Despite extremely poor local economies and global market turmoil, a sector rife with profits is enjoying unprecedented growth. After experiencing regional market expansion of 1500% in recent years, the Somali piracy sector looks ripe for IPOs. Okay, obviously we don't mean legal IPOs, says the Daily Feed in Minyanville.com but the market indicators in the piracy "sector" put even the most buoyant of emerging nation industries to shame, according to a new report.
The Economics of Piracy, a Geopolicity report from earlier this year, shows that income from piracy off the coast of Somalia (worth $238 million in 2010) “could rise to… $400 million by 2015 based on projections. Given the supply and demand for pirate services, and income disparity between pirates and non-pirates, there's plenty of room for expansion.” In an indication of the sector’s strength, operations were shown to become more frequent even as trade in the area declined. Some of the big players in the sector have definite potential to take their companies public -- in fact, some of them already have. Mohammed, a former pirate, told Reuters that “we decided to set up this stock exchange. We started with 15 'maritime companies' and now we are hosting 72. Ten of them have so far been successful at hijacking… The shares are open to all and everybody can take part, whether personally at sea or on land by providing cash, weapons or useful materials ... we've made piracy a community activity." Some investors are enjoying previously impossible wealth -- one 22-year-old divorcee reported making $75,000 in only 38 days since joining the company; her initial investment was a rocket propelled grenade she received as alimony.
For reference, the average per capita GDP in Somalia is $600. A public offering on the NYSE might still be far away.
Sea Wolves
In a TIME article by Alex Perry, "Somalia's Sea Wolves", where he hired eight men with AK47s at $15 a day, he met up with a "pirate king" called Mohamed Noor, or Fingers as he is known, and wanted to ask Fingers why, when Somalia's pirates face an international armada at sea, when some 1,000 pirates have been arrested and scores more have died, piracy is still rocketing.
"One time there was this group I knew that ran out of food and a guy died — and the other guys ate him," Fingers says, speaking in Somali through an interpreter.
"They ate their friend?" I ask.Fingers laughs.
"It's not a crime if you're about to die," he explains.
He is squatting on the floor and is dressed like any East African deckhand: cheap thongs, a thin shirt and an old kikoi.
"Fingers," I ask, "where did all the money go?"
"Gone," he laughs.
"You spent it all?"
"I bought houses and cars. I bought a couple of Land Cruisers. I spent the money on friends. I enjoyed it. Now it's gone. That's why I'm still a pirate. I need the money. Besides, it's fun."
Then Fingers shrugs and gives me a look that says: What did you expect from a pirate? Responsibility?
Perry tells how the crew of the fishing vessel, Golden Wave, were press-ganged into becoming a pirate mothership. He relates the tale of how the fishing vessel was used and at one point, finally, running low on fuel again, they ambushed a third boat. He also states that by [that] time, Amere, one of the vessel's crew said, he was a member of the boarding team, albeit one with a gun to his head.Somali pirates will often claim, as Fingers does, to be former fishermen who first attacked Asian fishing trawlers that were devastating Somali fish stocks. If that was once true, it isn't now: kidnapped crewmen report that many pirates can't swim, let alone sail, while the recovery in fish stocks engendered by piracy's deterrent effect has not been accompanied by a revival in the Somali fishing industry. Nevertheless, the notion that the world has dealt Somalis a cruel hand and that piracy will never be fixed unless some genuine Somali grievances are addressed is widely supported.
"The only real solution is on land," says Graham Westgarth, chairman of the International Association of Independent Tanker Owners (INTERTANKO), a trade body.
It's a brave project. But standing in its way, I can't help but feel, is Fingers.
When I ask him if he's happy, he replies, "I am. I don't depend on anyone. When I want a woman, I give her money and she becomes my mistress. When I need a ship, I go out and take one. No one can stop me. The sea is as big as Somalia. No one can control Somalia. And no one controls the sea." Ending piracy will require building a better Somalia for tomorrow. Trouble is, Fingers and thousands like him are already living their Libertalia [mythical pirate heaven] today.
"Enemies of the Human Race"
Pirates, says The Lawyers Weekly, whether it is Errol Flynn playing the part of Captain Blood, or Rob Reiner’s take on the Dread Pirate Roberts, or most recently Jerry Bruckheimer’s depiction of Captain Jack Sparrow, is portrayed by Hollywood as a sexy, swashbuckling hero of the ocean main. Piracy is said to be humanity’s third oldest profession — medicine being the second.
The term “piracy” is frequently misused. An act of maritime piracy under international law cannot be committed landward of the outer limit of the territorial sea; in effect, less than 12 miles off-shore. In the 1600s, the clear distinction that we have today between the territorial sea and the high sea did not exist and so then it would have been quite proper to describe illegal acts in port or coastal waters as acts of piracy.
Piracy is defined by the 1982 Law of the Sea Convention as an illegal act committed on the high seas, outside the jurisdiction of any state. The rationale for this definition is that pirates, described as “enemies of the human race,” are seen as posing a threat to the shipping and commerce of all maritime states quite indiscriminately. Accordingly, international law recognizes that all states, regardless of their flag, may exercise an extra-ordinary jurisdiction over pirate vessels. They may arrest such ships on the high seas and deal with the attackers before their own courts, but they may only do so if an act of piracy has been committed. In all other cases, jurisdiction lies with the flag state.
