Leslie Edwards. MANAGING THE CRISIS - WHAT TO DO IF YOUR SHIP IS HIJACKED

Transcription

1 Leslie Edwards MANAGING THE CRISIS - WHAT TO DO IF YOUR SHIP IS HIJACKED

2 Chart based on ship hijacks conducted by Somali pirates by month covering 2008 to Excluded are dhows, yachts, vessels freed by military action and most, but not all fishing vessels and other small craft Somali Piracy Hijacks by Month Compass Risk Management 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 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Compiled by Leslie Edwards and Jon Lee 31/10/11. Compass Risk Management Ltd Tel: info@compass-rm.com

3 Total Somali Piracy Hijackings by Ship Size Classification (As At 31 Oct 11) Compass Risk Management 3 4 Size (DWT) 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. Ship Size Classifications Used Compiled by Leslie Edwards and Jon Lee 31/10/11 Compass Risk Management Ltd Tel: info@compass-rm.com Below 10,000 - Small/Coastal 10,000-30,000 - Handysize 30,001-50,000 - Handymax 50,001-80,000 - Panamax 80, ,000 - Capesize 150, ,000 - VLCC

4 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? Captured ships off Eldanaan April 2011

5 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

6 THE PIRATE BUSINESS MODEL ONLY MOTIVATION IS MONEY RESEARCH THEIR PRIZE KILLING CREW IS NOT PART OF THE PLAN RANSOM DIVIDED BETWEEN 1. HIJACK GROUP 2. HOLDING GROUP 3. INVESTORS USUALLY KEEP THEIR WORD

7 MANY THREATS AND PRESSURES BUT RARELY CARRIED OUT

8 KHAT- ALCOHOL- DRUGS- GUNS PHOTOS REMOVED

9 WHAT WILL HAPPEN TO THE CREW? PHOTO REMOVED

10 THREATS TO CREW SAFETY 1. Military Intervention 2. Illness and neglect 3. Mother ship operations PHOTO REMOVED 4. Pirate squabbles 5. Mental Depression

11 CREW FATALITIES SOMALI PIRACY 2007 TO 2011 Compass Risk Management Killed during clashes with International Naval Forces: Killed during clashes with International Naval Forces: Died during captivity illness/neglect/malnutrition: Died during captivity illness/neglect/malnutrition: Deliberately killed by pirates (post initial hijacking): Deliberately killed by pirates (post initial hijacking): Killed during initial hijack: Killed during initial hijack: 6 Killed during rescue operations: Killed during rescue operations: Compiled by Leslie Edwards and Jon Lee 26/09/11 Compass Risk Management Ltd Tel: info@compass-rm.com TOTAL 64

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13 HOW MUCH RANSOM WILL YOU HAVE TO PAY??

14 $ M 7.0 Six Ship Moving Average Ransom Reported Paid to Somali Pirates Compiled by Leslie Edwards and Jon Lee 31/10/11 Compass Risk Management Ltd Tel: info@compass-rm.com

15 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

16 HOW LONG WILL IT LAST??

17 Days Duration of Negotiated Somali Hijack Cases in Days During Ariana (223) 150 Stolt Strength (161) BBC Trinidad (20) Bow Asir (14) Compiled by Leslie Edwards and Jon Lee 31/10/11 Compass Risk Management Ltd Tel: info@compass-rm.com

18 Days 700 Duration of Negotiated Somali Hijack Cases in Days During Iceberg (582) Blida (273)) Talca (49) Compiled by Leslie Edwards and Jon Lee 31/10/11 Compass Risk Management Ltd Tel: info@compass-rm.com SV Quest (5) Jubba XX (13)

19 MOST RECENT RELEASES AVERAGE (NOT INCLUDING JUBBA XX) = 212 DAYS Vessel Name Release Date Duration Dover 30 Sep Eagle 28 Sep Hoang Son Sun 16 Sep Panama 6 Sep Ing (Crew) 6 Sep Polar 26 Aug Sinin 14 Aug Jubba XX * 28 Jul Susan K 16 Jun Suez 13 Jun Zirku 10 Jun11 75 * Somali interest in ownership allowed early release

