What term describes loss distribution when cargo is sacrificed to save the ship?

• A. Sue and Labor
• B. Particular Average
• C. General Average
• D. Demurrage

Answer: (C)

General Average is the maritime loss-distribution principle that applies when a sacrifice of cargo or other property is made to save the vessel and the voyage. When the captain orders a necessary jettison or incurs extra expenses to prevent total loss, those losses and costs are shared among all parties with an interest in the voyage—shipowners, cargo owners, and insurers—proportionate to their value at risk. A general average adjustment determines each party’s contribution, and the sacrificed cargo’s value is not borne by one owner alone but by all who benefited from saving the voyage. This differs from particular average, where only the owner of the damaged cargo bears the loss (and such losses are typically recoverable from that cargo’s insurer). Demurrage is a charge for delaying the vessel, not a method of distributing losses, and sue and labor refers to the insured’s obligation to take reasonable actions to prevent further loss (with related costs potentially recoverable under general average if applicable).