Transcript The Effect of Maritime Piracy on Greek Shipping

The Effect of Maritime
Piracy on Greek Shipping
Samiotis George, Psarrou Vasileia, Pazarzis
Michael and Tselentis Vasilis
Dept. Maritime Studies,
University of Piraeus,
Piraeus - Greece
Methodology
• Questionnaires to Greek maritime
companies.
• Sent 100, received 35 and our research is
on going.
• Personal interviews.
• Management of pirate incidents,
complying with BMP4 and use of armed
guards, Humanitarian response.
Our aim…
Analyze the phenomenon of piracy and the
cost imposed on maritime companies.
Social awareness.
Compile measures for tackling piracy and
evaluate effectiveness.
Managing Countries whose ships were
attacked (2012)
80
70
60
50
40
30
20
10
0
Malaysia
Hong Kong
India
Japan
Greece
Germany
Singapore
Maritime Piracy
• The most modern and organized form of
highly a growing & profitable criminal
"business" activity.
• Pirate attacks occur around the world :
Seas surrounding Somalia, Indonesia, the
Philippines, the West Coasts of Africa and
Southwest America.
• The Gulf of Guinea accounted for 427 of the
1434 attacks in African waters between
2003 and 2011.
Total attacks worldwide (May 2013)
Somalia
Decline of Somali attacks 2012 – 2013.
In 2011, pirates earned $146m ($111
in 2010), an average of $4.87m per
ship, from ransom paid by shipping
firms.
However, IMB states that policing 500
and interventions by
400
international navies are
300
deterring pirates, along with
200
ships employing Best
Management Practices (IMO), 100
including the use of armed
0
guards and other onboard
2006
security measures.
Global attacks
without
Somalis
Somali attacks
2008 2010 2012
Ransoms paid out to Somali pirates
The effect of maritime piracy on the
shipping industry
15%
Yes
No
85%
Ship type as a target for a pirate
attacks (2012)
70
60
50
40
30
20
10
0
Bulk
Carrier
Chemical Container
Tanker
Tanker
Product
tanker
Tug
General
Cargo
LPG
Tanker
Offshore
Supply
Ship
0%
54%
15%
31%
Bulk Carrier
Tanker Ship
LNG
Container Ship
Other
Cost burdens Greek companies
• Insurance cost
• Re – Routing cost
• Cost of Deterrent security
equipment
• Wages of security guards
45
40
35
30
25
The costs incurred by
maritime piracy are
expected to be high for
Greek shipping
companies, since they
represent 16,3% of world
tonnage.
%
20
15
10
5
0
Insurance cost
Cost of Re-Routing
Cost of Deterrent
Security Equipment
Other
Cost burden to Greek companies
• Piracy increased
running costs, affecting
competitiveness by
increasing freight rates.
• Increased insurance
premiums covering the
welfare of seafarers,
cargo and the vessel.
9%
21%
24%
46%
Much
Enough
Little
None
Measures
• Use of armed guards.
• Almost all the maritime
companies employ
guards.
• The majority of shipping
firms implement Best
Management Practices
(BMP4).
• Better management crew
training on adopted
measures.
25
20
15
10
5
0
BMP4
Guards
Other
6
5
4
3
2
1
0
Deployment of
armed guards
Enhancement of
crew training
Adoption of BMP4
Other
Measures for piracy avoidance
Reasons for Somalia piracy
6
5
4
3
2
1
0
Political instability in Somalia
Lack of political will by local
political leaders.
Reduction of fish stocks
Causes
National financial and
economic situation
Conclusions
Greek maritime companies:
• Use of armed guards and simultaneously
complying with BMP4.
• Greater cost for companies:
Insurance cost
• Costs are “considerable” (46%) and high (9%).
45% answered that costs were little or none.
• Most firms state that deployment of armed
guards and BMP4 implementation, are very
effective.
Conclusions cont’d
85% of all maritime firms state that maritime piracy
has a serious effect on the shipping industry
Some differentiation is seen in the ship type as
a target for a pirate attacks, compared to the
world wide picture
Maritime firms agree that pirate attacks in Somalia
are diminishing, however there are already 100
incidents in 2013 (Somalia 6 (1 hijack) BUT in Nigeria 19 incidents)
Pirates – collaborators and international interests
are restructuring, investing in new technology and
will strike again, in other parts of the world, not
necessarily only in Somalia.
Thank you for your attention