Industry News

On 1 May 2012, Holman Fenwick Willan published a Client Update which contains a broad overview of current piracy issues including catch-and-release, counter-measures, trends, ransoms, hostages and rescues.

On 23 March 2012, BIMCO published contract for the employment of security guards on vessels GUARDCON. For more information see International Group Circular which includes links to the Contract, Explanatory Notes and Guidance on Rules for the Use of Force.

On 4 April 2012, the Security Association for the Maritime Industry (SAMI) issued a media release  announcing that the first private maritime security companies had passed through the initial stage of their accreditation programme.

The IMB Annual Report for 2011 has been published and is available on request from IMB. The Report confirms the trend towards a slight increase in the number of attacks but a decline in the number of hijackings. This is consistent with data from EUNAVFOR which confirms that there has been no decline in the threat from pirates though there has been a reduction in their rate of success. For more information see Facts & Figures below.

Oceans Beyond Piracy has issued two publications. The first, Introduction to Private Maritime Security Companies (PMSCs), contains information on the use of PMSCs. The second is the Economic Cost of Somali Piracy 2011 which is available in summary form and as a full report.

The UK House of Commons Foreign Affairs Committee published its report “Piracy off the coast of Somalia” on 5 January 2012. Ince & Co have published a short news item on the Report.

Version 4 of the Best Management Practices for Protection against Somali based Piracy (“BMP4”) was published in August 2011. It is important that all owners ensure that their Masters and crewmembers are made aware of the new version. This is particularly so in the case of ships registered in Norway where reporting and registration in accordance with BMP is mandatory.

INTERCARGO has prepared a helpful comparison between BP3 & BP4.

The Maritime Piracy - a Humanitarian Response Programme (“MPHRP”) which was launched in September with broad industry backing, published the Good Practice Guide for Shipping Companies and Manning Agents for the Humanitarian Support of Seafarers and their Families in November 2011.

New guidance has been issued on the use of citadels - available on MSCHOA website (password required).

A revised version of the International Group FAQs (originally issued in June 2009) was issued in September 2011.

The www.saveourseafarers.com website (with a linked Facebook page) is supported by a coalition of seafarers’ organisations, shipping companies and shipping industry associations., and campaigns to raise awareness of the human and economic cost of piracy among politicians, the public and the media. The website includes a short but effective video.which can also be found on youtube.

Skuld is able to provide kidnap and ransom insurance which is available to both owners and charterers. For details of recent reductions in rates, see Skuld News dated 4 April 2012.

Legal

A decision in the English High Court in the Triton Lark case provides guidance on factors which owners should take into account when considering whether to refuse charterers’ orders to proceed via Suez and the Gulf of Aden. More information is available here (see FAQ “Have there been any relevant Court cases?”)

In March 2012 the English High Court decided in the Captain Stefanos case that the vessel was off-hire while under detention by pirates, in contrast to a decision in an earlier case, the Saldanah, involving a differently worded off-hire clause. See under Charterparties for more information.

Gulf of Suez

The Egyptian authorities have clarified the requirements in relation to armed guards, weapons & ammunition on vessels in Egyptian territorial waters including the Suez Canal. More information is available here.

West Africa

On 1 August 2011, the Joint War Committee (JWC) extended Listed Areas (JWLA018) to include Benin, the Gulf of Guinea (the waters of the Beninese and Nigerian Exclusive Economic Zones north of Latitude 3 degrees North) and Nigeria.

The International Maritime Bureau’s (IMB) Piracy Reporting Centre (PRC) reports a considerable increase of violent armed robbery and piracy attacks in the Gulf of Guinea.

In the first nine months of 2011, 19 attacks have been reported off the coast of Benin in the vicinity of Cotonou, leading to eight tankers being hijacked and forced to sail to a pre-planned destination where cargo is stolen by means of ship to ship transfer. Attacks in this area are often characterized by the use of violence towards crew. As reported in our Circular of 3 October 2011, Benin has begun joint naval patrols with neighbouring Nigeria, another piracy hot spot.

