Calculate general average contribution for the parties

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Reference no: EM133335717

Assignment:

In March of 2008, the M/V MSC Sabrina ran aground in the St. Lawrence River near Trois-Rivières, Quebec, Canada. Tugboats made initial attempts to free the vessel, but they were ultimately unsuccessful as the 243-meter container ship had become stuck in two feet of clay.

In order to rescue the ship and her US$175M worth of cargo, a plan was prepared by Mediterranean Shipping Company to lighten the load and free the M/V MSC Sabrina from the clay. However, before the plan could be put into action, it would need to be submitted and approved by Transport Canada and the Canadian Coast Guard. The entire process left the ship stranded in the St. Lawrence River for a total of one month.

The Rescue Plan

M/V MSC Jasmine arrives on the scene with its own onboard cranes to unload approximately 400 containers in an attempt to lighten the M/V MSC Sabrina and refloat her. (Total of 2700 containers onboard)
The M/V MSC Jasmine unloads cargo from the M/V MSC Sabrina through the night.
Wait for high tides and freshnets to come in the river to aide in the re-floating process.
The M/V Ocean Delta and four other tugboats pull the M/V MSC Sabrina free from the mud.

The rescue plan from Mediterranean Shipping Company was a complete success with the safe recovery of the M/V MSC Sabrina and all of her cargo. The ship finally reached its port of destination on April 4, 2008

Based on the above situation, please answer the following:

Calculate General Average contribution for the parties with financial interest in the voyage of M/V MSC Sabrina using the following information also,

MSC Sabrina values US$600M
MSC Jasmine values US$350M
Freight US$7500 per container
Rescue operation costs US$73M for the M/V MSC Jasmine and US$67M for the tugboats. (including M/V Ocean Delta)
Agency Fees - US$40K
Average Adjuster charge - US$80K

2. Is this rescue admissible under General Average and why?

Reference no: EM133335717

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