General average: contributions, GA Bond and security Your cargo arrived intact. You still pay a share.
General average is the sharing, among all the property saved, of an extraordinary sacrifice or expense deliberately made to save a ship and its cargo from a danger threatening them both. If the shipowner declares general average, your cargo is assigned a contribution even if it arrived undamaged. The master may not release the cargo until that contribution is paid or security is given. In practice the cargo owner signs a GA Bond and adds either an insurer's GA Guarantee or a cash deposit. If the cargo is insured, the contribution is paid by the insurer within the scope of the policy.
What general average is
Under the Turkish Commercial Code (TTK), there is a "general average act" when an extraordinary sacrifice or expense is intentionally and reasonably made to protect the ship, cargo and freight involved in a common maritime venture from a danger threatening them all. The losses and expenses that are the direct result of that act are shared among the ship, cargo, freight and other property (art. 1272/1, 1272/3).
The oldest example is throwing part of the cargo overboard to save the ship: the owner of the jettisoned cargo does not bear the loss alone, and the saved ship and other cargo contribute to it. The York-Antwerp Rules also deal with damage done to the ship and cargo by water or otherwise in extinguishing a fire on board (excluding smoke and heat damage, Rule III) and with the expenses of entering a port of refuge for the common safety (Rule X).
- Reasonableness: no sacrifice or expense is ever allowed unless it was reasonably made (York-Antwerp Rules, Rule Paramount).
- Fault: the right to contribution is not affected even if the event was caused by the fault of one of the parties, but any remedies or defences in respect of that fault are preserved (Rule D).
Which rules apply
Unless the parties agree otherwise, general average is governed by the latest York-Antwerp Rules prepared by the Comité Maritime International (CMI) whose Turkish translation has been published in the Official Gazette (TTK art. 1273/1). The latest published text is the York-Antwerp Rules 2016 (Official Gazette 19.02.2019 / 30691). According to the CMI, most bills of lading also refer to these rules.
In October 2022 the CMI made a technical change to the interest provision in Rule XXI and recommends using that version. The Turkish text in the Official Gazette was published before that change.
How the cargo is released
The shipowner declares general average and appoints an average adjuster to collect security. The master may not deliver the cargo until the contributions are paid or security is given; if he does, he becomes personally liable for them too (TTK art. 1277/1). For general average and salvage claims, the carrier can exercise a lien over all of the cargo (art. 1201/3).
| Step | If the cargo is insured | If the cargo is not insured |
|---|---|---|
| 1. GA Bond | Signed and returned to the adjuster together with the invoice. | Signed and returned to the adjuster together with the invoice. |
| 2. Security | The notice is passed to the insurer, which signs a GA Guarantee and takes over the handling. | The adjuster is informed and a cash deposit is paid in the amount the adjuster estimates. |
| 3. Damage details | Any loss of or damage to the cargo is reported to the insurer and the adjuster at once. | Any loss of or damage to the cargo is reported to the adjuster at once. |
A cash deposit is the adjuster's estimate of the likely contribution and is usually expressed as a percentage of the cargo's invoice value; any excess is refunded when the adjustment is finalised (CMI brief guidelines). The deposit is held in a special account in the adjuster's name, separate from the adjuster's own funds (Rule XXII). Salvors may ask for separate security for their services. Giving security does not affect the remedies and defences under the contract of carriage.
How the contribution is worked out
The total to be shared is divided in proportion to all the property that was saved and reached its destination. The contributory value of cargo is its value at the time of discharge, taken from the commercial invoice to the receiver or, if there is none, from the shipped value. Insurance and freight are included; any damage suffered by the cargo up to discharge is deducted (Rule XVII). If including a consignment would cost disproportionately more than its contribution, the adjuster may leave it out.
- Value details: if they are not supplied within 12 months of the end of the voyage, the adjuster estimates on the information available. An estimate can be challenged only within 2 months of the written notice and only on the ground that it is manifestly incorrect (Rule E).
- Rate: the amount of the contribution is set by the adjustment in each case. There is no rate known in advance.
All three Institute Cargo Clauses cover general average contributions (cl. 2). Under the Turkish general conditions, if the cargo is not insured for its full contributory value, the claim is reduced in proportion to the underinsurance (Cargo Transport Insurance General Conditions art. 17). More on the cargo insurance page.
