In maritime law, what does the principle of general average entail?

The principle of general average in maritime law refers to the concept where all parties involved in a maritime venture—the shipowner, cargo owners, and others—share the costs of losses that are deliberately incurred to save the vessel and its cargo during a maritime incident. This principle is particularly applied when extraordinary sacrifices are made, such as throwing cargo overboard to prevent sinking.

When a peril threatens the ship or cargo, the act of sacrificing part of the cargo in order to ensure the safety of the remaining cargo or the ship itself is seen as a collective issue. Consequently, all cargo owners must contribute to compensate those who have borne the loss. This ensures fairness and equity among the concerned parties because while one cargo owner may suffer an immediate loss, the cost is shared across all involved based on the value of each party's contribution to the voyage.

The other options do not accurately describe this concept. While shared profits or distribution of goods are relevant in commerce, they do not relate to the principle of general average, which fundamentally focuses on shared responsibility for losses incurred in the interest of preserving the voyage as a whole. Individual liability for cargo owners would indicate that each owner faces consequences independently, contrary to the collective nature of the general average principle.