BIMCO, the International Chamber of Shipping, INTERCARGO, INTERTANKO and the International Transport Workers’ Federation are outraged that Somali pirates have executed, apparently in cold blood, a seafarer on the merchant ship Beluga Nomination which had been attacked and hijacked by armed pirates on January 22nd in the Indian Ocean, 390 nautical miles north of the Seychelles. Three seafarers were reportedly taken aside for ‘punishment’ after an attempt by the Seychelles coastguard to free the hostage crew resulted in the death of a pirate. We express our deepest sympathy to the seafarers involved and to their anxious families.

A spokesman said “The international shipping industry is truly disturbed at reports that pirates have been torturing seafarers physically and mentally, often in the most barbaric ways, including hanging them over the ship’s side by ropes around their ankles with their heads under water and even subjecting them to the horrendous practice of keelhauling.

“We wholeheartedly condemn these violent acts and once again strongly urge governments to empower their naval forces to take fast and robust action against pirates, and the vessels under their control, before passing ships are boarded and hijacked.

“This latest particularly atrocious action appears to represent a fundamental shift in the behaviour of Somali pirates. The cold-blooded murder of an innocent seafarer means that ship owners and their crews will be re-evaluating their current determination to ensure that this vital trade route remains open – over 40% of the world’s seaborne oil passes through the Gulf of Aden and the Arabian Sea. The shipping industry will be looking at all possible options, including alternative routes, which could have a dramatic effect on transport costs and delivery times – piracy is already estimated to cost the global economy between US$7-12bn/year.”

At the end of 2010, around 500 seafarers from more than 18 countries are being held hostage by pirates. Piracy clearly affects the world’s largest trade transport industry, but how much is it costing the world?

Oceans Beyond Piracy has completed a study on the economic cost of maritime piracy. The project set out to analyse the cost of piracy to three regions:
· The Horn of Africa;
· Nigeria and the Gulf of Guinea;
· The Malacca Straits.

The focus has inevitably been on the costs of Somali piracy because this is the region where contemporary piracy is most highly concentrated and is the greatest source of current data and information. The project primarily analyses direct costs, but also considers some secondary (indirect) costs. We hope the model, report, and calculations produced by this study will be a useful tool for analysts and policy makers working towards solutions to piracy. The project is designed to be a collaborative effort, and we welcome any data sources, comments, or other suggestions that interested stakeholders might have.

Over the past five years, ransoms paid to Somali pirates have increased from an average of $150,000 in 2005 to $5.4m in 2010. The largest known ransom payment was for the South Korean oil tanker, the Samho Dream. This vessel was ransomed for a record $9.5m in November 2010. By the end of 2010, approximately $238m was paid in ransoms to Somali pirates in that year alone.

Republished by kind permission of: A&A Thorpe, 131a Furtherwick Canvey Island, Essex SS8 7AT Tel: +44 (0) 1268 511300 Fax: +44 (0) 1268 510467 shipaat@aol.com
The views of the Publishers do not necessarily correspond to the views of Lambos Maritime Services Ltd.