Cost of Somali Piracy Slumps as Attacks Fall

Posted by Eric Haun
Wednesday, May 07, 2014
MV Royal Grace following its release from Somali Pirates in March 2013. (Photo: EU Naval Force)

The cost of Somali piracy to the global economy fell by almost half last year as attacks slumped, but piracy in West Africa was on the rise, an annual security report said on Wednesday.

The Oceans beyond Piracy report put the total cost of Somali piracy - by far the largest single threat to international shipping in recent years - at only $3.2 billion in 2013.

There were still at least 50 hostages in Somali captivity in desperate conditions, held on average for most three years each, the report said.

Gauging the level of threats in the Gulf of Guinea was difficult because of incomplete reporting but it was clear that rising numbers of seafarers were being kidnapped, it said.

At the height of Somali pirate attacks in 2011, up to a dozen or more merchant ships were being held captive at any one time, often for multimillion dollar ransoms.

Since then, growing use of private security details and the presence of international warships have largely prevented successful attacks. No large vessels were seized in 2013.

"The efforts of the international community and the shipping industry have considerably reduced the threat of Somali piracy," says Jens Madsen, one of the report sources. "But we have yet to achieve the goal of ... zero vessels captured and zero hostages held."

Only a tiny proportion of the money spent on Somali piracy was being used for permanent solutions onshore, the pirates' launching pad for attacks on passing ships, the report said.

The lost majority of the funds was used for private security contractors and insurance premiums.

Piracy Different in West Africa

Shipping companies, which in the past used larger and more costly teams and took expensive steps such as rerouting vessels and traveling at greater speed, were increasingly turning to smaller groups of armed personnel, the report said.

Somali pirates were increasingly attacking local fishermen and smaller craft, often hoping to use their vessels to attack larger ships.

In West Africa, tackling the attacks was complicated by the lack of regional cooperation and information sharing, it said.

"Piracy in the Gulf of Guinea is fundamentally different (from) events taking place in the Indian Ocean," said Madsen.

"We observe... a high degree of violence in this region," he said. "The constantly evolving tactics of West African piracy make it extremely difficult to isolate it from other elements of organised crime."

(Reporting by Peter Apps; Editing by Tom Heneghan)

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

WFW Advises ING Bank on $340m Loan Facility for Euronav

Watson, Farley & Williams (WFW) has advised ING Bank N.V. (ING) as sole bookrunner and facility agent for a syndicate of banks on a $340 million loan facility made available to Euronav NV.

Clean Marine Wins New Contract

Clean Marine has been selected by Hyundai Mipo Dockyard in South Korea to supply exhaust gas cleaning systems (EGCS) for two new MR tankers. IMO’s convention

Moore Stephens Expects Vessel Operating Cost to Rise

Vessel operating costs are expected to rise by almost three per cent in both 2014 and 2015, according to a new survey by international accountant and shipping consultant Moore Stephens.

News

WFW Advises ING Bank on $340m Loan Facility for Euronav

Watson, Farley & Williams (WFW) has advised ING Bank N.V. (ING) as sole bookrunner and facility agent for a syndicate of banks on a $340 million loan facility made available to Euronav NV.

UN Authorizes Ship Inspections Near Somalia For Arms, Charcoal

The United Nations Security Council authorized the inspection of boats suspected of carrying illegal shipments of charcoal or weapons to and from Somalia on Friday,

Clean Marine Wins New Contract

Clean Marine has been selected by Hyundai Mipo Dockyard in South Korea to supply exhaust gas cleaning systems (EGCS) for two new MR tankers. IMO’s convention

Maritime Safety

UN: Ship Inspections near Somalia for Arms, Charcoal

The United Nations Security Council authorized the inspection of boats suspected of carrying illegal shipments of charcoal or weapons to and from Somalia on Friday,

Liebherr to Deliver RTGs to Mayotte and Manila

Liebherr confirms orders for variable speed RTGs and electric RTGs. DPWorld Asian Terminals Inc. has placed an order with Liebherr Container Cranes for a further 5 RTGs at its Manila facility.

U.S. Navy Contracts 12 Rapid Response Skimmers

Kvichak Marine won a US Navy contract for 12 30-ft.Rapid Response Skimmers (RRS) for delivery over the next 18 months, with options for up to 30 additional skimmers to be delivered through 2019.

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Pipelines Pod Propulsion Salvage Ship Electronics Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2271 sec (4 req/sec)