UK Supreme Court Piracy Ruling Gives Guidance on War Risk Provisions in Charterparties
In a well-timed decision given the current situation in the Red Sea and Gulf of Aden, the UK Supreme Court recently handed down judgment in Herculito Maritime Ltd v Gunvor International BV [2024] UKSC 2, a decision that arose from seizure of a ship by Somali pirates.Key factsThe vessel MT Polar was chartered to carry a cargo of fuel oil from St Petersburg to Singapore. The most direct route would be via the Suez Canal and Gulf of Aden.The Gulf of Aden was within the “high risk area” for piracy when the charter was agreed.
Why Are Pirates Attacking Ships in the Gulf of Guinea?
Pirates are stepping up attacks on ships in West Africa’s Gulf of Guinea, defying regional navies. On Saturday, pirates off Nigeria kidnapped 15 sailors from a Turkish container ship and killed one.Pirates in the Gulf of Guinea kidnapped 130 seafarers in 22 separate incidents last year, accounting for all but five of those seized at sea worldwide.Who are the pirates and why are the attacking?The pirates come from Nigeria’s turbulent Niger Delta, experts say. The region produces the bulk of the nation’s petroleum…
Barbican Acquires Marine Insurance Broker
Barbican Group Holdings Limited (Barbican) announced that it has acquired Seacurus Ltd (Seacurus), a U.K.-based specialist marine insurance broker. Established in 2004, Seacurus focuses specifically on revenue protection in the marine insurance market. A provider of marine kidnap and ransom insurance, the company offers a range of products designed to help companies in the shipping industry manage a wide variety of operating and financial risks. Seacurus will continue to operate under its current brand. Details of the transaction have not been disclosed. In April 2013 Seacurus launched CrewSEACURE, an insurance product for employers of seafarers required to meet regulatory obligations under the Maritime Labor Convention 2006 and the International Guidelines on Seafarer Abandonment.
Mace Personal Defense Joins Piracy Battle
In an effort to combat the rapidly growing levels of piracy and armed robbery against ships around the world, Mace Personal Defense, Inc. a wholly owned subsidiary of Mace Security International, Inc. (OTCQB: MACE) has formed an alliance with Shipboard Defense Systems, Inc. to develop The Shipboard Defense System, a defensive on-board system to repel pirates. The Shipboard Defense System is designed with 300 gallon pressurized tanks that include loop piping installed around a vessel allowing for 100 feet of defensive zones each. When activated, the system disperses a "RAINSTORM" Mace® pepper spray. The Mace® liquid contained in the Shipboard Defense system is formulated with 10% non-flammable OC pepper formula that is effective against those with decreased sensitivity to pain.
Piracy Expected to Rise as Monsoons End
Operators of vessels off the East coast of Africa are being warned by a leading insurance expert to prepare for an increase in pirate attacks after the southwestern monsoon ends in coming weeks. “There is a temporary lull in pirate activity at the moment off the East coast of Africa…but we expect this to be just that - a temporary lull,” said William Tobin, of the not-for-profit mutual organization Shipowners’ Protection Ltd., and a leading speaker at an upcoming regional maritime conference in Abu Dhabi. “When weather conditions improve we expect an increase in activity over and above what we have witnessed in the recent past,” he added. “The lack of any law and order, particularly in Somalia, continues to deteriorate.” The southwestern summer monsoons occur from June through September.
Keeping Vessel, Cargo & Crew Safe Through Preparation
The 2001 maritime crime statistics are now in, and, as expected, acts of piracy doubled. As predicted in a previous article, we have now seen the very publicized piracy and kidnapping off the coast of Somalia. The very public unconfirmed report of a U.S. $200,000 ransom has set the precedence for future piracy and kidnapping payoffs. While everyone is extremely happy that all 18 crewmembers returned home, it poses even more questions for the maritime industry. In the aftermath of September 11, many insurance companies have revised their policies concerning acts of terrorism. Do specific policies need to be addressed to cover actual crew kidnappings even if kidnapped during piracy?
