GENERAL AVERAGE EXERCISES
1. Scenario: The freighter "Arc4c Explorer" is transpor4ng goods from Norway to Canada:
• Wood Pulp valued at $100,000
• Seafood valued at $200,000
• Mining Equipment valued at $300,000
Mid-voyage, the ship encounters ice, causing the hull to crack. To prevent sinking, the captain
orders the jeFson of some wood pulp and all the seafood.
Damage and Losses:
• Wood Pulp JeFsoned: $20,000
• Seafood JeFsoned: $200,000
• Hull Repair Costs: $50,000
Task:
1) Calculate the total General Average loss, including jeFson and repair costs.
2) Determine the total value at risk aSer losses.
3) Calculate the pro-rata contribuUon for each type of cargo.
2. Scenario: The tanker "Liquid Fortune" is transpor4ng oil and industrial solvents from
Saudi Arabia to the United States:
• Crude Oil valued at $1,000,000
• Industrial Solvents valued at $500,000
During the voyage, a collision with another ship causes a fire, threatening the enUre cargo. The
captain decides to use firefighUng foam to save the ship, damaging part of the cargo with the
foam, and resulUng in some oil being spilled to avoid explosion.
Damage and Decisive AcUons:
• Oil Spilled: $300,000
• Solvents Damaged by Foam: $100,000
• FirefighUng and Cleanup Costs: $200,000
Task:
1) Calculate the total General Average loss, including spillage, foam damage, and
associated costs.
2) Determine the total contribuUon value, considering potenUal insurance recoveries.
3) Calculate the detailed pro-rata contribuUon, factoring in insurance adjustments.
3. Scenario: The container ship "Urban Trader" is carrying electronics, garments, and
vehicles from China to Europe:
• Electronics valued at $800,000
• Garments valued at $200,000
• Vehicles valued at $1,000,000
A storm damages the ship, causing water to enter the cargo holds. The captain orders the
vehicles to be moved to balance the ship and hires a salvage team to prevent further damage.
Damage and Salvage AcUons:
• Electronics Damaged: $150,000
• Garments Water Damage: $50,000
• Vehicles Moved (risking damage): $100,000
• Salvage OperaUon Costs: $250,000
Task:
1) Calculate the total General Average loss, including cargo damage and salvage operaUons.
2) Determine the total value at risk, considering the realignment of the cargo.
3) Calculate the complex pro-rata contribuUon, accounUng for mulUple acUons and their
impact on the safety of the vessel.
