XI. Treasure Island Revisited On Maritime Piracy

The rumors concerning the demise of maritime piracy

back in the 19th century were a tad premature. The

scourge has so resurged that the International Maritime

Board (IMB), founded by the International Chamber of

Commerce (ICC) in 1981, is forced to broadcast daily

piracy reports to all shipping companies by satellite from

its Kuala Lumpur Piracy Reporting Center, established in

1992 and partly funded by maritime insurers. The reports

carry this alarming disclaimer:

"For statistical purposes, the IMB defines piracy and

armed robbery as: An act of boarding or attempting to

board any ship with the apparent intent to commit theft or

any other crime and with the apparent intent or capability

to use force in the furtherance of that act. This definition

thus covers actual or attempted attacks whether the ship is

berthed, at anchor or at sea. Petty thefts are excluded,

unless the thieves are armed".

The 1994 United Nations Convention on the Law of the

Sea defines piracy as "any illegal acts of violence or

detention, or any act of depredation, committed by

individuals (borne aboard a pirate vessel) for private ends

against a private ship or aircraft (the victim vessel)".

When no "pirate vessel" is involved - for instance, when

criminals embark on a ship and capture it - the legal term

is hijacking.

On July 8, 2002 seven pirates, armed with long knives

attacked an officer of a cargo ship berthed in Chittagong

port in Bangladesh, snatched his gold chain and watch and

dislocated his arm. This was the third such attack since the

ship dropped anchor in this minacious port.

Three days earlier, in Indonesia, similarly-armed pirates

escaped with the crew's valuables, having tied the hands

of the duty officer. Pirates in small boats stole anodes

from the stern of a bulk carrier in Bangladesh. Others, in

Indonesia, absconded with a life raft.

The pirates of Guyana are either unlucky or untrained.

They were consistently scared off by flares hurled at them

and alarms set by vigilant hands on deck. A Colombian

band, riding a high speed boat, attempted to board a

container ship. Warring parties in Somalia hijacked yet

another ship in June 2002.

A particularly egregious case - and signs of growing

sophistication and coordinated action - is described in the

July 1-8, 2002 report of the IMB:

"Six armed pirates boarded a chemical tanker from a

small boat and stole ship's stores. Another group of pirates

broke in to engine room and stole spare parts. Thefts took

place in spite of the ship engaging three shore security

watchmen." Piracy incidents have been reported in India,

Malaysia, Philippines, Thailand, Vietnam, the Red Sea,

the Gulf of Aden, Nigeria, Brazil, Colombia, Dominican

Republic, Ecuador, Peru, Venezuela.

According to the ICC Year 2001 Piracy Report, more than

330 attacks on seafaring vessels were reported in 2001 -

down by a quarter compared to 2000 but 10 percent

higher than 1999 and four times the 1991 figure. Piracy

rose 40 percent between 1998 and 1999 alone.

Sixteen ships - double the number in 2000 - were captured

and taken over in 2001. Eighty seven attacks were

reported during the first quarter of 2002 - up from 68 in

the corresponding period the year before. Seven of these

were hijackings - compared to only 1 in the first quarter of

2001. Nine of every 10 hijacked ships are ultimately

recovered, often with the help of the IMB.

Many masters and shipowners do not report piracy for

fear of delays due to protracted investigations, increased

insurance premiums, bad publicity, and stifling red tape.

The number of unreported attacks in 1999 was estimated

by the World Maritime Piracy Report to be 130.

According to "The Economist", the IMO believes that half

of all incidents remain untold. Still, increased patrols and

international collaboration among law enforcement

agencies dented the clear upward trend in maritime crime

- even in the piracy capital, Indonesia.

The number of incidents in the pirate-infested Malacca

Straits dropped from 75 in 2000 to 17 in 2001 - though the

number of crew "kidnap and ransom" operations,

especially in Aceh, has increased. Owners usually pay the

"reasonable" amounts demanded - c. $100,000 per ship.

Contrary to folklore, most ships are attacked while at

anchor.

Twenty one people, including passengers, were killed in

2001 - and 210 taken hostage. Assaults involving guns

were up 50 percent to 73 - those involving mere knives

down by a quarter to 105. Piracy seems to ebb and flow

with the business cycles of the host economies. The Asian

crisis, triggered by the freefall of the Thai baht in 1997-8,

gave a boost to East Asian maritime robbers. So did the

debt crises of Latin America a decade earlier. Drug

transporters - armed with light aircraft and high speed

motorboats - sometimes double as pirates during the dry

season of crop growth.

