GAA (General Average Act)

The General Average Act (GAA) refers to a maritime law principle where, in the event of a maritime emergency, if a ship owner intentionally sacrifices part of the cargo or makes any other sacrifice to save the vessel and its cargo, the loss is shared proportionally among all parties with interests in the cargo and ship. Essentially, when a ship faces danger and sacrifices something to protect the entire voyage, everyone involved contributes to covering the costs, ensuring fair distribution of the loss. This legal framework promotes cooperation during maritime emergencies.