What happens if a ship throws part of its cargo overboard during a storm?

When a ship throws part of its cargo overboard during a storm as a necessary measure to save the vessel and the remaining cargo, this action is classified under the principle of general average. General average is a maritime law principle that allows for the apportionment of losses incurred to save the ship and its remaining cargo.

When a situation arises that necessitates sacrificing part of the cargo to protect the integrity and safety of the ship and other cargo, all parties involved—including the owners of the cargo that was sacrificed—share the costs or losses proportionally. This means that the lenders or other stakeholders who have financial interests in the remaining cargo are responsible for contributing to the loss caused by the decision to throw the cargo overboard.

This principle is fundamentally designed to ensure fairness and equitable treatment among all parties involved during maritime incidents, mitigating the financial burden on those who directly suffered losses while ensuring that all benefitted collectively from the aversion of disaster.