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Types of losses - Total or Partial or general average losses for cargo ship

A Loss can be described as being either Total or Partial (Particular Average). A Total Loss may be either an Actual Total Loss (ATL) or a Constructive Total Loss (CTL). An Actual Total Loss is where the vessel is actually destroyed or wrecked or where the owner is irretrievably deprived of his vessel e.g. when a ship is sunk in deep waters where any salvage attempt would be impossible. A Constructive Total Loss is when it appears that the vessel is unlikely to be saved or recovered or when she can only be recovered and repaired at a cost, which exceeds her insured value.

Particular Average

Particular Average means a partial loss caused by a peril insured against within the Hull policy, e.g. damage caused by grounding and other such examples as listed in the Institute Time Clauses or Additional Perils Clauses. A claim against such a loss is subject to the important proviso that the loss or damage has been sustained by an accident and not from the result of lack of due diligence by the assured, owners or managers.




General Average

A General Average (GA) loss is a partial loss incurred through a deliberate act performed with the intention of protecting all the interests involved in a voyage from the danger which threatens them all. There are four main features for a GA loss to occur:
As in all incidents, a full report backed with comprehensive documentation is necessary but the calculation of GA can be very complicated and requires a great amount of detail concerning all expenses including wages and overtime to personnel, bunkers, provisions and all other consumables used throughout the period of GA. The Master therefore must ensure that these are carefully calculated and documented. He must also prepare a detailed deviation statement.

The ship-owner has a lien on the cargo at the date of General Average act which can be enforced in a case where no adequate security can be obtained from the contributory parties in GA. In these instances, the vessel owners may instruct the Master to refuse delivery of the cargo until Average Bonds have been signed by the consignee or alternatively underwriters (on behalf of cargo interests) have given a guarantee to pay their share of the expenses and to furnish such documents and information as may be required.

In most cases the act or damage and subsequent action is sufficient for the parties to recognise that a GA act has taken place. In some situations however it is necessary for the Master to notify the other parties to this Maritime Venture. In the event that it does become necessary for the Master to 'declare' GA, the management office will instruct you to send a message.



Note of Reference

Types of losses - Total or Partial or general average losses
A Loss can be described as being either Total or Partial (Particular Average). A Total Loss may be either an Actual Total Loss (ATL) or a Constructive Total Loss (CTL). An Actual Total Loss is where the vessel is actually destroyed or wrecked or where the owner is irretrievably deprived of his vessel e.g. when a ship is sunk in deep waters where any salvage attempt would be impossible. A Constructive Total Loss is when it appears that the vessel is unlikely to be saved or recovered or when she can only be recovered and repaired at a cost, which exceeds her insured value....

P&I Clubs guideline
The P&I Clubs are correctly called Protection and Indemnity Associations and number around 20 worldwide with the majority being United Kingdom based. The ship owner in taking out insurance with a particular association becomes a member of that Club. The Clubs are mutual in nature, which means that all costs involved in providing cover or paying out a claim to any one member is shared by all members. This is achieved by setting a rating or premium for the owner, known as an “advance call”, and is based on the owner’s history and exposure to risk.

War risks areas -related advisory
There are additional trading restrictions placed on the ship regarding so-called war risk areas. War risk areas do not necessarily mean an area where there is a war and may include hostile environments such as areas where civil commotion or revolution is taking place.

Cargo ship procedure - Deviation clause and port of refuge
A deviation is a departure from the intended voyage or contract of carriage. This can occur either where the course of the voyage is specifically stated and is departed from or where the course of the voyage is not stated but the usual route or customary route is departed from. However it should be noted that deviation does not necessarily mean a physical change in the course and can occur in a simple case of slowing down to receive stores at an intermediate off-port-limits call. ...

Salvage contract -Using The Lloyd’s Open Form for “No-Cure-No-Pay” salvage contract
The Lloyd’s Open Form or “LOF” is the most widely-used “No-Cure-No-Pay” salvage contract. In return for salvage services, the salver receives a proportion of the salved value (the value of the ship, its cargo and bunkers).

The Master’s Responsibility during Salvage Operation
Request for Salvage - The Master shall normally request salvage after consultation with the Company. However he has complete authority to seek salvage assistance without reference to the Company if he considers this necessary.

Requirement of towing arrangement in oil tankers, readyness, & training onboard
All Oil, Chemical and Gas Tankers above 20000 DWT, constructed on or after 1st July, 2002, are equipped with an “Emergency Towing Arrangement (E.T.A.) both Forward And aft to provide the ship with a rapidly deployed towage capacity in an emergency.


Other info pages !

Basic guideline for Container Ship Operation
Tanker vessel safety guideline Check items in oil tankers operation
Questions from user and feedback Read our knowledgebase
Cargo care at sea Precautions to be taken
Reefer cargo handling Troubleshoot and countermeasures
DG cargo handling Procedures & Guidelines
Cargo securing Check items prior departure port
Safe navigation Various factors affecting ships navigation at sea
Hull strength & stability Prior loading how to ensure hull strength & stability of ship
stevedores injury How to prevent injury onboard
Environmental issues How to prevent marine pollution
Safety in engine room Standard procedures




Our additional pages contain somewhat larger resources regarding procedures / guidelines about container stowage and safe handling in port,care at sea, Stacking weights,cargo securing prior departure port, Lashing Strength, Dangerous Cargo Stowage & Segregation,handling Reefer units, Special Container Stowage, Irregular Stowage of Containers, Over-stow of Containers,safety of navigation,Hull strength & stability,stevedores injury and reporting, Hatch Cover Clearance (High cube containers Under Deck ) and many more detail topics related with containership operation and business. For any comments or suggestions please Contact us
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