Welcome Content - Seacurus Ltd of the month – looking at the MLC, seafarer abandonment, shipping...

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Insurance BulletinIssue 28 - September - October 2013

Showing Its TeethWith the entering into force of the MLC we explore the questions as to how the rules are applied and assess the knock on effects on port State Control detentions.

Flag CostsWhile it seems port States may be on course with regards to MLC, alas there are still some concerns as to how flag States will step up. What is happening today?

London CallingThe London International Shipping Week Conference was held as a “state of the industry” address, we assess how things are shaping up.

Getting to GripsMaritime Security, crime and piracy were high up the agenda during London Shipping Week – what lessons can we glean?

Back to the FutureThere are major concerns that complacency is creeping in as vessels look to cut the corner passed Somalia. Will this spark re-ignite the piracy tinder?

Monthly News Round-upWe bring you a round-up of the most influential stories of the month – looking at the MLC, seafarer abandonment, shipping bankruptcies, piracy and security.

ContentWelcome

Welcome to the latest edition of the Seacurus Monthly – which looks back on a month which has seen much activity in the shipping industry.

This time out we look at the effects of the Maritime Labour Convention (MLC) as detentions begin to bite and as the intentions of port States start to take shape. As more and more shipping companies find themselves in financial trouble we also reflect on the knock on effects for crew and their families.

Even with MLC in place, the issue of abandonment just will not go away. Flags are seemingly stepping up and facing the requirement to repatriate crews, but when it comes to unpaid wages it seems the seafarers are out of luck once again.

From a piracy focus we look once again at West Africa, and ask whether there really are ways in which the international community can get to grips with the problems dogging so many piracy hotspots.

Often there are no real answers on piracy, but it seems one nation has managed to stand firm to crime while its neighbours have suffered. We explore the possible hard lessons that can emerge when a nation takes a stand.

As ever we hope you enjoy this issue. Captain Thomas Brown

Managing Director – Seacurus Limited


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Showing Its Teeth

With the entering into force of the MLC there were questions as to how the rules would be applied and of the knock on effects on port State Control detentions.

There were concerns about what the MLC really bring – whether it would be all positives, or simply another paper tiger which roars so rarely as to become effectively redundant. With so much hype surrounding the Convention it was always going to have a lot to live up to, but we didn’t have long to wait until the first vessel was caught in the net of MLC non-compliance.

The dubious distinction went to the 2,700 dwt Liberia-flagged supply ship “Atlantic Carrier”. The vessel was detained for a day after the Danish Maritime Authority discovered it had not complied with the new seafarer welfare requirements.

So the MLC got to show its teeth early and decisively, and even the vessel’s flag was quick to put the boot in. According to a report in Lloyd’s List, the Liberian International Ship Corporate Registry said the vessel was one of the, “5% of Liberia-flag ships which had not sought to comply”.

The flag further stated that while the vessel was covered by crew contracts, they were not compliant with MLC. Liberia then began working with the vessel’s owner to resolve the situation – which thankfully was relatively swiftly concluded.


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The fact that the contractual issues could be rectified relatively quickly and seemingly easily makes it rather puzzling as to why owners wouldn’t have acted sooner, perhaps before the MLC deadline.

We know that there is often hesitance to act with regards to new legislation, but to trade in the North Sea and be in the midst of an active port State control area without having addressed the necessary paperwork seems unfortunate, if not foolhardy.

Hopefully the detention and high profile afforded to the ill-starred “Atlantic Carrier” will serve as notice to other vessels and owners to get things right, and quick.

However, perhaps the message is not getting through – as not long after Canadian port State control officers detained the vessel “Lia M”. In this case the detention was prompted by crew complaints which included unpaid wages, a ‘collective bargaining agreement’ that lacked the vessel name, a date or a wage scale; crew with no money, no shampoo, toothpaste or other items; a crew member who had twice been refused access to a doctor; and crew members having been forced to sign blank contracts.

