Following the fire on board the Maersk Honam in May 2018, “General Average” was declared by the salvage company at 42.5% of the cargo value, PLUS a further 11.5% as a “General Average deposit.

Therefore, a shipper with goods worth $10,000 in a container had to pay a combined general average and salvage security of $5,400 to have their cargo released. In addition, there would be new freight charges to send the container to the original destination.

This is a timely reminder to all shippers/consignees regarding the need for marine insurance.