General average contributions are calculated based on what and who shares the burden?

General average contributions are calculated based on what and who shares the burden?

• A. They are allocated based on the weight of cargo.
• B. They are calculated based on the value of each cargo unit, and all cargo owners share according to cargo value.
• C. They are shared according to the insurance coverage.
• D. They are determined by the ship's voyage distance.

Answer: (B)

General average is about sharing the sacrifices made to save the voyage in proportion to each cargo owner’s economic stake in the voyage. The burden is allocated based on the value of each cargo unit, so owners of more valuable cargo contribute more, reflecting their greater stake and potential loss. This approach uses cargo value as the basis, not the cargo’s weight, insurance coverage, or the voyage distance. So, contributions are divided among all cargo owners according to the value of their cargo.

General average is about sharing the sacrifices made to save the voyage in proportion to each cargo owner’s economic stake in the voyage. The burden is allocated based on the value of each cargo unit, so owners of more valuable cargo contribute more, reflecting their greater stake and potential loss. This approach uses cargo value as the basis, not the cargo’s weight, insurance coverage, or the voyage distance. So, contributions are divided among all cargo owners according to the value of their cargo.