Overview
When a casualty occurs at sea, the ship, cargo and other parties to the voyage may be required to contribute towards losses and expenses incurred for the shared safety or benefit of those involved.
Before your cargo can be released, you need to provide general average security. This confirms that in due course, you will pay any contributions which are shown to be due.
You are not being asked to pay your contribution now. By providing general average security, your cargo can be released while the final position is worked out later.
Richards Hogg Lindley (RHL), as independent average adjusters, are frequently appointed to manage this process efficiently and impartially across large and complex casualties.
This below FAQs provide more detailed guidance. They reflect widely accepted international practice. However, each case depends on its own facts.
Please complete the following steps as soon as possible:
- Contact your cargo insurer immediately (if your cargo is insured)
- Read the instructions provided within the general average declaration carefully
- Log in to the security collection portal
- Complete and return to us the required documents as specified in the declaration and portal
- If you require assistance, contact us through the dedicated channels specified in the declaration and portal
Delays can hold up your cargo—and if it is in a shared container, other people’s cargo too.
The ship carrying your cargo has had an incident (for example a fire, grounding or breakdown).
Actions were taken to protect and / or benefit the ship and the cargo
The costs of those actions are shared between everyone involved. This is called general average.
Before cargo can be released, security needs to be provided.
You are not being asked to pay your share of the costs now.
You are being asked to provide a promise (usually from an insurer) or a deposit so that if a contribution is later found to be due, it will be paid.
This allows your goods to be released without waiting for the final figures, which can take time.
If your goods are insured
- Average Bond (signed by the cargo owner)
- Average Guarantee (provided by the cargo insurer)
- A copy of the invoice for the cargo
If your goods are not insured (or where additional security is required)
- Average Bond
- A copy of your invoice
- A cash deposit
A cash deposit may be required alongside or instead of an Average Guarantee where necessary to ensure appropriate security is obtained for all parties with a potential claim.
General average security documentation is based on internationally recognised standard forms.
The wording of Average Bond and Average Guarantees has been developed and approved by the Comité Maritime International (CMI) and is supported by the International Union of Marine Insurance (IUMI).
These organisations include representatives of shipowners, cargo interests, insurers and legal practitioners, and the forms are therefore considered to reflect a balanced and widely accepted position across the industry.
It is important to act as soon as possible.
Cargo is usually held until security is in place. Delays in providing security can delay delivery of your cargo and other people’s cargo.
If your cargo is in a shared container (groupage / LCL), the container may not be released until all cargo in that container has been secured.
Delays by one party can delay others. Being proactive can help to avoid unnecessary delays and the damage to commercial relationships this can cause.
This system is designed to be practical and fair:
- Standard forms are used across the shipping and insurance markets
- Security allows cargo to be released without waiting for final calculations
- The process follows an internationally recognised framework for the sharing of expenses which one party has incurred to the benefit of others
- Detailed issues are addressed later once all the facts are known. This includes any rights and defences which may be available to the parties.
Not necessarily—and not now.
The final position is worked out later in a formal process.
This can take time because matters such as the following may need to be resolved:
- Repairs to the vessel
- Information gathering
- Negotiation and settlement of major expenses, such as salvage
- Claims against third parties (for example collision or cargo-related issues)
In more complex cases, this process can take several years.
Who we are
We are Richards Hogg Lindley (RHL).
We are appointed as average adjusters to manage the process of security provision and, in due course, to calculate how the general average expenses are shared between the parties
We are independent and impartial, act for all parties involved
Our average adjusters are highly experienced and qualified in this niche profession
Contacting us
Please use the contact details and channels provided in the declaration accompanying the notice you have received, or in the security collection portal. These channels direct any questions to the teams dedicated to progressing the process efficiently.
Want to understand more?
Please refer to publications on the this website, including:
RHL Guide to General Average
RHL Commentaries on the York-Antwerp Rules
You may also wish to refer to the website of the CMI, and in particular their guidelines to general average, here.