[In Queue] [ga]: Maritime Cargo General Average

[Lenlyvit]

General Assembly Resolution

Maritime Cargo General Average

A resolution to reduce barriers to free trade and commerce.

Category: Free Trade

Strength: Mild

Proposed by: Simone Republic

The World Assembly (WA),

Noting that, as many bodies of water of WA states are connected, cargo shipping and its impact on free trade have been matters of concern to the WA;

Further noting the lack of laws to compensate for loss of maritime cargo due to perils at sea, hindering free trade between WA states;

Desiring to codify the said matter;

1. Hereby defines:

a. Cargo (or "maritime cargo") to mean any commercial cargo of value carried by a WA ship for profit;

b. Owner(s) to mean the owner of a WA ship;

c. Peril(s) to mean any perils a WA ship is exposed to on a voyage, including of the seas, fires, wars, pirates, captures, jettison of goods, negligence, and any others;

d. Sacrifice to mean any sacrifice or expenses incurred when a ship is exposed to perils, including:

i. any loss or damage (whether to the WA ship, or to cargo) for the common safety of a voyage; and

ii. disbursements and expenses (hereafter, "disbursements") for:

1. the rescue and salvage operations of the WA ship, and/or

2. necessary repairs for a voyage to the nearest port; and/or

3. the preservation of cargo from peril(s);

e. Ship(s) to mean any maritime vessel capable of carrying cargo, excluding those on voyages for a WA state in any governmental capacity, and a "WA ship" to mean a ship on a voyage under the flag of a WA state;

f. Shipper to mean the owner of the cargo, as witnessed by the bill(s) of lading;

g. Voyage(s) to mean any voyage on any waters by a WA ship carrying cargo, from starting to load all relevant cargo at a port of departure to the completion of the unloading of all relevant cargo at a port of arrival;

h. WANC to mean the WA Nautical Commission;

2. Hereby declares that the concept of "general average" applies to maritime cargo carried on a WA ship, namely that those cargo sacrificed for the benefit of all shall be made good by the contribution of all;

3. Hereby declares:

a. if sacrifice (as defined in clause 1(d)) is required, such sacrifice shall be allocated on a pro rata basis to the total value of:

i. the undamaged cargo carried, as reported in the bills of lading; plus

ii. the value of the WA ship;

b. an exception applies to clause 3(a) in that if a shipper suffers total loss of its cargo, then no disbursement is required from that shipper;

c. general average may be declared by:

i. the owner; or,

ii. if facing imminent perils, by the captain of a WA ship;

d. if general average is declared, all parties potentially benefiting from the sacrifice (such as owners and shippers) must contribute towards disbursement;

e. no declaration shall be made for general average shall be allowed, unless:

i. it is intentionally and reasonably declared for the common safety of a WA ship or;

ii. it is declared to save cargo from imminent perils;

4. Requires, for the purpose of general average, that:

a. the burden of proof is on the party claiming general average to show that any disbursement claimed is admitted;

b. only direct losses, damages and expenses of the peril(s) shall count as sacrifice eligible for general average, and that indirect losses, such as (for example) pollution damage are not eligible and remain the responsibility of the part(ies) at fault;

5. Requires, for the purpose of insurance, that:

a. all insurance policies required in this resolution must be underwritten:

i. by a reputable insurer in a WA state; and

ii. governed by the laws of a WA state;

b. the owner of a WA ship must purchase insurance, to fully cover:

i. all sacrifices (and disbursements) if general average is declared;

ii. damage to the ship, including hull and marine insurance;

iii. indirect losses (including protection and indemnity insurance) such as third-party losses, pollution and environmental damage;

c. the owner of a WA ship must issue a written reminder to a shipper to purchase cargo insurance if the shipper deems fit;

6. Clarifies:

a. the rights of a party contributing to general average shall not be affected even if the sacrifice may have been the fault of a party to the voyage, but this shall not affect any legal proceedings against that party for such faults;

b. jurisdiction for disputes under this resolution shall fall on the WA state to which the WA ship is registered;

c. WANC shall set (and update as it deems fit) procedures on claims, adjustments and other matters deemed relevant for the purpose of this resolution.

This is the discussion thread. To cast your vote, go HERE

[Pantso]

If I understand this correctly, it basically provides rules for determining the value of the goods lost and recouping the cost of salvage, etc. in the event the ship's captain must cut or give up some of the goods to save the ship. (In case some goods are let go and lost due to a storm, or given up to pirates, or a seagull attack or something.) It also requires ships to carry insurance from a reputable underwriter.

The Republic of Pantso sees value in establishing rules and procedures for recouping the value of goods lost this way, and none of these regulations seem onerous or intrusive. Pansto recommends For.

[spratlyislands]

I agree with Pantso. I vote for.

[Jabberwocky]

What he said. For.