Tag Archives: Somali Piracy

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Maersk Alabama Fends Off Second Pirate Attack

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Somali pirates don’t give up — as we see today with the news that the U.S.-flagged Maersk Alabama was almost hijacked for a second time. Just seven months ago, the ship was attacked and its captain, Richard Phillips, was taken hostage on a lifeboat for five days. The standoff ended with Navy SEAL sharpshooters killing three pirates and rescuing Phillips.

In this most recent attack, a number of pirates fired automatic weapons at the Maersk Alabama, but this time, the ship fired back. On board was a vessel protection detachment (VPD), or a crew of armed guards assigned to the ship, who successfully thwarted the attack by firing their weapons and repelling the pirates.

In our January/February issue, I wrote a piece on the the escalating number of pirate attacks occurring off the coast of Somalia and the effect these attacks have on shipping insurance rates, stating that:

Shipping insurance rates have skyrocketed in the past year. BGN Risk, a corporate and specialty risk consulting firm, was recently reported as saying that piracy in the Gulf of Aden could increase insurance and transport costs by $400 million. The firm also stated that the “special risks” insurance levy for crossing the gulf has now skyrocketed to $20,000, up from $500 per voyage in 2007.

And that number continues to rise as pirates continue their attacks. These brazen ship-stealers try for just about any boat that sails towards their path. Almost three weeks ago, a British couple was taken hostage by Somali pirates as they sailed on their yacht in the Indian Ocean. Though they have spoken to the media through pirate-monitored conversations, stating they are being fed and taken care of, their whereabouts are unknown.

The following video shows how U.S. predator drones attempt to monitor Somali pirates — a feat that proves challenging.

Security at Sea

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The NASDAQ news service has reported that Spain has officially allowed its vessels to employ private security guards to protect the ships crew and cargo while sailing the pirate-ladden waters off the coast of Somalia.

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Spain’s ministry of the interior granted permission for this measure after numerous news reports about the escalating problem of cargo ships being hijacked in the Gulf of Aden.

Though countries such as the U.S., China, India, Russia and Turkey have stepped up their anti-piracy regime, the sea-faring scoundrels refuse to back down.

The private radio station Cadena Ser said one Spanish vessel, a cable-laying ship, Teneo, has already benefited from the decision and is traveling with 10 private, armed security guards on board.

In other, related news, just this weekend, security forces aboard a cruise ship with 1,500 on board used guns and water hoses to fight off encroaching pirates.

The dramatic confrontation was sparked when six men in a small skiff sped up to the MSC Melody late on Saturday, firing their AK-47s and trying to fix a ladder to the side of the ship. A team of Israeli guards hired by the vessel’s owners immediately began firing back with pistols and spraying the attackers with fire hoses. ‘It felt like we were in a war,’ said Commander Ciro Pinto, the Melody’s captain.

For a more humorous, yet factual, blurb about this serious issue, check out The Wall St. Journal‘s 10 Things You Didn’t Know About Somali Pirates.

The Rising Price of Piracy Insurance

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Back in our January/February issue, I covered the topic of piracy in “The High Seas of Risk.” Since then, the problem has only gotten worse. The brazen pirates have grown in size and have become increasingly fearless towards any sort of attempts to stop them.

As expected, the price of piracy insurance has skyrocketed. Just yesterday, The Wall St. Journal published a piece noting acknowledging the drastic rate increase.

‘In general, the price is up five- to 10-fold from 18 months ago,’ when the surge in piracy off Somalia began to take off, said Peter Townsend, executive director for the marine practice group at insurance broker Aon Corp. ‘The demand is there.’

The Insurance Daily website has also reported on the situation off the coast of Somalia and how it has ballooned kindap and ransom insurance rates.

Some insurers could be paying a premium of $30,000 for the $3 million of cover during one journey across seas that have become treacherous because of the activities of Somali pirates.

The New York Times featured an interesting video showing an Italian warships’s efforts to fight piracy in the Gulf of Aden. And below, a self-assured Somali pirate grants an interview with a local news station.