ON GENERAL AVERAGE
In the interests of improvement and development of cooperation in the field
of carriage of goods on the Danube the shipping companies:
Bavaria Lloyd AO (BL) West Germany
Bulgarian River Shipping Company (BRP)
The First Danube Shipping Company (DDSG) the Republic of Austria
Hungarian Shipping Company Limited (MAHART)
Rumanian River Shipping Company (NAVROM)
Soviet Danube Shipping Company (SDP)
Czechoslovak Danube Shipping Company (CSPD)
Yugoslavian River Shipping Company (YRB)
Yugoslavian Shipping Company Danube Lloyd (DL)
Yugoslavian Shipping Company Krajina (RBK)
have agreed upon the following rules during apportionment of general average.
These Rules shall be an integral part of the Agreement on General Terms
of Carriage of Goods in International Communication on the Danube and come
into force for all carriage of goods with the exception of cases when another
agreement is made by participants in general average.
General average shall mean any extraordinary expenditures or sacrifice
made intentionally and reasonably for the purpose of preserving and /
or salvage the property - ship, cargo and freight from common danger.
General average shall be apportioned among ship, cargo and freight proportionally
to their contribution values in accordance with the rules specified below.
Any extra expenses made instead of other expenses which have been allowable
as general average shall be considered as general average hut only up
to the amount of expenses avoided in this way.
The expenses admitted shall be reduced by the amount of expenses which
would have been during normal navigation.
Exclusion of Indirect Losses and Expenses
Only such losses, damage and expenses which are the direct consequence
of the general average act shall be allowed as general average.
Losses or damage which arise because of delay during or after a voyage,
such as losses caused by fluctuations of currency exchange rates, losses
on the market price, etc., as well as other indirect losses shall not
be considered as general average.
Fault in General Average
Apportionment of general average expenses and losses shall be also made
when the event which caused general average may have been due to the fault
of one or several participants in it.
However it will not prejudice any remedies which may be open to the participants
in general average against the guilty party.
Onus of Proof
The onus of proof is upon the party claiming in general average to show
that losses and expenses claimed are allowable as general average.
Reimbursement of Salvage Expenses
6.1. In the event of general average the expenses shall be reimbursed
to ships of shipping companies - participants in the Bratislava Agreements
which render assistance to each other according to the terms and rates
of the Agreement on Towing, Rendering Assistance to Ships during accident
and Agency Service (supplement 5 to session II) using ratio 3,0 to the
hour"s rate of the tug"s work.
6.2. In other cases salvage expenses made either on the basis of an agreement
or any other basis shall be allowed as general average depending on salvage
operations done for the purpose of protection of property from common
6.3. The losses sustained by the ship which renders assistance (loss of
equipment, expenses for repair, etc.), certified by the relevant act,
as well as losses caused by putting the ship out of operation shall be
allowed as general average.
6.4. The clauses of this Rule shall be applied without limitations even
it the ships rendering salvage services and the salved ships belong or
are at the disposal of one and the same shipowner.
Unloading of a Ship
If a ship is forced to unload cargo subject to further storage as a result
of average, sacrifice or other extraordinary circumstances general average
1. Losses on unloading cargo, its storage and reloading.
2. Expenses for lease of the ship which carries out unloading.
3. Losses and expenses on repair of damage sustained by the ship which
carries out unloading, as well as losses caused by putting the ship out
4. Damage to the distressed ship arisen during the unloading.
5. Losses and expenses caused by the loss and damage to cargo during its
unloading, storage and loading.
6. Insurance premium paid to underwriters for additional insurance.
Port of Refuge
8.1. The losses caused by flood, drifting of ice, sudden and rapid fall
of the water level or in other cases connected with the necessary entering
a port of refuge, being at a port or leaving it, including possible towing,
protection of the loaded ship and port duties shall be allowed as general
average. Similar expenses shall be allowed as general average when the
ship shall have returned to her port of loading.
8.2. When the ship shall have removed from one port of refuge to another
port of refuge for the purpose of repairs clause 1 of this Rule shall
be applied. Expenses for transfer, including repairs and towing, shall
be taken into account in general average.
8.3. If the consignment intended for another port is unloaded at the port
of refuge it shall be contributed as if it remained on the ship before
leaving the port. However if all cargo is unloaded at the port of refuge
compensation of general average expenses shall be terminated.
8.4. If the flood or drifting of ice occurs after the loaded ship enters
the port of discharge and the ship should leave the port before the end
of her unloading and find another safe port this port shall be considered
as port of refuge.
8.5. If a ship because of the flood or drifting of ice has to remain at
the port after the cargo intended for this port is unloaded this port
shall be considered as port of refuge only for the cargo intended for
8.6. If a ship leaves the port of refuge independently the relevant expenses
shall not be compensated.
Damage to Machinery
Damage caused by the forcing of the engines as well as damage to the propeller,
helm and towing systems, other machinery of a ship which is aground in
endeavouring to afloat shall be allowed in general average.
Voluntary Stranding and Scuttling
Damage caused to a ship of / and cargo by intentional running aground
or scuttling shall be considered as general average.
Fire on a Ship
Damage caused to a ship and / or cargo by water or any other way, including
losses from stranding or scuttling a burning ship shall be considered
as general average. Losses from smoke or heat however caused shall not
be considered as funeral average.
Raising a Sunken Ship
If a ship sinks or is sunken as a result of as accident losses and expenses
for raising the loaded ship shall be considered as general average.
13.1. Under a convoy in the present Rules shall be understood a group
of floating objects (ships) connected with each other in such a way that
a separate ship has no freedom of movement.
