On the afternoon of June 9, 2025, the container vessel WAN HAI 503, operated by Wan Hai Lines, experienced a container explosion while navigating off the western coast of India. In order to ensure the safety of all crew members, the captain made the critical decision to abandon ship.
This incident exemplifies the application of the General Average principle. General Average refers to a maritime law doctrine where, during a voyage, if a vessel encounters imminent danger that threatens the safety of the ship, cargo, and crew, the captain or crew may take extraordinary measures to preserve the overall interests of life and property. If these measures succeed in saving some or all of the property, and certain cargo or expenses have been intentionally and reasonably sacrificed or incurred for the common good, then, under the principle of fairness, all parties whose property was successfully preserved in the voyage must proportionally share the resulting losses and costs. This is the essence of the General Average system.
It is important to note that General Average is a statutory legal mechanism under maritime law. Its application is independent of any contractual agreements between the shipowner and the cargo owners and does not depend on whether an insurance policy is in place. Once the criteria for General Average are met, all stakeholders whose interests were saved are legally obligated to contribute to the associated sacrifices and expenditures.
To mitigate such unforeseen financial liabilities, it is highly recommended that both Shippers and Consignees arrange appropriate marine cargo insurance prior to shipment. This ensures that any contribution arising from a General Average declaration can be transferred to the insurer, thereby protecting the cargo owner’s financial interests.
If you require further consultation regarding marine cargo insurance arrangements, General Average procedures, or claims handling, please do not hesitate to contact us through the service hotline below. We are here to provide you with professional support.Our PIC is Mr.Kevin
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