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SHIPTALK'S NEWSLETTER TO A FRIEND
Dear Readers,
In light of the escalating threat to shipping posed by piracy,
Shiptalk feels the time is right to produce a special news feature
on piracy.
Not only has there been a rise in the number of reported piracy
attacks on shipping during 2005, in certain areas of the world
attacks have been growing in frequency, ferocity and violence.
Off the coast of Somalia , piratical activity has hit such a level
that it might be best referred to as an epidemic.
If that was not enough of a concern, piracy has sprung up in
areas where hitherto there had been none, Iraq being the notable
example.
Many ships and their crews are gripped by the real and present
danger of piratical attack and urgent steps are needed to stem
the tide of fear and damage that it is spreading throughout the
shipping industry.
Ships and their crews can only do so much to protect themselves.
They need international support from Flag States and from the IMO.
Calls for UN-sponsored naval assistance should not been ruled out.
In this first ever Shiptalk Special we examine some of the issu
es facing governments, shipowners and seafarers. We look at the
changes in the nature and frequency of attacks, measures to tackle
the problem and also some of the concerns facing the men and women
on the frontline.
Shiptalk.com……reading
you loud and clear

WHAT'S GOING ON
The
Somali problem
We within the maritime industry are only too aware of the risk
posed by piracy. Modern seafarers are all too familiar with the threat
of piracy as they steam night-after-night through shadowy sea lanes
staring out into the dark waters, hoping that no-one is staring back
at them.
Piracy is an ancient and established threat to ships, people and
cargoes. While its form and nature has ebbed and flowed with the
tides of history, over the last decade a new battleground seems to
have emerged each year as some form of piracy has manifested itself
in most areas of the world.
In the first nine months of 2005, there were 205 reported pirate
attacks worldwide. In 2004 30 crew members were killed by pirates,
9 more than lost their lives to piracy in 2003.
The waters off Somalia are by no means
the only area to suffer terribly from piracy. However, the extent
to which Somalia has revealed itself as a hot-bed of piratical
and maritime criminal activity has captured not only the attention
of the shipping community, but also governments and crucially the
world’s media.
As readers of Shiptalk know, during 2005 the waters off the coast
of Somalia emerged as the newest most serious area of threat due
to piracy.
The Horn of Africa, as the region
is otherwise known, sits at a cross roads for global trade routes
along which key commodities such as oil, grains and iron ore are
shipped. Somalia has a massive coastline and one that is a haven
clearly bulging with criminals and renegade militia, all willing
pirates and hostage takers. In certain circles this much has been
known for a long time and there have been sporadic incidents over
the years. However, what is still a matter for conjecture is what
sparked off last year’s glut of attacks.
One plausible answer is that following
the hijacking of the WFP-chartered coaster “SEMLOW”,
the Somali warlords recognised the potential for bigger gains and
set about actively targeting the shipping lanes. As a war-torn
realm that has dissolved into anarchy on various occasions, the
warlords know that there is little, if anything, that will inhibit
their activities in this area.
Another reason behind the increase in attacks is the theory that
the warlords are using money raised out of ransoms to fund arms purchases.
It is thought possible that the increase in piracy is an indication
that various warlords are readying themselves for a possible civil
war against the transitional Somali government which was set up in
2000.
Whatever the cause, armed and aggressive piracy is now a very significant
problem in the region.
In an interview with the Indian newspaper The Rediff, Capt. Jayant
Abhyankar, the Assistant Director of the IMB stated that Somali waters
are the most dangerous area in the world for ships to operate in
at present.
He said.
“It's pretty nasty because ships get hijacked and pirates
demand a large amount of money and owners are supposed to pay that”.
Over the course of 2005, there have been upward of some 40 attacks
and attempted attacks on shipping transiting north and south off
the coast of Somalia . The range of vessels attacked is inclusive
of gas carriers, bulk carriers, cruise ships and fishing vessels,
as well as general cargo vessels and tankers. Ships carrying United
Nations World Food Programme aid cargoes bound for thousands of starving
Somalis starving population have even been targeted. All in all over
100 seafarers and 9 ships have been hijacked for the purposes of
extorting a ransom from their owners.
