Hijacked Ship Costs Ruling
In a landmark decision last week, the US Supreme Court upheld an original ruling that ‘General Average’ should apply to costs incurred when ships are hijacked by pirates.
The dispute relates to the vessel ‘Longchamp’, a petroleum gas carrier, that was taken by Somali pirates in January 2009 and released two months later. The case was brought to decide whether the operating costs for the 51 day period of ransom negotiation, was subject to general average.
The original ruling, that general average was applicable, was overturned by the Court of Appeal before the US Supreme Court reinstated it.
General Average (GA) is a maritime law that has been in place since the nineteenth century. A GA act is any extraordinary sacrifice made or incurred in time of peril, that successfully saves the rest of the ships contents. The financial loss of the sacrificed cargo is apportioned between all parties with cargo on board.
GA cases in the past have related more to jettisoned cargo, where freight is offloaded overboard for the purpose of lightening or saving a ship, although these days it is rarely acted upon.
Somali pirates were also responsible for the hijacking of the Maersk Alabama container ship in 2009. The US registered vessel was captured and its captain taken hostage, which inspired the 2013 movie Captain Phillips starring Tom Hanks
UniOcean is a modern ocean freight carrier that integrates directly into our customers supply chains through our sophisticated intelligent One World platform. UniOcean offer more than that of traditional lines, we are a technologically advanced carrier, designed and built for the 21st century. For further information on how our carrier services can leverage your supply chain please email firstname.lastname@example.org.
21st Century Representation
Interested in the many benefits of UniOcean Lines representation? Please complete our online Application Form.
The 21st Century Carrier
Find out how we combine the best of carrier and the best of local services through common goals.
With discussions continuing on Trump and China's interim trade agreements, volume on the transpacific trade has continued to plummet. This year is expected to see the first full year's decline in trade since the global financial crisis after months of disputes and...
PSA Thailand, a wholly-owned subsidiary of the global port operator PSA International, have announced a joint venture to develop and operate the Thai Prosperity container terminal in Bangkok, along with locally based logistics firm SCG. The two companies have formed...
After a period of very dry weather, the region around the Panama Canal has recently received enough rain to enable bigger vessels to travel through it.This year's lack of rainfall had resulted in many reductions in the draft size of vessels permitted through the...