Cargo Owners to Share Losses: Maersk Declares General Average for M/S Dali Bridge Collision

In global trade, unforeseen events can sometimes disrupt the smooth flow of operations. One such incident occurred on March 26, 2024, involving the M/S Dali and its allision with the Francis Scott Key Bridge at Baltimore. As salvage operations continue, recent developments have shed light on the declaration of General Average by the vessel's owners, Maersk Line.

What is General Average?

For those unfamiliar with maritime terminology, General Average is a principle of maritime law that dates back centuries. In essence, it is a legal concept that allows for the equitable sharing of losses incurred during a maritime adventure among all parties involved in the voyage. This means that if sacrifices are made to save a vessel and its cargo from a common peril, all parties with a financial interest in the voyage must contribute to cover the costs of those sacrifices, regardless of whether their cargo was directly affected.

Implications of the M/S Dali Incident

In the case of the M/S Dali incident, the declaration of General Average signifies that the vessel's owners anticipate significant extraordinary costs resulting from the salvage operations. This decision prompts the involvement of General Adjusters, such as Richards Hogg Lindley (RHL) in London, who are tasked with assessing the situation and determining the extent of each party's contribution.

What Does This Mean for Cargo Owners?

For cargo owners whose goods were aboard the M/S Dali, this development carries implications for their shipments. Until security arrangements have been made with the Average Adjusters for both General Average and Salvage, all containers, including those belonging to other shipping companies like MSC, will remain under the control of the General Adjusters.

Next Steps

Cargo owners affected by the M/S Dali incident can expect to be contacted directly by the Adjusters in due course. In the meantime, attached documents such as the General Average Declaration Letter and instructions provide guidance on the necessary steps to be taken. These may include the submission of pro-forma bonds, guarantees, and cash deposits to ensure compliance with General Average requirements.

Conclusion

In times of maritime emergencies, the concept of General Average serves as a vital mechanism for distributing losses fairly among all parties involved. As the situation with the M/S Dali unfolds, affected cargo owners must remain informed and prepared to fulfill their obligations under General Average. Stay tuned for further updates as the salvage operations progress, and let's navigate these challenges together with diligence and cooperation.