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.