We’ve covered the pirate crisis in the Gulf of Aden numerous times — once in the February 2009 issue of Risk Management and twice more on this blog (The Rising Price of Piracy Insurance and Security at Sea).
Though the International Maritime Bureau (IMB) states that sea attacks worldwide fell by more than a third in the first quarter of this year, the attacks continue. Pirates are now increasing their area of surveilance and capture (it now includes the massive Indian Ocean) and though U.S. and foreign warships have been canvassing the area, the pirates have not backed down. In fact, their army and area of operation has seemed to grow.
This week alone, three Thai fishing vessels were seized in hijackings 1,200 miles east of Somalia in the Indian Ocean — the farthest from the Somali coast pirates have ever attacked, according to the EU Naval Force. A total off 77 crew were taken hostage.
And just yesterday, in the fourth attack in less than a week, pirates seized a bulk carrier — the Liberian-owned Voc Daisy — in the Gulf of Aden. The ship was heading from the UAE towards to the Suez Canal when it, along with its crew of 21, were taken hostage.
After a successful pirate hijacking, the shipping company that owns the vessel will, in most cases, immediately issue a ransom for the return of the ship and crew. But that may become a bit tougher for American ships should they fall victim to a pirate attack.
The shipping industry has long seen ransom payments to retrieve hijacked vessels, cargos and crews as a cost of doing business. But after Obama last week issued an executive order on Somalia, shipping officials say it’s no longer clear whether companies with U.S. interests can legally pay ransoms. The industry is worried because ransoms have been the only way to quickly and safely free hostages.
The order states it is illegal for anyone to supply financing to any Somalis involved in military activities. Contrary to that, the U.S. Treasury Department said it is not interested in prosecuting anyone trying to free hostages. This understandably puts shipping companies in a tough place.
“Taking away our ability to secure the safe release of our crew members and vessels could put us as an employer and ship owner in a very difficult position,” Moller said. “Thankfully we have not had to test such a scenario under these restrictions and it’s difficult for us to comment further on the consequences of the order without speculating.”
The IMB states that currently, pirates hold 14 vessels and 305 hostages.
The IMB live piracy map illustrates where pirate attacks have occurred so far this year.
