Shipping Lawyer Salvage and General Average 3

Question 1

How does gross negligence by the shipowner typically affect a general average claim against cargo interests under US and English maritime law?

Accepted Answer

It may bar the shipowner from recovering general average contributions from cargo unless a Jason Clause contractually preserves that right

Answer

It has no effect; general average applies regardless of whose fault caused the casualty

Answer

It automatically increases cargo's proportionate contribution as a penalty

Answer

It transfers the entire general average liability to the P&I Club, which then claims against cargo directly

Question 2

Under Rule A of the York-Antwerp Rules, which condition must be satisfied for a loss or expenditure to be admissible as general average?

Accepted Answer

The sacrifice or expenditure must have been intentionally and reasonably made for the purpose of preserving the common maritime adventure from peril

Answer

The loss must have been caused by a peril of the sea, not by human decision

Answer

The loss must have been approved in writing by the majority of cargo interests before the act was taken

Answer

The vessel must have been deemed seaworthy by the flag state at the start of the voyage

Question 3

When may expenses incurred at a port of refuge be allowed in general average under the York-Antwerp Rules?

Accepted Answer

When the vessel entered the port of refuge due to a situation that qualifies as a general average peril threatening the common adventure

Answer

Never; port of refuge expenses are always the sole responsibility of the shipowner

Answer

Only if the port of refuge was designated in the original contract of carriage

Answer

Only if the cargo was discharged and the port of refuge expenses were pre-approved by cargo underwriters

Question 4

What rights does a Hull and Machinery (H&M) underwriter typically exercise in a major salvage situation?

Accepted Answer

H&M underwriters generally have the right to take over conduct of the salvage operation and must approve or take over any salvage contract the owner proposes

Answer

H&M underwriters are required by the 1989 Salvage Convention to negotiate all salvage contracts on behalf of the shipowner

Answer

H&M underwriters must pay the full salvage award and then seek reimbursement from cargo underwriters proportionally

Answer

H&M underwriters are prohibited from interfering in salvage operations while the master retains command of the vessel

Question 5

What does 'subrogation' mean in the context of a cargo insurer paying a general average or salvage claim?

Accepted Answer

The cargo insurer's right to step into the shoes of the cargo owner and pursue recovery against responsible third parties after paying the claim

Answer

The cargo owner's right to abandon the damaged cargo to the insurer and claim a total loss

Answer

The salvor's right to claim directly against the insurer without first obtaining a judgment against the vessel owner

Answer

The vessel owner's right to demand that cargo contribute to general average before the insurer pays

Question 6

Under what circumstances may salvage services be rendered to a vessel without the consent of the master or owner?

Accepted Answer

When the master is incapacitated, the vessel has been abandoned, or local law or government authority requires the salvage

Answer

Never; a valid salvage claim always requires the express or implied consent of the master

Answer

Whenever the vessel enters a coastal state's territorial sea and the coastal state authorizes the salvage

Answer

Only when all crew members have been evacuated and the vessel poses an imminent environmental threat

Question 7

In a general average adjustment, what is the 'contributory value' of cargo?

Accepted Answer

The net arrived value of the cargo at the port of destination — what it was actually worth when delivered after the adventure ended

Answer

The amount each cargo interest has voluntarily agreed to contribute at the time the general average act was declared

Answer

The replacement cost of the cargo at the port of loading, as declared on the commercial invoice

Answer

The insured value of the cargo as stated in the cargo insurance certificate