PIRACY !

in the 21st Century

The face of modern piracy

Source: IMB Piracy Reporting Centre website

Pirate activity in 2011 up to 1st July 2011

It’s not just Somalia…. but…

Vessel: “IRENE SL”Country: GREECESize: 319,247 DWTCargo: Crude Oil

Cargo value: $200,000,000

Hijacked: 9th Feb 2011

Released: 8th April 2011

Alleged ransom: $13,500,000

Vessel: “SINAR KUDUS”Country: INDONESIA

Cargo: 8,300 TONS FERRO-NICKEL

Value: $225,000,000

Hijacked: 16th March 2011Initial demand: $3,500,000

Revised demand $9,500,000Vessel released 1st May 2011

Alleged ransom $4,500,000

A couple of recent examples …

Owner intially refused to negotiate

Many goods that we take for granted have arrived by sea

….often through pirate-infested waters

Pirates can be very polite …..

…but the message is still chilling …..

…”piracy” has numerous definitions …..

What is piracy ?

Violence on the high seas beyond any state’s 12 nautical mile maritime territory

The International Maritime Bureau (IMB)

Any act of boarding where attempting to board any ship with intent to commit theft or any other crime and with the intent or capacity to use force in the furtherance of that act

Does it matter how many of them there are ?11 pirates are fine, ....

Does it matter what weapons they carry ?

RPGs are deemed to be “weapons of war”

Piracy or ….Terrorism ?

Does the motive matter ?

…. but 12 ? … = RIOT !

“I’m a freedom fighter”

“I’m a soldier”

“I am a hijacker !”

United Nations Convention of Law the Sea (UNCLOS)?

?

Swords, machetes, pistols are traditional pirate weapons, but ….

…..Types of vessel hijacked in 2010 ?

Source: Control Risks

HIJACKINGS ALONE

22% success rate

3%

3%3%

3%3% 3%

6%

9%

14% 23%

30%

General Cargo

Chemical tanker

Bulk Carrier

Product Tanker

Ro-Ro

Container

LPG tanker

Tanker (other)

VLCC

Yacht

Passenger

…..The ransom amounts are getting more ambitious

Source: Control Risks

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

2005-2007 2008 2009 2010

Somali pirate average US$ demandsSource: Control Risks

Average US$ ransoms paid

…..The payments are getting bigger

Ransom demands

.. WHO pays the cost of all this ?

CharterpartyCharterpartyShipowners can get charterers to contribute

Charterers pass those costs on to buyers of the goods

..who in turn ….

SEND IN THE NAVY !

The navies of the world CANNOT patrol 2,000,000 square miles of ocean ?

This problem will never be sorted out at sea

…even if they do have a few successes….

The pirates are increasingly sophisticated, using more powerful weapons and targeting specific vessel types

As matters stand, it will only get worse

Piracy is just one of the many marine issues and subjects that Steve Harris provides lecture courses and training on, around the world.

Contact him (e-mail link on the website), to find out more

Does your insurance provide adequate cover ?