Grounding in US Gulf Port

The subject vessel was a large bulk carrier with nine holds and with the bridge,
engine room, and accommodation aft. She was let on a time charter and was
carrying a cargo of wheat, loaded in all holds, from the U.S. Gulf to Europe. The
general average adjustment in this case was made according to the “York-Antwerp
Rules, 1974”.
Day 1
The vessel sailed from the load port during the morning and proceeded
downstream under the Master’s orders and the pilot’s advice. At 1626 hours, the
vessel touched bottom. The various attempts to free her using the helm and
engines failed. With the assistance of the pilot boat, it was established that the
vessel was aground 200 feet to the west of the channel, resting on a bottom of soft
mud and silt. It was also established that two channel buoys used to position the
vessel were 300 feet west of their charted location. It was calculated that the
vessel was 17,000MT aground.
Owners retained a local Salvage Master and tugs to try and free the vessel.
Days 2-4
Three attempts to free the vessel using up to eight tugs failed. The owners
terminated the services of the local Salvage Master.
Days 5-13
During this period, a local firm was contracted to remove a portion of the cargo
with vacuvators into a lightning vessel, chartered by the owners. Due to the poor
performance of the vacuvators and a dispute over the employment of stevedores,
this method was abandoned. The small amount of cargo discharged was reloaded.
An international salvage company was then retained to take charge of the operation
on the basis of cost plus fifteen percent. A program was planned to dredge a
channel from the bow of the vessel to the main navigational channel and also to
create a channel along the port side of the vessel. Additional dredging was
proposed around the ship’s side to break the suction imposed by the mud.
Days 14-20
The dredging operations were commenced and completed.
Day 21
Five tugs were engaged to pull the vessel into the dredged channel and into the
main channel. The attempt failed as the ground reaction was too great to allow the
vessel to float free.
Days 22 -27 
All the interested parties agreed that the best course of action was to
Discharge 1 7,000 MT of cargo to enable the vessel to refloat. A crane barge and two
Cargo barges were located, inspected, and brought to the vessel

Days 28 -36 
The discharge of the cargo into approved barges began The parties decided to
load both barges while the weather was fine rather than risk a twenty-four hour
delay in a refloating attempt in which time the weather may have deteriorated
 
Day 37 
A total of 15,000 MT of cargo was discharged Four tugs were engaged, and the
vessel was successfully refloated
 
Days 38 43
The vessel berthed at the nearest facility which could accommodate her for
reloading of the discharged cargo Extensive survey work was undertaken to ensure
that no damage had occurred to the hull, machinery, or cargo during the grounding.
After bunkering, the vessel sailed for her original destination
The following parties were involved in this particular salvage operation:

Owners' representatives and Master - from owners' staff 

Salvage Association representative - hull and machinery underwriters
Salvage Association representative - loss of hire underwriters
Independent surveyor to represent general average interests
Independent surveyor - cargo underwriters
Salvage Master - owners' consultant
Class surveyor - vessel's classification society
Ship's agent - local co-ordination and representation
Contractors representatives - various firms involved throughout operation
Local state officials - environment interests
The expenditure allowed in the general average adjustment included the following

• Cost of pilotage /towage and launch service

• Salvage Master's fees and expenses
• Cost of helicopter services and local transportation
• Hire of vacuvators/equipment and labour
• Charter expenses for lightering vessel
• Insurance premiums for all stages of the operation (cargo, vacuvators, disbursements, and other vessels)
• Hire of dredging equipment
• Agent s fees and expenses
• Expenses incurred obtaining permits and clearance from the local authorities
• Owners , surveyors' and representatives fees and expenses
• Salvage company s fees and expenses
• Hire of floating barges and equipment
• Port charges incurred during reloading operation
• Stevedores fees as per union rules
• Cost of underwater survey and diver services
• Legal fees and expenses incurred during negotiations with stevedores
• Wages and provisions of Master, officers and crew
• Cost of fuel, diesel oil, water, and stores used by vessel during efforts to refloat
• Allowance for cargo lost during handling
• Cost of valuation of the vessel
• Payment to owners for assistance in assembling documents and accounts
• Cost of adjustment, printing, and miscellaneous expenses, and
• Cost of salvors' mark up on direct expense (15%)
• What is general average?
• The main principles of general average are contained in the York Antwerp Rules 1994 The
Rules define a general average act as follows
• There is a general average act when and only when any extraordinary sacrifice or expenditure
is intentionally and reasonably made or incurred for the common safety for the
purpose of preserving from peril the property involved in a common maritime adventure

if a vessel runs aground in a dangerous position, the following items would make up

the general average loss

• Cost of tugs to refloat the vessel, including the value of any salvage award
• Cost of running ship s engines and other equipment to assist refloating
• Cost of discharging cargo into lighters and the cost of reloading
• Cost of pollution removal if cargo has been jettisoned and the value of the lost cargo
• Stores consumed and wages paid to crew during the general average incident
Who are the interested parties ?

• Ship owner
• Owner’s interest in the venture is determined by the current value of the vessel at
the termination of the venture. Time charter hire is normally excluded
from owners total interest but may be included depending on the terms of the
charter. In voyage charters, the amount of bunkers onboard would be included in
the ship owners valuation
• time charterer
• Time charterer’s interest in the venture is determined by the value of bunkers
remaining onboard at the time of the incident, plus the freight at risk on
the voyage

• cargo owner
• Cargo owner’s interest is determined by the sound market value of the cargo on
the last day of discharge
 When is general average declared?
The declaration is normally made by the ship owner but in
certain countries anyone of the interested parties may initiate
an adjustment.
 A declaration must be made before the delivery of the cargo.
 Ship owners usually will allow delivery of the cargo when the
other interested parties to the venture provide
suitable security sufficient to cover their contribution
The Master's role
The Master must be prepared to assume the widest possible role in solving all the problems created by an
incident if there is an urgent need to do so and assistance is not readily available 

• Apart from good seamanship and reasonable judgement, the Master must ensure

that the history of the incident is recorded accurately and fully
• The record should include details of all actions taken by the various parties involved and
include their names and organizations 
• If possible, the Master should ensure that a photographic record of the events is made
•  The Master s evidence will be crucial as it is usual for a year or more to elapse between the
incident and issue of the Statement of General Average
• If salvage services are involved the Master should ensure that a full record is made
of the salvor’ s actions and the equipment used. This evidence together with
an assessment of the dangers involved will determine the level of the salvage.
• In most cases of general average the main evidence for the adjustment is obtained from the
various survey reports The Master should ensure that a clear and accurate account
of events is given to surveyors 
• The survey reports will be supported by witness statements and the vessel s records.
•  When draft surveys and other calculations are being performed it is advisable for
the Master to ensure that a responsible officer is on hand to guide and assist the surveyor