But what if there is no flag state? What if the flag state, like Somalia is today due to its internal political situation, is unable to police its own citizens and waters? Armed robbers operating on small boats in coastal waters are not pirates in the true sense of the term. But backed by larger “mother ships” that can extend operations out into the high seas, these same attackers can be regarded as pirates. If they are not pirates, what are they?
Is the act of hijacking a commercial ship, such as an oil tanker, an act of piracy, an act of commercial malpractice or an act of a terrorist? In the event that a coastal state cannot police an adjacent waterway, should the “world” take on that obligation? In some states the payment of money as a result of an illegal act is in and of itself an illegal act. No one likes paying a ransom but sometimes it is necessary. And then there are the human rights issues. Even pirates have rights.
This year’s CBA Conference offers a session that will look at these and other outstanding questions on this fascinating subject that is infused today with lots of misplaced romanticism.
Simon Barker is an admiralty lawyer practising in Peterborough, Ontario, Canada.
Seafarers Plight
The US, August 13, offered an ex gratia payment to the family of late Taiwanese captain Wu Lai-yu, who died in an exchange of fire between a US warship and pirates off the coast of Somalia during a NATO anti-piracy operation on May 10.
An undisclosed sum of ex gratia payment, made without legal acknowledgment of fault or liability, was taken to his family in Greater Kaohsiung by American Institute in Taiwan (AIT) Director William Stanton, Minister of Foreign Affairs Timothy Yang told reporters.
Yang said he received a call yesterday morning from Stanton, who said he wanted the Ministry of Foreign Affairs to arrange for him, on behalf of the US government, to meet with Wu’s family to hand over the ex gratia payment - Taipei Times.
A 30-year-old Gloucester man and 37-year-old Ipswich resident, piloting a small motor boat while flying the "skull and crossbones" flag of pirate ships of old, allegedly boarded and tried to rob a sail boat moored in Gloucester's Inner Harbour, only to be turned back by the boat's occupant and cornered by the U.S. Coast Guard in, coincidentally, Pirates Cove, reports GloucesterTimes in Gloucester, MA, USA.
According to police, the incident played out in the East Gloucester coves and Inner Harbour, where sailboat owner Douglas Campbell of Beverly had taken a transient mooring for his vessel for the night.
Police said Campbell was awakened when the two would-be robbers pulled their vessel alongside his, then boarded the sail boat. But when he confronted the two men, the pair retreated to the outboard and sped off.
Campbell told authorities that the motorboat was flying the traditional black-and-white pirate flag of the "skull and crossbones." The boat was located in Pirates Cove by the Coast Guard on one of the city's Homeland Security surveillance cameras.
8 Unsuccessful Attacks (All Regions):
- Red Sea - August 6 at 1515 UTC: in position: 13:02N - 043:07E, Around 20nm East by Northeast of Assab, Eritrea, Red Sea. A Liberia-flagged German-owned bulk carrier, Vogebulker, underway was attacked by 12 skiffs with 5-8 suspected pirates on board each one. Shots were fired at the vessel which returned flares and warning shots by the security team. The vessel evaded the hijack attempt. The swarm tactic, used in 2009, has seen an increase of late.
- South China Sea - August 6 2130 LT: Posn: 02:11.56N - 109:15.52E, 12nm from Pulau Merundung. Eight pirates armed with knives boarded a tug underway. They stole ships stores and crew personal belongings. Pirates left the ship after one hour. All crew safe (via IMB.
- Atlantic (off Congo) - August 7 at 0050 UTC: 04:45.9S - 011:46.7E: Point Noire Anchorage, Congo. Ship watchman onboard an anchored Liberia-flagged container vessel, Hansa Flensburg, spotted four armed robbers on the main deck. He immediately informed the duty officer who raised the alarm, alerted all crew members and informed the port control. Seeing crew alertness the robbers jumped overboard and escaped in a long wooden boat with stolen ship stores (via IMB).
- South China Sea - August 8 at 0200 LT: Posn: 01:08N - 103:27.58E, Approximately 7.2 nm Southeast of ‘The Brothers’ beacon, Indonesia. Four robbers armed with long knives boarded an anchored Singapore-flagged LPG tanker, Gas Bataam. They entered the engine room, tied up the duty oiler and 3rd Engineer, stole engine spares and escaped. The oiler managed to release himself and raise the alarm. Authorities informed (via ReCAAP).
