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Averages – Article 806 of the Code of Commerce provides that the ff: saved.

saved. Contribution may also be imposed on the insurers of the vessel


shall be considered averages: or cargoes that were saved as well as lenders on bottomry or
respondentia. – 812
1. All extraordinary/accidental expenses which may be incurred
during the voyage in order to preserve the vessel, cargo or SIMPLE/PARTICULAR AVERAGE – all expenses and damages
both. caused to the vessel or to her cargo which have not inured to the
2. Any damages or deteriorations which the common benefit and profit of all persons interested in the vessel and
- vessel may suffer from the time it puts to sea from the her cargo. It is borne by the owner of the goods who suffered the
port of departure until it casts anchor in port of damage, res perit domino.
destination
- merchandise suffer from time loaded in port of shipment Under 732 of CC, if the vessel or goods are hypothecated by a loan on
until unloaded in port of consignment bottomry or respondentia, the lender shall also bear the loss in
proportion to his interest.
Petty and ordinary expenses incident to navigation such as pilotage,
lighterage and towage, anchorage, inspection, port expenses, any EXAMPLES:
other usual expenses in navigation shall be considered ordinary
expenses to be DEFRAYED BY THE SHIPOWNER, unless there is an 1. losses suffered by cargo, on account of inherent defect or by
express agreement to the contrary. reason of accident of sea or force majure
2. losses and expenses suffered by vessel in hull, rigging, arms
GENERAL/GROSS AVERAGE – all damages and expenses and equipment
deliberately caused in order to save the vessel, its cargo or both at the 3. L suffered by the merchandise loaded on deck, exc in
same time, from real and known risk. coastwise navigation
4. Wages and victuals of the crew
Requisites: 5. Necessary expenses on arrival at a port, in order repair or
provisions
1. Common danger – both ship and cargo, after has been 6. Lowest value of goods sold by captains in arrivals under
loaded, are subject to the same danger, danger arises from stress
the accidents of the sea/dispositions of authority/faults of 7. Victuals and wages of crew while vessel is in quarantine
men, peril imminent or may rationally be said to be certain 8. Loss inflicted upon vessel or cargo by reason of impact or
and imminent collision with another
9. Loss suffered by cargo through fault, negligence or barratry
2. Deliberate Sacrifice – Voluntary sacrifice of a part for the of the captain or crew
benefit of the whole in order to justify general average
contribution. (e.g. voluntary jettison for purpose of avoiding INSURERS – liable for any general average in proportion to
the common peril from the whole to a particular portion of contribution attaching to his policy value where the said value is less
those interests) – 816/817/818 than the contributing value of the thing insured.
*Loss can no longer be considered a general average if the
thing is inevitably lost. LENDERS ON BOTTOMRY AND RESPONDENTIA – Lenders on
bottomry or respondentia, shall suffer, in proportion to their respective
3. Successful saving/sacrifice of the vessel and cargo – No interest, the general average which may take place in goods on which
general contribution may be demanded if vessel or cargo the loan is made.
sought to be saved were not saved. – 860/861
WHO IS ENTITLED TO INDEMNITY – owner of goods which were
4. Expenses and damages should have been incurred or sacrificed is entitled to receive general average contribution.
inflicted after taking proper legal steps and authority
(Compliance with legal steps) – 813/814/815 1. Goods carried on deck unless rule allow same
2. Not recorded in books/ records of vessel
3. Fuel for vessel if there is more than sufficient fuel for voyage
ORDER OF JETTISON
Claims for averages shall not be admitted if they do not exceed 5% of
(1) Those which are on deck, heaviest with least value the interest which the claimant may have in the vessel or in cargo if it
(2) Below upper deck, greatest weigh and smallest value, to the be gross ave, and 1% of the goods damages if particular ave
amount and number absolutely indispensable deducting the expenses of appraisal, unless there is agreement to
contrary.
EXAMPLES:
Apportionment – After amount of gross ave determined, distributed pro
1. Goods or cash invested in redemption of the vessel or of rata among goods which are to cover the same.
cargo captured by enemies
2. Goods jettisoned to lighten the vessel
3. Cables and masts which are cut or rendered useless
4. Expenses of removing or transferring a portion of cargo in
order to lighten vessel
5. Damage suffered by goods of cargo
6. Expenses caused in order to float a vessel
7. Damage caused to vessel which had to be opened, broken
to save cargo
8. Expenses for treatment of crew who have been wounded in
defending the vessel
9. Wages of any member of crew held as hostage by enemies
10. Wages and victuals of crew chartered by month, detained by
force majure
11. Depreciation resulting in the value of goods sold at arrival
under stress
12. Expenses of liquidation of the average

Gross or general average shall be borne by those who benefitted from


the sacrifice. These include shipowner/owners of cargoes that were