Answer
Artificial General Average means a loss or expenditure is allowed as General Average by agreement under the York-Antwerp Rules, even though all the normal requirements of a true GA act under Rule A are not strictly present—especially where there may be no immediate common peril
Under traditional maritime law (Rule A of the York-Antwerp Rules), a valid General Average act requires five fundamental conditions:
- An extraordinary sacrifice or expenditure must be incurred.
- It must be intentional/voluntary (not accidental).
- It must be reasonably made.
- It must be for the common safety of preserving the property involved in a common maritime adventure.
- There must be an actual, real, and substantial peril (not imaginary or merely prospective).
It mainly arises from the numbered York-Antwerp Rules, particularly provisions dealing with port of refuge expenses and repairs necessary for the safe prosecution of the voyage. Because the numbered Rules take priority where applicable, an expense may be admitted in GA even though it would not qualify under Rule A alone.
Example
Suppose a vessel develops serious machinery damage during the voyage and enters a port of refuge. There is no immediate danger to ship and cargo while she is safely alongside, but the machinery must be repaired before the voyage can safely continue.
During the detention, certain expenses such as:
- port charges,
- cargo discharge/reloading expenses,
- crew wages and maintenance where allowable,
- fuel/stores consumed during the permitted period,
may be admitted in General Average under the applicable York-Antwerp Rules, although there is no immediate common peril at that stage. This is commonly called Artificial GA or GA by agreement.