At the beginning of 2005, the advice being given by maritime authorities
and the IMB was to keep a certain distance from the coast. The advised
distance has increased month on month as the pirates have proved
resourceful in reaching ever further off-shore into international
waters to snare their prey.
It is now commonly accepted that
the piracy gangs are using one or more “mother ships” to launch small flotillas of speedboats,
armed with grenade launchers and semi-automatic rifles. Toward the
end of 2005, there were increasing r eports of such a “mother
ship” being a t the centre of a spate of attacks.
In 2005 a UN Spokesman said, "We understand that this is the
vessel that is launching the speedboats that go to attack victims," and
stressed that they, "are still trying to discover the name of
this ship, its owner, its nationality and the identity of the crew
on board."
According to maritime intelligence
and security experts at Gray Page the piracy gangs are well organised
and posses the technological capability to track vessels in the
region. This may include the use of radio direction finders and
RADAR. However, Gray Page also say that in a number of cases there
is evidence of insider knowledge as to the vessel’s planned
route, cargo and position. Other tactics that have been employed
successfully by the piracy gangs is the use of fake distress calls
and flares to draw in unsuspecting vessels who believe they are
diverting to the assistance of another ship.
Once they have their target vessel in sight, Gray Page says that
the prevailing modus operandi of the piratical gangs has been
one of uncomplicated thuggery. The pirates capture their target vessel
and crew by raining gunfire and grenades at the bridge windows and
accommodation to make the vessel slow down, before they board. The
vessel is then sailed to an inshore position, where the crews are
held hostage. Ransoms of hundreds of thousands of pounds have then
been extorted from the vessels’ owners.
In the majority of cases when the ransom is received the ship,
cargo and crew are released, though often not before there have been
several rounds of brinkmanship and revised demands.
In the absence of an effective government and a legitimate law enforcement
infrastructure in Somalia , only the international community can take
active steps to police the international waters off the Somali coast.
Without pro-active measures, such as naval patrols and ariel surveillance,
merchant shipping will continue to be under extreme threat of attack
from the pirates and shipowners left to their own devices in providing
security for their crews and vessels.
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The “Seabourn” stimulus
It is only at times like these that the world at large takes note
of the plight of merchant ships and their crews, but even after multiple
other attacks it took an assault on a cruise ship to give global
public exposure to the issue.
Sadly it seems that few really care when a cargo ship is attacked,
or fishing vessel, but throw a large white, sleek cruise ship packed
with rich, famous and successful holidaymakers into the equation
then you have a recipe for front page news the world over.
So the considerable media coverage
given over to Somali piracy might be called “the Seabourn stimulus”.
We can only hope that this rude awakening motivates meaningful
efforts to tackle piracy. Efforts that will not just apply to the
Somali problem, but that will combat maritime piracy in all its
forms, wherever it is prevalent.
The time is right for shipping’s
international governing bodies, regulators as well as other stakeholders
to drive their efforts harder to stamp out piracy once and for
all. There must be better co-operation, increased investment and
legislative changes that will really bring these and all maritime
criminals to justice.
The risk of capture must be vastly increased and more effective
sanctions and penalties must befall anyone caught in the act of,
or of aiding pirates if it is to be an effective deterrent.
Now is the time for action. The momentum that has been developed as
a result of global media and governmental interest in this issue must
not be wasted.
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Cruise
Ship Security
Security is regarded as a key component
within Cruise Ship Design and, accordingly, an entire session within Cruise
Ship Interiors & Systems Expo ’06 Conference has been
devoted to the subject, which will be explored from external threat
(piracy), to embarkation/disembarkation and internal security. The
keynote speech on external threat will be delivered by Geoff Greaves
a leading international maritime security expert.
Cruise Ship Interiors & Systems
Exhibition and Conference
Montjuic, Fira Barcelona , Spain
, Jan 31st- Feb 2 nd 2006
The exhibition, the world’s
first of its kind, is managed by T rans O ceanic P ress, publisher
of Cruise Ship Interiors & Systems
International Magazine, the world’s leading published source
of information concerning the latest trends and developments in cruise
ship and passenger ferry systems & interior design. The Exhibition
is supported by an in-depth three day conference and includes talks
from many of the Cruise industry’s leading figures.
About Geoff Greaves.
