ladies and gentlemen, good afternoon, welcome to our presentation, on piracy
we are here to give you a short introduction to piracy, and how it effects merchant shipping
where are the pirates?
Piracy hotspots around the world are mainly Nigeria, Somalia & Indonesia/Malaysia
Piracy hotspots around the world are mainly Nigeria, Somalia & Indonesia/Malaysia Our report focuses on the Gulf of Aden and Horn of Africa
Our report focuses on the Gulf of Aden and Horn of Africa
why are somalians turning to piracy?
-there are no functioning government, no judicial system -poverty is rampant -somali fishing grounds are laid waste by foreign fishing fleets people with military background and fishermen team up with &quot;nerds&quot; with the know-how of locating targets and staging boarding attempts
which ships are they after?
The preferred target, and the ships most at risk of being hijacked are ships with a low freeboard and low speed. Several companies have internal procedures differentiating between ships, sending some around Africa, while others go through Suez.
Here we have some recent victims of piracy: Faina, Sirius Star, Bow Asir, Stolt Valour, Chemstar Venus, Tian Yu, Biscaglia, and more
Cruise ships do not fit the profile of good targets (high speed and high freeboard) but they make up for it by representing an all the more valuable target, with the possibility of individual ransoms for the passengers, a potential goldmine
what can merchant shipping do to protect themselves
LRAD - long range acoustic device LRAD - Watercannons - Electric fence - Guards guards are not recommended, as it only escalates an already tense situation evasive maneuvering, increased speed, awareness and preparedness are just as important as defensive equipment
The Zen Hua was able to prevent the pirates from accessing the superstructure, after a boarding from the stern, and after a fight with improvised Molotov coctails, the pirates finally gave up and left. it is however not recommended to fight the pirates with lethal weapons
boardings and hijackings are usually done with symbolic shooting, as the RPG's represent the old &quot;Jolly Roger&quot; pirate flag, and the threat of use should be enough
An RPG represents the threat of major fire, for most types of vessels, and a fire is generally deemed more destructive and critical, compared to a hijacking. Some captains will thus reach the conclusion that a surrender is better than the risk of being fired upon with an RPG.
does this happen all the time?
Statistics show a steady climb during the last 5 years.
we can see the clear increase in attacks last year, as pirates realize the potential gains, and before the international community reacts
as the Navy starts patrolling and escorting ships in the Gulf of Aden, pirates head south, towards Madagascar and in the Somali Basin we can see the clear increase last month
this is just so far this year… in 2007 there were 59, while in 2008 there were 184 !
The NATO Shipping Centre are a great source of updated information and statistics they also work closely with Maritime Trade Operations Dubai and EUNAVFOR
in addition to speed and freeboard, there are more contributing factors to piracy attacks
The use of mother ships, much like local fishing boats, makes the fight against pirates all the more difficult and enable the pirates to attack ships far out to sea, as much as 400 nm
400 nm is the distance Oslo-Amsterdam or as wide as France, or as tall as Germany
the pirates use small fast attack crafts, not suitable for rough seas, bad weather and waves of 2 meters or more effectively shut down piracy
nearly all attacks happen in daylight the pirates do not have sufficient equipment to board at night but we are seeing a small increase as more ships now try to transit during darkness
how much are the pirates asking for in ransom?
some ransoms paid in 2008-2009 Ransom demands can start in the tens of millions ($ 20 million for the Faina) but negotiations bring the actual ransom paid down to between 1-3 million dollars. some ransoms have been &quot;only&quot; a few hundred thousand dollars
Total ransoms paid in 2008 are believed to be around $ 200 million This constitutes a major purchase capacity for new equipment, weapons and governmental influence and power for the pirates, in the poverty stricken country of Somali
If a ship is hijacked, it is usually sailed to a coastal town in Somalia, and held there for several months. This &quot;off-hire&quot; constitute the major cost for a shipping company, as the actual ransom is usually covered by insurance. But the time the ship is not generating income, and the problem with the crew salary and compensation during and after the hijacking, must usually be paid by the shipping company.
what are the actual risk to my vessel?
purely statistically, without regard for vessel accessibility or countermeasures (using the numbers of hijacked vessels pr year, and traffic through the area)
purely statistically, without regard for vessel accessibility or countermeasures the random risk of your vessel being one of the hijacked ones, are about 0,3% there are 20.000 ships going through the Gulf of Aden each year, and the average ransom can be set to 1,5 million dollars assuming 20 transits through the area, we get a number
average risk, not correct picture, as piracy is &quot;binary&quot; however, this shows that with countermeasures and proper procedures and preparations piracy should be a manageable risk
the situation is binary, in the way that the consequences are absent, or severe but the probability can be mitigated through good procedures and preparations
Hapag Lloyd decided to fly 300 passengers to Dubai in order to avoid the Gulf of Aden. There they would be put up in a 5-star hotel awaiting the cruise ship's arrival. This constitutes an extra cost of approximately $ 250.000 dollars because the consequences are tremendous, should a successful attack take place. several cruiselines have since done the same
ships can't fly, but they can change their routes
Alternate routes from Europe to Asia: 4000 nm longer around Africa, taking around 10 days longer. compared to Suez
Alternate routes from Europe to Asia: 4000 nm longer around Africa, taking around 10 days longer. compared to Suez ideally, you should also go outside of madagascar, as several incidents have occurred just north of madagascar
Alternate routes from Europe to Asia: 4000 nm longer around Africa, taking around 10 days longer. compared to Suez transit corridor established, and military escort and assistance
to the rescue
The EU, and other states such as: Russia, the United States, Japan, India and the Philippines have sent navy assets to counter piracy in operation ATALANTA and ALLIED PROTECTOR They have set up the MSC HOA (Maritime Security Center - Horn of Africa) to aid shipping transit safely. Information, procedures and a sailing corridor have been set up to facilitate the protection of merchant shipping.
the MSC HOA (Maritime Security Center - Horn of Africa) aid shipping in the safely transit of GOA access to the website is strict, and only available to ship owners and companies with a legitimate need
this is not an April Fools story
This is a true story, and it happened yesterday. The ship you see behind me is the German Auxiliary vessel FGS Spessart. The attack on the ship did not go too well… The crew returned fire, and pursued the pirates as they retreated. A navy helicopter and speedboat apprehended the pirates after a short chase.
As more pirates are apprehended, and sent to prison (in Kenya), we may see a slow decrease in pirate activity in the area. But the potential gain for a poor Somalian may prove too tempting, even with the prospect of jailtime.
Pirates generally have a low toleranse for resistance, choosing to rather live to fight another day. The prompt release of pirates in the past have also encouraged this approach. This may be about to change, as pirates will now be sent to Kenyan prisons, and incarcerated for a longer period of time.
will the situation resolve?
where does the road take us? we believe piracy will be somewhat reduced due to the increased military intervention, and merchant shipping grows ever more aware of the situation, and takes appropriate measures, but this is only symptomatic treatment, and no long term cure
this concludes our presentation
Ship Management Presentation
- recent developments
and its impact on merchant shipping