General Average And Salvage

Introduction

The owner of the cargo ship Dali, which lost power and struck the Baltimore Bridge on 26 March 2024, causing six deaths and significant disruption, has declared "general average". This declaration means cargo owners will face additional costs due to their share of general average expenses. Despite the incident being the fault of the Dali, cargo owners are still required to contribute under the contract's New Jason Clause. While US law typically exempts cargo owners from such contributions if the fault lies with the shipowner or their agents, the New Jason Clause alters this default rule.

This article explores the law and practice of general average and salvage.