East African pirates shift focus

East African pirates have
shifted their focus from the
Gulf of Aden to the Arabian
Sea, according to the first
in-depth global piracy
report released by Aon Risk
Solutions.
It found that there was a
17% year-on-year increase
in piracy attacks in the
Gulf of Aden – from 231 to
278 between 2009/10 and
2010/11.
Cargo vessels are the most
attacked type of vessel in
this area. The most notable
shift is to the Arabian Sea,
which experienced a 267%
increase in attacks.
There has also been
a recent rise in piracy
incidents on the west coast
of Africa.
Statistics released by the
International Chamber of
Commerce Commercial
Crime Services substantiate
these figures, revealing that
the total number of piracy
attacks worldwide totalled
326 this year, with a total of
33 hijackings.
According to Jeffry Butt,
business unit head of marine
at Aon South Africa, the
report highlights the need for
those operating in the marine
industry to manage the risk
of piracy by ensuring robust
preparation and preventative
measures are in place.
“Once it has been
confirmed that a piracy
has indeed occurred, the
general practice thus far has
been for the ship owner to
declare a ‘General Average’.
The average adjuster(s) will
provide each cargo owner
with an average guarantee/
bond to be signed and
returned. This confirms
the commitment from each
cargo owner that they accept
responsibility to pay their
proportionate share of the
collective cost of the ransom
being negotiated.”
Butt says that for any
small business without
adequate marine insurance
cover in place, this kind of
exposure can be potentially
devastating.