Major (Retd)
Geoffrey H. Greaves served for 29 years in the Intelligence Corps
of the British Army, culminating in three years as Senior
Instructor in Strategic Studies and Attaché Wing of the Defence
Intelligence and Security School , Ashford, with particular responsibility
for the training of International Arms Control Personnel and Service
Attaches. He was also the Security Officer for the establishment.
Throughout his service he held a variety of Intelligence and Security
appointments He joined International Maritime Security (IMS)
as an independent consultant in 1996 and since then has carried out
more than two hundred Annual Security Surveys/Assessments of cruise
ships, ferries and cargo vessels, to ensure compliance with International
Maritime Security Legislation, in particular that of the United States,
Canada and the United Kingdom and since December 2002, SOLAS Ch.
X-1 & 2 and the ISPS Code. He assumed the appointment of
General Manager at IMS on 1 January 2000 , with total responsibility
for the operation of the company.
About IMS
International Maritime
Security (IMS) has become the world's leading expert in the provision
and implementation of the International Ship and Port Facility Security
(ISPS) Code. Since 1986, IMS has been retained as security consultants
by over 500 maritime companies, and in 1996 was commissioned by the
International Council of Cruise Lines (ICCL) to prepare the model
generic Ship Security Plan (SSP) for all its members.
The US Marine Safety Centre accepted
this SSP as meeting in full the provisions of the US Coast Guard
Federal Register Regulations. IMS has been appointed as a Recognised
Security Organisation (RSO) by the Governments of Ghana, Greenland
, Greece , Antigua & Barbuda
, Norway , Malta , Ireland , Morocco , Latvia , Denmark , Turkey
, Saudi Arabia , Algeria and Mauritania to carry out their Port Facility
Security Assessments and Security Plans.
For further information regarding
the Exhibition & Conference,
please contact Peter English at the location listed below or visit
the website.
Tel: +44 (0) 1903 212131
Fax:+44 (0) 1903 212233
Email: info@cruiseshipinteriors.co.uk
Web: www.cruiseshipinteriors.co.uk
T rans O ceanic P ress Ltd
8,
High Street, Worthing ,
West Sussex ,
BN11 1NU UK
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Stealing
from the starving
Modern pirates do not receive the
good PR of their predecessors – the
glamour having long since dulled, but the actions of the pirates
in Somalia have far outstripped the evils done by pirates anywhere
at any time.
The United Nations World Food Programme (WFP) has issued a stark
warning that the spate of ship hijackings is restricting delivery
of urgently needed food aid, posing a serious threat to the health
of 640,000 people in the drought-stricken country .
WFP Country Director Zlatan Milisic
said, "the worsening humanitarian
situation in southern Somalia is of deep concern to us and to our
UN and NGO partners, especially with insecurity on the high seas
hampering relief efforts”. He went on to say, "We may
have to step up our deliveries of food aid, which will be extremely
difficult under present circumstances."
Given the insecurity off the coast, the WFP are now understood
to be exploring alternative transport routes, including overland
from Kenya and via Djibouti , to reach those in desperate need of
food assistance.
Malnutrition rates in southern Somalia are unacceptably high, reaching
20 per cent in some areas. Drought is a major threat to Somalis living
away from rivers in Lower and Middle Juba and Gedo, where poor and
patchy rainfall during the second rainy season in October and November
are compounding an already desperate situation after the first rains
failed earlier in the year.
Despite the hijackings, WFP's operations have continued, with 1,555
metric tonnes of food reaching nearly 150,000 people in Jilib and
Buale districts at the height of the piracy attacks, and a further
830 tons set to be distributed to 78,000 beneficiaries in Sakow district.
WFP still requires 11,000 tons of food aid contributions from donors
to provide sufficient assistance to those severely affected by food
shortages throughout the country until mid-2006.
Pirates have often been held up as
folk heroes, but these Somali villains are threatening the lives
of thousands of the fellow countrymen – there
can be no virtue in that and no excuses whatever their desire for
money.
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Neighbours
from hell
As a neighbour of Somalia , Kenya has been forced to respond to
the breakdown of law and order off its coast.
In an attempt to stem this tide of lawlessness The Kenya Ports
Authority ( KPA ) in conjunction with the Kenya Navy and the Kenya
Police have announced stringent security measures to ensure that
all ships, and in particular cruise ships plying the Kenyan coastline
waters, are safe.
