Interlegal lawyers settled the dispute upon general average and released the cargo

On 22.02.2023 a fire on board caused the vessel malfunction. Two tugboats were engaged to tow the vessel in a faulty condition to Riga. The Shipowners declared General Average and appointed Average Adjuster to regulate relations between the parties to sea transportation.

Our Client, as owner of the cargo transported on board of m/v Escape, at the Average Adjuster’s request had to pay General Average and Salvage Insurance in the amount of 30% of the cargo, freight and container cost. Please note that without such provision the Average Adjuster retained our Client’s cargo.

Since the cargo was not insured and the Client actually had to pay these funds, 30% of security did not suit our Client at all.

Interlegal lawyers joined negotiations with the Average Adjuster. Our law team conducted a systematic analysis of international acts, general practice for fixing remuneration of rescuers and the General Average deposit, as well as studied General Average specifications on board of m/v Escape. We developed a reasoned position in the negotiations, being later supported by the Average Adjuster.

Following several rounds of negotiations, the security amount was reduced from 30% to 13.5% and our Client was able to receive its cargo.

With Interlegal assistance, the Client could save nearly 80 thousand USD and to receive its cargo without problems.

Interlegal lawyers Nikita Kocherba and Olesya Ivanova, managed by partner Nikolay Melnykov, led the case.

General average is a very complex institution in maritime law, which requires for special skills and experience, while 26 years of Interlegal experience provide an opportunity to help our clients in such complex situations.