On General Average Legal Characteristics Of Pirate Ransom

In recent years, rampant piracy and pirates hijacking events have become an important factor of the threat to international maritime safety. The pirates’ main purpose is to the ransom. Responding to the call of the United Nations, dozens of countries, including China, send warships to the Gulf of Aden and waters off Somalia to escort the ships. However, from news reports, we can see that the pirates still hijack the ships frequently. In fact, the majority of robbery against ships eventually resolved by paying the ransom to the pirates. Due to the disagreement of the legal characteristics of the pirate ransom in international legal field, the ship companies, cargo companies and insurance companies always dispute about the legal characteristics of the pirate ransom.However, neither in York-Antwerp Rules, nor in Beijing Adjustment Rules the pirate ransom is included in the scope of general average adjustment. Only British insurance market recognizes the legitimacy of the pirate ransom as a general average. People’s Republic of China Maritime Law set out a separate section for general average, but the pirate ransom were not included in general average, and the pirate ransom did not be involved at all.Ship companies pay the pirate ransom in line with the elements of the general average. Pirate ransom as a general average and be apportioned between the ship and cargo in a reasonable way, dispersed the perils of the ocean shipping, in line with the value of general average system. If the pirate ransom as general average, shipowners and cargo owners can shift the risk through insurance. Bear pirate ransom of claims for insurers, in the form of a general average, and avoid total loss of ship and cargo claims, relatively speaking, for insurance company, is the better choice. Although some countries have disputed the legality of acts of piracy ransom is paid, but in practice, for the protection of citizens’ lives, and in the case of no other effective way to curb the crime of piracy, a number of governments connive the ship companies pay the ransom. Some countries which own developed ocean shipping and long history of maritime law, such as the United States, Germany, the Netherlands, have taken the lead through judicial precedent or legislative recognition of the general average characteristics of the pirate ransom, their experience is worth China’s judiciary for reference. This article deems pirate ransom has the legal attributes of general average, pirate ransom as a general average be shared in a reasonable way, in line with the interests of the shipowners and cargo owners, could be the optimal choice of insurers. Facing from the environmental analysis of international shipping industry, in the next period of time, the facts that the shipowners paying pirates ransom to save the ship and cargo will continue exist. China’s law should unify their understanding, clear the general average legal characteristics of pirate ransom as soon as possible, to provide the appropriate legal support for the division of responsibility of the pirate ransom.