Salvage and General Average

Salvage refers to the compensation for effort and resources used to rescue a ship and its cargo from danger, such as during a maritime accident. General Average is a principle in maritime law where all parties share the losses resulting from a deliberate sacrifice made to save the vessel and remaining cargo, like jettisoning cargo to avoid sinking. This ensures fairness, meaning that when unforeseen events occur, the costs associated with saving the ship are divided among the owners of cargo and ship, rather than falling solely on one party.