Recent developments, relating to hijacks and piracy in the GOA, Arabian Sea and Indian Ocean have become rather disturbing. Piracy problems continue to grow and a major problem has been the lack of sharing of contacts, on the ground information and on-going developments, which we are sure would greatly assist in getting vessels released more quickly, importantly with less stress to the families of those on board.
The MTI Network is currently involved with media, families and other stakeholders of some six vessels currently captured and being close to the overall problems have allowed us to note certain trends and developments, important to all who transit the area that provides passage for more than 40 percent of world trade.
Trends
New gangs keep appearing, and in a recent incident involving a very large tanker, the young gang responsible lost no time in publicising the large sum of money they received. The effect has been to raise the ransom expectations significantly for all ships and particularly tankers. Against this background of price escalation, pirate tactics have continued to become more sophisticated, particularly in relation to allowing calls from the ship to relatives, owner's office and editors of newspapers. We have even seen an example of what could be described as a press conference being held on the ship with a media outlet.
Needless to say, the messages that come from the ship are designed to create panic among next of kin and put huge pressure on government authorities and owners alike. While lack of food and water and poor living circumstances continue to be favourite subjects that crewmembers are encouraged to relay to their families, a recent tactic has been to say that certain crew members have been taken off the vessel and are now on-shore. In some cases pictures are provided, while in others it is probable that the crewmembers have been placed away from their shipmates and are still on-board.
Families are naturally deeply distressed by any such news as they feel that their loved ones are in even greater danger. Having all these issues played out in the media seems to give them an air of authenticity leading to greater concern among relatives. Sadly there also seems to be a trend towards greater violence and bad behaviour by the pirates, particularly when vessels have been held for more than 100 days and everyone's patience begins to run out. The pirates are well able to monitor all local and national media and believe that publicity and confrontation leads to a higher and quicker payout and this is their end game.
Apart from advising families that such pirate tactics are well known and are part of the process, it is possible to require government authorities to lean on the media and ask them to stop reporting stories that can seriously jeopardise the safety of those being held. I'm sure that the English yachting couple, the Chandlers, will not mind me mentioning that the 12-week super-injunction taken out to stop any reporting of their plight was instrumental in their final release. In this case we appealed to the media directly and all but one major media outlet agreed on the blackout. In any hijack situation it is vital to keep the families of those being held briefed and informed of the process and expectations on all sides. This does not mean providing any figures to do with the negotiation, but our advice now is to get the families together right at the start of the hijack and explain just how the pirates will behave, what they can expect from phone calls, the threats and tactics that might be employed. This will save a lot of time and anguish during the period of the hijack.
Payments
There are now growing concerns about payments to pirates. With reports that the Al Qaida-linked Al Shaabab organisation has infiltrated some pirate strongholds and are demanding 20 percent of the ransom, it is impossible for those with a US nexus not to feel great disquiet that they may be financing terrorism under the Obama Executive Order. Further reports are also coming in that the authorities in Mogadishu are now intercepting payments being flown into Somalia for ransom purposes, seizing the money and aircraft. This adds a further complication to owners and their professional advisers, having agreed terms for release of vessel and crew.
This situation may well be resolved, but until there is clarification great care should be taken on the entry route whether it be Mogadishu, the Seychelles, Djibouti, Kenya or elsewhere. One of the most worrying aspects of pirate activity this year has been the agreement of terms for release of vessel and all crew and delivery of the necessary funds, only to find that the pirates decided to go back on their word and to take a number of the crew members ashore in an attempt to swap them for Somali pirates held in prison for their criminal activity. The trauma of those asked to sail away and leave their shipmates behind and of the families of those now on shore in Somalia can only be guessed at.
Armed guards
While many owners are now using armed guards as the only way of protecting ships and crew there remains much ambiguity about the legal and flag state position. The industry seems to be in need of a trade body that can at least establish a code of conduct to be adhered to by the growing number of armed guard providers from different parts of the world.
We have been following the development of SAMI – the Security Association for the Maritime Industry, lead by Peter Cook. They have now signed up some 20 of the leading security companies who are providing the majority of armed guards in the pirate areas. SAMI is working within the IMO's Maritime Safety Committee's guidelines and will provide the due diligence on the companies and personnel working in maritime security.
Hopefully this will provide a uniform code of conduct, which seems to be a step in the right direction and prior to any intergovernmental initiatives to halt piracy, SAMI should provide a comfort factor to both flag states that are troubled by the concept and perhaps charterers that share the same doubts. SAMI also appears to be in the unique position of acting as the focal point for the maritime security industry and is actively liaising with flag states, international shipping associations and the coalition naval forces.
There would also seem to be a need for a standard Maritime Security Contract (MARSEC). Again this would provide a uniform approach to contracting armed guards. A MARSEC contract does exist and has done the rounds of the P&I Clubs; for owners who have never contracted a mercenary force for protection, this contract is to be recommended. It is available via SAMI or from the MTI Network.
International efforts
Finally, there have been a number of encouraging suggestions from leading members of the shipping fraternity in recent weeks on the urgent need for politicians and inter-governmental organisations to provide the mandate that will ultimately bring to an end the scourge of piracy. It is inconceivable that a "mothership" operating off the West European Coast, the Baltic or Mediterranean would be allowed to attack vessels for more than a few hours before there was intervention.
Why motherships are allowed to operate freely 800 miles from the Somali coastline is a curious conundrum. In the meantime the shipping industry must provide its own solutions and bear the cost!
Ferdi Stolzenberg, CEO, MTI Network (Asia)
