GlossaryEN1 min readUpdated: Jun 26, 2026

General Average Bond

Cargo interests and shipowners rely on the General Average Bond to secure the release of goods after a general average act, before the final cost apportionment has been calculated.

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Last updated: 26 June 2026Published: 27 January 2026

Source: https://www.britannica.com/topic/general-average

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Logistics concept

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1 min

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140

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Definition & Explanation

Cargo interests and shipowners rely on the General Average Bond to secure the release of goods after a general average act, before the final cost apportionment has been calculated. The bond is a written undertaking by the cargo owner or their insurer to pay the cargo's proportionate share of general average expenditure once determined by the average adjuster. It comes into play when an extraordinary peril – engine failure, grounding, fire on board – forces the master to take measures for the common safety of ship and cargo, triggering shared liability among all parties with a financial interest in the voyage. Without a GA Bond or an equivalent cash deposit (GA Deposit), the shipowner may lawfully withhold delivery of the cargo. In practice, the cargo insurer typically furnishes the bond; adjustment of the average can take months or even years.