Samiotis Psarrou Pazarzis Tselentis

8/13/2019 Samiotis Psarrou Pazarzis Tselentis

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The Effect of Maritime

Piracy on Greek ShippingSamiotis George, Psarrou Vasileia, Pazarzis

Michael and Tselentis Vasilis

Dept. Maritime Studies,University of Piraeus,

Piraeus - Greece


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Methodology

Questionnaires to Greek maritimecompanies.

Sent 100, received 35 and our research ison going.

Personal interviews.

Management of pirate incidents,complying with BMP4 and use of armedguards, Humanitarian response.


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Our aim

Analyze the phenomenon of piracy and thecost imposed on maritime companies.

Social awareness.

Compile measures for tackling piracy andevaluate effectiveness.


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Managing Countries whose ships were

attacked (2012)

0

10

20

30

40

50

60

70

80

Malaysia Hong Kong India Japan Greece Germany Singapore


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Total attacks worldwide (May 2013)


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Somalia

Decline of Somali attacks 20122013.

In 2011, pirates earned $146m ($111in 2010), an average of $4.87m pership, from ransom paid by shipping

firms.However, IMB states that policing

and interventions byinternational navies aredeterring pirates, along withships employing BestManagement Practices (IMO),including the use of armedguards and other onboardsecurity measures.

0

100

200

300

400

500

2006 2008 2010 2012

Global attacks

without

Somalis

Somali attacks


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Ransoms paid out to Somali pirates


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The effect of maritime piracy on the

shipping industry

85%

15%

Yes No


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Ship type as a target for a pirate

attacks(2012)

0%54%

31%

15%

Bulk Carrier Tanker Ship LNG Conta iner Ship Other

0

10

20

30

40

50

60

70

Bulk

Carrier

Chemical

Tanker

Container Tanker Product

tanker

Tug General

Cargo

LPG

Tanker

Offshore

Supply

Ship


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Cost burdens Greek companies

Insurance cost ReRouting cost Cost of Deterrent security

equipment

Wages of security guards

The costs incurred bymaritime piracy areexpected to be high for

Greek shippingcompanies, since theyrepresent 16,3% of worldtonnage.

0

5

10

15

20

25

30

35

40

45

Insurance cost Cost of Re-Rout ing Cost of Deterrent

Security Equipme nt

Other

%


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Cost burden to Greek companies

Piracy increasedrunning costs, affectingcompetitiveness by

increasing freight rates. Increased insurancepremiums covering thewelfare of seafarers,

cargo and the vessel.46%

9%

21%

24%

Much Enough Little None


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Measures

Use of armed guards.

Almost all the maritimecompanies employguards.

The majority of shippingfirms implement BestManagement Practices(BMP4).

Better management crewtraining on adoptedmeasures.

Deployment of

armed guards Enhancement of

crew training Adoption of BMP4Other

0

1

2

3

4

5

6

Measures for piracy avoidance

0

5

10

15

20

25

BMP4 Guards Other


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Reasons for Somalia piracy

0

1

2

3

4

5

6

Political instability in Somalia Lack of political will by local

political leaders.

Reduction of fish stocks National financial and

economic situation

Causes


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Conclusions

Greek maritime companies:

Use of armed guards and simultaneouslycomplying 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 veryeffective.


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Conclusions contd85% 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 pictureMaritime firms agree that pirate attacks in Somalia

are diminishing, however there are already 100incidents in 2013 (Somalia 6 (1 hijack) BUT in Nigeria 19 incidents)

Piratescollaborators and international interestsare restructuring, investing in new technology andwill strike again, in other parts of the world, notnecessarily only in Somalia.


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Thank you for your attention

Documents

Samiotis Psarrou Pazarzis Tselentis