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Leslie Edwards
MANAGING THE CRISIS -WHAT TO DO IF YOUR SHIP IS HIJACKED……
Chart based on ship hijacks conducted by Somali pirates by month covering 2008 to 2011.
Excluded are dhows, yachts, vessels freed by military action and most, but not all fishing vessels and other small craft.
Reduction over the period May to Sep corresponds to monsoon season. During this period sea-states can make the boarding of ships by the pirates from small craft more difficult.
Compiled by Leslie Edwards and Jon Lee 31/10/11.Compass Risk Management LtdTel: +44 1476 550166 - Email [email protected]
Somali Piracy – Hijacks by Month2008 - 2011
© Compass Risk Management
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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2008
2009
2010
2011
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40 39
13 12
3 4
0
5
10
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20
25
30
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40
45
Somali Piracy – Hijackings by Ship Size Classification2005 – 2011 (As At 31 Oct 11)
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Ship Size Classifications Used
• Below 10,000 - Small/Coastal• 10,000-30,000 - Handysize• 30,001-50,000 - Handymax• 50,001-80,000 - Panamax• 80,001-199,000 - Capesize• 150,000-320,000 - VLCC
Total
Size (DWT)
Compiled by Leslie Edwards and Jon Lee 31/10/11Compass Risk Management LtdTel: +44 1476 550166 - Email [email protected]
© Compass Risk Management
Notes:
Greater vulnerability of vessels below 30,000 DWT attributed to:
• Typically lower freeboard (less than 2m) making boarding easier. Exception being tankers which typically have low freeboard, regardless of size.
• Relative lower speed (15 knots and below) of smaller vessels making them easier to board.
• Lower vessel/cargo value works against expense of additional security measures.
Captured ships off Eldanaan April 2011
Part 1 – WHAT TO EXPECT ?
• Nature of the crisis?• The pirates’ business model?• What will happen to the crew?• How much will it cost?• How long will it last?
NATURE OF THE CRISISIS ? • A CRIMINAL BUSINESS EXTORTION
• EXPENSIVE IN TIME AND MONEY
• SOMETIMES WITH TORTURE AND MISTREATMENT
• WITH PRESSURE FROM FAMILIES
• AN EMOTIONAL ROLLER COASTER
THE PIRATE BUSINESS MODEL
• ONLY MOTIVATION IS MONEY
• RESEARCH THEIR PRIZE
• KILLING CREW IS NOT PART OF THE PLAN
• RANSOM DIVIDED BETWEEN –
1. HIJACK GROUP2. HOLDING GROUP3. INVESTORS
• USUALLY KEEP THEIR WORD
MANY THREATS AND PRESSURES
BUT RARELY CARRIED OUT
KHAT- ALCOHOL- DRUGS- GUNS
PHOTOS REMOVED
WHAT WILL HAPPEN TO THE CREW ?
PHOTO REMOVED
1. Military Intervention
2. Illness and neglect
3. Mother ship operations
4. Pirate squabbles
5. Mental Depression
THREATS TO CREW SAFETY
PHOTO REMOVED
Compiled by Leslie Edwards and Jon Lee 26/09/11Compass Risk Management LtdTel: +44 1476 550166 - Email [email protected] www.compass-rm.com
© Compass Risk Management
4
6
7
19
28
0 5 10 15 20 25 30
Killed during rescue operations:
Killed during initial hijack:
Deliberately killed by pirates (post initial hijacking):
Died during captivity – illness/neglect/malnutrition:
Killed during clashes with International Naval Forces:
Killed during rescue operations:
Killed during initial hijack:
Killed during clashes with International Naval Forces:
Deliberately killed by pirates (post initial hijacking):
Died during captivity –illness/neglect/malnutrition:
TOTAL 64
CREW FATALITIES – SOMALI PIRACY 2007 TO 2011
HOW MUCH RANSOM WILL YOU HAVE TO PAY?
?
