© chartworld shipping corporation sep 2012 chartworld shipping corporation for the fraternity of...

© Chartworld Shipping Corporation Sep 2012

CHARTWORLD SHIPPING CORPORATIONCHARTWORLD SHIPPING CORPORATIONFOR FOR

THE FRATERNITY OF ATHENIAN HYDRIOTSTHE FRATERNITY OF ATHENIAN HYDRIOTS• •

PIRACYPIRACYPRESENTATIONPRESENTATION

••

HYDRAHYDRA1515thth September 2012 September 2012

••

CONFIDENTIALCONFIDENTIAL


The face of modern Somali piratesThe face of modern Somali pirates

Russian LMG AK 47 (left) and RPG (right)


Piracy At A Glance (Statistics)Piracy At A Glance (Statistics) 2005-2011 2005-2011

Vessels attacked worldwide (2010) (nos: 480) Vessels hijacked worldwide (2010) (nos: 53) Vessels hijacked worldwide (2011) (nos: ) Crew members held worldwide (2010) (1181+, of whom 8 were killed). Family

members affected ashore (say) 3,500+ ? Ransoms paid (2009) (US$ 177M) Ransoms paid (2010)(US$ 238M) Ransoms paid (2009+2010) (US$ 415M) 2005 Average ransom US$300,000 2005 Average negotiation time: 6 weeks 2010 Average ransom US$5,400,000 2010 Average negotiation time: 5 months 2011 Average ransom US$ 5-7M (more if laden VLCC & then double digits) 2011 Average negotiation time: 7 months


Piracy At A Glance Piracy At A Glance (2011 & Beyond)(2011 & Beyond)

“Samho Dream” (VLCC/laden) ransom US$9.5M “Samho Dream” detained 216 days (4 April-6 Nov 2010) Worldwide costs (ransoms, naval presence) (estimated) US$ 2 billion

pa Cost to world trade of re-routeing/extra fuel (estimated) US$2.3-3 bn pa Somalia/ Indian Ocean/ Gulf of Aden (escalation of violence/armed

interventions/ shootings eg “Beluga Nomination” & “Samho Jewelry”: Jan/Feb 2011)

Nigeria/ West Africa (violence & removal ashore of crew, cargo theft) Indonesia/ Malacca Strait (ongoing)


““Beluga Nomination”Beluga Nomination” “Samho Jewelry” “Samho Jewelry”

Some Vessels Attacked off Somalia


Typical Pirate Land Bases in SomaliaTypical Pirate Land Bases in Somalia

Somalia Map (Pirates’ Strongholds) Somalia Map (Pirates’ Strongholds)

Eyl Hobyo Harardhere Political situation New elections (impact?) Al Shabab (politics & terrorism) Monsoon & “hunting” seasons



Pirate Equipment (Somalia)Pirate Equipment (Somalia)

Skiffs Ladders/ Grappling Ropes (speed of ascent) Outboard Motors Khatt (narcotic chew)


Pirate Equipment (Somalia)Pirate Equipment (Somalia)

2010/2011 (change of tactics)

Mother Ships (different types & sizes


Piracy & Chartworld Piracy & Chartworld (Somalia)(Somalia) Capt StefanosCapt Stefanos (2008) (2008)


Piracy And Chartworld (Somalia)Piracy And Chartworld (Somalia)Capt StefanosCapt Stefanos (2008) (2008)

Pirated on 21 Sept to 6 Dec 2008 (77 days) 19 Officers & crew on board (all Filipino, except 1 UKR & 1 PRC) Vessel value (about) US$60M Cargo of 61,000 MT coal on board. Value about US$10.50M Ransom paid (US$ 1,200,000) Advisers’ Fees, delivery of ransom & associated costs (US$250,000) Loss of hire (US$3.39M) Payments to crew (US$ 50,000) Management time (Eur ? / US$ ?). CHW CMT=“Top Management” persons.

