The "LONGCHAMP" – Supreme Court:
Hijacked vessel costs incurred during negotiations fall within Rule
F of the York-Antwerp Rules 1974
Last week, by a 4-1 majority, the Supreme Court reversed the
decision of the Court of Appeal in Mitsui & Co Ltd & Ors v
Beteiligungsgesellschaft LPG Tankerflotte MBH & Co KG &
Anor (2017) holding that vessel-operating expenses incurred in
negotiating a piracy ransom fell within Rule F of the York-Antwerp
Rules 1974 as alternative expenses.
On 29 January 2009, the LPG carrier "LONGCHAMP" was on
a voyage between Norway and Vietnam when she was taken by Somali
pirates and diverted to Eyl, Somalia. In the weeks following
capture, the owners negotiated the ransom demand down from the
initial demand of US$6m to US$1.85m, which was paid around two
months after the ship's capture. To assist in negotiating the
lower ransom, the owners engaged a team that were experienced in
this course of action and, in doing so, incurred an