The ITF applauded the actions and praised the port state control regimes both in Canada and Denmark for their action in detaining the two vessels. They felt that this was a landmark moment, as it pointed out how the detentions prove the new convention’s potential. The union also reminded the industry that ITF Agreements are only those that are approved by the ITF, and that they only apply to ships flying (what they deem) a Flag of Convenience (FOC). According to the union, ITF Agreements are signed by a maritime union and shipping company, either the beneficial owner or the operator or the manager of the ship. The union must be affiliated to the ITF. The signatory union is normally from the country where the beneficial shipping company of the ship is based.

With so much at stake ITF seafarers’ section chair Dave Heindel commented: “It’s great to see the MLC in action. These were serious infringements and remedial action has been swiftly taken. These detentions should be a wake-up call to shipowners who are not complying with the MLC, and a further reminder to those countries who haven’t yet ratified of why they need to.”


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Flag Costs

While it seems port States may be on course with regards to MLC, alas there are still some concerns as to how flag States will step up. The biggest issue under scrutiny since the August enforcements began is whether flags sending crews home is enough, or is this simply shying away from the real issue of unpaid salaries.

Last month saw another spate of companies falling into financial problems and more ship arrests. Morocco’s largest shipping company International Maritime Transport Corp was even forced to deny reports that it has gone bankrupt. The company faced severe alleged financial difficulties prompted by the reported decision of V.Ships to terminate at short notice a contract for commercial and technical management of four ice-class boxships.

The commercial dispute and subsequent issues relating to wages meant that three vessels “Maersk Vancouver”, “Maersk Valletta” and “Maersk Vigo” were arrested and left lying at anchor off a German island.

The crew, as is sadly the norm in such circumstances, were left to struggle alone without support and were relying on donated food, water and other essentials. The abandonment of the seafarers generated considerable interest and media coverage. Something which has perhaps prompted action.

The company pledged to pay the salaries it owes to the 40 stranded seafarers; however it was left to the vessel’s flag to step in to get the crew home. The Gibraltar Ship Registry did confirm that it financed the repatriation of the crews from the three vessels. Which shows the flag is abiding by their new found responsibilities, but as the crews winged their way home there was no further news on whether their outstanding wages were paid, as promised.


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Once again such cases highlight the need for assistance over and above simply getting seafarers home. Wages remain the key aspect of this, and in not paying what is owed seafarers suffer twice-over.

MLC is clear in regards to flags having a “mandatory and unambiguous” duty, as laid down within Regulation 2.5 to provide financial security to ensure that seafarers are duly repatriated. Which it seems is working fine – and Gibraltar has even stated it will seek recompense from the owners for the expenditure. Where does that leave the out of pocket crew though?

Regulation 1.4 of the MLC requires member states to establish a system of protection, based on insurance or an equivalent appropriate measure, to compensate seafarers for monetary loss from failure of a recruitment and placement service under the seafarer’s employment agreement. However, it seems this is falling on deaf ears once more.

For a number of years both IMO and ILO member states have seemingly struggled with the financial requirement placed upon them by Reg 1.4. Once again it seems the debate has to turn to abandonment insurance. If such cover were mandated the regulations would be adhered to and seafarers would be better protected in one fell swoop.

The International Labour Organization recently reported a total of 184 cases of seafarer abandonment are still unresolved. In stressing the repatriation aspects but shying away from the financial losses, it seems we are in danger of seeing the spirit and letter of MLC being ignored.

London Calling

The London International Shipping Week Conference was held in the city recently, and the biggest draw of the week saw around 250 attendees from across the shipping industry descend to hear a “state of the industry” address from a range of leading speakers, including the Secretary General of the International Maritime Organization (IMO).

The event was largely designed for the UK and London to emphasise its importance in the shipping world as the best provider of a ‘cluster’ of shipping specialised services including finance, ship brokerage, marine insurance, legal support and arbitration. This was further endorsed by the location of the United Nations specialised agency, the International Maritime Organization (IMO) in central London.


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Martin Stopford of Clarksons gave perhaps the most eagerly awaited presentation – addressing as he did the effects of the recession, as the audience hoped for news of recovery. In setting a fairly depressing scene Stopford said that there is currently a 20-25% over capacity across shipping. There has been a rush to buy ships and eagerness to keep them afloat which has caused significant financial stress for many ship-owners and made it a “charterers market”. When the buyers hold all the Aces, then it is the suppliers that suffer, and this has proven to be the case.

