Shipping Lawyer Salvage and General Average 2

Question 1

Under what circumstances may a ship's master bind cargo interests to a salvage contract without their prior consent?

Accepted Answer

In genuine emergencies where the danger is imminent and there is no opportunity to consult cargo owners

Answer

Only when all cargo interests have been individually notified and have failed to respond within 24 hours

Answer

Whenever the master determines that the vessel's flag state law permits such action

Answer

Only when the salvage contract is in the standard Lloyd's Open Form

Question 2

On what basis are general average contributions calculated under the York-Antwerp Rules?

Accepted Answer

The contributory value of each interest at the termination of the adventure at the port of destination

Answer

The insured value of each interest as declared to underwriters at the commencement of the voyage

Answer

The invoice cost of cargo plus freight, as shown in shipping documents

Answer

The market replacement cost of each interest at the port of loading

Question 3

Which of the following would NOT be allowable as a general average sacrifice under the York-Antwerp Rules?

Accepted Answer

Damage resulting from ordinary wear and tear of the vessel's machinery during the voyage

Answer

Cargo deliberately jettisoned to lighten a vessel in danger of foundering

Answer

Damage to machinery caused by the extraordinary use of engines to refloat a grounded vessel

Answer

Water damage to cargo caused by firefighting efforts to extinguish a shipboard fire

Question 4

The 'New Jason Clause' was developed specifically to address which legal problem in US maritime law?

Accepted Answer

US courts' refusal to allow general average recovery from cargo when the owner's negligence contributed to the casualty requiring the sacrifice

Answer

Disputes over salvage priority when multiple vessels respond to a distress call in US waters

Answer

Allocation of salvage costs between vessel owners and cargo interests under US federal law

Answer

Environmental liability arising from general average acts in US exclusive economic zones

Question 5

What is the role of a General Average Adjuster?

Accepted Answer

A specialist who calculates, apportions, and formally adjusts the general average contributions owed by each interest

Answer

A court-appointed maritime arbitrator who resolves disputes between salvors and vessel owners

Answer

An independent expert who investigates maritime casualties and determines whether criminal negligence occurred

Answer

A government official responsible for certifying that a general average declaration complies with applicable regulations

Question 6

Under the 1989 Salvage Convention, what compensation may a salvor receive even when the salvage operation fails to save the vessel?

Accepted Answer

Special compensation for measures taken to prevent or minimize environmental damage, payable by the vessel's P&I insurer

Answer

A fixed award of 10% of the vessel's pre-casualty market value

Answer

Full reimbursement of all out-of-pocket salvage expenses regardless of the outcome

Answer

No compensation is payable if the salvage operation is ultimately unsuccessful

Question 7

What documents does a cargo interest typically provide to participate in a general average adjustment and secure release of their cargo?

Accepted Answer

A General Average Bond (personal undertaking) and a General Average Guarantee from their cargo insurer

Answer

A bill of lading endorsed in blank and a notarized customs import declaration

Answer

A marine survey report and a certificate of origin from the exporting country

Answer

An original letter of credit and a certified commercial invoice