The move was prompted by the number of Kenyan vessels that have
been attacked and held to ransom off Somalia , and also as a means
of assuring the lucrative cruise ship market that Kenya is still
a safe destination. Cruise passengers are an increasing source of
revenue into Kenya and the government have decided that action is
vital to secure the influx of tourist money.
Among the security measures to be put in place are a radar station
operated by the Kenyan Navy on the coastline, this will be able to
use AIS to identify ships in the vicinity, or will be able to raise
an alert concerning any vessels that do not have their AIS equipment
operable. The station will be in constant communication with port
control stations, and can call on support from a high-speed police
launch, with a cruising speed of 30kts and a range of 200NM.
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COUNTER MEASURES
Sound
Sword
Of all the stories generated by the
attack on the “Seabourn
Spirit” one has caused a real stir at Shiptalk HQ.
We were especially interested in the “sonic weapon” that
the vessel deployed in an effort to keep the pirates at bay.
Newspapers the world over leapt on
this new, awesome weapon. Like a gadget from science fiction they
drooled over it…”the
sonic gun”, the “acoustic bomb”, the “sound
sabre” were just some of the headlines. But what exactly was
this wonderful device that has such a debilitating effect on the
pursuing pirates?
The “Seabourn Spirit” is
fitted with a Long Range Sonic Device (LRAD) gun, produced by American
Technology Corp. in San Diego , USA .
The Long Range Acoustic Device (LRAD)
is, according to the manufacturers, “a
long-range hailing and warning device designed to communicate with
authority, affect behaviour and to determine intent”.
The device was initially developed
by the US military, and has seen action in Iraq as a means of controlling
demonstrations. The LRAD emits sounds up to an ear-splitting 150
decibels – which,
according to the US based “Noise Centre” at the League
for the Hard of Hearing , is as loud as a jet engine taking off or
artillery fire at 500 feet.
The manufacturers say that, “If your ears were exposed to
this, it would be like getting a whole rock concert in a few seconds,
and you would want to get away from it if you were in the way,” they
added that those who attempted to stay in the LRAD’s path would
need “the fortitude to keep their hand over a hot stove”.
There are some that voice concerns
about the use of LRAD ashore, as they are becoming increasingly
used by police and armed forces the world over – the New
York police department are understood to have a number of the devices
and deployed it for the first time back in 2004 at the Republican
Party conference to control potential demonstrators.
It is perhaps likely that lawsuits will follow LRAD use on land
as some protesters will no doubt suffer hearing damage as a result
of exposure. However in this maritime context they seem to be an
effective way for keeping attackers at bay. A number of cruise lines
already have the technology fitted, but in the wake of this high-profile
incident it is believed that many more will purchase the equipment.
The LRAD operates in a 15° - 30° beam
at distances over 300 meters, and delivers its incredible sound blast
using only two amps of power. The equipment can also be configured
to provide live, continuously recorded video and audio from a remotely
controlled position, and even can communicate in various languages
via the built in MP3 player or Phraselator – a device that
translates typed text into voice commands in a range of languages.
At last it seems that ships might have more than just their fire hoses
to fight back with.
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IMB
Call for help
The unprecedented increase in the number of serious attacks off
Somalia , have led to a call to action from the International Maritime
Bureau (IMB).
Captain Pottengal Mukundan, Director
of the IMB has said that “these
attacks take place in international waters, perpetrated by pirate gangs seeking
a lucrative source of revenue with minimal risk to themselves and we call upon
the naval vessels in the region to come to the assistance of the hijacked ships.
At the very least, they can prevent the hijackers from taking these
ships into Somali waters. Once the vessels have entered these waters
the chances of any law enforcement response is negligible. There
is no national law enforcement infrastructure in Somalia .
These waters have become a pirate’s
charter and unless the international community takes action against
these criminals, vessels passing this coast face considerable danger. ”
The IMB added that luckily there have been no killings in this spate
of attacks and hostage taking, but deaths can quite easily occur and
surely the first casualty cannot be far away if the situation continues
unchecked. The time for action is now.
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Right
time, wrong place – armed forces
In light of the call to arms by the IMB and others, it is reassuring
to note that the US Expeditionary Strike Group (ESG) 1 are currently
leading a group of six coalition ships conducting maritime security
operations.