Stopford is “the” man for shipping economics, and a firm believer in the Darwinian view on business and passionately believes that only the fittest should and will survive. When he says that shipping is desperately struggling with a strategy to deal with recession, rising fuel prices and an increasingly large number of new regulations it is to down cast faces. Those who think the good times are around the corner could seemingly be disappointed – indeed it seems that many more companies may go to the wall before the industry gets back into the upward curves again.

He also said that information technology is massively important and the basis for major changes in shipping but that there is a technical weakness in shipping despite the growing reliance on technology, this is something that we all need to be aware of. Lord Green, a government spokesman, also said that ship owners are far more inclined to register flag vessels with open registries.

There was a strong insurance presence at the conference, and the general consensus what that piracy is still very much a concern and that many incidents are never actually reported.


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While piracy was just one of the major problems to shipping discussed, and brokers and underwriters alike said there were clear requirements for more sophisticated risk management processes for ship owners, insurers and financiers. The very nature of shipping has changed, and so the ways in which we understand it need to evolve too.

This was deemed to be especially important as the challenging technologies being used by the offshore oil and gas industry to extract fossil fuels continue to grow. As deepwater drilling gets down to depths of as much as deep as 2.5 miles below the sea many more new fields will open up around the globe. There is a whole host of new opportunities, but if not managed or understood, then the threats can be daunting.

A main focus of the “Shipping Week” was the dear old City itself. The events held across London were meant to usher in a new dawn of self-confidence and certainty that the metropolis would lead the maritime world long into the future. Some were not quite so sure and there seemed a quiet, grudging acceptance, that despite London’s excellence in the provision of commercial shipping services that the centre of gravity is moving east as the Chinese and the Far East build and owns more ships. The spectre of Singapore was never far from the minds of the conference goers, and it was seen by many that the city of the Merlion could take a big bite out of London’s trade.

It was stressed however, that the UK still has a significant cluster of maritime services of quality with an unparalleled depth of expertise, and a culture of legal compliance; it also has the advantage of central time zone and is looked upon many as a ‘one stop shop’. Some wags even pointed out that as the Arctic will soon be free of ice, perhaps Singapore will drop off the main maritime arteries completely...London may have to hope it does.

In summing up the thinking of the distinguished array of speakers it was seen that some key talking points emerged. The first was that shipping is one of the purest markets globally and so evolution and churn is inevitable – this is something which should be embraced and accepted. It was the view that bad times may be hitting many, but when the financial clouds part and the sun shines on the industry once more then we will perhaps be safe in the knowledge that those who have survived deserve to.

Finally it was agreed by the eminent panel that whilst there is a desire for quality in these times of financial stress not every ship owner wants to pay for it and that for every one ship owner who wants quality there are 10 that don’t. The aim of the MLC has to be to ensure that the 10 cannot hold sway or be allowed to undercut or jeopardise those who seek to do things right. Hopefully quality will be encouraged to come to the fore.


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Getting to Grips

As we have discussed the London International Shipping Week (LISW) saw a plethora of maritime events, conferences and workshops across the city – and security, crime and piracy were high up the agenda on most occasions.

Of special interest were the security problems in West Africa as the shipping industry looked to get to grips with the Gulf of Guinea problem. According to some it is far from “mission impossible”, but it is certainly proving problematic as piracy off West Africa has grown at a frightening rate.

The regional security problems have been spiralling to such an extent that the area is becoming engulfed in what the United Nations (UN) has described as a “catastrophe” as a record number of attacks have been launched against shipping.


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As an illustration of the current state of play, the International Maritime Bureau figures claim there to have been numerous Nigeria related incidents, with 28 reported incidents including two hijackings.

Concern about piracy in the Gulf of Guinea has long been mounting but it wasn’t until 2010 which saw a real turning point and escalation in attacks against loaded product tankers. The tankers are hijacked by criminals and taken to a location where the cargo is illegally discharged into a smaller vessel. The one positive is that usually the ship and crew are released, and although violence is often used against them during the hijack period the real focus is on stealing the cargo, not to kidnap or kill the crew.

