Global pandemics, economic turbulence, and political shifts are typically the first things that come to mind when listing the biggest threats facing the shipping industry. However, there is another prevalent and ongoing risk that many forget to consider: piracy.
The reality of pirates is a lot darker than our cultural representations of Jack Sparrow or Bluebeard—many are armed and violent, putting cargo and crew at great risk.
Statistics on Piracy
While the International Chamber of Commerce’s International Maritime Bureau (IMB)’s annual piracy report recorded increased piracy and armed robbery incidents in 2023, this year has seen a decrease in attacks. In fact, the IMB reported that piracy and robbery incidents in 2024 have fallen to the lowest level since 1994.
Only 79 reported incidents occurred between January and September of this year, compared to 99 attacks during the same period last year. In 2024, we’re seeing fewer piracy incidents in Somalia, the Singapore Straits, and the Gulf of Guinea, but there has been an uptick in attacks in the Indonesian Archipelago, with 17 already reported in that region alone this year.
Although incidents have slightly declined, these regions continue to pose threats and remain areas of concern. Vessels and crews must remain vigilant, especially when traveling through high-risk waters.
Recent Attacks
Despite the lower numbers, piracy continues. So far this year, some of the most notable attacks have involved MV Abdullah, MV Tutor, and Royal TB 17.
On March 12, 2024, Somali pirates hijacked the MV Abdullah, a Bangladesh-flagged cargo ship, in the Indian Ocean, east of Somalia. The pirates took 23 crewmembers hostage and only released them upon receiving a $5 million ransom.
On June 12, 2024, Yemeni Houthi militants launched an unmanned surface vehicle (USV), or drone missile, on the MV Tutor, a Liberia-flagged bulk carrier in the Red Sea. The crew abandoned the damaged vessel, which later sank. One crewmember lost their life in the attack. The militant group, which aligns with Iran, claimed it attacked the ship in support of Palestinians in Gaza.
Then, just last month, on September 20, 2024, a group of pirates hijacked a tugboat called Royal TB 17 off the coast of Indonesia. The pirates tied up the crew and stole personal items and cash along with the tugboat’s cargo and navigational devices, like the GPS and communication radios.
These are just a few of the many pirate-related incidents that have occurred in 2024, and as we round out the year, we can likely expect more piracy attacks.
Insights From Falvey Insurance Group on Piracy
In practical terms, shippers have little to no control or influence over how a vessel operator and crew can prevent a pirate attack. Rather, being knowledgeable of the incident rate of these attacks along various shipping lanes allows shippers to contract with steamship lines that do not utilize these high-risk routes. Shipping lane risk assessment should be an integral part of a company’s overall supply chain risk management program, including a robust vetting process for the selection of logistics and transportation service providers.
Knowing the right questions to ask as part of this vetting and selection process is critical for proper and effective vendor management. A comprehensive risk management program will identify potential threats/hazards within a supply chain and implement applicable risk mitigation and countermeasures.
In practical terms, shippers have little to no control or influence over how a vessel operator and crew can prevent a pirate attack. Rather, being knowledgeable of the incident rate of these attacks along various shipping lanes allows shippers to contract with steamship lines that do not utilize these high-risk routes. Shipping lane risk assessment should be an integral part of a company’s overall supply chain risk management program, including a robust vetting process for the selection of logistics and transportation service providers.
Knowing the right questions to ask as part of this vetting and selection process is critical for proper and effective vendor management. A comprehensive risk management program will identify potential threats/hazards within a supply chain and implement applicable risk mitigation and countermeasures.
Protection Against Piracy
Falvey Insurance Group expertly evaluates the unique risks and needs of our clients’ cargo exposures. We’ll go the extra mile to ensure you have the coverage you need to protect your cargo, anywhere in the world, in any situation. Contact us to learn more.
