After a ship casualty, security for general average may be demanded for delivery even though the cargo appears intact. The reason is that certain sacrifices and extraordinary expenses incurred to escape a common danger are apportioned among the interests concerned. However, a declaration of general average does not mean that every expense claimed is correct or that the cargo owner is conclusively liable for the amount notified. From the cargo interest's point of view, the security that will secure delivery, an objection to the contribution statement and an insurance claim should be planned together.
Under what conditions does general average arise?
Article 1272 of the Turkish Commercial Code (Türk Ticaret Kanunu, "TTK") is based on an extraordinary sacrifice or expense made reasonably and intentionally against a danger that jointly threatens the ship, the cargo, other property and the freight on a common maritime voyage. Losses and expenses that are the direct consequence of that act are assessed as general average. Not every maritime casualty satisfies these conditions; ordinary operating expenses, or every loss that the casualty causes of itself, do not enter into common apportionment.
For example, deliberately grounding a ship on a shoal for the purpose of common safety is not the same event as the ship grounding of its own accord after losing control. Some measures taken to save the ship and cargo together after the second event may also be examined separately as general average. The assessment is made not on the name of the casualty but on the purpose and circumstances of each sacrifice or expense.
A technical report should explain what the danger was, who took the decision and with what information, and why the measure was considered necessary. An invoice issued afterwards does not by itself show that an extraordinary expense had a common safety purpose. The ship's logbook, the master's report, salvage records and port documents are important as the basis of the statement. [1]
Which version of the York-Antwerp Rules applies?
A conclusion should not be reached by looking only at the newest international text without examining the general average clause in the bill of lading and the charterparty. A specific version of the York-Antwerp Rules, a place of adjustment and an applicable law may have been chosen in the contract. Where the transport document refers to the contract, the validity of the relevant clauses as regards the cargo interest is also assessed.
Article 1273 TTK, unless the parties have agreed otherwise, takes as its basis the most recent York-Antwerp Rules that have been translated into Turkish and published in accordance with the procedure in the law. The 2016 York-Antwerp Rules were published in the Official Gazette (Resmî Gazete) No. 30691 of February 19, 2019. For this reason, "the CMI has published a new text" and "the new text applies automatically in Turkish law" should not be equated. [1, 2]
The CMI's current page states that a technical amendment was made in October 2022 to the interest provision of the 2016 Rules. The version clause in the contract, whether the amendments are covered and the published Turkish text must be compared in the specific file. The interest calculation is especially sensitive to the version of the text. That an older contract refers to the 1994 or 2004 Rules cannot be disregarded merely because a newer version exists. [3]
Why is a contribution demanded if the cargo was not damaged?
General average is not a system that examines only the loss of the person whose own property was damaged. Apportionment may be established among the values that benefited from appropriate sacrifices and expenses made for common safety. For this reason, the cargo coming out intact does not by itself remove the contribution claim. On the other hand, it must be checked which value enters the statement, in what amount and in what capacity.
Article 1274 TTK contains a provision on personal liability that takes as its basis, for the ship, the owner at the time of the general average act, for the freight, the creditor at the date of discharge, and for other property, the owner at the date of discharge. For a consignee who accepts delivery knowing that a contribution share (garame payı) exists, the law also provides for personal liability under certain conditions. The consignee named in the bill of lading and the person who is legally liable are not the same in every file. [1]
The sale of the cargo during the voyage, the form of payment or the insurance being issued in another person's name are therefore not unimportant details. The sale invoice, the delivery terms, the passing of ownership and the insurance document are examined together. If claims have been directed both at the former and the new owner for the same shipment, the legal basis of the claim is clarified.
How is security distinguished from the final contribution liability?
Articles 1275 and 1277 TTK are significant for the lien on the cargo and for making delivery conditional on payment of the contribution share or the provision of security. Because the final statement may take a long time, in practice security becomes the instrument that secures delivery of the cargo. Under Article 1276 TTK, security must also be provided to the cargo interests, under the conditions in the law, for the share falling on the ship; the question of security is not only the cargo owner's liability. [1]
In international practice, an average bond denotes the cargo interest's undertaking, duly given, to pay the contribution for which it is legally liable; an average guarantee denotes, for the most part, the separate assurance given by the insurer. A cash deposit may also be demanded. In the CMI's standard approach, the provision of appropriate security does not mean giving up defenses to the contribution liability. Nevertheless, each specific text that is signed must be read separately. [4]
| Document or payment | Basic function | What to check |
|---|---|---|
| Average bond | The cargo interest's undertaking on the contribution | Party, description of the cargo, law and jurisdiction clause. |
| Average guarantee | Assurance generally provided by the insurer | Scope, cap on the amount and condition for termination. |
| Cash deposit | Temporary security against the expected contribution | Account, receipt, interest and method of refund. |
| Final adjustment statement | Calculation of loss and apportionment | Acceptance of the expenses and the contributory values. |
Unconditional payment, foreign court or broad waiver provisions in the security text may be overlooked under the pressure of delivery. The authority of the person who will sign the document on behalf of the company must also be confirmed. That a heading in English appears standard does not show that all the clauses have been taken over unchanged or are suitable for the file. The terms on which the security was accepted by the other side should be kept in writing.