Adjustment and time limits
- Who arranges the adjustment: the shipowner must have it prepared without delay. If it is not prepared in time, any interested party, including an insurer, may have it prepared (TTK art. 1278).
- Where: at the destination, or if the ship does not reach it, at the port where the voyage ends (art. 1279).
- Objection: interested parties, insurers included, may ask the court to approve the adjustment or object to it; an objection must be made clearly and in detail at the latest at the first hearing (art. 1281).
- Time bar: under the TTK, general average contribution claims are time-barred after one year, counted from the date the ship arrives at its destination (art. 1285). Under the 2016 Rules, subject to any mandatory time limit of the applicable law, an action must be brought within one year after the adjustment is issued and in any case within six years of the end of the voyage (Rule XXIII).
When it goes wrong
The cargo is uninsured
A cargo owner without an insurer's guarantee is asked for a cash deposit. The amount is the adjuster's estimate and stays in the account until the adjustment is complete; the cargo is not released until it is paid.
The notice sits unanswered
Until the GA Bond and security are complete, the adjuster will not clear the cargo for delivery. Pass the notice to your insurer the day you receive it.
Value details are never sent
If they are not supplied within 12 months, the adjuster estimates them, and the estimate can be challenged only on narrow grounds and within two months.
The forwarder is expected to give security
If the UTİKAD Rules are part of the contract, the forwarder is not obliged to give security to the adjuster on the customer's behalf; security is the cargo interest's obligation (UTİKAD Rules art. 16.3).
Frequently asked
My cargo was not damaged at all. Why am I paying?
Because your cargo was saved by the sacrifice or expense. General average shares the loss among all the property saved; cargo that arrives undamaged contributes as well (TTK art. 1272/3).
How much will my share be?
It cannot be known in advance. The total loss and the saved values are calculated in the adjustment; the cargo's contributory value is its invoice value at discharge (Rule XVII). The cash deposit is also only the adjuster's estimate.
If the accident was the shipowner's fault, do I still have to pay?
The right to contribution is not affected by fault, but remedies and defences in respect of the fault are preserved (Rule D). You give security and take the cargo; the dispute over fault is pursued separately under the contract of carriage.
Will my insurance pay the contribution?
ICC (A), (B) and (C) cover general average contributions (cl. 2). According to the CMI guidelines, the notice is passed to the insurer, which gives a GA Guarantee and takes over the handling. With underinsurance, the claim may be reduced proportionally.
Sources
- Turkish Commercial Code No. 6102 Articles relied on: art. 1201/3 (lien over all the cargo), art. 1272 (definition), art. 1273 (applicable rules), art. 1277 (no delivery), art. 1278–1284 (adjustment), art. 1285 (time bar) · mevzuat.gov.tr · accessed 29 Sep 2026
- Official Gazette 19.02.2019 / 30691 — York-Antwerp Rules 2016 (Communiqué) Official Turkish translation and English text: Rule Paramount, Rules A, D, E, III, X, XVII, XXII, XXIII · resmigazete.gov.tr (PDF) · accessed 29 Sep 2026
- CMI — York-Antwerp Rules 2016 version; technical change to Rule XXI in October 2022; current English text · comitemaritime.org · YAR 2016 (PDF) · accessed 29 Sep 2026
- CMI — Brief Guidelines relating to General Average GA Bond, GA Guarantee, cash deposit and the steps for cargo interests (approved by CMI, IUMI and ICS) · comitemaritime.org (PDF) · accessed 29 Sep 2026
- Institute Cargo Clauses (A), 1/1/09 and the Cargo Transport Insurance General Conditions ICC cl. 2 (general average); General Conditions art. 17 (reduction for underinsurance) · ICC (A) · General Conditions (PDF) · accessed 29 Sep 2026
- UTİKAD Rules art. 16.3 (general average security is the customer's obligation) · utikad.org.tr (PDF) · accessed 29 Sep 2026
This page is for information only. It is not legal or insurance advice. The Code, the Rules and the guideline texts were read directly and article numbers are given. No contribution rate is given, because it varies from case to case. How the TTK time bar relates to the period in the York-Antwerp Rules is a matter of legal interpretation. If you receive a general average notice, consult your insurer and, if needed, your lawyer.
Change log
- Page published. The TTK provisions were written from mevzuat.gov.tr, the York-Antwerp Rules from the Turkish translation in the Official Gazette and the CMI's current English text, and the security steps from the CMI brief guidelines, all read directly.