York-Antwerp Rules 2016 (General Average)
York-Antwerp Rules 2016: how general average works, what qualifies as a GA sacrifice, and how cargo insurance responds to a GA declaration.
What are the York-Antwerp Rules?
The York-Antwerp Rules are a private, voluntary codification of general average - the centuries-old maritime principle that a loss or expense voluntarily incurred to save the common maritime adventure should be shared rateably between all parties whose property was at risk (the ship, the cargo, and the freight at risk).
The current version is the York-Antwerp Rules 2016, adopted on 6 May 2016 at the CMI conference in New York. They replace the 2004 version in most modern contracts. Earlier versions remain in circulation - the 1994 Rules are still referenced in many bills of lading.
When general average applies
Under Rule A of YAR 2016, four elements must be present:
- The act must be extraordinary (beyond normal voyage expenditure)
- It must be intentional and reasonable
- It must be for the common safety
- The property must be in actual peril
Classic examples include jettisoning cargo to refloat a grounded vessel, flooding a hold to extinguish a fire, and expenditure on salvage services.
How general average is declared and adjusted
When a shipowner believes a GA act has occurred, the master or owner declares general average and appoints an average adjuster. Before cargo is released, the shipowner normally demands a general average bond from the cargo receiver and a general average guarantee from the cargo insurer.
Key numbered rules under YAR 2016
| Rule | Subject |
|---|---|
| Rule A | Definition of a general average act |
| Rule B | Common maritime adventure - tugs and tows |
| Rule C | Only direct consequences allowed |
| Rule D | Fault does not bar GA |
| Rule E | Burden of proof and time limits for notification |
| Rule F | Substituted expenses |
| Rules I-XXII | Treatment of specific losses |
| Rule XXIII | Time bar on rights to contribution |
Time bar under Rule XXIII
Rights to GA contribution are extinguished unless action is brought within one year after the adjustment was issued, or in any event within six years after the termination of the common maritime adventure.
How cargo insurance responds
Institute Cargo Clauses (A), (B), and (C) all cover general average contributions under Clause 2. The cargo insurer - not the cargo owner - typically pays the adjusted contribution.
Why general average still matters
High-profile recent examples include the MSC Flaminia (2012), Maersk Honam (2018), MV Wakashio (2020), and Ever Given (2021). Cargo owners without adequate insurance can face contributions of 10%-40% of cargo value.
FAQ
Q: General average vs particular average? GA is a shared loss; particular average is a specific loss to one party's property.
Q: Which version of the Rules applies? Whatever version the bill of lading or charterparty incorporates. Check the contract.
Q: How long does adjustment take? 1-2 years for routine casualties; 3+ years for major casualties.
Q: Are the Rules law? No. They are a private codification that applies only when incorporated by contract.
Q: Does cargo insurance cover GA? Yes. ICC (A), (B), and (C) all cover GA under Clause 2.
Official source
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