The strike group’s flagship, “USS Tarawa” and
the amphibious transport dock “USS Cleveland” are joined
by the guided-missile destroyer “USS Oscar Austin”, The
French ships “Var” and “Lafayette”, and the
Pakistani frigate “Badr”. So far, so good.
The disappointing and frustrating thing is that they are well away
from Somalia , the Malacca Straits and other pirate hot-spots and
are conducting their war games in the North Arabian Sea and Gulf
of Oman .
Assisted by coalition maritime patrol
aircraft, SH-60B Seahawk helicopters, and the Scan Eagle unmanned
aerial vehicle (UAV), the ships apparently seek to set “the conditions for security and
stability in the maritime environment by monitoring maritime traffic,
performing routine queries of vessels, and conducting Visit, Board,
Search and Seizure (VBSS) operations when warranted”.
All well and good – but it wouldn’t
hurt to have a few of them sitting off the Horn of Africa!
For more news from around the fleet, visit www.navy.mil
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UN
Calls for secrecy
The growth in hijackings and the worrying rise in the use of holding
hostages for ransom has seen the UN and the International Maritime
Organization ( IMO ) call for secrecy in dealing with the perpetrators.
They are demanding that information on ships and crews who are
detained by pirates in Somalia should to be kept out of the public
domain, with only ship owners and flag State party to the negotiations.
The UN warning is seen as aimed at
seeking a secretive way of handling negotiations to free the ships
and their crew. The co-ordinator of the Seafarers Assistance Programme,
Mr Andrew Mwangura, a frequent commentator on the recent hijackings
off Somalia said: "The
UN wants that the authorities to be contacted in the hijacking saga
are the ships’ owners or the embassies of countries concerned."
It is important to recognise that
in a fractured state, such as Somalia , with no formal government
or law enforcement, there are inevitably many parties who all become
involved as the negotiations continue. Cargo interests, the ship
owners and the crews’ family
and unions all become embroiled and the UN feel that this only aggravates
such delicate situations.
While Shiptalk appreciates the UN concerns, we feel that information
regarding such a threat to seafarers is not buried. We agree that
the negotiations should be conducted through one focal point, but
we do not wish to see a news clampdown on the Somali pirate activity.
The only way to see action on piracy is if it remains in the public
eye and if all can see just how much of a risk to shipping it really
is.
We want to see piracy under the full and
sustained glare of the media and of public opinion, and we want governments
the world over to take the strong and decisive action necessary to
stamp it out!
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UN
Called to act
Some of the world's leading shipping bodies have called on the
International Maritime Organization and the U.N. Security Council
to urgently address the piracy issue.
In a joint letter to IMO 's Secretary General, Mr. Efthimios Mitropoulos,
BIMCO, the ICS, Intertanko and Intercargo have reiterated the concerns
of the global shipping industry about the increasing incidences of
violent attacks against ships and their crews.
The letter calls for action to be
taken at the highest diplomatic level, and expresses appreciation
of the IMO ’s approach on
the issue made to the UN Secretary General.
While the Round Table’s principal concern is for the safety
of seafarers and passengers, it is felt that the attacks against
shipping off Somalia also have direct implications for the security
of the world’s transport supply chain, a matter of great concern
to IMO .
The letter also points out that the
widespread and successful implementation by shipping companies
of the ISPS Code demands a “concomitant
obligation” from governments to take all possible steps to
protect international shipping from attacks on the high seas.
Shiptalk believes that shipping has made enormous strides over
the past two years to improve security, and as such deserves recognition
and support from international governments, or it will have all been
for nought.
Late last year, and as possible prelude to action on the area,
the U.N. Security Council scolded Somalia's government and urged
rival factions to come together to confront the chaos and piracy
plaguing the lawless nation.
The council expressed "serious concern" about
the wave of pirate attacks off the coast and called on regional
powers and international bodies to address the problem urgently.
Let’s hope that this is a prelude to action, and that calls
for a coalition navy presence in the area may be just about to be
answered…not before time.
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WELL MEANING ADVICE
US
Advice
Following the advice issued by the International Maritime Bureau
to keep away from Somalia ...as far away as possible. The US Office
of Naval Intelligence has issued its own advice to US shipping interests
in the vicinity of Somalia .
