Pirates and Piracy

Maritime Piracy has been a major thorn in global trade affecting ships, ship owners, ships crew, governments and maybe even the normal consumers, because ultimately the cost of piracy would have to be covered by someone..

You and I could be that someone, forced to pay more for the goods that we purchase..

I came across some infographics relating to piracy that I thought I must share with all of you that may not already be aware..

According to OBP (Oceans Beyond Piracy) much like a legitimate business, the pirates also follow a business model as below..

East Africa piracy model

West Africa piracy model

Below infographic shows some numbers in terms of the extent of damage caused to the economies of the world, and personnel because of Maritime Piracy and some methods used to combat pirate attacks..

Infographic on Piracy

 

What did you think of the above article..?? Comment below..

9 comments on “Pirates and Piracy

  1. Christine says:

    It’s a very useful article..thanks for the info and hoping more..

    1. You are welcome Christine.. 🙂

  2. Julio says:

    Is there no policy or practice of carrying arms on board or hiring security for the protection of the ship and crew against pirate attacks?

    1. Hello Julio, that depends on the ship owner and operator and there are many ships that have many different types of security detail on board to prevent attacks.. You can see most common measures in the infographic..

  3. selina says:

    Dear sir,

    What is the difference between Letter of Credit & Contract ? Both are payment term, am I right? what is Contract?

    We recently handled a shipment. At first buyer agreed to do the payment in CONTRACT. Commercial Invoice issued with Contract number & date. But later, about after 1 month when the cargo is arriving at destination buyer issued Letter of Credit. Buyer said they will not payment by Contract. Revised commercial issued with L/C number & date removing Contract number & date.

    Thanks
    Selina

  4. swarna says:

    Interesting article

  5. Rajamanickam.E says:

    Hello,

    Vessel owner can claim insurance for pirated vessel?

    1. Hello Rajamanickam, the increase in pirate attacks and the nature of the attacks have made it difficult for underwriters to include piracy risk as part of a general insurance policy and therefore whether an owner can claim or not depends entirely on the cover he has taken on the ship.. Sometimes pirates are only interested in the cargo and not ransom, sometimes only in ransom and not the ship etc etc..

    2. Piracy is covered in “cover A” insurance of institute cargo clause, which is bit costly then normal insurance cover. Thanks

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