Top 10 Key Factors Behind the Rise of General Average Cases
When an unexpected accident occurs at sea, the losses can be devastating. General Average is a long-standing maritime law principle that requires all parties with a financial interest in a voyage to proportionally share the loss that results from a voluntary sacrifice made to save the vessel and remaining cargo.
In recent years, cases of General Average have started to rise again after a period of calm. This has made General Average Insurance increasingly important in every ocean shipment, encouraging more companies to secure coverage before shipping to protect their cargo from potential risks.
A Sudden Surge After a Period of Calm
During the COVID-19 pandemic, global shipping activities slowed significantly. With fewer vessel movements, disrupted supply chains, and reduced operations, General Average incidents naturally declined.
However, that calm did not last long. As global trade rebounded, sea freight risks increased sharply. Today, due to frequent vessel accidents, rising repair and salvage costs, and intensified geopolitical tensions, the number of General Average declarations is climbing once again.
Key Factors Behind the Increase
1. Escalating Geopolitical Risks and Attacks
Tensions in conflict zones such as the Red Sea and Black Sea have created new challenges. Ships are forced to reroute, take additional safety measures, or even discharge cargo prematurely under threat.
Consequently, these actions often lead to more General Average declarations.
Moreover, vessels bypassing high-risk areas like the Cape of Good Hope face longer voyages and harsher sea conditions, increasing the chances of incidents that may trigger General Average claims.
2. Larger Container Vessels
The trend toward mega container ships has raised new safety concerns. Many of these vessels have not undergone extensive sea trials under real-world conditions. Combined with limited operational experience in handling heavy rolling motions, the risk of mid-ocean collisions or grounding has increased significantly.
3. Extreme Weather and Climate Change
Climate change continues to reshape global shipping conditions:
Wave heights have steadily increased, especially in the South Pacific and off the west coast of South America.
Winter storms in the North Pacific are becoming more volatile.
Vessels rerouting for safety now face more frequent exposure to severe weather.
These factors contribute to cargo damage, onboard equipment failure, and even total loss — all common triggers for General Average situations.
4. COVID-19 and Its Lingering Impact
During early 2020, maritime activity slowed drastically. Average port stay times increased by over 60%. Lockdowns, quarantines, and workforce shortages caused major disruptions, with more than 800,000 seafarers stranded on ships.
This weakened global logistics reliability and created long-term risks for ship operations, indirectly contributing to General Average incidents post-pandemic.
5. Deferred Ship Maintenance
Due to pandemic-related delays, many operators postponed scheduled maintenance. This deferral has led to more frequent mechanical breakdowns and higher chances of emergencies at sea — both of which often result in General Average declarations.
6. Rising Repair and Salvage Costs
Inflation after COVID-19 has pushed up the cost of spare parts, labor, and dry-docking services. Consequently, when an incident occurs, the costs of salvage operations, repairs, and port handling have all soared.
This directly increases the financial burden shared under General Average.
7. Inadequate Container Lashing Systems
Although ships are getting bigger, container securing systems have not improved at the same pace. Insufficient lashing increases the likelihood of containers being lost overboard or damaged — both frequent causes of General Average and marine cargo insurance claims.
8. Misdeclared Cargo and Onboard Fires
One of the fastest-growing causes of marine cargo incidents is onboard fires, often linked to misdeclared cargo. Despite the Verified Gross Mass (VGM) regulations, incorrect cargo weight or dangerous goods declarations still lead to catastrophic outcomes, threatening lives and ships alike.
9. Post-Pandemic Maintenance Delays
Even after the pandemic, rising dry dock and parts costs have caused some operators to delay essential maintenance. Unfortunately, this has further increased the risk of machinery failure and the potential for General Average losses at sea.
10. Shift Toward Low-Emission Operations
The shipping industry’s move toward decarbonization — including alternative fuels and slow steaming — can reduce vessel maneuverability in rough seas. As a result, mechanical strain and propulsion issues become more likely, increasing the risk of incidents that lead to General Average claims.
Why Marine Cargo Insurance Is More Important Than Ever
When General Average is declared, even undamaged cargo owners are legally required to contribute to the shared loss. These costs can be substantial. Without Marine Cargo Insurance, shippers are personally responsible for their share.
A comprehensive marine insurance policy not only covers your contribution under General Average but also provides the guarantee bond required for cargo release. Without it, your shipment could face serious delays and unexpected financial losses.
With rising incident rates and repair costs, having Marine Cargo Insurance is no longer optional — it’s essential for every international shipment.
Conclusion
In today’s unpredictable shipping environment, General Average has become a growing concern once again. With increased accident rates, higher repair costs, and evolving global risks, cargo owners face greater exposure even when their goods arrive safely.
Protect your shipments and your business from the growing financial risks of General Average.
Contact GB INTL Freight Agency today to ensure your cargo insurance policy provides full protection — because one uninsured voyage could cost far more than the premium.
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