Communique

Circuit Magazine

(January 31, 2012)

Stuart has had an article published in the Circuit Magazine called, Piracy: The Elucidation. check it out now at www.circuit-magazine.com

Piracy, the elucidation

Plundering the high seas has not been this fashionable for centuries. The infamous sea criminals have evolved through time to what is called modern day piracy. As demographic districts change in wealth and power, piracy remains in formidable force, worldwide pirate attacks have been increasing. According to the International Maritime Bureau’s Piracy Reporting Centre, attacks on the world’s seas totalled 266 in the first six months of 2011, up from 196 incidents in the same period in 2010.

Over the last five years, piracy in the Indian Ocean region has increased, chronically and now represents a substan­tial threat which must not be ignored. It cannot be eradi­cated by reactive counter-piracy missions either. The world’s super powers need to act and take the initiative. Presently, the majority of the merchant shipping industry seems to be turning to private security contractors to implement anti-piracy measures in self-de­fence. As such, in May 2011, the International Maritime Organiza­tion (IMO) produced guidance on the use of armed security. This would appear to be a step forward after such a long time vehe­mently opposed to the use of armed security. However, without the implementation of a considered, long term strategy, piracy will remain an existential threat that requires military style operations to combat it. The execution of carefully planned anti-piracy proce­dures is proving effective but what are the real issues?  

What is the definition of piracy?

Piracy is defined in article 101 of the 1982 United Nations Convention of the law of the Sea (UNCLOS) but in simplified words it can be con­sidered as; any act of aggression by individuals making use of a private ship (non-naval force) making attempts to, or succeeding in; boarding, hijacking or looting any property or the kidnap of persons from an­other ship in international waters. It is important to note that attacks taking place in territorial waters are not classed as piracy and instead fall under the category of armed robbery.

 

What are the factors which allow for piracy to develop and prosper?

Political or Religious Instability: States with domestic turmoil tend to be weakly governed and unable to create law enforcement agencies which are capable of policing their own coastline and apprehending individuals involved in piracy.

 

Geographical or Territorial Complexity: The form of crime specific to a region is dependent upon its geographical attributes such as in lit­toral states. Criminals are able to use certain terrains to their advan­tage, giving the pirate the ability to hide between jurisdictions to avoid prosecution.

Economic Disparity: Social deprivation is a common factor contributing towards wide­spread criminal activity within a state. Populations which suffer pov­erty will harbour an element that are desperate and resentful, which, in turn, breeds the temptation that leads to crime.

The propensity towards piracy is exacerbated by a combination of all the above. The situation spirals out of control when citizens become inspired by the thought of large monetary gains for little risk. Legally, states with coastlines susceptible to piracy have an obligation to pro­vide vessels safe passage but in reality this may not always be achiev­able as some states just don’t have the capability. History shows that piracy will prosper in lawless states that have a large population un­der the poverty line and are situated on a coast line near to a main shipping route. Undoubtedly maritime crimes reduce when one of the three underlying causes can be resolved.

Who are they?

Quite often they are desperate fishermen or regional militiamen trying to make financial gains to feed their families by attacking vulnerable vessels with intent to hijack. Sometimes operating to a certain “code of conduct”, where they do not intend to harm but to hold for ransom. However, these supposed fishermen, organised into Pirate Ac­tion Groups (PAGs) are coordinated by someone or some organization. No real evidence shows that piracy is controlled by hard-line splinter terrorist groups, such as Harakat al-Shabaab al-Mujahedeen (HSM) or the Ras Kamboni move­ment or the moderate Alliance for Re-Liberation of Somalia (ARS). But it would seem hard to believe that they aren’t financially benefiting from these endemic misdeeds oc­curring right on their door step. It is also highly plausible that disaffect­ed neighbouring states trying to deal with the domestic restiveness of a population tired of fiscal hard­ship could see the opportunity as good business. Yemenis, Kenyans, Ethiopians and Omanis are some of those who could be inspired to conduct copycat style attacks, be­lieving that the risk of reprimand is acceptable when considering how well piracy ransom pays.

What tactics do they use and what is their capability?

Various set ups have been used by PAGs to move around which vary from, a couple of skiffs to an open whaler with many fuel towing skiffs for short to medium range at­tacks in deep waters. The use of a mother vessel (sometimes a vessel already hijacked complete with the hostage crew still on board) tow­ing skiffs or alternatively hiding their attack boats on the open deck of the mother vessel allowing them to operate out at longer ranges and for a greater duration . The majority of attacks have been carried out by two small, high speed boats or skiffs targeting the vessels stern quarters and using light weight ladders or grappling hooks to board. Once boarded the armed pirates usually move straight to the bridge to seize control of the ship and stop for more pirates to board. The common modus operandi is to attack by day or at first light, night at­tacks have been known on clear nights but are rare. It has recently been assessed that the pirates ISTAR (intelligence, surveillance, tar­get acquisition and reconnaissance) is poor with an average surveil­lance distance of seven nautical miles. Even though PAGs have lim­ited surveillance they still have an advantage due to the size ratio of the average merchant vessel.

Attacks are sporadic and conducted across a wide area of risk. With no discernible way of continually knowing a PAGs whereabouts, tar­geted ships are left guessing. So, instead of being diverted away from a known pirate location, a vessel could sail straight into the vicinity of a PAG. A ship has to detect and react to attacks at the earliest stage possible to avoid hijack. PAGs have been known to use bona fide fish­ing boats to conceal their position and then launch a surprise attack at the Closest Point of approach (CPA).

For all your efforts in planning, there are some factors which remain out of man’s control, such as the weather. It is likely to be more dif­ficult to successfully hijack a vessel in a sea state of three or above. As mentioned, attacks tend to be mounted from small speedy crafts, limiting their range of attack to moderate sea states. It seems plausi­ble to think that if you are sailing in rough sea states like those seen during monsoon season you are less likely to be hijacked. However, this does not mean that you are im­mune from pirate activity. Rough seas push piracy operations into calmer areas, i.e. further North in the Red Sea and once adverse conditions subside they are usually followed by an upsurge in attacks. When navigating around the So­malian coast a vessel should be very wary of certain ports such as: Boosaaso, Hobyo, Eyl, Haradheere and Garaced as they are all pirate strongholds and known locations where vessels have been taken af­ter being hijacked.

Greater concern to the shipping industry is the threat of abduction. There has been a substantial in­crease in the average ransom pay­ment for the release of kidnapped crew members in recent years. A Kidnap and Ransom (K&R) policy is essential documentation for any merchant vessel. Insurance premiums are calculated by tak­ing account of the perceived risk to the vessel, its crew and cargo. The underwriter considers a multi­tude of variables when deciding on the price. Cover is then purchased in line with current rates being paid for release. If an insurer pays out soon after the date when a policy was taken out then it will be absorbed by the premium. However, negotiation to payment aver­ages seven months and by which time the demand price is likely to be more costly than a vessel’s premium cover due to the increasing greed and success of piracy recently. This was the result when the SAMHO DREAM case set a world record $9.5M USD pay out only to be overshadowed a few months later by the IRENE SL claim which paid $13.5M. The pirates are still exploring the upper limits of the “market” and they will know they have reached it when shippers opt for the total constructive loss.

Written by Stuart J Pagett

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Bulletin Updates
Fri Mar 30 2012
Ransom and negotiation: a piracy advocate
Tue Jan 31 2012
Circuit Magazine
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