Types of Maritime Piracy

1. Small Scale Piracy – steal from crew members typically at anchor or pier side
2. Large Scale Piracy – steal from the crew and the cargo. Typically pier side
3. Hijacking – seize the ship, cargo and crew and hold all for ransom. Typically occurs while at anchor or under way at sea

Piracy & Terrorism Worldwide HotSpots

Danger to World Commerce

According to a December 4, 2008 article:
The dramatic increase of pirate attacks on merchant vessels has led to huge cost increases for the shipping industry.

• Up to 10-fold insurance increases this year alone
• Additional dangerous duty pay offered to crews
• Pirate ransom demands in the millions
• Lengthy negotiations for hijacked ships
• Significant lost revenue for ships that are hijacked
• A majority of the worlds shipments of oil pass through the world’s most piracy infested waters

Statistics from ICC-International Maritime Bureau

Two Events, Two Results

Nov. 15, 2008 “Sirius Star” an 8 month old supertanker with $100 million in crude on board was hijacked. The ship, cargo and crew are being held for ransom. The ship was believed to be in a safe zone at 450 miles offshore. The pirates seized control in just 16 minutes. (“Sirius Star” released January 8th 2009 after reported $3 million dollar ransom paid. Loss of vessel revenue for over 2 months)

Dec. 5, 2008 Pirates attempted to take a Danish ship off Coast of Tanzania in an area previously thought to be safe. The Ship avoided the pirates because they detected their presence and took evasive action which prevented the boarding.