In 2011 the UN Security Council issued resolution 2018 “expressing its deep concern about the threat that piracy and armed robbery at sea in the Gulf of Guinea pose to international navigation, security and the economic development of states in the region”. The Security Council also called for “a comprehensive solution to the problem of piracy and armed robbery at sea in the Gulf of Guinea”.

Two years on, and it seems the strategy is not quite yet working. The resolution fell short of authorising other States to enter territorial waters to repress piracy and as such critics felt it to be inadequate.

Perhaps predictably West African piracy has now overtaken the Somali iteration as the biggest threat to shipping, and this does seem to suggest that a stronger tack is needed. To combat piracy off Somalia the UN Security Council called upon states and regional organisations to fight piracy with naval vessels, arms and military aircraft, but resolution 2018 simply expressed “concern”, which however “deep” does not seem to be having the desired effect.

Of course West Africa and Somalia are very different, whereas the latter is a “failed State”; the former is surrounded by littoral States which are simply having problems applying any rule of law out at sea. It may be that the same lessons learned off Somalia and in the Indian Ocean are not wholly transferable. However, it seems that with the European Union Naval force stating that it will not extend operations over on the west coast, and with private security not yet an option then it will be very difficult to envisage the catalyst for security change on the region.

One question which emerged across a number of events was the issue of whether the governments in piracy affected areas are doing enough to combat it. According to the experts the answers seem to be mixed, most believe they are doing all they can, but that the best is not seemingly good enough.

It seems that from the perspective of recognising there is a problem and entering into dialogue on potential ways of combating piracy, then most governments in piracy affected areas are acting.

However it seems unclear as to how such discourse, agreements to share information, and moves to create the means to prosecute pirates is translating into actual, tangible and real action to reduce the number and severity of attacks.


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As the security situation around the West Coast of Africa deteriorates there have been pleas from littoral nations for support and assistance. It seems that many do not possess the military, the naval, coast guard or customs resources to deal with piracy in the region.

The European Union has reported preparations to increase security efforts in the Gulf of Guinea. German Rear Admiral Jurgen Ehle, heads an EU military working group for West Africa and has been on record as stating the EU Gulf of Guinea strategy is less to send ships, but will focus on “military advice” and civilian programmes to curb poverty, which is fuelling much of the unrest.

Despite recent Codes of Conduct and agreements, some observers have claimed the “polarized and politicized” nature of the region would make it highly unlikely that unified solutions can be found which is hugely concerning, and suggests that such insecurity and rising piracy attacks are set to continue unchecked.

It is not all doom and gloom however, and there is one initiative which has seemingly borne positive results is the establishment of a Secure Anchorage Area (SAA) off the coast of Lagos, Nigeria to protect vessels operating in the region and surrounding High Risk Areas (HRA).

The SAA is a secure place where vessels can anchor safe from the threat of pirate attack. It is protected by a Maritime Exclusion Zone (MEZ), which is patrolled 24/7/365 by multiple armed Patrol Boats (PBs).

It is perhaps the lessons from such small scale successes which can be rolled out on a larger scale and which may well see the development of other such policed exclusion zones.

While it is perhaps all too easy to be critical in the face of worsening attacks, it seems that efforts are indeed being exerted on all sides. Governments are trying to find answers while military powers and PMSCs are looking to the best, most effective ways of providing the necessary solutions. It is to be hoped that things can be progressed and that finally the rising tide of West African piracy can be turned.


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Back to the Future

Of all the maritime news stories in the past month there was one which stood out – and made very depressing reading. It wasn’t a piece of insightful analysis from Lloyd’s List or rabble rousing rhetoric from the ITF – it was actually a small local newspaper piece about a Royal New Zealand Navy officer who had visited a university to tell students about the difficulties of counter-piracy operations, and the complexities of the situations they faced.

Amongst the usual background talk and the standard industry statistics there was one particular comment which should serve as a wake-up call to us all. A revelation was announced which suggests that not only have lessons not been learned, but that we could soon find ourselves right back in the thick of a revived Somali piracy problem.

