accident to be repaired, if the
repairs were necessary for the safe prosecution of the voyage, except in cases
where the damage to the ship is discovered at a port or place of loading or
call without any accident or other extraordinary circumstance connected with
such damage having taken place during the voyage.
The
cost of handling on board or discharging cargo, fuel or stores shall not be
admissible as general average when incurred solely for the purpose of
re-stowage due to shifting during the voyage, unless such restowage is necessary
for the common safety.
(c)
Whenever the cost of handling or discharging cargo, fuel or stores is
admissible as general average, the costs of storage, including insurance if
reasonably incurred, reloading and stowing of such cargo, fuel or stores shall
likewise be admitted as general average. The provisions of Rule XI shall be
applied to the extra period of detention occasioned by such reloading or
restowing.
But
when the ship is condemned or does not pro-ceed on her original voyage, storage
expenses shall be admitted as general average only up to the date of the ships
condemnation or of the abandonment of the voyage or up to the date of
completion of dis-charge of cargo if the condemnation or abandonment takes
place before that date.
Rule XI.
WAGES AND MAINTENANCE OF CREW AND OTHER EXPENSES BEARING UP FOR AND IN A PORT
OF REFUGE, ETC.
(a)
Wages and maintenance of master, officers and crew reasonably incurred and fuel
and stores consumed during the prolongation of the voyage occa-sioned by a ship
entering a port or place of refuge or returning to her port or place of loading
shall be admitted as general average when the expenses of entering such port or
place are allowable in general average in accordance with Rule X (a).
(b)
When a ship shall have entered or been detained in any port or place in
consequence of acci-dent, sacrifice or other extraordinary circumstances which
render that necessary for the common safety, or to enable damage to the ship
caused by sacrifice or accident to be repaired, if the repairs were necessary
for the safe prosecution of the voyage, the wages and maintenance of the
master, officers and crew reason-ably incurred during the extra period of
detention in such port or place until the ship shall or should have been made
ready to proceed upon her voyage, shall be admitted in general average.
Fuel
and stores consumed during the extra period of detention shall be admitted as
general average, except such fuel and stores as are consumed in effect-ing
repairs not allowable in general average.
Port
charges incurred during the extra period of detention shall likewise be
admitted as general average except such charges as are incurred solely by
reason of repairs not allowable in general average.
Provided
that when damage to the ship is discov-ered at a port or place of loading or
call without any accident or other extraordinary circumstance connected with
such damage having taken place during the voyage, then the wages and
maintenance of master, officers and crew and fuel and stores consumed and port
charges incurred during the extra detention for repairs to damages so
discovered shall not be admissi-ble as general average, even if the repairs are
necessary for the safe prosecution of the voyage.
When
the ship is condemned or does not proceed on her original voyage, the wages and
maintenance of the master, officers and crew and fuel and stores con-sumed and
port charges shall be admitted as general average only up to the date of the
ship's condemna-tion or of the abandonment of the voyage or up to the date of
completion of discharge of cargo if the condemnation or abandonment takes place
before that date.
(c)
For the purpose of this and the other Rules wages shall include all payments
made to or for the benefit of the master, officers and crew, whether such
payments be imposed by law upon the shipowners or articles be made under the
terms or articles of employment.
(d)
The cost of measures undertaken to prevent or minimise damage to the
environment shall be allowed in general average when incurred in any or all of
the following circumstances:
(i) as part of
an operation performed for the common safety which, had it been undertaken by a
party outside the common maritime adventure, would have entitled such party to
a salvage reward;
(ii) as a
condition of entry into or departure from any port or place in the
circumstances prescribed in Rule X (a);
(iii) as a
condition of remaining at any port or place in the circumstances prescribed in
Rule XI (b), provided that when there is an actual escape or release of
pollutant substances the cost of any additional measures required on that
account to prevent or minimise pollution or environmental damage shall not be
allowed as general average.
(iv) necessarily
in connection with the discharging, storing or reloading of cargo whenever the
cost of those operations is admissible as general average.
Rule XII.
DAMAGE TO CARGO IN DISCHARGING, ETC.
Damage
to or loss of cargo, fuel or stores sustained in consequence of their handling,
discharging, storing, reloading and stowing shall be made good as general
average, when and only when the cost of those mea-sures respectively is
admitted as general average.
Rule XIII.
DEDUCTIONS FROM COST OF REPAIRS
Repairs
to be allowed in general average shall not be subject to deductions in respect
of "new for old" where old material or parts are replaced by new
unless the ship is over fifteen years old in which case there shall be a
deduction of one third. The deductions shall be regulated by the age of the
ship from the 31st December of the year of completion of construction to the
date of the general average act, except for insulation, life and similar boats,
communications and navigational apparatus and equipment, machinery and boilers
for which the deductions shall be regulated by the age of the particular parts
to which they apply.
The
deductions shall be made only from the cost of the new material or parts when
finished and ready to be installed in the ship.
No
deduction shall be made in respect of provisions, stores, anchors and chain
cables.
Drydock
and slipway dues and costs of shifting the ship shall be allowed in full.
The
costs of cleaning, painting or coating of bottom shall not be allowed in
general average unless the bottom has been painted or coated within the twelve
months preceding the date of the general average act in which case one half of
such costs shall be allowed.
Where
temporary repairs are effected to a ship at a port of loading, call or refuge,
for the common safety, or of damage caused by general average sacrifice, the
cost of such repairs shall be admitted as general average.
Where
temporary repairs of accidental damage are effected in order to enable the
adventure to be com-pleted, the cost of such repairs shall be admitted as
general average without regard to the saving, if any, to other interests, but
only up to the saving in expense which would have been incurred and allowed in
general average if such repairs had not been effected there.
No
deductions "new for old" shall be made from the cost of temporary
repairs allowable as general average.
Loss
of freight arising from damage to or loss of cargo shall be made good as
general average, either when caused by a general average act, or when the
damage to or loss of cargo is so made good.
Deduction
shall be made from the amount of gross freight lost, of the charges which the
owner thereof would have incurred to earn such freight, but has, in consequence
of the sacrifice, not incurred.
Rule XVI.
AMOUNT TO BE MADE GOOD FOR CARGO LOST OR DAMAGED BY SACRIFICE
The
amount to be made good as general average for damage to or loss of cargo
sacrificed shall be the loss which has been sustained thereby based on the
value at the time of discharge, ascertained from the commercial invoice
rendered to the receiver or if there is no such invoice from the shipped value.
The value at the time of discharge shall include the cost of insurance and
freight except insofar as such freight is at the risk of interests other than
the cargo.
When
cargo so damaged is sold and the amount of the damage has not