March 19, 2018 – As a result of the fire that broke out March 6 on the Maersk Honam, a 15,262-TEU vessel en route from Singapore to the Suez Canal, general average has been declared for the vessel.

Maersk declared general average (GA) on March 9, and appointed Liverpool-based average adjuster Richards Hogg Lindley to collect the necessary GA security. Maersk confirms that cargo owners have been advised, including 2M partner MSC, of its decision to declare GA.

Canaan Transport’s affected customers have also been personally contacted and we have requested that insurance companies be contacted as well so that cargo can be released without delay.

General average is a process whereby the parties whose interests have been sacrificed or who have incurred extra expense are recompensed by the contribution of those whose interests have been saved. Any standard marine policy will include GA losses, so if the goods have been insured, the importer should obtain a GA guarantee from the insurers. If no insurance has been organized, then a cash deposit will be needed.

Upon receiving notification that a GA has been declared for a vessel, Canaan Transport is responsible to give immediate notice to the shipper and consignee. The appointed average adjusters will need to be in possession of completed guarantees and bond forms or cash deposit before release of cargo, so it is vital that the all parties takes immediate action. Please see Clause 15 on our limitation of liability.