Further to the recent maritime disasters and subsequent to the declaration of General Average on the Yantian Express, I received some questions surrounding the consequences and the process of the General Average – once it is declared..
- In a GA situation are ALL goods blocked, until the Average Adjusters have completed their work..??
- How long can the work of these Average Adjusters take on average?
- When will the goods be unblocked?
- Will all goods be unblocked?
- In this case, the final destination of the ship was Halifax but the ship has been taken to Freeport for assessment.. Do all goods have to stay on board till the full assessment is complete or do they release goods as assessed.. Say for example, containers in a section of the ship that has not been affected at all..??
- When do all the different parties have to pay their part of the indemnity fees and is paid by insurance or cargo interest..??
- These unexpected delays can of course create a certain “damage” to the owners of the goods; I understand the Insurance does not include any of the consequences of the General Average..??
- When will the beneficiaries of the insurance paid out (this would then refer to the owners that really lost material or got their own material damaged) – do they have to wait until the Average Adjusters have done their work, made their conclusions, send in their reports etc… or can they claim immediately to the Insurance company and the Insurance company later on settles with the other parties?
We caught up with Jagannath Muthu, of NAU Pte Ltd to pose these questions and here is what he had to say..
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