13.2. All clauses of the present Rules shall be applied if salvage operations
were taken to save one or several ships of the convoy and their cargo
from common danger. A ship of the convoy shall not be in common danger
with another ship of the convoy if she can be removed from danger by disconnecting
it from another ship.
13.3. For the purpose of calculating contribution, values and compensations
on general average under a ship and cargo shall be understood the total
value of all ships of the convoy and their cargo which are in common danger.
Ship - General Average Compensation
14.1. The amount to be allowed as general average for losses and damage
to a ship"s hull, machinery, mechanisms and / or devices shall be
14.1.1. when repaired or replaced - the actual reasonable cost of repairing
or replacing such damaged or lost elements;
14.1.2. when not repaired or replaced - the reasonable depreciation arising
from such damage or loss but not exceeding the estimated cost of repairs.
14.2. However where the ship is an actual total loss or when the cost
of repairs of the damage would exceed the value of the ship when repaired
the amount to be allowed as general average shall be the difference between
the estimated sound value of the ship after deducting therefrom the estimated
cost of repairing damage which is not general average and the value of
the ship in the damaged state which may be measured by the net proceeds
14.3. If during repairs old materials or parts are replaced by new compensation
is reduced by the amount of the corresponding difference between new and
old costs in respect of "new for old".
The following deductions shall be made:
1/5 of the cost of a ship"s hull, machinery, mechanisms and / or
devices which are in operation from two to five years as of the moment
of an accident;
1/4 - from six to ten years inclusive;
1/3 - eleven and more years.
The deductions and expenses for temporary repairs shall not be made for
ships which are in operation for up to two years.
No deductions shall be made in respect of anchors and chain cables, tow
and mooring lines.
14.4. The deductions shall be made only from the cost of material or parts
which are finished and ready to be installed in the ship.
14.5. The compensation for ship"s damage shall not exceed the amount
which would be reimbursed in case of her complete loss.
Cargo - General Average Compensation
15.1. If cargo is sacrificed the value of the cargo according to the seller"s
invoice after deducting the cost of respective damage which is not general
average shall be allowed in general average.
The value of the cargo shall include the cost of insurance and freight
unless and insofar as such freight is at the risk of interest other than
15.2. If cargo is damaged the difference between the cost of the undamaged
and damaged cargo shall be compensated. If the damaged cargo is sold the
difference between the net sound value and the net proceeds of sale shall
15.3. The shipowner shall immediately notify the shipper / charterer about
damage to his consignment and after receiving necessary instructions ensure
determination of the amount, nature and couse of damage, as well as take
measures to prevent further damage.
Freight - General Average Compensation
The unpaid freight for the cargo lost shall be compensated in general
average in the amount of the lost gross freight.
Interest - General Average Compensation
Interest shall be allowed on expenses, sacrifices and other sums charged
to general average at the rate of 7% per annum starting from the moment
of payment of these sums or from the moment when the lost cargo should
be given to the receiver up to the expiration of one month after drawing
up general average statement.
Expenses for Determination of Losses - General Average Compensation
The expenses connected with making examinations, valuation or sale of
cargo, investigations necessary for drawing up general average statement
as well as average adjusters" fee shall be considered as general
19.1. The contributory value of the ship shall he assessed on the basis
of the value at the termination of the voyage in the state she is in.
19.2. The contributory value of the cargo shall be assessed on the basis
of the seller"s invoice. The value of the cargo shall include the
cost of insurance and freight if freight is at the cargo"s risk.
The cost of all losses and damage to cargo before the end of its unloading
shall be deducted from this sum.
19.3. The contributory value of the freight which is at the carrier"s
risk shall be represented by gross freight.
19.4. The amount to be made good as general average for the sacrificed
property if have not been included shall be added to the contributory
value of the ship, cargo and freight.
19.5. Any means of enlarging cargo parcels shall contribute equally with
The shipowner shall be entitled for ensuring contributions to collect
cash deposits from the cargo owners or their representatives and must
pay these deposits in to a special account with the bank stipulated in
a written obligation (revers). The sum so deposited together with accrued
interest, if any, shall be held as security for payment to the parties
entitled thereto of the general average or special charges payable by
cargo in respect to which the deposits have been collected.
Payments or refunds of deposits may be made within fifteen days after
the recognition of the general average statement. Interest shall be accrued
to the deposited sums at the rate of 7% per annum. Banking interest from
these sums shall be allowed in general average. Such deposits, preliminary
payments and refunds shall be without prejudice to the ultimate liability
of the parties.
Drawing Up and Dispute of General Average Statement
21.1. The shipowner shall be entitled and if at least one participant
in general average demands it he shall be ob.iged to submit an application
for drawing up general average statement within one year after the termination
of the voyage.
21.2. An average adjuster determines currency of the general average statement
taking into account currencies of prevailing general average expenses.
The currency of payment of contribution shall usually correspond to the
currency of expenses and losses allowed in general average, if it does
not contradict interstate payment agreements or other currency legislations.
21.3. Each participant of general average shall produce any documents
and information necessary for drawing up a general average statement (invoices,
etc.) at the request of the average adjuster or the shipowner. If this
obligation is not fulfilled the average adjuster shall have the right
to make a decision on the basis of materials at his disposal or taking
into account the existing practice. This decision shall be valid till
21.4. The general average statement shall be binding to all participants
if they do not make a claim within 30 days after receipt of it.
21.5. If the average adjuster remakes the general average statement on
the basis of claims submitted to him he shall again send it to all the
participants. If any participant does not agree with the final decision
of the average adjuster he may dispute his decision by legal means.
21.6. Participants of general average shall compensate contributions on
the basis of the general average statement within ten days since it comes