What should be done when a general average notice arrives?
First, it is verified for which ship, voyage, bill of lading and container the notice was sent. The identity and contact details of the appointed average adjuster are confirmed through reliable channels used before. It is ascertained with which documents delivery will be released and whether salvage security is also being sought. No payment should be made without checking the connection of a request for a money transfer to the actual file.
The general average notice is forwarded to the insurer, and it is asked whether it will provide security and which documents are needed. The bill of lading, invoice, insurance certificate and documents on the condition of the cargo at delivery are gathered in the same file. If the cargo is damaged, this may matter not only for a claim for physical loss but also for the assessment of the contributory value.
If delay in delivery creates additional storage costs and a risk of deterioration, the options are compared with their costs. Taking the cargo against appropriate security may be considered together with the possibility of maintaining the objection later. This does not mean, however, that every security will be accepted automatically or that other obstacles to delivery at the port will be lifted. Customs, terminal and other claim-related formalities are completed separately.
Can salvage security be demanded separately?
Although general average and a salvage claim are connected, they are not always resolved with the same security. The salvor's claim and a need for separate security against the parties may exist. The CMI guidelines explain that in some incidents salvage security may be needed in addition to general average security. By recording which expense is paid in which file, the risk of double collection or wrong set-off should be prevented. [4]
Which information is separated in the insurance review?
In the file sent to the insurer, the physical damage to the cargo, the general average contribution and the salvage charge should be shown as separate items. That they arise from the same event does not mean that all will be calculated under the same security or deductible. Nor does a guarantee given by the insurer by itself show that all disputes arising from the policy will be resolved in favor of the insured. The relationship between the guarantee and the insurance contract must be read separately.
The description of the cargo and the sum insured under the policy are matched with the shipment notified to the adjuster. If there is a partial sale, a transfer of the goods or a delivery in damaged condition, documents showing this are submitted. A payment received for physical damage should not be left out of the statement without assessing whether it has any effect on the contributory value. The cargo interest should request in writing from the insurer which documents it expects to be completed and its decision on the security request.
Which calculations are examined in the adjustment statement?
The adjustment statement (dispeç) shows the apportionment of the losses and expenses admitted as general average and of the values that will contribute to them. The shipowner's obligation to have the adjustment prepared without delay is regulated in Article 1278 TTK. The appointment of the adjuster and the supply of documents under the statutory procedure appear in Article 1280. The interested parties have the right to examine the report and take copies. A procedure determined by foreign law or by the contract is also taken into account separately. [1]
The review should not be made by looking only at the total liability. The date of the expense, the scope of the service, how it differs from an ordinary cost, its connection to common safety and whether it was met through another channel are investigated. In determining the value of the cargo, it should be seen which invoice, damage deduction and statement date were used. The currency and the exchange-rate method in the statement should be consistent with the values on which the annexes are based.
York-Antwerp Rules 2016 Rule C imposes limits on indirect losses and losses from delay. Rule D reserves the defenses and rights of recourse that may arise from fault. For this reason, the preparation of a contribution statement does not make a separate examination of the carrier's breach of contract or the seaworthiness of the ship unnecessary. An objection should be built not on the statement "I did not cause the casualty" alone, but on the applicable rule and the concrete facts. [5]
A simplified example of a contribution calculation
Assume that the admitted general average expenses are EUR 600,000 and the sum of all values entering the statement is EUR 20 million. On the assumption that there is no other adjustment, the rate is three percent. The share of cargo whose contributory value has been determined at EUR 1.2 million in this simple example is EUR 36,000. In a real file, sacrifices, deductions, interest and different bases of value may change the calculation.
In this example, a deposit of EUR 45,000 demanded in advance does not show that the final contribution is also EUR 45,000. On the assumption that there is no other debt, interest or expense and that the EUR 36,000 calculation has become final, a refund calculation is made for the remaining EUR 9,000. If the deposit receipt and the security to which the payment relates are not kept, pursuing the refund may become needlessly difficult.
How are objections to the adjustment statement and time limits monitored?
