Question

A ship valued at $1,337,500 is carrying a cargo of iron ore valued at $125,000, and a cargo of coal valued at $100,000. The ship is stranded and the captain jettisons what is later determined to be $12,500 worth of iron ore. The stranded ship is towed to port, receives a bill from the tug company of $56,250 and is determined to have suffered $71,875 worth of damage to the ship. The captain declares a general average.
How much liability will the company shipping the coal have?

Answer 1

Answer:

$9,000

Explanation:

Calculation for How much liability will the company shipping the coal have

First step is to calculate the The ratio of losses to combined value of cargo and ship

Ratio of losses to combined value of cargo and ship=$12,500/$1,337,500+$56,250/$56,250+$71,875/$100,000

Ratio of losses to combined value of cargo and ship=.09

Now let calculate How much liability will the company shipping the coal have

Liabiltiy=$100,000*.09

Liabiltiy=$9,000

Therefore How much liability will the company shipping the coal have is $9,000