Lieutenant Commander Andrew of the RNZN said that he was extremely concerned as he had been seeing more and more ships once again cutting the corner passed Somalia and so placing themselves in danger of being hit from shore based pirates once more.

It seems that the complacency against which so many have warned has crept back in – and vessels are placing themselves squarely back into the sights of the pirates who haven’t gone anywhere. While the big money, organised criminal backers may have indeed headed off to Dubai or wherever with their pound of ransom flesh, the pirates or potential pirates, are still living in the same places in the same ways and with the same desires to find ships to attack.


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It seems that there is now a real danger of the Somali pirate problem being allowed to spark back into life – like a fire which was not properly extinguished, the embers are being blown on by the winds of complacency, arrogance and ignorance.

Just as happened in the early Noughties, poor Somalis with no alternatives were seduced into piracy as a means of making money – and despite so much talk it seems nothing has broken that cycle. All that has happened is that vessels wised up, and took action to protect themselves. The navies of the world descended, private security was embraced and the legal systems locally were tweaked to allow prosecutions and imprisonment.

So what will happen when the navies leave, the private security guards are deemed too expensive, or when vessels begin to think they are safe from attack. Well, it seems we will simply spiral back into exactly the same mess from which we have recently emerged.

While the descent back into chaos may not be imminent there are clear signs that need to be heeded. Indeed even this year as the end of the south west monsoon season approaches, there is an anticipation of increased illegal maritime activity across the Gulf of Oman, the Red Sea and the Indian Ocean.

Many groups are still trying to ensure that shipping is alive to the risks of piracy and the fact that the problem has “not gone away”. But it seems such messages are not overly welcome, and as there is so much self-congratulation that the pirates have been “beaten”, it seems such Cassandra prophecies are not fashionable.

There has been some criticism of those who don’t prescribe to the triumphal view that East African piracy is beaten. But it’s not solely those who have a vested interest in the Status Quo – as Partner at UK law firm Holman Fenwick Willan, Richard Neylon, voiced concerns too, and his sensible assessment is that while attacks were down this year, “the trend could be reversible”. There are still attacks happening, and as vessels now begin to see the advantages of cutting the corner passed Somalia and the savings in time and fuel, it seems we could be forgiven for feeling a sense of déjà vu.

So long as the heavy military presence is in place, then it seem unlikely that piracy will be able to have quite the effect it did –but there are questions being asked about how long the naval presence will be sustained. While today the Combined Task Force (CTF) 150 is fully prepared and ready to respond, the mandate does expire next year – and if the grey ships step back, it could be a very black day for the rest. Combine this with reported cutbacks in the use of private security, and a seeming sense of over confidence, then it could be that trouble is not fair away and it needs to be fully appreciated, accepted and managed.


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MARITIME LABOUR CONVENTION AND SEAFARER NEWS

Bankruptcy ClaimsGulf Navigation has reportedly sailed into choppy waters with one of its oil tankers forced to remain at anchor in Rotterdam pending its sale, under instruction from disgruntled creditors. The Dubai-based company states that the vessel “Gulf Sheba” had been arrested in Rotterdam while unloading its crude cargo. The arrest notice was served by the Norwegian bank DNB, an agent of the lenders for Gulf Sheba Corporation, a Gulf Navigation subsidiary, for default in repayment of interest and principal towards the end of July. Vessels can remain under arrest for many months, incurring port fees and putting a serious dent in a company’s revenue.http://goo.gl/bWuHxM

Failed EscapeIf you are going to try and make a run for it and escape detention surely the golden rule is not to run aground? Seems the master of the vessel “Zebron” hadn’t read “Escaping Arrest 101”...as he ran his vessel up the rocks in trying to escape the long arm of the Swedish Maritime Authorities. The Swedish Coast Guard was called to the grounding after the 1968-built bunker vessel Zebron slipped its moorings. It has been suggested the 526 dwt tanker tried to leave Stockholm despite a number of deficiencies being detected and the vessel being detained. Swedish police continue to investigate if the captain deliberately sailed without permission.http://goo.gl/2DNia6

