DANUBE RULES
ON GENERAL AVERAGE
1990


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.

Rule 1
General Provisions
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.

Rule 2
Compensation Expenses
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.

Rule 3
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.

Rule 4
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.

Rule 5
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.

Rule 6
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 danger.
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.

Rule 7
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 shall include:
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 of operation.
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.

Rule 8
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 other ports.
8.6. If a ship leaves the port of refuge independently the relevant expenses shall not be compensated.

Rule 9
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.

Rule 10
Voluntary Stranding and Scuttling
Damage caused to a ship of / and cargo by intentional running aground or scuttling shall be considered as general average.

Rule 11
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.

Rule 12
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.

Rule 13
Convoy
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.

Rule 14
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 as follows:
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 of sale.
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.

Rule 15
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 the cargo.
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 he compensated.
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.

Rule 16
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.

Rule 17
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.

Rule 18
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 average.

Rule 19
Contributory Value
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 cargo.

Rule 20
Cash Deposits
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.

Rule 21
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 proved otherwise.
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 into force.