The Law of General Average: Possible Consequences of a Resurgence of Acts of Piracy

Abstract

With the recent increase in acts of piracy at sea, general average acts have been brought back into focus when coupled with the resurgent risk of ocean shipping. These changing conditions have the potential to result in a lessening of general risk coverage, increased costs, or both. In some cases, piracy risks might even be deemed unacceptably high, resulting in a change in shipping routes and policies, which could negatively impact shipping costs and even service availability. As global commerce continues to increase, so do ocean carriage and the possibility of increased risk of loss or increased shipping costs due to increases in insurance premiums. Changes in the need for different types of coverage, or changes in shipping routes are very real.