Support NeededThe Apostleship of the Sea has been stressing the need for regular on-going support for seafarers; AoS says the well-being of crew must remain priority as shipping becomes more globalised. The work of seafarers is vital, yet they remain vulnerable to the dangers of the sea and are isolated from their families and friends. Sadly many also become victims of unscrupulous shipping practices, with long working hours and poor working conditions.http://goo.gl/YyyRvE

Monthly News Roundup


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Possible ProgressSome 22 Indian seafarers and a Romanian have been stranded in Singapore’s waters for more than six months on board the seized Taiwanese- controlled VLCC ‘’Fortune Elephant’’. The vessel has been detained in Singapore since February and was seized by a court order obtained on behalf of a Taiwanese bank in May.The sailors’ were allowed into Singapore for three hours last week, when 11 sent some funds home, The Straits Times reported. The crew members have received their due wages of $389,000 from Taiwan’s Cathay United Bank, which seized the ship on a Singapore Supreme Court order over more than $65mill owed.http://goo.gl/ZPcGhh

Cadet ProtestThe ITF is all set to launch a protest over Panama’s interpretation of the Maritime Labour Convention 2006. The Panama flag has caused concern after a recent note informing shipowners that cadets are not covered by MLC. In Merchant Marine Notice 265, the Panama Maritime Authority (PMA) listed cadets among 12 different job descriptions that should not be considered as “seafarers” under MLC 2006. This definition and decision could mean hundreds of cadets serving under its flag could be denied the protection of internationally agreed minimum working conditions and standards for seafarers.http://goo.gl/YVCayl

Underside Exposed A new high profile book about the international shipping industry, has become something of a PR nightmare for the wider industry but also poor old Maersk who were kind enough to allow the author onboard their vessel. Ninety Percent of Everything, Rose George’s expose of shipping describes the modern shipping industry and documents its terrible labour practices, pollution of the oceans and atmosphere, killing of sea life, and ability to avoid regulation in ways that big banks have never imagined possible. George rode as a “supernumerary” on the Maersk Kendal and amongst other things the food was seemingly described as terrible and scant.http://goo.gl/OncWir

Complaints SystemMaritime lawyers have been stressing the power of the seafarer complaints system within MLC as the convention begins to bite. A shipowner also has to ensure that the vessel carries an on-board complaints procedure. This must enable seafarers to raise issues about MLC compliance including their own employment rights with the vessel’s master, without being victimised for having done so. If the seafarer’s complaint is not satisfactorily dealt with, he may bring it to the attention of the next MLC port state control inspector, who in turn has the power to detain the vessel in serious cases of non-compliance.http://goo.gl/6VX8oi


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Negative ViewWhile there are indications that the shipping industry is starting to emerge from the doldrums the signals remain mixed. Moore Stephens has reported shipping confidence has risen to its highest point since 2010. Indeed, there are signs of a new wave of speculative ordering of new tonnage, propelled by bargain-basement prices from shipyards desperate to fill slots and a reported influx of capital from private equity sources. On the other hand, in the same month, Moody’s Investor Service issued a negative report for shipping, predicting continued depressed freight rates for at least the next 18 months due to persistent over tonnage.http://goo.gl/xHInZ2

Detention InvestigationIOMOU, The Indian Ocean memorandum on Port State Control, a grouping of 17 maritime nations, has set up a Committee to examine India’s claim that the 26-day detention of its crude tanker “MT Desh Shanti” by Iran was in transgression of UN convention on the Laws of the Sea and other international pacts. “As per the guidelines, the Secretariat has formed the review panel,” an official of the Goa-headquartered Indian Ocean Memorandum of Understanding (IOMOU) told PTI. India, in its appeal, has told the global body that the vessel on her “innocent” voyage was intercepted by Iranian navy beyond its territorial waters and forcibly diverted.http://goo.gl/FSeQxs

ILO DataThe International Labour Organization (ILO) has launched a comprehensive new database providing the most up-to-date information available on the implementation of the landmark Maritime Labour Convention 2006, which came into force on August 20. The database provides a vital resource for governments, seafarers, ship owners and others in the maritime sector and is expected to grow rapidly, as certain provisions of the MLC 2006 require ratifying member states to communicate to the ILO director-general, for further dissemination, specific information on how the convention is applied in national law and practice.http://goo.gl/LAz2l2