20 Duration T 162 C Somali Piracy - Durations as at 31 Oct 11 For ships hijacked between 01 Jan 10 and 31 Aug T T F B 49 Rf 582 Ro 216 T 333 C 179 B 234 T 121 T 213 B Compass Risk Management 1/1 2/1 1/3 5/3 6/3 23/3 23/3 29/3 4/4 11/4 21/4 8/5 11/5 12/5 28/6 4/7 2/8 130 T 196 T 315 C Date of Hijack Notes: 1. Total days held at top of each column. 2. Green = released vessels. Red = still held 3. Date of hijack (under each column) shown as day/month. 4. ( 20KT) = 20,000 DWT 5. 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.

21 Duration T 200 T Somali Piracy Durations as at 31 Oct 11 For ships hijacked between 01 Sep 10 and 31 Dec F C T 301 T 110 P 126 T 208 C B Compass Risk Management C C F 8/9 28/9 9/10 10/10 23/10 30/10 3/11 11/11 12/11 25/11 5/12 10/12 11/12 20/12 25/12 25/12 27/12 31/12 C B C B F Date of Hijack Notes: 1. Total days held at top of each column. 2. Green = released vessels. Red = still held 3. Date of hijack (under each column) shown as day/month. 4. ( 20KT) = 20,000 DWT 5. 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 June 2011 fire reported on MV Orna. Pirates moved hostage crew off vessel.

22 Duration Somali Piracy Durations as at 31 Oct 11 For ships hijacked between 01 Jan 11 and 31 Aug 11 Compass Risk Management /1 B 293 C 256 B 241 B 130 B 82 C 266 T 59 T C T C 12/1 17/1 19/1 20/1 22/1 8/2 9/2 12/2 18/2 24/2 28/2 16/3 28/3 B Y Y B 194 B 185 T 8/4 21/4 30/4 13 T 16/7 72 T 20/8 Date of Hijack Notes: 1. Total days held at top of each column. 2. Green = released vessels. Red = still held 3. Date of hijack (under each column) shown as day/month. 4. ( 20KT) = 20,000 DWT 5. 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.

23 RISKS OF LONG CASES Crew at greater risk Mother ship Running out of bunker Engineering damage Insurance issues Ransom inflation Fouling Families and ALL RISKS ACCELERATE AFTER 6 MONTHS reputation

24 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 Captured ships off Eldanaan April 2011

25 SOMALI SHIP HIJACKS WHAT ARE THE MAIN ISSUES TO BE MANAGED? Ransom Delivery Pirates Families of Crew CRISIS MANAGEMENT TEAM Media Authorities Insurance and Finance

26 WHAT IS THE STRUCTURE TO MANAGE THE CRISIS? DECISION MAKING AUTHORITY CRISIS MANAGEMENT TEAM NEGOTIATION TEAM FAMILIES LIAISON INSURANCE AND FINANCE RANSOM DELIVERY RECEPTION

27 Effects on Crisis Team- Duration PHOTO REMOVED Stress Workload Responsibility

28 NEGOTIATION TEAM

29 NEGOTIATION IS IN ENGLISH USING SATPHONE, E MAIL, AND FAX, FROM BRIDGE TO OWNER S OFFICES

30 MANAGEMENT OF FAMILIES MUST BE PRO-ACTIVE Welfare/ Morale Early face to face briefing Menu of pirate tactics Useful allies if handled well

31 HOW WILL THE RANSOM BE DELIVERED?

32 CASHING AND MOVING THE RANSOM NEEDS CAREFUL PLANNING AND PLENTY OF LEAD TIME

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34 CREW RELEASE PRESENTATION TO EXPLAIN TO THE CREW OF XXXXXXX WHAT HAPPENED WHY IT HAPPENED WHAT THE COMPANY DID HOW YOUR FAMILIES WERE TREATED WHAT MIGHT HAVE HAPPENED 34

35 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 Captured ships off Eldanaan April 2011

36 If pirates are unable to board a ship they cannot hijack it. AVOID EVADE DETER DELAY

37 UK Transport Secretary Justine Greening - 30 October "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."

38 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.

39 Compass Risk Management Telephone +44 (0) Mobile +44 (0)