Transforming Challenges into Opportunities: A Guide to Strategic Risk Management

Posted on Dec 08, 2023 at 11:12 PM

Maritime piracy is still a global concern that impacts international shipping and marine trading with high-risk factors.

Additionally, maritime piracy causes a direct threat to marine working crews and leads to economic and financial losses to the international monetary systems.

Join us in exploring maritime piracy, its definition, its direct impacts, and effective ways to protect your naval business.

What Is Maritime Piracy?

Maritime piracy refers to any marine criminal action committed, including robbery, violence, and the unauthorised boarding of ships intending to commit theft, hijacking, or other immoral activities.

Moreover, the criminals who commit such practices are called pirates, and they often operate from small boats or skiffs while targeting vessels ranging from commercial ships to fishing boats.

Maritime piracy actions could happen for different reasons, like hijacking ships for money, theft of cargo, and attacks on the crew.

However, through organisations like the International Maritime Organisation (IMO) and various naval task forces, the international community works to fight maritime piracy through preventive measures, enhancing naval rounds in vulnerable areas, and prosecuting pirates under international law.

The 6 Bad Impacts of Maritime Piracy:

Maritime piracy is an illegal action forbidden by all national and international regulations due to its vast and harmful impacts on the global marine industry.

Furthermore, these impacts include human, economic, and touristic ones that harm the maritime industry on all levels.

1. Crew Safety: 

Unfortunately, the piracy action poses a direct danger to the safety and well-being of seafarers, as the crew members could face violence, kidnapping, or even loss of life during pirate attacks.

On the other hand, the survivors of pirate attacks may suffer from psychological trauma, including anxiety, depression, and post-traumatic stress disorder (PTSD).

2. Increased Costs: 

The actions taken by the shipping companies to protect their business from maritime piracy will undoubtedly increase the function costs, such as:

• Implement costly security measures to protect their vessels.

• Hiring private security teams.

• Redirecting ships to avoid piracy-prone areas which will increase costs and delivery time.

And for sure, these expenses will be added to the overall cost of goods transportation; moreover, they directly impact industries and economies dependent on timely shipments.

3. Impact on International Trade:

As a result of the increased risks associated with piracy, maritime insurance companies raised their insurance costs, adding another financial load on shipping companies and, by default, on the price of transported goods.

4. Oil and Chemical Spills: 

Pirate attacks also have environmental impacts, mainly when they attack oil tankers or other vessels carrying dangerous materials and a spilling accident occurs.

That can lead to economic impacts due to the products, fuel losses, and environmental disasters that will harm the ocean and marine environment.

5. National Security: 

Maritime piracy is more active in some water regions than others due to many factors; however, these activities will not only impact the costs of shipping and trading.

But also become a national security concern, pressuring nations to deploy naval forces and resources to fight piracy and diverting attention and resources from other security priorities.

6. Impact on Coastal Communities: 

In hot areas where maritime piracy is more active, local communities could suffer from more direct impacts due to safety concerns, such as:

• Economic activities related to fishing and maritime trade will be decreased.

• Maritime tourism will be lower or vanish, impacting the local economies depending on this industry.

How do you protect your maritime business from piracy?

There are many measures and steps highlighted by the main list of maritime courses as effective moves to protect your naval businesses' marine piracy-associated risks:

• Risk Assessment:

Conduct a thorough risk assessment study and stay informed about current piracy trends and incidents to detect piracy-prone areas and assess the specific risks associated with your shipping routes.

Moreover, plan shipping routes and discover safe anchoring spots to avoid known piracy hotspots.

• Communication and Reporting:

Establish effective communication protocols for your vessels with other shipping companies, and encourage crew members to report suspicious activities promptly to maritime security organisations and naval authorities in the region.

Additionally, stay connected with industry resources, organisations, and naval forces that provide updated information on piracy incidents.

• Security Training and Drills:

Provide full security training for your crew members, including procedures for responding to pirate threats to guarantee that your seafarers are well-prepared and familiar with emergency protocols.

• Use of Technology:

To detect pirate attacks, you must be fully aware of your surroundings; thus, you must invest in modern technology for maritime security, such as radar systems, sonar, and satellite communication.

To sum up,

Maritime piracy has destructive direct impacts on the international marine industry and all its attached operations.
However, working with international laws and regulations will help you stop these impacts at the lower level and even avoid them.