Which statement correctly differentiates general average from particular (special) average, with an example?

Which statement correctly differentiates general average from particular (special) average, with an example?

• A. Particular average is shared by all; example: port charges.
• B. General average involves sharing voluntary sacrifices for the common safety of the voyage; example: jettisoning cargo to save the ship.
• C. General average is a loss borne by a single cargo owner; example: cargo damage due to storm.
• D. General average applies only to passenger casualties.

Answer: (B)

This item tests understanding of how losses are allocated when a voyage is endangered, distinguishing general average from particular (special) average. General average involves sharing voluntary or extraordinary sacrifices made for the common safety of the voyage; the classic example is jettisoning cargo or incurring extra expenses to save the ship. Because these actions benefit all parties with an interest in the voyage, the loss is apportioned among all cargo owners (and sometimes freight) in proportion to their value at risk. A jettison to save the vessel triggers this mechanism. Particular (special) average, by contrast, is a loss that falls on the owner of the damaged or lost cargo, not shared with others, unless their property was affected as well or covered by insurance. For example, cargo damaged due to a storm is a particular average loss borne by the owner of that specific cargo. So the statement that best captures the distinction—general average involves sharing sacrifices for the voyage’s common safety, with jettisoning cargo as the illustrating example—is correct. The other options mix up who bears the loss or mischaracterize general average: port charges are ordinary operating costs, not a general-average sacrifice; cargo damage to one shipment is a particular average loss; and general average is not limited to passenger casualties.

This item tests understanding of how losses are allocated when a voyage is endangered, distinguishing general average from particular (special) average. General average involves sharing voluntary or extraordinary sacrifices made for the common safety of the voyage; the classic example is jettisoning cargo or incurring extra expenses to save the ship. Because these actions benefit all parties with an interest in the voyage, the loss is apportioned among all cargo owners (and sometimes freight) in proportion to their value at risk. A jettison to save the vessel triggers this mechanism.

Particular (special) average, by contrast, is a loss that falls on the owner of the damaged or lost cargo, not shared with others, unless their property was affected as well or covered by insurance. For example, cargo damaged due to a storm is a particular average loss borne by the owner of that specific cargo.

So the statement that best captures the distinction—general average involves sharing sacrifices for the voyage’s common safety, with jettisoning cargo as the illustrating example—is correct.

The other options mix up who bears the loss or mischaracterize general average: port charges are ordinary operating costs, not a general-average sacrifice; cargo damage to one shipment is a particular average loss; and general average is not limited to passenger casualties.