General Average – What Now?

29 September 2025

At the beginning of September, it was announced that the almost 400-metre-long container ship Marie Maersk is subject to general average (averij-grosse). While en route from Rotterdam to Asia, the vessel experienced a fire on board. For around two weeks, efforts were made to limit the damage and save as much cargo as possible. However, even once the fire has been extinguished, the matter is far from over. Did you know that damages can also be charged to you as the shipper, even if your own cargo was not affected? 

The Unexpected Voyage of Mv. Marie Maersk

On 4 August, the container ship Marie Maersk departed Rotterdam, unaware of the events to come, with Tanjung Pelepas in Malaysia as its destination. On the ninth day after departure, smoke was discovered while the vessel was off the coast of Liberia in West Africa. The crew called for assistance, and after fourteen days of firefighting, Marie Maersk was able to resume its journey on 25 August.

Since its arrival in Malaysia, on September 23^rd, all cargo has been offloaded so that the ship can be cleaned, inspected, and repaired. At present, it is still unclear how extensive the fire damage was and what cargo stakeholders need to consider. The containers remain ‘on hold’ until further notice.

What Is General Average?

We couldn’t put it better ourselves than ChatGPT:

General average is a maritime principle whereby costs and losses that are intentionally and reasonably incurred to save a ship, its cargo, and other valuable property in danger are shared among all parties with a direct interest, such as the owners of the ship and cargo. It is a form of solidarity in an emergency, where all involved parties contribute to the costs incurred to achieve the common objective. 

For shippers, the last sentence is the most important. In short: under general average, all shippers must contribute to the costs incurred.

If you are not insured and general average is declared, a cash deposit must be provided upon request. This is a type of bank guarantee for the costs incurred. If the guarantee is not provided, the cargo will not be released. In other words, you do not need to have sustained cargo damage yourself to be liable for these costs.

How Can You Protect Yourself Against the Risks?

Businesses can quickly face major problems due to general average. For example, if goods on board have already been paid for by the supplier, and they cannot be delivered while payment is delayed, a cashflow problem arises. In addition, shippers are expected to contribute to the costs of the damage.

Ritra Cargo advises always taking out a transport insurance policy. This covers the risks of transport damage and guarantees proper settlement. If you choose not to take out insurance, we recommend setting aside the premium as a contingency fund. You could use this later in the event of a damage situation.

As an affiliated freight forwarder with FENEX, we can provide information and advice. Please do not hesitate to contact us for assistance.