There have also been several violent attacks in neighbouring Nigeria, in areas such as Port Harcourt and the Bonny River, the Calabar River and off Lagos. The IMB PRC has recorded 3 attacks, but says the number of attacks are under-reported.

Members operating vessels sailing between Ghana and Nigeria, as well as to the south toward Cameroon and Angola should be aware of the increased area of risk.

See ICC news article of 14 July 2011 for more details.

National Developments

On 7 March 2012, the Indian Ministry of Shipping issued a Notice warning of the  risks of mistaking fishing boats for pirate skiffs.

Several states are now introducing their own National regulations on the use of armed guards. With Italy being the most recent on 12 July 2011, Norway has also introduced new legislation.

Norwegian Authorities have decided to expand the security level 2 area in the Gulf of Aden, Indian Ocean and the Arabian Sea from Suez in North to 10`South and 78`East. NIS/NOR ships operating in this area must operate in accordance with descriptions in Ship Security Plan for security level 2. The expanded area is now considered a “High Risk Area” in Best Management Practices (BMP4).

For NIS/NOR ships in transit through the defined High Risk Area, registration with the Maritime Security Centre Horn Of Africa (MSCHOA) and reporting to UK Royal Navy`s Trade Organisation (UKMTO) is mandatory with immediate effect from 08 June 2011, through a new § 6a (Norwegian only) to Regulation 972/2004. Registration and reporting in accordance with BMP is therefore made a statutory requirement. One important consequence is that non-compliance may prejudice P&I cover by virtue of the standard condition of cover that members must comply with all statutory requirements (Skuld Rule 29).

The notification from NMD can be found here.

On 29 August the Indian Ministry of Shipping stated that it had issued Guidelines regarding deployment of armed guards in Indian Merchant Ships. Shipowners are allowed to engage Private Maritime Security Companies (PMSC) who have been properly selected and vetted.

A Skuld Circular published on 9 February and updated on 21 March and on 1 April 2011 contains warnings on calling at South African ports with arms on board.

IMO

A meeting of the Maritime Security and Piracy Working Group of the IMO Maritime Security Committee took place from 13 to 15 September and resulted in publication on 16 September of the following Circulars:

• Circular MSC.1/Circ.1405/Rev.1 containing interim guidance on use of private maritime armed security contractors (PMASCs). This revision replaces the original version published on 23 May 2011.
   
• Circular MSC.1/Circ.1406/Rev.1 containing interim recommendations for flag States on the use of PMASCs on board ships. This revision replaces the original version published on 23 May 2011.
   
• Circular MSC.1/Circ.1408 containing interim recommendations for port and coastal states regarding the use of privately contracted armed security personnel on board ships in the high risk area.

These documents can also be found on the IMO Website here.

MSCHOA & UKMTO & EU NAVFOR

While all parts of BMP are important, members’ attention is drawn to the reporting and registration procedures in Section 5 which can be summarised as follows:

In August 2011 NATO Shipping Centre updated its website which includes Weekly Updates and other important up to date information.

EU NAVFOR (European Naval Force) has issued a leaflet ”Surviving Piracy Off the Coast of Somalia". EUNAVFOR also now issues weekly piracy incident summaries which can be found as a download here.

Facts & Figures

A report issued by the Oceans Beyond Piracy foundation in May 2011 estimated the total annual cost of piracy worldwide to the international economy as being in the USD 7 bn to USD 12 bn range. An updated report was issued in February 2012 on The Economic Cost of Somali Piracy in 2011, putting the total cost between USD 6.6 and USD 6.9 bn. However it is the human cost that weighs most heavily.

The IMB reports that as at 19 March 2012, 197 seafarers and 13 vessels were held by pirates in Somalia.

The IMB Annual Report for 2011 shows that there were 237 attacks by Somali pirates in 2011 leading to 28 hijackings. The number of attacks has therefore risen but the success rate has declined significantly.

The IMB Report for 2010 records that Somali pirates were responsible for 219 attacks and 49 hijackings, with a total of 1016 crew detained and eight deaths. By way of comparison, in 2009 there were 217 attacks and 47 hijackings, resulting in 867 crew being held hostage and four reported deaths.