Armed Guards Onboard Ships - what you need to know!

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1 Insurance Bulletin Issue 03 - April 2011 Armed Guards Onboard Ships - what you need to know! By Steven Jones Welcome In this third Seacurus Insurance Bulletin, we examine one of the most topical issues currently affecting maritime security and insurance armed guards. Which Way Now: Armed or Unarmed? As fears grow over increasing pirate attacks, the most useful and pragmatic solution has been to deploy armed teams. This has prompted many and varied responses. Maritime security companies have rushed into the void, ready to supply armed teams to meet demand, leaving shipowners struggling to decide how best to manage the legal and liability issues. Flag States are calling on the International Maritime Organization (IMO) to provide clear, unequivocal guidance, while trade associations keep flip-flopping between conflicting views and the P&I Clubs simply do not want to get involved. The first phase of the process is making the tough call on whether using armed guards is appropriate, practical or possible. It may seem trite, but it is not currently an easy choice for many shipowners. There is much to examine in assessing whether this is the right approach for their particular vessels and trade. This is not a simple case of following the zeitgeist, this is about the Company Security Officer (CSO), senior Directors and managers deciding that based on a proper risk assessment their people, cargoes and vessels will be safer if they are armed. Currently it is a complex mess, but there are some signs of progress. If done correctly and carefully there are means of securing the right armed guards and all while staying on the right side of the law. By Steven Jones Risk and Security Analyst Seacurus Ltd

2 For fast, high sided vessels the need for armed guards is likely to be minimal. If the pirates can t catch you or if you don t seem to be a particularly attractive target then there is no real point to have weapons onboard. The carriage of arms is a very complex business and for all the security advantages they bring, there are real administrative issues to be tackled (if you do it legally of course, and many still don t). For the euphemistically termed, Low and Slow vessels it seems likely that the advantages of armed guards will be significant. It still remains (though this statistic may crumble at some point) that no armed vessels have been taken. So the pragmatic solution for certain vessels is to place armed teams onboard. That was the easy bit now there is the small matter of finding a provider, of balancing the liability issues and of ensuring that the paper trail is both completed and proper. Choosing a security provider has been compared with picking a random plumber given that there is no real way of knowing whether you will get a skilled craftsman or a cowboy. Sadly the comparison stacks up, and with today s burgeoning marketplace full of established names and new start-ups, which way should you turn? Choosing Your Provider The most important single lesson in the entire process is that ship owners and operators simply cannot afford to take chances or short cuts. The maritime security field is a fairly level one in that companies of all different sizes and complexions are able to forge business. The players range from one-man security brokers who simply subcontract the skills of former service personnel (from a rainbow of nations), through to medium sized well established companies, and then on to massive multi-nationals. All may be able to provide you with what you want, but will it be exactly what you need? What to look for? Registered Company details. Landline telephone number and a valid office address. Proof of Insurance. If the company cannot provide details of professional liability, employer liability, business travel, medical expenses and personal accident cover, then you should be extremely concerned. These people will be working (and perhaps opening fire on your behalf), so every possible safeguard needs to be in place. Client references from former clients, flag states or other relevant bodies. If you ask for the contact details of past clients and none are forthcoming, this should once again ring alarm bells. Details of the personnel who could potentially be deployed on your ship. You would naturally check up on seafarers boarding your vessel this is no different. It is worth noting issues such as military record, a criminal record check, demonstrable knowledge of the marine environment, and evidence of specific marine-based commercial security and counter-piracy training. If you are satisfied that you are dealing with a security provider which can deliver the professional, operational and corporate levels of support you need then it is time to consider the next set of issues and factors.

3 Management of Stakeholders Managing the armed guarding process is no different to any other risk management process, and owners/operators have to pre-empt and anticipate the gamut of complications before they arise. In order to place weapons onboard it is vital that the requisite permissions are sought and granted. There are a range of key stakeholders, including (but not limited to): Flag State permission to carry arms onboard Port States licenses for embarkation/disembarkation of arms Coastal States responses vary, but notification should ease passage Insurers non-disclosure could breach certain policies Owners dependent on ownership permission may be needed from multiple parties Charterers the vessel s clients have a right to know and will expect notification, so they can ensure their own rights and liabilities are in order Master and crew do they want weapons onboard? They need to be consulted as part of the process Trade Unions increasingly the Unions are engaged in the debate, notifying them and ensuring they are clear of the companies intentions can mitigate later labour related problems It is also vital that the owner/operator is satisfied through their own lawyers that the necessary permissions are in place, that the documentation to facilitate the process is acceptable and that existing contracts and charters will not be voided by the carriage of arms. If the process of checking on the provider is completed, and if all the permissions and contacts are made then in theory all is ready to proceed. The carriage of arms may have been stymied at an early stage by flag, charterers, insurers, lawyers or crew but if they are all satisfied then the armed team can be placed onboard. Images - Reuters

4 Operational Challenges With the business and legal hurdles overcome, there is then the issue of safeguarding the vessels. As stated previously there have not been any recent successful piracy attacks against vessels employing armed guards. The one thing we do know about the pirates is that they are nimble and adaptable. They will change tactics to overcome the obstacles facing them. Given that the armed teams usually consist of around four operatives, the area of fire that they can lay down is limited and on large vessels can still leave some areas exposed. To exploit this vulnerability, pirates have been developing a number of new tactics (or refinements on existing approaches): Stealth Pirates have been using motherships to launch highly visible decoy skiffs. These approach the ship with the aim of drawing fire and attention. At the same time pirates have moved towards the vessel in camouflaged skiffs, trying to gain access on an unprotected side of the vessel. Swarming The capture of the MV Sinar Kudus last month gave a concerning view of both new tactics, but also a new capability. Using a mothership as a base, pirates were able to swarm the vessel with as many as 50 attackers. A small detachment of just four armed guards would inevitably struggle to maintain security in the face of such overwhelming odds. Child pirates Indian authorities found that almost half of the 61 pirates they apprehended after a gun-battle in the Arabian Sea last month were children below 15, with at least four thought to be aged 11. This will cause huge concern to private security providers. The legalities of armed guards shooting attackers seem to rest very much on the law of self-defence. The armed guards when under direct threat or when seeing others in danger are allowed to shoot. Self-defence provides for the right of people to act in a manner that would be otherwise unlawful, so if you injure someone while defending yourself, or while stopping a crime, you won t be prosecuted even if you kill, so long as what you did was reasonable in the circumstances. You ll only be prosecuted if you have acted unreasonably. The revelation that so many pirates are actually under-age is cause for real concern will it be deemed reasonable to shoot children even in self defence? This is a tactic pirates are likely to exploit further, both as a means of bolstering their numbers for swarm attacks and so as to cause confusion in the ranks of the security teams.

5 The Future The very fact that owners/operators are so beholden to such a long and varied list of stakeholders is a strong indication that the process needs to be streamlined and improved. The International Maritime Organization (IMO) will be discussing this very issue in May as part of the Maritime Safety Committee (MSC89) and a number of powerful flags and Non-Governmental (NGO) factions are all clamouring for change and guidance in equal measure. The Liberian Register is calling for the IMO to issue robust guidelines. While the Bahamas, Marshall Islands, Panama and Singapore administrations reportedly support proposals for the establishment of formal maritime security regulations. Papers submitted for the MSC propose a minimum standard of training for security personnel, while security companies should comply with a recognised code of conduct and there should be agreements covering rules of engagement. As a part of these developments the Security Association for the Maritime Industry (SAMI) is soon to be launched and is partly funded by a range of flag States. SAMI will provide a focal point for security providers and will vet those companies applying for membership.