The advice states that in the light of the increasing number of
attacks in the region, and also the increasing range of the pirates
seaward, out to 170 NM. All vessels are advised to stay at least
200 NM from the East Coast of Somalia.
All vessels in the region, no matter how far off shore should increase
their anti-piracy provisions and should adopt a heightened state
of vigilance.
It is becoming increasingly apparent that the pirates are using
other vessels as bases from which to launch attacks. Another reported
tactic has been to initiate a distress alert in order to attract
ships closer inshore before attacking.
Vessels are being faced with launches carrying heavily armed assailants,
with Ak-47 assault rifles and rocket propelled grenades, trying to
intimidate vessels into stopping.
To date vessels that have increased speed and initiated evasive
action have avoided boarding, while those that slow have been boarded.
For further information contact the Maritime Administration Office
by telephone, on 202-366-5735, or by email at OPCENTR1@DOT. GOV
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UK
Advice
The UK Maritime and Coastguard Agency
(MCA) has issued a Marine Guidance Note MGN 298 (M) recommending
measures to counter piracy, armed robbery, and other acts of violence
against merchant shipping.
The MGN aims to assist all ship owners and operators (companies),
Masters and seafarers in understanding the risk of piracy, armed
robbery and other acts of violence against ships, and reminds them
of the importance of taking action to deter such acts and advises
on how to deal with them if they occur.
Key points are:
• Be vigilant
• Reduce opportunities for theft
• Secure Restricted Areas at
all times and establish safe secure area(s)
• Maintain, exercise and regularly
review your Ship Counter-piracy Plan
• Report all incidents to the
coastal and flag State authorities
For access to the full MGN visit MGN
298
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LEGAL
Piracy?
What does the law say?
So the attack on the “Seabourn Spirit” was
piracy, but what of attacks inside territorial waters? Are these
also acts of piracy?
A definition was laid down within the 1958 Geneva Convention on
the High Seas (Article 15), which also makes up Article 101 of the
United Nations Convention on the Law of the sea (UNCLOS) 1982 and
declares piracy a criminal act.
The IMO follows UNCLOS, Article 101 definition, which contains
five elements:
- Piracy must involve a criminal act of violence, detention, or
depredation.
- Piracy is committed on the high seas or in a place outside the
jurisdiction of any state.
- The “two-ship rule”.
Pirates need to use a ship to attack another ship, (which excludes
mutiny and barratry).
- Piracy needs to be committed for private ends, (which excludes
the acts of terrorists or environmental activists).
- Piracy must be committed by the crew or passengers of a privately
owned vessel, (which excludes attacks by naval craft).
Put simply, attacks inside territorial water are not piracy,
while those outside are! Restricting piracy to the high seas
means that an alternative term has to be created for attacks against
ships within territorial waters. Though that may be of little consolation
to those attacked.
Despite the move by Somali pirates further out to sea, IMO statistics,
based on reports received from member states, show that most attacks
actually take place within territorial waters, or while the ship
is at anchor or on a berth.
So the majority of pirate attacks
are not actually “piracy” due
to them occurring within territorial waters. This causes an immediate
problem in both quantifying and then fighting piracy. Confusion abounds
and this can slow the process of fighting piracy and then of dealing
with the perpetrators.
To attempt to counter this the International Maritime Bureau (IMB),
has adopted the following definition for acts of piracy:
“An act of boarding or
attempting to board any ship with the intent to commit theft
or any other crime and with the intent or capability to use
force in the furtherance of that act”.
This definition thus covers actual or attempted attacks whether
the ship is berthed, at anchor, or at sea. Petty thefts are excluded,
unless the thieves are armed.
However this definition is not without
its problems, and as such a common criminal armed with a knife
and boarding the Mersey Ferry becomes a de jure pirate (even a
pickpocket intent on stealing an old lady’s purse).
Also The IMB definition does not require
that the act of piracy be committed for private ends, so attacks
on a ship for political or environmental reasons would qualify
as piracy. In the 1999 IMB publication “An overview on piracy problems - A global update”,
according to the IMB definition The “Achille Lauro” incident,
in which the cruise vessel was boarded by terrorists in 1985, is
thus piracy. Even naval attacks in certain circumstances could conceivably
be deemed to be piracy.
