Everyone’s in the same boat – Pirates and the law of General Average | Case by Case (Ep. 7)

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This episode responds to our first request. Inspired by recent events in the Suez, we are taking a look at the law of General Average.

The case is a fascinating one. In January 2009, Pirates boarded the LONGCHAMP in the Gulf of Aden. They demanded a ransom of USD6m. That was negotiated down to USD1.85 over a period of 51 days. The ransom and the negotiator’s fees fell squarely within General Average. But what about the Vessel’s operating expenses for the 51 day period of negotiations?

Luke and Calum discuss the result (with a little disagreement between themselves!) but additionally look to the wider application on the law of General Average, and what parties can do when facing a General Average claim.