NORTH AMERICAN PANEL NORTH AMERICAN PANEL April 27, 2010 UPDATE ON PIRACY JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

PIRACY 2009 Worldwide Statistics (IMB) attempted incidents fired upon boardings - 49 hijackings (12% of incidents) Major Locations (IMB) Somalia/Gulf of Aden - 28 Nigeria - 17 Bangladesh - 16 Malaysia - 15 Indonesia - 15 Red Sea

PIRACY Ship Type (IMB) Bulk carrier - 63 Containership - 53 General cargo - 46 Chemical carrier - 41 Tanker - 22 Product carrier - 16 Tug - 16 Fishing vessel - 8 Ro-Ro - 6 Yacht

PIRACY - Somalia 2008 Statistics attempted incidents - 39 fired upon - 2 boarded - 42 hijackings (38% of incidents) 2009 Statistics attempted incidents fired upon - 1 boarded - 47 hijackings (22% of incidents)

PIRACY - Somalia 2010 Statistics (up to April 11) - 83 attempted incidents - 27 fired upon - 2 boardings - 22 hijackings (26% of incidents) Currently, 13 vessels and 250 seafarers being held Armed guards shot and killed a pirate during one failed attempt Safe room or citadel prevented on hijacking in another

PIRACY - Somalia RECENT NEW TRENDS Migrant smugglers are cooperating with pirates More dhows are being used as mother ships Attacks last longer and are more persistent Pirate experience has increased substantially Weapons' calibre and quality are increasing The operating range is increasing to 1200nm offshore Southern groups, battle-hardened in Mogadishu, are displaying increased violence and greed vis-a-vis other pirate groups

PIRACY Eliminating piracy is a SHARED RESPONSIBILITY between the maritime industry and governments, BUT, Establishment of LAW AND ORDER on the high seas is the responsibility of governments

GOVERNMENT ROLE Provide and maintain sufficient assets in the region Establish and ensure a coordinated approach Establish and ensure a single, or at least compatible, rules of engagement Develop necessary legal authorities to prosecute pirates Develop a long term solution to the Somalia problem on land

GOVERNMENT ROLE Sufficient Assets Prior to FAINA hijacking, there were woefully inadequate assets in the region Since then the situation has improved (more than 30 assets) - European Union established an EU Naval Force (EUNAVFOR) Operation Atalanta - Combined Maritime Force established CTF China, India, Malaysia, Rep of Korea, Russia and Japan join US, UK, France, Denmark and other Europeans - Standing NATO Maritime Group 1 (SNMG1) How long will the assets remain???

GOVERNMENT ROLE Coordinated approach SHaDe – Share awareness and (seek) deconfliction - Monthly meeting in Bahrain of representatives of all countries involved - Enhanced cooperation efforts Mercury – secure internet system which allows the different nationalities involved to coordinate action

GOVERNMENT ROLE Rules of Engagement There are different rules of engagement for the assets of the different governments - Some are allowed to engage upon arrival on the scene - Others cannot engage until there are clear hostilities CTF 151 and EURNAVFOR have improved situation Emphasis should be on engaging ASAP Some are encouraging lethal engagement as a deterrent

GOVERNMENT ROLE Legal Authorities to Prosecute Governments have lacked legal authorities to prosecute captured pirates Recent action by UK, Denmark and US/Kenya agreement are positive steps EU agreement with Kenya on legal framework to prosecute IMO sponsored Djibouti Conference adopted Code of Conduct (Jan 29) also positive

UN ACTION United Nations Security Council Resolution Contact Group on Piracy of the coast of Somalia (Jan 2009) Four Working Groups – - WG1, Military and operational coordination - WG2, Legal aspects, including arrest, detention and prosecution - WG3, Industry awareness and lessons learned - WG4, Diplomatic and public information

IMO ACTION IMO Maritime Safety Committee updated guidance to governments and industry MSC.1/Circ PIRACY AND ARMED ROBBERY AGAINST SHIPS “ Recommendations to Governments for preventing and suppressing piracy and armed robbery against ships ” MSC.1/Circ PIRACY AND ARMED ROBBERY AGAINST SHIPS “ Guidance to shipowners and ship operators, shipmasters and crews on preventing and suppressing acts of piracy and armed robbery against ships ”

