Shippers brace for losses, Yantian Express general average declared
AS the smouldering 7,501-TEU Yantian Express heads to Freeport in the Bahamas after a devastating fire, shippers brace themselves for heavy losses now that a General Average (GA) has been declared by Hapag-Lloyd
AS the smouldering 7,501-TEU Yantian Express heads to Freeport in the Bahamas after a devastating fire, shippers brace themselves for heavy losses now that a General Average (GA) has been declared by Hapag-Lloyd.
This means losses incurred by some parties will be mitigated by apportioning a percentage of the costs between cargo owners, their insurers and the shipping company, Hapag-Lloyd.
Last March 2018 the tragic events during fire aboard the 15,262-TEU Maersk Honam set the ball rolling for potentially 'hundreds of millions of dollars in claims' according to the British International Freight Association (BIFA).
The complexity of these situations has increased of late as the vessel sharing arrangements, such as those between Hapag Lloyd and the Ocean Network Express (ONE) means a variety of shipping companies may have contracted with shippers for the cargo affected.
As in the case of the Maersk Honam the appointed General Average and Salvage Adjusters will be Liverpool headquartered Richards Hogg Lindley, and full details of the situation can be obtained by downloading the relevant documents from the appropriate portion of the Hapag Lloyd website.
Cargo owners who wish to claim their goods when the tally is pronounced in Freeport will doubtless be asked to pay the delegated proportion of General Average costs prior to release of the freight, reported the UK Handy Shipping Guide.
Doubtless most of the affected cargo will then need to be shipped to Halifax, the original destination of the Yantian Express, said the report.
The York Antwerp Rules which outline the details of General Average are complex. Dependant on the precise nature of the event that prompted invocation of the rules certain expenses can be passed on, in whole or in part, to those affected.
The rules covering GA, as it is universally known were drawn up in 1890, subsequently seeing several updates and with the latest set of amendments in 2004.