PIRACY ! in the 21 st Century

The face of modern piracy

Source: IMB Piracy Reporting Centre website Pirate activity in 2011 up to 1 st July 2011 It’s not just Somalia…. but…

Vessel: “IRENE SL” Country: GREECE Size: 319,247 DWT Cargo: Crude Oil Cargo value: $200,000,000 Hijacked: 9 th Feb 2011 Released: 8 th April 2011 Alleged ransom: $13,500,000 Vessel: “SINAR KUDUS” Country: INDONESIA Cargo: 8,300 TONS FERRO-NICKEL Value: $225,000,000 Hijacked: 16 th March 2011 Initial demand: $3,500,000 Revised demand $9,500,000 Vessel released 1 st 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

…..The ransom amounts are getting more ambitious Source: Control Risks Somali pirate average US$ demands Source: Control Risks Average US$ ransoms paid …..The payments are getting bigger Ransom demands

.. WHO pays the cost of all this ? Charterparty Shipowners 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 ( link on the website), to find out more Does your insurance provide adequate cover ?