Average Bond

An Average Bond is a signed document given by cargo receivers stating that they will pay the carrier the average general contributions for their goods.

What is Average Bond ?
An Average Bond is a bond between a consignee and cargo carrier wherein the consignee agrees to pay any chargeable general average for their goods. This bond gives the carrier the right to take part of the cargo as payment from the cargo owners if a general average loss occurs during the transport. Alternatively, the cargo owner can take out an average bond with insurers who agree to pay for any loss instead of losing cargo. 

Related Terms