Six Ship Moving Average Ransom Reported Paid to Somali Pirates
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79 81 83 85 87 89
$ M
Compiled by Leslie Edwards and Jon Lee 31/10/11Compass Risk Management LtdTel: +44 1476 550166 - Email [email protected]
2009 2010 20112008
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FACTORS THAT MAY AFFECT THE RANSOM PAID –• Size, age and value of ship• Value of cargo• ‘Going rate’ at time• Nationality of crew• Profile of owners/managers• Pirates’ disposition• Owners’ approach• Government Interference
HOW LONG WILL IT LAST ?
?
Duration of Negotiated Somali Hijack Cases in DaysDuring 2008 - 2009
0
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100
150
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0 10 20 30 40 50 602008 2009
Days
Stolt Strength (161)
BBC Trinidad (20)
Ariana (223)
Bow Asir (14)
Compiled by Leslie Edwards and Jon Lee 31/10/11Compass Risk Management LtdTel: +44 1476 550166 - Email [email protected]
Compiled by Leslie Edwards and Jon Lee 31/10/11Compass Risk Management LtdTel: +44 1476 550166 - Email [email protected]
Duration of Negotiated Somali Hijack Cases in Days During 2010 - 2011
0
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200
300
400
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700
0 10 20 30 40 50 60
Days
Iceberg (582)
2010 2011Jubba XX (13)
Talca (49)SV Quest (5)
Blida (273))
Vessel Name Release Date DurationDover 30 Sep 11 215Eagle 28 Sep 11 256Hoang Son Sun 16 Sep 11 240Panama 6 Sep 11 270Ing (Crew) 6 Sep 11 195Polar 26 Aug 11 301Sinin 14 Aug 11 184Jubba XX * 28 Jul 11 13Susan K 16 Jun 11 70Suez 13 Jun 11 315Zirku 10 Jun11 75
www.compass-rm.com* Somali interest in ownership allowed early release
MOST RECENT RELEASES – AVERAGE (NOT INCLUDING JUBBA XX) = 212 DAYS
Somali Piracy - Durations as at 31 Oct 11For ships hijacked between 01 Jan 10 and 31 Aug 10
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Notes: 1. Total days held at top of each column.2. Green = released vessels. Red = still held3. Date of hijack (under each column) shown as day/month.4. ( 20KT) = 20,000 DWT5. B = Bulk Carrier, C = Cargo, D = Dredger, F = Fishing, P = Passenger, R = Ro Ro, Rf = Reefer, T = Tanker, Tu = Tug.6. Conflicting reports that ransom has been paid to release MV Iceberg. Vessel remains anchored off Somali coast.7. = Reported by media as in use as a mother ship while under pirate control.8. = Reported to have sunk shortly after a ransom had been paid and the vessel released by pirates.
Duration © Compass Risk Management
Date of Hijack0
100
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56
162
282
137 136 128
49
216
333
179234
121
213
130
196
315
582
T
C
T
T F BRf
Ro
T
C
BT
T
B
TT
1/1 2/1 1/3 5/3 4/4 23/3 29/3 21/4 8/5 11/5 12/523/36/3 28/6 4/7 2/811/4
C
Somali Piracy – Durations as at 31 Oct 11For ships hijacked between 01 Sep 10 and 31 Dec 10
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Notes: 1. Total days held at top of each column.2. Green = released vessels. Red = still held3. Date of hijack (under each column) shown as day/month.4. ( 20KT) = 20,000 DWT5. B = Bulk Carrier, C = Cargo, D = Dredger, F = Fishing, P = Passenger, R = Ro Ro, Rf = Reefer, T = Tanker, Tu = Tug.6. = Reported by media as in use as a mother ship while under pirate control.7. Vega 5 used as a mother ship. Sunk after clash with Indian Navy. 8. 15 June 2011 fire reported on MV Orna. Pirates moved hostage crew off vessel.
