Institute of General Average in Private International Maritime Law

General average is a model of damages distribution. According to general average rules, intentionally incurred losses do not completely lie where they fall but are proportionally distributed between the parties to a joint sea venture. The paper observes a concept of general average, details criteria for the losses to be considered as general average. The research analyzes four criteria: the losses must be extraordinary, intentional, rational and must be incurred for the common safety. The paper indicates the role of navigation error in distributing general average and distinguishes between general and particular average. It observes the York-Antwerp Rules on general average, shows their history and legal status. The author investigates some controversial rules such as salvage payments and expenses in a port of refuge. The main part of the research is an analysis of practical application of general average. It focuses on how the process of general average distribution is organized and the losses are calculated. The author compares the latest version of the York-Antwerp Rules and the Russian Merchant Shipping Code. It is highlighted that regulation in these documents is almost identical. However, there are differences in distributing salvage payments and in the discounts “For the New in Lieu of the Old”. The final part of the research investigates a real maritime casualty. The author shows groups of damages caused by a casualty, argues for general average and explains what groups of losses shall be considered as general average in this case and how they shall be distributed. It is claimed that general average retains its significance for resolving maritime disputes and does not contradict the interests of the parties to a joint sea venture. However, it is argued that the essence of this institute has changed from original material sacrifice to monetary expenditures.