Advanced Trade Finance & Special Customs Procedures
General Average
Also known as: GA
General average is an ancient principle of maritime law under which, when a voluntary sacrifice or extraordinary expense is incurred to save a ship and its cargo from a common peril — such as jettisoning some cargo or paying for salvage — all parties with an interest in the voyage share the loss in proportion to the value of their property saved. If general average is declared, cargo owners may have to contribute financially and post security before their goods are released, even if their own cargo was undamaged. This is a compelling reason for shippers to carry marine cargo insurance, which responds to general-average contributions.
The ancient rule that shocks modern shippers: when cargo is sacrificed or extraordinary expense incurred to save the voyage, every cargo owner contributes proportionally — including owners whose goods are untouched. Your container can be perfectly intact and you can still be asked for a substantial deposit before it is released. This is the clearest single argument for carrying your own cargo insurance.
Where it matters for compliance
- Security is demanded regardless of fault and regardless of whether your own goods were touched. Whether contribution is ultimately owed is a separate fight — where the carrier's actionable fault caused the event, cargo has defenses — but you post first and argue later.
- Insurers handle the security; uninsured cargo owners post it themselves.
Related terms
Reviewed by a licensed customs broker. Definitions are general information, not legal or customs advice for a particular shipment. Duty rates, tariff programs and agency requirements change frequently.