Duration © Compass Risk Management
Date of Hijack0
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122 137 138
301
110 126
208
99
270
133108 66 72
419
341315 311
25/128/9 28/9 10/109/10 23/10 3/1130/10 11/11 12/11 25/11 5/12 10/12 11/12 20/12 25/12 27/12 31/12
T
C
T
F C T
T
P T
C
C
B
BC
C
F
FB
Somali Piracy – Durations as at 31 Oct 11For ships hijacked between 01 Jan 11 and 31 Aug 11
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Notes: 1. Total days held at top of each column.2. Green = released vessels. Red = still held3. Date of hijack (under each column) shown as day/month.4. ( 20KT) = 20,000 DWT5. B = Bulk Carrier, C = Cargo, D = Dredger, F = Fishing, P = Passenger, R = Ro Ro, Rf = Reefer, T = Tanker, Tu = Tug, Y = Yacht.6. MV Leopard was abandoned by pirates. The 6 crew were taken to pirate mother ship, the Shiuh Fu No.1 as hostages.7. Although ransom had been paid some time earlier, MV Eagle did not get underway until 28 Sep due to engine problems.8. = Reported by media as in use as a mother ship while under pirate control.
Duration
Date of Hijack
© Compass Risk Management
0
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256241
130
8259
184
5
195215
46 75 7013
304 293266
194 185
72
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BC
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12/1 17/1 19/1 20/1 8/222/1 12/29/2 18/2 28/224/2 16/3 28/3
T
BB
Y
Y
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8/4 21/4 30/4
T
16/7
TT
20/8
TC
B
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RISKS OF LONG CASES• Crew at greater risk • Mother ship• Running out of
bunker• Engineering
damage• Insurance issues• Ransom inflation• Fouling• Families and
reputationALL RISKS ACCELERATE AFTER 6 MONTHS
Captured ships off Eldanaan April 2011
Part 2 – HOW TO MANAGE THE CRISIS
• Crisis Management Team• Negotiations• Demands and offers - example • Managing the families• Ransom deliveries• Crew reception• Two case studies
Pirates
Media
Familiesof Crew
Ransom Delivery
Insurance and Finance
Authorities
CRISIS MANAGEMENT
TEAM
WHAT ARE THE MAIN ISSUES TO BE MANAGED?
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SOMALI SHIP HIJACKS
WHAT IS THE STRUCTURE TO MANAGE THE CRISIS ?
DECISION MAKING AUTHORITYCRISIS MANAGEMENT TEAM
NEGOTIATION TEAM FAMILIES LIAISON
INSURANCE AND FINANCE RANSOM DELIVERY
RECEPTION
Effects on Crisis Team-
• Duration
• Stress
• Workload
• Responsibility
PHOTO REMOVED
NEGOTIATION TEAM
NEGOTIATION IS IN ENGLISH
USING SATPHONE, E MAIL, AND FAX, FROM BRIDGE TO
OWNER’S OFFICES
MANAGEMENT OF FAMILIES
MUST BE PRO-ACTIVE
Welfare/ Morale
Early face to face briefing
Menu of pirate tactics
Useful allies if handled well
HOW WILL THE RANSOM BE DELIVERED ?
CASHING AND MOVING THE RANSOM NEEDS CAREFUL PLANNING AND PLENTY OF LEAD
TIME
34
CREW RELEASE PRESENTATIONTO EXPLAIN TO THE CREW OF XXXXXXX
WHAT HAPPENED
WHY IT HAPPENED
WHAT THE COMPANY DID
HOW YOUR FAMILIES WERE TREATED
WHAT MIGHT HAVE HAPPENED
Captured ships off Eldanaan April 2011
Part 3 – PREVENTION - Layers
• Awareness/Approach/Planning• Risk Assessment• BMP 4• Crew Training/Lookouts/Drills• Hardening/Wire/Access Denial• Citadels• Armed Guards• Conduct under capture
‘If pirates are unable to board a ship they cannot hijack it.’
• AVOID
• EVADE
• DETER
• DELAY
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"The UK will allow the use of private armed security guards on our ships in exceptional circumstances and where it is lawful to do so."
UK Transport Secretary Justine Greening -30 October 2011-
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Anything Else ? Thanks to
Hoang Son Co Ltd of Vietnam, Evalend Shipping of Athens
and KK Security of Kenya
for their kind permission to reproduce images and data.
Compass Risk Management
Telephone +44 (0) 1476 550 166
Mobile +44 (0) 7946 053 797
Email [email protected]
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