Responsibility /stress unquantifiable Reputational issues (not quantifiable) We were 1 of 46 vessels subject to actual & attempted pirate attacks in 2008 in

GOA/Somalia (although we were hijacked beyond “recommended safe limit”)


Chartworld And Chartworld And Risk Prevention/Minimisation Risk Prevention/Minimisation

Office awareness BMP4 (supported by insurers and BIMCO, INTERCARGO,

INTERTANKO, IMB, Bahamas Flag, NATO a.o.) BMP4 deals with general planning prior to transit of high risk regions,

defensive steps to be taken on board & ashore & also steps to be taken if vessel attacked or boarded

Standard “kit” in office and onboard See Anti Piracy planning chart (next slide) Adequate food (including pork for Indian Ocean transits & fishing gear)

& bunkers to be on board Fresh water generation available Security Consultants & on board training See CHW “initial steps” papers (with Terra Firma) as to “early” crisis

management


Chartworld And Security/ Deterrent Chartworld And Security/ Deterrent EquipmentEquipment

“Hardening” issues after risk assessment Barbed wire & fixings Capt Stefanos 0/10 (US$10,000) Difference between razor & barbed wires (see pics A, B & C): High

tensile razor wire concertina coils essential Instructions for installation of razor wire (see recommended

procedure for razor wire installation) Bulk purchases of razor wire & strategic placing storage on board/

ashore Citadel requirements (UK MTO Best Practice) Citadel usefulness Citadel costs


Picture A Picture B Picture C Picture A Picture B Picture C Razor Wire Razor Wire Concertina Barbed WireRazor Wire Razor Wire Concertina Barbed Wire

Clipped & CoiledClipped & Coiled YESYES YES YES NONO

Difference between razor & barbed wires Difference between razor & barbed wires & their purposes/functions& their purposes/functions

Double Razor Wire & 45˚StanchionsDouble Razor Wire & 45˚Stanchions

Good layout



Logistics Of Planning/ Supply & Stowage Of Security/Logistics Of Planning/ Supply & Stowage Of Security/Deterrent EquipmentDeterrent Equipment

Calculations to be made, specifications & design for hardening equipment & installation time needed for all vessels

Who responsible/accountable at office & on board?

“Signing off” & compliance with BMP4/ ISM/ ISPS

Comparisons of cost of armed /unarmed guards

New buildings & installation of fittings to receive hardening supports

Citadel supplies (consumables and contamminations etc.)

Electrification of wires? Water cannons?


Training Of CHW Office & Sea PersonnelTraining Of CHW Office & Sea Personnel

BMP4

Crew awareness of BMP4

Office awareness of BMP4

Keeping up to date (sources). Many available now.

Keeping interactive e-map/chart of PAGS (GOA/Somalia)

Office “data base” of know-how & access thereto


AccountabilityAccountability

We have to assume/plan for the “worst” Armed / unarmed guards (if so taken on board where?) Armed / unarmed guards (rules of engagement) Flag issues re armed guards Legal /Moral issues Directors’, Principals’ & Shareholders’ concerns re armed

guards

GuardsGuardsRules of EngagementRules of Engagement


BIMCO Guardcon

Insurance Issues• Third Party Liability• Personal Injury

Blackmail

Capt Stefanos’ “Blackmail” & Ultimate ReleaseCapt Stefanos’ “Blackmail” & Ultimate Release

“Proof of Life” See John Young’s delivery/ drop photos Splitting of crews


Capt Stefanos’ Debrief of Master (CMT)Capt Stefanos’ Debrief of Master (CMT)(December 2008)(December 2008)

Trauma post release issues?

Size of CMT & its composition


“Proof of Life” (2000)

“Proof of Life” (2000)“Proof of Life” (2000)

Russell Crowe Meg Ryan Central America (KNR) Same as with Pirates

“THIS IS A GAME. THIS IS A GAME YOU PLAY, WHETHER YOU LIKE IT OR NOT.

FOR US IT IS EMOTIONAL. FOR THEM IT IS A BUSINESS.

THE SOONER YOU GET COMFORTABLE WITH THAT THE BETTER”



Acknowledgments Acknowledgments & & Sources with ThanksSources with Thanks(Whose material is gratefully acknowledged & for which no copyright is claimed by Chartworld)

- EUNAVFOR- Hellenic War Risks Association (Bermuda) Limited- IMB/ICC- IMO- John Young- Terra Firma Risk Management Limited- UK MTO (HOA)- Various image sources

© chartworld shipping corporation sep 2012 chartworld shipping corporation for the fraternity of...

Documents

somalia slide

crew us

average ransom us

costs us

confidential slide

loss of hire us

rpg right slide

average negotiation