General Average Adjustment

General Average Adjustment is a maritime principle that deals with the costs arising from extraordinary sacrifices made to save a ship and its cargo during a crisis, like rough seas or a fire. If a crew intentionally jettisons cargo to stabilize the ship, all parties involved (owners of the ship and cargo) share the loss proportionally. This ensures fairness, as everyone contributes to the costs incurred to protect the vessel and its remaining cargo. It’s a way to distribute the burden of emergencies equitably among those who have a financial stake in the voyage.