Difficult MarketShipowners will continue to struggle for solvency in difficult market conditions. This means finding ways to reduce costs. That’s the subject that will be addressed at the SHIPPINGInsight 2013 Fleet Optimization Conference. Stephen Chen, spokesman for Taipei-listed U-Ming, summed it up nicely. “The problem is there are too many ships in the market, so better demand can help but not much. And the ordering spree from private equities this year may prolong the downturn.” The business climate is characterized by persistent overcapacity, weak demand, disastrous freight rates, tight credit, low scrap prices, rising fuel costs.http://goo.gl/eY0QVp


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Central GapA statement from the International Labor Organization (ILO) states that while the MLC is in force, Panama is the only Central American country to have yet ratified the new convention. The new agreement became binding under international law on August 20. Its entry into force required the ratification of 30 ILO member States, representing more than 33 percent of the gross tonnage of the world merchant fleet. To date, more than 45 ILO member states have ratified the convention, which represents more than 70 percent of the gross tonnage of the world merchant fleet. However, there are gaps in the spread of ratification.http://goo.gl/vrAZXl

PIRACY AND MARITIME SECURTY NEWS

Piracy WarningWith the end of the south west monsoon season, there is an anticipation of increased illegal maritime activity across the Gulf of Oman, the Red Sea and the Indian Ocean. As a consequence, Combined Task Force (CTF) 150 is fully prepared and ready to respond. The Pakistan Navy led flotilla is a counter terrorism task force based in Bahrain, with warships from six international navies including the US, UK, Australia, Canada, France and Pakistan, operating under the command of Commander Combined Maritime Forces. Illegal maritime activity and piracy is a constant threat to the free passage of trade.http://goo.gl/o3GPh8

Still HereThe risk of piracy has “not gone away” according to chairman of Maritime Piracy Humanitarian Response Programme (MPHRP) Peter Swift, at a conference hosted by the International Union of Marine Insurance (IUMI). MPHRP provides training programmes for victims of piracy. Swift told attendees that 4,000 seafarers have been taken hostage globally, and 70 have lost their lives as a result of piracy, since 2007. “Fortunately attacks were down this year, but the trend could be reversible,” said Swift. Partner at UK law firm Holman Fenwick Willan, Richard Neylon, added: “There are still attacks happening.”http://goo.gl/oN59zp

Threat RemainsA fall in maritime piracy from Somalia does not mean the threat has ended, the US has stated. In a statement lauding the UAE for taking the lead in bringing together nations to keep the pressure on the pirates, the US praised the nation for pushing ahead with development in the country on the Horn of Africa. Donna Hopkins, Coordinator, Counter Piracy and Maritime Security, Bureau of Political-Military Affairs at the US Department of State, is adamant the threat remains strong.http://goo.gl/xu7YMT


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Protection BusinessThe private security business has been the focus of an interesting review in the respected Management Today journal. With successful businesses having gained a big market foothold they explore the trend for future growth, the challenges ahead and the changing face of private security. ‘The motto is: blend in and don’t stand out,’ says MIRIS International MD Mike Williams. ‘Guys with noses all over their faces aren’t what clients want.’ Today’s security pro meets your eye and smiles. ‘He’s inconspicuous. And if he’s on a superyacht, he’s good company.’ Then, if a threat occurs, he’ll get his gun, go to the back of the boat, and move into action.http://goo.gl/lbKMzz Pirates PretendSimilar to warnings off Nigeria more reports are emerging of pirates masquerading as sea traders in ferries and small boats to identify vessels that are carrying valuable cargo or are easy pickings. The Malaysian Maritime Enforcement Agency (MMEA) said that the pirates have become smarter and more cautious. MMEA southern region enforcement chief, Maritime First Admiral Adon Shalan, said that the pirates have become desperate due to increased enforcement by the agency and its counterparts in Singapore and Indonesia. “Most of these pirates are more cautious now about which vessels they target because they are afraid of getting caught,” he said.http://goo.gl/6A4hFD

