As global shipping faces increasing challenges from geopolitical instability and piracy, the concept of general average has become more critical than ever.
This sentiment was a key focus at the 2024 annual dinner of the Association of Average Adjusters (AAA) in London, where industry leaders in marine insurance and law stressed the importance of sharing costs from maritime incidents and the vital role of independent average adjusters in navigating these complexities.
Nick Austin, a shipping partner at Reed Smith LLP, emphasised the ongoing importance of general average in managing marine accidents. He noted its roots in English contract law dating back to the 15th century and Roman law.
“General average has never been more relevant. The constantly shifting sands of geopolitics means that shipping is once again in the crosshairs, not just in the Red Sea but in a variety of places where piracy and other risks to shipping have proliferated…and accidents will happen,” Austin said, referencing recent incidents like the March 2024 containership collision in Baltimore.
He also mentioned advancements in shipping safety and technology while stressing the continued importance of seaworthiness and vessel maintenance.
“Our established and reliable systems of maritime law and international liability regimes support and enforce these basic requirements of the maritime industry, applied and upheld, as I know it is, by the best lawyers and the best judges the world has to offer. And all of this is inextricably linked with General Average–long may that remain the case,” Austin said.
The event saw over 225 members from the UK, North America, and Asia. Ann Waite was also elected as the chair of the association for 2024-25, becoming the first woman to hold the position in the Association’s long history. The announcement was made at the Association’s 156th conference at the Lloyd’s Old Library.
The dinner’s top table included other notable figures such as Nick Shaw, CEO of the International Group of P&I Clubs; Kiran Khosla, principal legal director of the International Chamber of Shipping; and several past and present chairpersons and honorary fellows of the AAA.
