Answer
The primary difference between General Average (GA) and Particular Average (PA) lies in who bears the financial burden of the loss: GA is shared proportionally among all parties involved in the voyage, whereas PA is borne solely by the specific owner of the damaged property or their underwriter.
1. General Average (GA)
Definition: An extraordinary sacrifice or expenditure intentionally and reasonably made in a time of peril for the common safety of the vessel, cargo, and crew.
- Governing Body: Governed internationally by the York-Antwerp Rules.
- Core Concept: "All share what is lost for the good of all."
- Cost Allocation: The loss is shared proportionately among all parties who benefited from the sacrifice (Shipowner, Cargo Owners, and Charterer/Freight Interest) based on their saved values.
Essential Requirements to Declare GA:
- An extraordinary sacrifice or expenditure.
- Done intentionally/voluntarily (not inevitable).
- Made during a real and imminent common peril.
- Carried out for the common safety of the whole venture.
- The effort must be successful (the vessel and cargo must survive).
Practical Examples:
- GA Sacrifice: Jettisoning (throwing overboard) underdeck cargo to lighten a grounded vessel.
- GA Sacrifice: Overworking and destroying the main engine while aground to force the vessel off a reef to prevent total loss.
- GA Expenditure: Hiring tugs/salvors to refloat a stranded ship.
- GA Expenditure: Port of refuge expenses (entering, discharging cargo to effect repairs, and re-retaining crew).
2. Particular Average (PA)
Definition: A partial loss or damage to the ship, machinery, or cargo caused accidentally by an insured peril (perils of the sea).
- Core Concept: The loss rests where it falls.
- Cost Allocation: The financial loss is borne entirely by the specific property owner (or their respective Hull & Machinery / Cargo insurance). There is no contribution required from other cargo owners.
Practical Examples:
- Hull & Machinery PA: Main engine crankshaft damage caused by unexpected oil pump failure.
- Hull & Machinery PA: Structural hull deformation directly resulting from heavy weather or accidental collision.
- Cargo PA: Seawater flooding a cargo hold during a storm, ruining a specific consignee's steel coils.