In the largest penalty the International Tribunal for the Law of the Sea (ITLOS) has ever levied, a Special Chamber ruled unanimously against Equatorial Guinea on May 27, 2026, ordering it to pay over €14 million in damages to the Republic of the Marshall Islands for the unlawful seizure of a commercial tanker and detention of its multinational crew. The ruling in the M/T Heroic Idun (No. 2) case represents a watershed moment for international maritime law, delivering a forceful reaffirmation of freedom of navigation.
Large-scale Maritime Seizure
M/T Heroic Idun, a very large crude carrier flying the flag of the Marshall Islands and under charter, arrived near Nigeria’s Akpo Offshore Terminal in August 2022 to load crude oil. When the requisite loading authorizations were not yet in place, the master moved to a waiting position while charterers arranged for the paperwork.
On the evening of August 8, 2022, the vessel was approached by a small craft whose automatic identification system (AIS) was switched off – a classic warning sign of pirate activity in the notoriously dangerous Gulf of Guinea. Fearing an attack, the master declined to follow the craft’s instructions and moved further offshore. The vessel subsequently drifted into the exclusive economic zone (EEZ) of São Tomé and Príncipe while awaiting clearances.
It later transpired that the unidentified craft was NNS Gongola, a Nigerian navy vessel. On August 10, 2022, Nigerian authorities sent WhatsApp messages and a diplomatic note to Equatorial Guinea asserting a suspicion that the Heroic Idun had attempted to load crude oil without approval and had raised a “false piracy alarm” to evade interception. Nigeria requested that Equatorial Guinea “track and arrest the vessel and hand them (both vessel and crew) over to the Nigerian Government.”
Two days later, the Equatoguinean naval vessel Capitán David intercepted the Heroic Idun – not in Equatorial Guinea’s own waters, but in the EEZ of São Tomé and Príncipe, a third country. The warship threatened the use of force, including announcing that it had “orders to shoot,” and compelled the tanker to divert to Luba Freeport on Bioko Island.
Nine Months of Unlawful Captivity
The vessel and its 26-person crew – comprising mostly Indian and Sri Lankan nationals – were detained in Equatorial Guinea for 92 days. In addition, the master was fined €2,000,132 by the Equatoguinean Ministry of National Defense for alleged violations of domestic merchant marine law, including sailing without authorization in Equatorial Guinea’s EEZ.
Even after the shipowners paid the fine in full, which the Mashall Islands claimed had no legitimate basis, the vessel and crew were not released. On November 11, 2022, they were forcibly transferred to Nigeria, where they endured further detention until May 27, 2023, when a plea bargain agreement was finally reached and the crew was released. In total, the innocent seafarers were held captive for approximately nine months.
The Chamber’s Ruling
The Special Chamber, presided over by Judge Albert Hoffmann of South Africa, ruled unanimously against Equatorial Guinea on all counts. The judgment methodically dismantled each of the respondent’s defenses.
First, the Chamber held that Equatorial Guinea’s interception of the vessel in São Tomé and Príncipe’s EEZ – including threatening force and compelling a change of course – constituted a clear breach of freedom of navigation under Articles 87(1), 90, and 92(1) of the United Nations Convention on the Law of the Sea (UNCLOS).
Second, the Chamber rejected Equatorial Guinea’s claim that its actions were justified under regional anti-piracy cooperation arrangements. The tribunal clarified that while states have a duty to cooperate in repressing piracy under Article 100 of UNCLOS, this duty “does not provide an autonomous basis for seizure.” Any enforcement action must conform strictly to the specific conditions in Articles 101 to 107, read with Article 110. A coastal state cannot rely on a generalized duty of cooperation to board, seize, or divert a foreign vessel without satisfying those requirements.
Third, the Chamber found that Equatorial Guinea’s domestic laws provided no valid basis for the fines imposed. International law does not permit a state to fine a foreign vessel simply for transiting its EEZ or for not flying a physical flag – provisions that are flatly inconsistent with UNCLOS.
Record-breaking Damages
The tribunal ordered Equatorial Guinea to pay €2,000,132 (approximately $2.3 million) representing the illegally imposed fine, plus more than $12 million in additional damages. This included $5.9 million for loss of hire during the vessel’s detention and just under $4.2 million specifically directed to the 26 crew members for non-material damages arising from their mistreatment. The total award of over €14 million represents the highest damages award in ITLOS history.
We at Reed Smith think the implications of this ruling are especially important today for the maritime industry.
Reaffirmation of Exclusive Flag State Jurisdiction & Freedom of Navigation
This ruling stands as a powerful reaffirmation of two bedrock principles of international maritime law. Under UNCLOS, a vessel flying a nation’s flag is under that state’s exclusive jurisdiction while on the high seas or in an EEZ. Physical interference with a foreign-flagged vessel – including compelling a change of course under threat of force – violates freedom of navigation unless justified by specific provisions of the Convention or other international treaties. The Chamber’s ruling sends a clear message that these principles have real, enforceable teeth in international courts, even when the flag state is a small nation operating an open registry.
Limits on Anti-Piracy Enforcement Powers
The judgment imposes clear limits on states’ anti-piracy enforcement powers. Regional cooperation arrangements such as the Yaoundé Code, which seeks to operationalize anti-piracy cooperation in Central and West Africa, cannot confer powers beyond those contained in UNCLOS itself. A state cannot simply invoke “cooperation against piracy” as a blanket justification for seizing foreign vessels without proper grounds. The duty to cooperate does not create autonomous enforcement powers – states must still satisfy the specific conditions set forth in UNCLOS before taking action against suspected pirates.
Crew Protection and State Responsibility
The ruling sets important precedent for crew protection. International tribunals have long established that a ship, its crew, and its owners form an indivisible legal unit under the flag state’s protection. The Chamber confirmed that the rights of the flag state under UNCLOS extend beyond the vessel itself and encompass the protection of all those serving on board, regardless of their nationality. Critically, the Chamber held that the exhaustion of local remedies requirement does not apply where individuals are present in a state’s territory solely because of that state’s unlawful conduct. A state cannot create jurisdiction over foreign nationals through its own illegal actions and then demand they exhaust local remedies before seeking international recourse.
Significance for Future Maritime Disputes
The record-breaking damages award signals that international maritime law has real financial consequences. While incidents of this precise nature may be relatively rare, this case serves as valuable precedent and powerful messaging for the entire industry. The innovative approach taken by the legal team – submitting detailed, evidence-backed damages calculations rather than seeking nominal fines – enabled the tribunal to issue a far more substantial judgment and may serve as a template for future claimants.
The precedent may prove particularly relevant given current tensions in maritime chokepoints. With periodic blockades and vessel seizures around the Strait of Hormuz continuing to make headlines, flag states and shipowners now have a clear roadmap for pursuing substantial claims when their vessels and crews are unlawfully detained. The case demonstrates that when states take action under UNCLOS, the rule of law is upheld – and that the rights of those involved in maritime commerce carry meaningful financial consequences.
For shipowners, charterers, and flag states, the message is clear: pursue claims when vessels and crews are improperly treated. Recovery is possible – and in this case, substantial.
About the Author: Richard M. Gunn is a London-based Reed Smith partner advising shipping clients on casualty and admiralty matters, including collisions, salvage, wreck removal and charterparty disputes. [email protected]
About the Author: Julia Cyrson is a London-based Reed Smith associate in the Transportation Industry Group, advising clubs, owners and charterers on shipping disputes, litigation and arbitration matters. [email protected]
