Piracy off Africa- Cargo's Perspective

For pirates off both West and East Africa, the laden tanker has become the most sought after prize. There are two distinct business models and both present challenges to the owners and underwriters of a high value oil cargo. Off Somalia, the south-west monsoon is coming to an end and there are stark warnings from the military that the new piracy "season" is upon us. Activity levels in September matched those of the past two years and despite the best efforts of an under-resourced coalition of naval forces, the pirates continue to run rings around international law. It is inevitable that another tanker will be taken over the next few months and, as we have seen from recent cases such as the Irene SL and the Samho Dream, this will undoubtedly mean significant ransom payments to secure the release of crew, ship and cargo. Off West Africa, in the Gulf of Guinea, armed gangs are targeting the cargo itself, stealing large quantities that they intend to sell ashore. This bulletin outlines some of the legal and practical difficulties that arise in both scenarios.

Introduction

The owners and masters of vessels transiting the high risk areas of the Gulf of Aden and Arabian Sea are expected to be familiar with the Best Management Practices ("BMP") now in their fourth edition. The BMP give comprehensive guidance on reporting requirements to the relevant military authorities responsible for tracking vessels and co-ordinating a response to any attack. The BMP also make suggestions for self-protective measures ("SPM") that a vessel is recommended to adopt, including razor wire and the deployment of fire hoses. The use of armed guards still divides the maritime industry, but the mantra of the maritime security sector that no vessel with armed guards has been captured still holds true. The BMP do not recommend their use, but do recognise that some owners will deploy them where flag state laws allow. Over the past few months, some European nations such as Norway, Cyprus and indeed the UK have changed, or at least signalled that they are looking at changing, national legislation to allow arms on their flagged vessels. The military now suggests that there is about 80% compliance with BMP which it is hoped will mean that, whilst the attacks may continue, their success rate should continue to fall.

West Africa

The industry has feared that the Somali business model would in some way be exported to other parts of the world. The Gulf of Guinea and indeed the areas...