The above article contains extracts
from the upcoming Nautical Institute 2006 publication “Security at Sea”,
by Steven Jones.
Shiptalk believe that formal adoption
of the IMB definition would lead to a leap in the number of acts
of “piracy” actually
reported. This may initially prompt action from governments, the
industry, unions and law enforcement agencies, but the emergence
of spurious claims could lead to a loss of interest in piracy from
the very same bodies. It is obviously a complex balancing act…
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INSURANCE
CrewSEACURE – Marine
kidnap for ransom insurance
CrewSEACURE – shipowning community
to be provided with insurance protection against maritime kidnap
for ransom incidents
Seacurus Ltd and Cooper Gay & Co Ltd have announced the launch
of CrewSEACURE, a new marine Kidnap for Ransom insurance policy.
CrewSEACURE has been developed in response to the escalating number
of armed attacks against vessels resulting in the taking of crews
and passengers as hostages and extorting ransoms for their release.
The insurance policy provides shipowners with the immediate support
of specialists in kidnap for ransom negotiation and maritime risk
management.
In addition, all prospective assureds will receive access to expert
advice, before and after inception of the policy, on counter-piracy
measures and contingency planning arrangements to reduce their potential
exposure to piratical attacks.
Capt. Thomas Brown, Managing Director of Seacurus, commented:
“Arguments over the pros and cons of the availability of
this type of insurance coverage are well known. However, shipowners
have the right to protect themselves and their crews against the
devastating effects of such attacks. CrewSEACURE is intended to provide
this protection and reimburse the shipowner for the costs incurred
as a result of a maritime K&R incident.”
CrewSEACURE is the name given to the
Seacurus / Cooper Gay marine Kidnap & Ransom policy which is underwritten by Lloyd’s
of London underwriters. Further details of the coverage provided by
CrewSEACURE can be found at www.seacurus.com .
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Owners
battle over cover
Much has been made in the maritime
press recently as a serious rift has opened between shipowners
and underwriters as the battle over piracy and the continuing attempts
by insurers to merge piracy and war definitions.
The conflict was sparked when the
Malacca Strait was declared a recommended ‘war risk’ zone
in mid-2005. This followed the assessment of the London joint hull
and joint war committees, and led to a series of wordings allowing
underwriters to bring piracy into war clauses.
Supporters of the decision claim that
this brings the London market in line with overseas markets and
introduces more clarity, but they recognised the major impact on
owners, as Lloyd’s writes the
majority of marine war cover.
Under clauses drawn up by Lloyd’s
Market Association, piracy will be categorised as a separate war
peril. Piracy had traditionally been a peril like any other within
a basic marine package policy, since the advent of the Marine Insurance
Act of 1906. Now this could all change and owners will be faced
with the concern of viewing piracy in a new way.
Those critical of the move see that shifting piracy to war policies
gives an easy pretext for underwriters to charge for something that
hitherto has been included in most hull policies without additional
charge.
As such ship owners, especially those across Asia , fear the recommendations
will end up adding to their insurance bills, as war policies allow for additional
premiums on voyages touching specific zones, including, most recently and controversially,
the Malacca Strait.
A spokesman for the International Chamber of Shipping said shipowners had every
interest in resisting the move, as they were certain there would be no benefit
back to the shipowner for removing the risk from the hull policy.
Much of this discussion and the moves to reclassify piracy stem from
the legal confusion surrounding pirates as we discussed in the article “Piracy?
What does the law say?” If a consensus were to be agreed between the
IMO and IMB definitions then this argument could become academic.
The reality of a shift of piracy into a
war risk does not impact solely upon the owners and insurers; any
decision to remove piracy from hull policies could have an enormous
impact on seafarers too.
Whereas in the past seafarers have
been exposed to the dangers of the Malacca Straits, Nigerian anchorages
and now the Somali Coast with no recourse to financial or insurance
mechanisms this could now change as seafarers may be able to start
negotiations for the payment of war bonuses and/or danger money –and
may in extreme cases refuse to enter these areas.
There could also be growth in insurance
on offer to seafarers – such
as the CrewSEACURE ”kidnap for ransom policies” as offered
by Seacurus Ltd.
The UK maritime union Numast has already
spoken out and claimed that the waters off Somalia should be declared
a war zone. “It’s
got to the stage where it’s anarchy,” they said.
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