Articles 1281–1284 TTK are significant in the approval process under Turkish law. The interested parties may object to the type of average or to the statements. The summons in the law contains a statement that those who do not appear will be deemed to have given their approval. The objection must be made clearly and in detail at the latest at the first hearing; if that is not possible for a justified reason, a one-time period to be granted by the judge is considered. A general statement "we do not accept the statement" should not be relied on. [1]
On the question of time, the starting points of two texts must not be confused. Article 1285 TTK starts the one-year limitation period for contribution-share claims from the arrival of the ship at the place specified in Article 1279. York-Antwerp Rules 2016 Rule XXIII, on the other hand, reserving the applicable mandatory time-limit provisions, provides for one year from the date of the adjustment statement and an outer limit of six years from the end of the common voyage. This rule does not apply to the relationship between the parties and their own insurers. [1, 5]
Which period will be used in the file must be determined by examining together the applicable law, the version in the contract and the mandatory provisions. It should not be assumed that no application period has begun because the statement has not yet been issued. Separate calendars should be kept for security, the insurance claim, the contribution claim and the claim for loss against the carrier. In correspondence extending time, it should be stated clearly which claim is being extended.
Why does representation matter for foreign shipowners and law firms?
The decision of the 11th Civil Chamber of the Court of Cassation (Yargıtay 11. Hukuk Dairesi) dated March 22, 2023, E.2022/453, K.2023/1754, concerns the question of authority to represent and to pursue the case in a file on approval of an adjustment statement connected with a foreign shipowner. The Chamber, assessing the company representation documents submitted and the contents of the file, issued a decision of reversal to the effect that the existence of authority to pursue the case should be accepted and the merits examined. The decision is not an affirmance that the general average share was correct on the merits. [6]
The lesson to draw in practice is that the identity of the foreign company and the authority of the person who represents it should be documented together. The ship operator, the shipowner, the company shareholder and the lawyer's power-of-attorney relationship should not be confused with one another. The local team working with a foreign law firm should make clear at the start of the file on whose behalf the registry document, the authority document and the power of attorney will be used.
Conclusion
In a general average file, the security that secures delivery and the final contribution calculation should be assessed separately. The cargo interest should involve its insurer in the process and should check the applicable version of the York-Antwerp Rules, the security text, the adjustment statement and the time limits for objection. Intact cargo does not by itself remove the contribution, and the provision of security does not show, in every specific text, that all defenses have been waived. The correct outcome is determined on the basis of the contract and the documents of the event.
Related articles: Cargo damage and short delivery; Claims and rejection of payment under marine cargo insurance; Charterparty, off-hire and loss of freight; Salvage and towage charges at sea.
Frequently Asked Questions
Do I have to pay general average when my cargo is intact?
Intact cargo may also contribute to appropriate expenses made for common safety. However, the conditions of the claim, the capacity as debtor and the contribution statement must be examined separately.
Does a declaration of general average make the debt final?
No. A declaration does not by itself prove the accuracy of the final statement of expenses and apportionment. The basis of the statement and the applicable rules can be reviewed.
If I sign the security, do I lose my right to object?
Under the standard approach, the provision of appropriate security does not prevent an objection to the final liability. Nevertheless, the waiver, payment and litigation provisions in the document to be signed must be examined separately.
Does the insurer give a guarantee for every general average claim?
The scope of the policy, the nature of the claim and the insurer's assessment are decisive. The insured should forward the security request and the shipment documents to its insurer without delay.
Can the calculation of time limits wait until the adjustment is complete?
No. The starting point under Turkish law and the starting point under the York-Antwerp Rule adopted in the contract may not be the same. The period that will apply to all claims should be determined in advance.
Is the whole cash security refunded afterwards?
The refund depends on the final liability and the conditions of the security. A set-off and refund calculation may be made for the part of the deposit that exceeds the final contribution; it cannot be said in advance that the whole amount will be returned.
Bibliography
1 — Law No. 6102, Turkish Commercial Code (Türk Ticaret Kanunu), Arts. 1272–1285 and the related provisions on the lien. Ministry of Trade text.
2 — York-Antwerp Rules 2016, Official Gazette (Resmî Gazete) of February 19, 2019, No. 30691. Announcement of the Chamber of Shipping (İMEAK Deniz Ticaret Odası) and annex with the Official Gazette text.
3 — Comité Maritime International, information on the versions of the York-Antwerp Rules and the 2022 technical amendment. CMI page on the current version.
4 — CMI, Guidelines Relating to General Average, second edition, 2022, in particular the section on security. Guidelines. Standard security forms.
5 — York-Antwerp Rules 2016, text including the 2022 technical amendment; in particular Rules C, D and XXIII. CMI text.
6 — Court of Cassation (Yargıtay) 11th Civil Chamber, E.2022/453, K.2023/1754, March 22, 2023. The full text was reviewed through Ad De Jure. Link to the decision — may require login.
Sources checked on: October 14, 2026. This text is for information only; security and adjustment documents should be reviewed for the specific file.