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ASLINE - AFRICAN SHIPPING LINE DUBAI

Monday

SOMALIA PIRACY NO MORE


The News is: Somalia Piracy is no Longer a Threat.

The International Maritime Bureau (IMB) is out with its statistics for maritime piracy in 2015, and says there is sharp decline in the number of Somalia piracy attacks in recent years and this is a good sign for the Shipping Industry. 

The big driver of this trend is the decline off the piracy at the coast of Somalia. The IMB reports that atleast no Piracy happened in 2015 in the coast of Somalia attributing the drop to a number of factors, including “the key role of international navies, the hardening of vessels, the use of private armed security teams, and the stabilizing influence of Somalia’s central government.”

This was happening as E.U. Chair for the Contact Group of Piracy off the Coast of Somalia (CGPCS) was reported to have revised and reduced territories it deemed to be High Risk Areas (HRA) for piracy in the Indian Ocean. The revision will take effect on December 1 and reflects a decline of piracy in the region.


The revision might also reduce operating and insurance costs for vessel operators transiting the region. The HRA has previously covered most of India’s western coast and triggered increases in insurance rates that have led to a rise costs. About 70 percent of India’s international trade is by sea and about 40 percent of India’s $7 trillion GDP is generated through international trade.

The HRA was extended to India’s west coast in 2010, which brought the entire Indian Ocean into an exclusion zone. The HRA extension of the Indian Ocean meant the exclusion from annual war risk cover increased premiums for ship operators. The standard war risk insurance charge covered normal operations.

In response to rising surge of piracy in the region, the EU, China, Russia and the U.S. amongst other nations sent warships to protect the commercial shipping lanes. The increased military presence led to a steep drop in piracy. In January 2014, the International Chamber of Commerce (ICC) and International Maritime Bureau (IMB) reported that piracy in the Indian Ocean 40 percent since 2011.

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