The Effect of Maritime Piracy on Greek Shipping

1. 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

2. 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.

3. Our aim… Analyze the phenomenon of piracyand the cost imposed on maritime companies. Social awareness. Compile measures for tackling piracy and evaluate effectiveness.

4. Managing Countries whose ships were attacked (2012)

5. 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.

6. Total attacks worldwide (May 2013)

7. 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 and interventions by international navies are deterring pirates, along with ships employing Best Management Practices (IMO), including the use of armed guards and other onboard security measures.

8. Ransoms paid out to Somali pirates

9. The effect of maritime piracy on the shipping industry

10. Ship type as a target for a pirate attacks(2012)

11. Cost burdens Greek companies • Insurance cost • Re – Routing cost • Cost of Deterrent security equipment • Wages of security guards The costs incurred by maritime piracy are expected to be high for Greek shipping companies, since they represent 16,3% of world tonnage.

12. 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.

13. 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.

14. Reasons for Somalia piracy

15. 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.

16. 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.

17. Thank you for your attention