The principle of General Average has a rich history and is interlinked with the development of maritime trade itself. Its origins can be traced back to the Rhodian Sea Law, a codified body of commercial regulations credited to the ancient Greek island of Rhodes (flourished 1100โc. 750 BCE). This law established the foundational concept: when a ship’s captain deliberately sacrifices a portion of the cargo (jettison) to save the vessel and remaining cargo during a perilous situation, the loss is shared proportionally by all stakeholders in the sea voyage.
The Rhodian Law’s influence extended throughout the Mediterranean, forming the basis for maritime codes adopted by subsequent civilizations like Rome. As international maritime trade flourished during the Middle Ages, general average practices continued to evolve through custom and precedent, documented in various regional maritime codes. These codes addressed situations beyond jettison, encompassing other voluntary sacrifices made for the common good, such as cutting away masts or incurring extraordinary expenses to refloat a grounded vessel.
The second half of the 19th century saw a challenge with the general average. While the concept of shared sacrifice for the common good on sea voyages (mutual benefit and common security) existed, how losses, expenses, and contribution calculations were handled differed greatly by country. This lack of standardization created confusion and potential unfairness. To address this, the York-Antwerp Rules (YAR) emerged in 1877, aiming to unify calculations and procedures across the board.
