Maritime piracy is a serious threat to the safety of cargo, ships and crew, which can cause enormous losses to stakeholders. According to the international Maritime bureau, piracy causes a loss of about $ 25 million a year in global economic losses due to theft, ransoms, increased insurance costs etc. Occurrence of piracy has a significant deterrent effect on international trade, for more than 90% of all international trade goods are transported by sea. For every 10 additional Piracy attacks bilateral trade decreases by 1.5%.
There were 120 incidents of Maritime piracy and armed robbery against ships reported in 2023 as per international Maritime bureau (IMB). The IMB also found increased threat to crew safety, with the number of crews taken hostage arising from 41 to 73 in 2023 and crews kidnapped from 2 to 14. In the year 2020, a total of 195 pirate attacks were recorded worldwide and resulted in 135 crew members being kidnapped.
Besides the danger to the crew, piracy attacks also lead to delays of ships, as well as damages to the vessel and cargo. Shipping firms adapt by re-routing their ships on costly detours or investing in armed guards, electric fencing, razor wires, water cannons and other weaponry. Shippers also bear implicit cost of piracy such as Wage premiere and higher insurance payments.
All of these calls have economic dimensions and make it more expensive to ship goods, which ultimately affect the welfare of the trading countries.
Pirates attacks are not homogeneously distributed across the oceans of the world and hit coastal areas of developing countries more frequently. Most attacks occurred in the north Africa totalling 385, followed by South China Sea with 344 and Malacca Strait with 283 in the span from 2015 to 2020.Piracy has grown as a problem particularly fast in the red Sea, Arabian Sea and along the coast of India in past decade. Therefore it is significant for marine transport and international trade to find some measures of reducing and preventing piracy by:
1. Understanding the Pirates modus operandi.
2. Employing armed security personnel.
3. Strengthening surveillance and monitoring system.
4. Emphasizing on international maritime laws and conventions.
5. Comprehensive antipiracy training to crews and officers.
Mr. Himanshu Kanwar
Chief Officer
Fleet Ship Management