Business | Shipping
Somali pirates become growing threat
Rapidly spreading lawlessness as Somalia collapses in the worst fighting for nearly two decades is fuelling a wave of piracy that increasingly threatens one of the world's most important waterways.
- Reuters
- Published: 23:30 August 31, 2008
Nairobi: Rapidly spreading lawlessness as Somalia collapses in the worst fighting for nearly two decades is fuelling a wave of piracy that increasingly threatens one of the world's most important waterways.
Although shipping costs have not been affected so far, it is forcing Western navies to take action to protect shipping. Some suspect that ransom payments to pirates could be helping Islamist insurgents fight the weak interim government.
The piracy is also hampering aid shipments to Somalia and thereby worsening a humanitarian crisis that encourages the anarchy.
Heavily-armed pirates from Somalia have hijacked at least 30 ships so far this year in the Gulf of Aden - last week seizing a record four vessels in 48 hours.
"All the shipping companies are taking this very seriously and are very concerned. This is an unprecedented rise in attacks," said Pottengal Mukundan, director of the International Maritime Bureau, a global piracy watchdog.
The waters between Somalia and Yemen are a major artery used by nearly 20,000 vessels a year heading to and from the Suez Canal. The 700 million tonnes passing through the canal in 2007 was over 9 per cent of an estimated 7.7 billion tonnes carried by global shipping. Merchant shipping carries more than 90 per cent of the world's traded goods by volume.
In May, the advisory Joint War Committee of Lloyd's Market Association designated the strategic channel at high risk of "war, strikes, terrorism and related perils".
"But it's just a recommendation, and some underwriters may not follow it for their very important clients," Mukundan said. "Costs have not gone up. Of course, if you are hijacked they go up quite significantly. But there is no contingent cost to piracy."
Hostages
Somali pirates are currently holding about 130 crew members hostage on at least seven vessels, including huge chemical tankers and bulk-carriers. Gunmen are holding vessels from Japan, Malaysia, Thailand, Nigeria, Germany and Iran.
Attacks at sea have boomed as lawlessness increased in Somalia, where there has not been a working government since warlords overthrew dictator Mohammad Siad Barre in 1991.
There are many theories about who exactly is behind the latest spate of hijackings. Most captured ships bring ransoms of more than $10,000, and in a few cases much more.
Some security experts say there are signs insurgents may receive some of the ransoms and use them to fund attacks on the government. Last week, the rebels seized the key southern port of Kismayu. The United States says they have links to Al Qaida.
Other experts point to ties forged between Somali pirates, most of whom are based in the northern Puntland region, and criminal networks in Yemen during years of people-smuggling.
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