Commercial Maritime Law

1. Obligations and entitlements arising from general average shall make up two groups: debtors and creditors. 2. The debtor group shall include the vessel, freight, and loaded goods, as follows: a) The vessel shall be included at its true value at the port of destination, in addition to the value of the damage it may have sustained. b) The total freight of goods and fares of passengers, which are not stipulated to be payable, shall in all cases be included at the rate of two- thirds. c) The rescued goods shall be included at their true commercial value at the port of discharge, whereas sacrificed goods shall be included at their estimated commercial value at the same port. 3. The creditor group shall include damage and expenses deemed to be general average, to be assessed as follows: a) The amount of damage sustained by a vessel shall be estimated at the port of destination on the basis of incurred repair costs or estimated costs if no such repairs have been made. If a vessel is totally lost or presumed to be totally lost, the amount allowed in general average shall be assessed on the basis of the vessel's value prior to the accident, after deduction of Commercial Maritime Law the estimated cost of repairs which are not deemed to be general average, and the proceeds from the sale of the wreck, if any. b) The cost of damage sustained by the goods shall be estimated at the port of discharge on the basis of the commercial value of the goods prior to the sustained damage at said port. In the event of loss, the cost shall be estimated on the basis of the difference in their value before and after the sustained damage on the last day of discharge at the designated port of destination or on the date of the end of the voyage in case it ends at a port other than the aforementioned port. In case of sale of the damaged goods, the damage allowed in general average shall be estimated on the basis of the difference between the net sale value and the value of the goods prior to the sustained damage on the last day of discharge at the designated port of destination or on the date of the end of the voyage in case it ends at a port other than the aforementioned port.