INDUSTRY ROLE Remind all ship owners/operators of IMO guidance and industry best practices ( go to piracy) Encourage full use of all possible passive defensive measures Encourage all companies to register for access to the MSCHOA web site ( Encourage all ships to register their movements with the MSCHOA web site and report actual positions to UK MTO Encourage all ships transiting the area to follow the Group Transit system via the Internationally Recommended Transit Corridor (IRTC) Encourage all ships to report attacks to UK MTO Provide regular, verified security updates to shipping companies and their ships Share lessons learned and update best practices

Anti-Piracy Chart Q6099

INDUSTRY ROLE Average successful piracy attack takes 11 minutes…SO “Detract, Delay, Deter”…every minute counts All 14 ships that have been recently hijacked (July – January) were not reporting their movements to UKMTO Not one of the vessels was registered with MSCHOA Of the 15,000 vessels with registered transits, only 2 have been hijacked

INDUSTRY ROLE Register with MSCHOA If they don’t know your intentions, they cannot assist you!! Report regular ship position to UKMTO If they don’t know where you are, they can’t help you!! Assess and utilize the Best Management Practices Employ Self Protective Measures

INDUSTRY ROLE Best Practices Advance planning prior to transit Conduct passage within Internationally Recommended Transit Corridor (IRTC) Transit high risk areas at night Minimize external communications Increase lookouts and bridge manning If attacked: - activate all alerts and alarm systems - increase speed and alter course with continuous zig-zag maneuvers - activate fire pump defensive measures If boarded, offer no resistance

INDUSTRY ROLE Self Protection Measures are not limited to the physical mechanisms employed onboard, but also include: –Procedures – Best Management Practices –Company risk assessment / pre-planning –Manoeuvring –Crew (Vigilance) –Physical deterrents in place –Inherent - type / design / size / speed etc. –Vessel Protection Detachments –Communications – Reports – Alerts –Weather

RELATED ISSUES Japan: India: China: or or Russia: or Korea: offering escorted group transits through area To report for a group transit through the area report to MSCHOA at NATO Operation Ocean Shield – continued at sea counter-piracy operations combined with counter- piracy capacity building for regional states

INTERTANKO ACTIONS At the request of the US Maritime Administrator, coordinated industry association feedback on Best Management Practices Developed model Charter Party Piracy Clauses (voyage and time charter) Provide Merchant Navy Liaison Officer (MNLO) to Marine Safety Center Horn of Africa (MSCHOA) team at Northwood, UK Issued piracy booklet with OCIMF, lMB, Intercargo and SIGGTO Provide input to UN contact group working groups 1&3 military/operational coordination and on industry best practices Provide input to IMO on the development of MSC.Circs 1333 and 1334

ARMING SHIPS On April 16, the US Navy issued a news release stating the ADM Mark Fitzgerald Commander of U.S. naval forces in Europe and Africa and of NATO’s Allied Joint Task Force Command said: - the scope of the piracy problem off Somalia is too great to be policed by military vessels alone; and - commercial vessels should arm themselves

ARMING SHIPS Armed guards or arming ships’ crews is NOT an INTERTANKO advocated approach Legality for flag states and port states Serious potential safety concerns Major liability and insurance issues in the event of death or injury Risk of collateral damage Potential to provoke an escalation of fire power by the pirates

ARMING SHIPS INTERTANKO believes that the use of armed guards, security forces or mercenaries onboard merchant ships has to be a matter for each individual owner or manager to assess as part of their own risk assessment, and as a consequence is unable to endorse any of those companies or individuals offering such services.

SUMMARY Both industry and governments recognize that eliminating piracy is a shared responsibility and each is doing their part Significant progress has been made by both BUT, more must be done to eradicate piracy and we must work together to do it

PAYMENT OF RANSOMS Ban on paying ransom to certain Somali pirates Executive Order Concerning Somalia signed on April 13 NOT piracy focused; aim is to prevent the flow of assets to the al-Shabaab organization and eleven targeted persons Two of the persons have been targeted because of their admitted leadership with piracy operations If a ship is hijacked and it is known, or there is reason to know, that the hijackers are connected with the operations of the two named individuals above, or with al-Shabaab, then the payment of that ransom would fall under the EO, provided there is a US nexus

PAYMENT OF RANSOMS US nexus is a “US person” which is any US citizen, permanent resident alien, entity organized under the laws of the US or any jurisdiction within the US, or any person in the US Penalties are in the form of civil or criminal penalties, NOT the freezing or seizing of assets in the US EO would NOT apply to foreign owned, foreign operated, foreign flagged, foreign crewed tanker that is hijacked and a ransom is paid, as long as there was no US nexus Law enforcement officials have prosecutory discretion OFAC contacts – phone:

THANKYOU!!