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The Return of Somalian Piracy?

Factors that once gave rise to Somalian Piracy are making an unexpected return, Insurance Day experts, say.

They locate the main risk in the region of Galmudug. Political leaders of this region, Insurance Day warns, are more prone to provide safe havens for hijacked vessels than before due to two defining factors: lack of alternative economic income and threat to control over their territory. Desperate for resources local leaders might once again turn to piracy as an alternative source of income.

Concurrently, security precautions aboard commercial vessels have steadily decreased with the likelihood of attacks over the last three years. The statistics on presence of armed guards on board of commercial vessels indeed dropped to about 60% - while the perception of the risk seemingly decrease the likelihood for an incident to occur is again on the rise.

Financing structures from abroad, a study showed, provide ample financial background for operations to return on full scope. At the same time pirate “foot-soldiers” are hungry for booty and desperately need the proceeds of a successful attack to cover their “board and lodge” at the feared pirate camps. According to the same study they chalk up their debts for drugs and prostitutes. This debt is then use to pressure them into most risky operations.

In face of this dangerous mix of risks, ship-owners and charterers are once again urged to take the necessary precautions instead of further reducing security; for their crew’s sake first and foremost but of course also to safeguard their own property.

Source: Insurance Day

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