AVERAGE ADJUSTMENT

A B C D E F G H I J L M N O P Q R S T U V W Y Z
AVERAGE ADJUSTMENT — A document prepared by an average adjuster that calculates the apportionment of general average expenses among the ship, cargo, and freight. The location and procedure for its preparation are specified in the bill of lading. The adjustment outlines the justification for declaring a general average, calculates the general and particular average, determines the contributory values of the property involved, and computes the contributory dividend, concluding with a final balance. Preparing complex adjustments can take years and incur significant costs, which are distributed proportionally among the interested parties. The adjustment may be challenged in court within established time limits.