After the most recent edition of the YAR of 2004 has considerably failed to receive acceptance in the market, resulting with the remaining applicability of the 1994er Rules in most charter-parties and bills of lading, a new edition of the Rules was accepted in May by the CMI during its annual assembly in New York.
While the “second instance”, the BIMCO, will eventually decide on introducing the new set of rules in their form contracts for charter-parties, participants from all sides of the maritime community have the chance to familiarize themselves with the main changes, inter alia the issue of temporary repairs and expenses, mainly wages, in the port of refuge, (re-) allowance of salvage payments as a contribution in limited circumstances, a shorter time-bar once the general average award has been granted, a lower interest rate, treatment of cash deposits and rules which enable the adjusters to accelerate the adjustment process.
Apparently this time, unlike the fate of the 2004 version, BIMCO has already expressed their intention to support this new version of the rules.
As opposed to an international convention, the York – Antwerp Rules as a set of privately agreed terms and conditions, can be introduced very quickly in the market, acceptance provided, and looking back on their long history, they are one of the most successful terms of the industry. Despite all discussions on the necessity and temporality of this ancient legal institute, it appears, that General Average, mostly regulated by the YAR in one or another version, will hold its fort in the shipping world.
Providing assistance in General Average cases, like arranging the security for our clients, negotiation with average adjusters and shipowners to reduce contribution in General Average alongside with recovery proceedings have always been a key competence of our team.
If you or your insured are being served with a General Average declaration and corresponding requests for security, please contact us instantly, so that the timely and safe release of your cargo can be guaranteed.