York Antwerp Rules
Candlefocus EditorThe York Antwerp Rules are important in that they take into account the fact that in some circumstances, it can be necessary for a vessel to intentionally jettison or discard cargo in order to save the rest of its cargo from damage or to protect the ship itself from sinking. The Rules provide the agreed-upon legal and practical approach in situations where the cargo is sacrificed to salvage the rest of the cargo on board or to save the ship itself.
The fundamental concept of general average is that when a ship or its cargo, or both, suffer damage which clearly detracts from the common interests of all the involved parties, the loss must be shared in exact proportion to the respective interests of all parties, including the shipowner, shipper, and other cargo interests.
The York Antwerp Rules came into effect in 1890, originally at the initiative of the Institute of Average Adjusters of New York and the Society of Average Adjusters at Antwerp. The Rules have been updated a few times since then, with their ninth edition, the "York-Antwerp Rules of 1994," now considered the industry standard. The most recent edition of the Rules, published in 2016, is the York-Antwerp Rules (YAR) 2016.
The York Antwerp Rules represent a codification of the rights and responsibilities of shipping lines and shippers. The Rules set out the procedures for valuing cargo and the distribution of liability amongst different types of parties, such as ship owners, charterers, and cargo interests. The Rules also provide for the basis on which costs (including salvage, wreck removal, and dispute resolution costs) are calculated, along with the limits of liability, in situations where jettisoned cargo is necessary and proper.
The York Antwerp Rules are an important and necessary part of the maritime industry. The Rules provide a framework which allows fair distribution of losses without the cost and delay of lengthy legal cases and aim to promote cooperation and resolution among the different types of interests involved in an incident. By taking into account the equitable balance between all the related parties, including ship owners, operators, and cargo interests, the York Antwerp Rules ensure that fairness and justice is maintained in sea-borne trade.