Asian HotspotsThe waters near Johor and Malacca have seen a worrying surge of pirate activity. The rise in piracy is most stark off Indonesia’s Tanjung Priok, Dumai, Belawan, Taboneo and Muara Jawa. The IMB has warned mariners to take precautions when plying the 960km stretch shared by Malaysia, Indonesia and Singapore.The major concern is the increasing number of attacks in Indonesian waters, which are between 45 minutes and two hours away by sea from Malacca and Johor. Of the 138 piracy incidents recorded worldwide in the first six months of this year, 48 were in Indonesia, the IMB said in its report.http://goo.gl/V2OHqv Crew TargetedPirates targeting ships near Malaysian waters are now robbing crewmen of their money, phones, laptops and personal belongings, said the Malaysia Mari time Enforcement Agency (MMEA). A MMEA representative said the incidents in the Indo nesian waters involved mostly sea robberies against passing merchant ships. “The shipping community should view the matter seriously and share information and develop confidence-building measures with us,” he said. “We will enhance our efforts to tackle piracy by increasing patrols” he added.http://goo.gl/Loni4D


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New ThreatDare-devil hijackers of ships now pose as business people wanting to hire vessels in a bid to carry out their criminal acts, the Nigerian Maritime Administration and Safety Agency (NIMASA) has warned. NIMASA raised the alarm to all ship owners, shipping agents and mariners of the latest antics of “syndicate ship hijackers posing as ship charterers,” in a marine notice with reference number MNI 08/13/SN02, entitled: “Beware, Syndicate Ship Hijackers Posing As Ship Chatterers.” The agency observed that this new trend in the clandestine operations of ship hijackers and sea-based robbers syndicate operating in the West African coast. http://goo.gl/A8sYij

CRIMGO LaunchedThe head of the European Union (EU) in Benin, Francoise Collet, has launched the Gulf of Guinea Maritime Route project, which has been dubbed CRIMGO. Speaking at the launch , Collet said the project will help fight against acts of piracy and armed robbery in the Gulf of Guinea waters. The EU Stability Fund will contribute 4.5 million euros to CRIMGO, which is a pilot project initiated in seven African countries including Togo, Benin, Nigeria, Cameroon, Gabon, Equatorial Guinea and Sao Tome and Principe. The three-year program will focus on key aspects of maritime governance, especially training, information sharing and cooperation.http://goo.gl/sRKyI4 Liability IssuesIn the wake of the IUMI Conference, Lloyd’s List has raised the spectre of insurance cover becoming invalidated in West Africa if armed guards do not have contractual liability insurance. West of England P&I Club deputy director Chris South has spoken on the difficulties of getting underwriters to think creatively when it comes to contractual liability cover for private maritime security companies subcontracting to local navies in West Africa. It was stated that underwriters insuring PMSCs have been arguing against buying cover for contractual indemnity, however the West African context is proving extremely problematic.http://goo.gl/cLnUWp

Owners UrgedThe Philippines has urged ship owners to be more open to sharing information on the status of seafarers held hostage by pirates and to stop the policy of abandoning hijacked vessels with their crew still on board. Speaking in Dubai, Foreign Affairs Secretary Albert del Rosario said maritime piracy is a serious issue for the Philippines. “Since 2006, about 826 Filipinos had been held for ransom by Somali pirates,” he said. “We can only be as effective in our ability to coordinate with ship owners. We therefore urge ship owners to be more open to sharing information on the status of captive seafarers,” he said.http://goo.gl/NQgDCm


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1222 YearsSpain’s National Court has sentenced six Somali pirates to jail for attempting to kidnap the crew of a tuna-fishing boat, officials said. The pirates, Adane Yusuf Ali, Abdi Ali Salad, Abdilahi Ise Jama, Yahye Omar Ali Hassan, Ali Mahammed Ali and Ali Mahamed Hirsi, have been imprisoned for a total of 1,222 years. Media reports said the defendants will likely only serve 40 years each. The pirates targeted the vessel “Izurdia” in October 2012 in the Indian Ocean.http://goo.gl/JDwFp1

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