The legal situation and practical application of the general average
Katarzyna Sulewska
2014
Bulletin of Maritime Institute
The aim of this article is to discuss issues related to average adjustment proceedings, the status of the average adjuster in the national legal order, to discuss the generally accepted principles of general average settlement and to demonstrate the usefulness of these institutions in modern commercial shipping. Introductory remarks The institution of general average, and its usefulness and relevance to modern shipping (beginning in the nineteenth century) is regularly subjected to harsh
more »
... sm in the doctrine, professional journals and at international conferences. Opponents of general average suggest that today, in the era of expanded insurance coverage, general average has lost its economic importance, and that it has not adapted to the needs of modern commercial shipping. Proponents point to the social and psychological aspect, the power of tradition and the widespread, almost unanimous acceptance of the rules in maritime commerce by incorporating a declaration of general average in charter contracts, bills of lading and insurance policies. The social and psychological aspect is a very strong argument in favour of general average. The risks associated with commercial shipping such as maritime terrorism and piracy has taken its toll and shaped the institutions of maritime law (including general average ). 1 In international debate, general average has as many supporters as opponents. It does not appear that this institution of maritime law existing for such a long time and which has created the existence of the professional group known as average adjusters will be forgotten any time soon. 1 Prawo morskie pod redakcją J. Łopuski, Vol. 1, part 1 Wstęp do teorii współczesnego prawa morskiego, Oficyna Wydawnicza Branta, page 37. 2 The opinion of the European economic and social committee in a white paper regarding a review of Regulation 4056/86 on the application of EC competition rules to maritime transport, Journal of Laws of the European Union C 157/130 dated 28.6.2005 in point 1.6 gives the basic characteristics of tramp shipping. These characteristics can be summarised in ten key points. 1) competitive global markets, 2) an almost perfect competition model, 3) creation of diverse market segments to meet the needs of customers, 4) unstable and unpredictable demand, 5) the presence of many small businesses, 6) the presence of many small businesses, 7) trends corresponding to world trade patterns, 8) ease of entry and exit from the market, 9), cost-effectiveness, 10) responding to the development of new markets and the needs of carriers. In the document, EESC tramp shipping is compared to sea taxis and it is shown that the tramp sector is considered to be one of the very rare examples of perfect competition worldwide. The Council Regulation (EEC) No 4056/86 of 22 December 1986 laying down detailed rules for the application of article 85 and 86 of the Treaty to maritime transport, for the purposes of this Regulation tramp services are defined as the transport of goods in bulk or in holds (break -bulk) by a vessel chartered wholly or partly to one or more shippers on the basis of charter contracts for a time or a journey, or other types of contracts for irregular and non-notified journeys, in the case of which freight rates are in any case freely negotiated in accordance with the conditions of supply and demand.
doi:10.5604/12307424.1134375
fatcat:h3shy6holfgc3ggljs7xenm7ca