- Gulf of Aden - August 9 at 0249 UTC: in position: 13:08N - 048:14E, in the Gulf of Aden, near the IRTC. One skiff with 5 pirates attacked an Antigua and Barbuda-flagged, German-owned general cargo ship, Greta, underway. The pirates fired RPG and guns at the vessel. The embarked security team fired warning shots in return, which resulted in the pirates aborting the attack. The vessel managed to evade the hijack attempt.
|
(Img LAPhot Stuart Hill/MOD- Crown Copyright) |
- Red Sea - August 11 at 1120 UTC: in position 15:09N - 041:55E, approximately 65nm North by West of Al Hudaydah, Red Sea, a Malta-flagged, Greek bulk carrier, Caravos Horizon, (right) came under attack. The vessel noticed a mother ship at a distance of 0.5nm. Suddenly three skiffs appeared from behind the mother ship and approached the the bulk carrier at high speed - one from portside, one from starboard side and one from astern. The vessel commenced evasive manoeuvres. The pirates were able to hook on their ladder and board the vessel. The Master ordered all the 23 crew to retreat into the citadel and called the CSO, who informed the navies in the region. Later a warship, HMS Monmouth, arrived and marines boarded and searched the vessel. No pirates were found but they had ransacked the vessel prior to escaping. The crew and ship are safe after what is the second attack the vessel has had in 3 months.. See the Combined Maritime Force report.
- South China Sea - August 12 at 0230 LT (1930 (11 Aug) UTC)in position: 01:42.27N - 101:28.70E, Dumai, Indonesia. Three robbers boarded an anchored Liberia-flagged chemical tanker, Cape Banks, via the poop deck. Alert deck crew spotted the robbers and notified the duty officer who raised the alarm. Seeing crew alertness the robbers escaped. Port control was contacted but no response received. The crew are safe and nothing was stolen.
- Red Sea - August 12 at 1427 UTC in position 14:34n - 042:23E, Liberia-flagged, Greek-owned LPG tanker, Gas Price, came under attack by 2 skiffs with 3 and 4 pirates on board respectively. The vessel is declared as being safe, having evaded the hijack attempt. Sources report that the pirates boarded the vessel but left whilst the crew had remained in the citadel. The attack comes a day after a 12-skiff attack Northwest of this position.
- Sporadic acts of piracy may potentially continue to occur at any time in the Gulf of Aden area as the weather conditions in the Arabian Sea and northern Somali Basin continue to preclude the operations of pirate skiffs, but the pirates may still risk attempts to seize vessels.
- The Red Sea and Bab al Mandeb Strait remain areas of high threat despite little activity in the area recently. Two suspicious events were reported to NATO Shipping Centre but further details were not provided. The NATO Shipping Centre said it (and other counter piracy forces) remains sceptical about reports from Masters of approaches being 'swarm' tactics by skiffs in the region being pirate activity.
Weather (via ONI)
- Gulf of Aden - Southwest winds 18 – 22 knots with higher gusts will continue through 18 Aug. Overall, expect western vs. eastern GOA disparity to continue with regards to sea heights, with maximum heights persisting in the eastern half. Based on sea heights for forecast week, the most conducive areas for piracy within the Gulf of Aden will be the western portion and some areas in the central GOA through 18 August.
- Somali Basin/Arabian Sea - Southwest winds 24 – 28 knots with higher gusts will continue through 18 August in the Somali Basin. Winds in the North Arabian Sea will continue from the west-southwest 22 – 26 knots with higher gusts through 18 August. Expect a slow and small decrease (1 – 2 feet) within the Somali Basin and North Arabian Sea to occur by 15 Aug. Severe winds and sea heights will continue to create conditions non-conducive for small boat/piracy operations through forecast period.
- Indian Ocean - Conditions within the regions will continue through 18 August. Expect the most conducive areas for piracy to be waters within the Mozambique Channel and the waters around the Maldives through 18 August.
At least 19 ships and an estimated 377 seafarers remain captives of the Somali pirates. Particular concern was highlighted for the South African couple, Bruno Pelizzari and Debroah Calitz (SY Choizil) who are being held in southern Somalia, an area severely affected by the humanitarian blight of famine.
Somalia Report's Weekly Piracy Report provides a round up of vessel held and additional insight into pirate activity in the region.
|
Piracy DVD Poster |
Vessels are reminded that the coalition forces' warships may not be in the vicinity of a pirate attack, subsequently, it is emphasised that seafarers can greatly reduce their chances of being pirated if they follow precautions as recommended in the Best Management Practices, increasing speed and carrying out evasive manoeuvres is a proven deterrent to piracy attacks. BMP version 4 is expected to be released, including a DVD, Piracy: The Menace At Sea. The Loss Prevention Team at Steamship Mutual have prepared a DVD entitled "Piracy - The Menace At Sea". This can be pre-ordered for non members of this P&I Club using this link. The trailer can be downloaded at these links (via Steamship Mutual):
Trailer in PowerPoint format;
FLV Format.
Vessels are advised to exercise extreme caution when navigating in the vicinity of any reported positions of attacks and maintain maximum CPA with any ship acting suspiciously. Additionally, registration of vessel movement with MSC(HOA) prior to transiting the region is recommended.
OCEANUSLive.org permits the reproduction of this image providing source and link are published (Map ToU)
Any suspicious activity should be reported to UKMTO in Dubai in the first instance (UKMTO or Telephone+971 50 552 3215) and on entering the UKMTO Voluntary Reporting Area (VRA) bound by Suez, 78E and 10S.
OCEANUSLive.org
Information, Security, Safety; Shared
Submitted by Team@oceanuslive.org