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The Effect of Maritime
Piracy on Greek ShippingSamiotis George, Psarrou Vasileia, Pazarzis
Michael and Tselentis Vasilis
Dept. Maritime Studies,University of Piraeus,
Piraeus - Greece
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Methodology
Questionnaires to Greek maritimecompanies.
Sent 100, received 35 and our research ison going.
Personal interviews.
Management of pirate incidents,complying with BMP4 and use of armedguards, Humanitarian response.
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Our aim
Analyze the phenomenon of piracy and thecost imposed on maritime companies.
Social awareness.
Compile measures for tackling piracy andevaluate effectiveness.
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Managing Countries whose ships were
attacked (2012)
0
10
20
30
40
50
60
70
80
Malaysia Hong Kong India Japan Greece Germany Singapore
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Total attacks worldwide (May 2013)
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Somalia
Decline of Somali attacks 20122013.
In 2011, pirates earned $146m ($111in 2010), an average of $4.87m pership, from ransom paid by shipping
firms.However, IMB states that policing
and interventions byinternational navies aredeterring pirates, along withships employing BestManagement Practices (IMO),including the use of armedguards and other onboardsecurity measures.
0
100
200
300
400
500
2006 2008 2010 2012
Global attacks
without
Somalis
Somali attacks
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Ransoms paid out to Somali pirates
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The effect of maritime piracy on the
shipping industry
85%
15%
Yes No
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Ship type as a target for a pirate
attacks(2012)
0%54%
31%
15%
Bulk Carrier Tanker Ship LNG Conta iner Ship Other
0
10
20
30
40
50
60
70
Bulk
Carrier
Chemical
Tanker
Container Tanker Product
tanker
Tug General
Cargo
LPG
Tanker
Offshore
Supply
Ship
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Cost burdens Greek companies
Insurance cost ReRouting cost Cost of Deterrent security
equipment
Wages of security guards
The costs incurred bymaritime piracy areexpected to be high for
Greek shippingcompanies, since theyrepresent 16,3% of worldtonnage.
0
5
10
15
20
25
30
35
40
45
Insurance cost Cost of Re-Rout ing Cost of Deterrent
Security Equipme nt
Other
%
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Cost burden to Greek companies
Piracy increasedrunning costs, affectingcompetitiveness by
increasing freight rates. Increased insurancepremiums covering thewelfare of seafarers,
cargo and the vessel.46%
9%
21%
24%
Much Enough Little None
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Measures
Use of armed guards.
Almost all the maritimecompanies employguards.
The majority of shippingfirms implement BestManagement Practices(BMP4).
Better management crewtraining on adoptedmeasures.
Deployment of
armed guards Enhancement of
crew training Adoption of BMP4Other
0
1
2
3
4
5
6
Measures for piracy avoidance
0
5
10
15
20
25
BMP4 Guards Other
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Reasons for Somalia piracy
0
1
2
3
4
5
6
Political instability in Somalia Lack of political will by local
political leaders.
Reduction of fish stocks National financial and
economic situation
Causes
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Conclusions
Greek maritime companies:
Use of armed guards and simultaneouslycomplying with BMP4.
Greater cost for companies:
Insurance cost
Costs are considerable (46%) and high (9%).
45% answered that costs were little or none. Most firms state that deployment of armed
guards and BMP4 implementation, are veryeffective.
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Conclusions contd85% of all maritime firms state that maritime piracy
has a serious effect on the shipping industry
Some differentiation is seen in the ship type as
a target for a pirate attacks, compared to the
world wide pictureMaritime firms agree that pirate attacks in Somalia
are diminishing, however there are already 100incidents in 2013 (Somalia 6 (1 hijack) BUT in Nigeria 19 incidents)
Piratescollaborators and international interestsare restructuring, investing in new technology andwill strike again, in other parts of the world, notnecessarily only in Somalia.
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Thank you for your attention
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