Pirates endanger ship and crew. But they often cause

collateral damage as well. Pirates have been known to

dump noxious cargo into the sea, or tie up the crew and let

an oil tanker steam ahead, its navigational aides smashed,

or tamper with substances dangerous to themselves and to

others, or cast crew and passengers adrift in tiny rafts with

little food and water.

Many shipowners resorted to installing on-board satellite

tracking systems, such as Shiploc, and aircraft-like "black

boxes". A bulletproof life vest, replete with an integral

jagged edged knife, was on display in the millennium

exhibition at the Millennium Dome two years ago. The

International Maritime Organization (IMO) is considering

to compel shipowners to tag their vessels with visibly

embossed numbers in compliance with the Safety of Life

at Sea Convention.

The IMB also advises shipping companies to closely

examine the papers of crew and masters, thousands of

whom carry forged documents. In 54 maritime

administrations surveyed in 2001 by the Seafarers'

International Research Centre, Cardiff University in

Wales, more than 12,000 cases of forged certificates of

competency were unearthed.

Many issuing authorities are either careless or venal or

both. The IMB accused the Coast Guard Office of Puerto

Rico for issuing 500 such "suspicious" certificates. The

Chinese customs and navy - especially along the southern

coast - have often been decried for working hand in glove

with pirates.

False documents are an integral - and crucial - part of

maritime piracy. The IMB says:

"Many of the phantom ships that set off to sea with a

cargo and then disappear are sailed by crewmen with false

passports and competency certificates. They usually

escape detection by the port authorities. In a recent case of

a vessel located and arrested in South-East Asia further to

IMB investigations, it has emerged that all the senior

officers had false passports. The ship's registry documents

were also false".

As documents go electronic and integrated in proprietary

or common cargo tracking systems, such forgery will

wane. Bolero - an international digital bill of lading ledger

- is backed by the European Union, banks, shipping and

insurance companies. The IMO is a proponent of a

technology to apply encrypted "digital signatures" to

electronic bills of lading. Still, the industry is highly

fragmented and many ships and ports don't even possess

rudimentary information technology. The protection

afforded by the likes of Bolero is at least five years away.

Pirates sometimes work hand in hand with conspiring

crew members (or, less often, stowaways). In many

countries - in East Asia, Latin America, and Africa -

Coast Guard operatives, corrupt drug agents, and other

law enforcement officials, moonlight as pirates. Renegade

members of British trained Indonesian anti-piracy squads

are still roaming the Malacca Straits.

Pirates also enjoy the support of an insidious and vast

network of suborned judges and bureaucrats. Local

villagers along the coasts of Indonesia and Malaysia - and

Africa - welcome pirate business and provide the

perpetrators with food and shelter.

Moreover, large tankers, container ships, and cargo

vessels are largely computerized and their crew members

few. The value of an average vessel's freight has increased

dramatically with improvements in container and oil

storage technologies. "Flag of convenience" registration

has assumed monstrous proportions, allowing ship owners

and managers to conceal their identity effectively. Belize,

Honduras, and Panama are the most notorious, no

questions asked, havens.

Piracy has matured into a branch of organized crime.

Hijacking requires money, equipment, weapons, planning,

experience and contacts with corrupt officials. The loot

per vessel ranges from $8 million to $200 million.

Pottengal Mukundan, Director of ICC's Commercial

Crime Services states in an IMB press release:

"(Piracy) typically involves a mother ship from which to

launch the attacks, a supply of automatic weapons, false

identity papers for the crew and vessel, fake cargo

documents, and a broker network to sell the stolen goods

illegally. Individual pirates don't have these resources.

Hijackings are the work of organized crime rings".

The IMB describes the aftermath of a typical hijacking:

"The Global Mars has probably been given a new name

and repainted. Armed with false registration papers and

bills of lading, the pirates - or more likely the mafia

bosses pulling the strings - will then try to dispose of their

booty. The vessel has probably put in to a port where the

false identity of vessel and cargo may escape detection.

Even when identified, the gangs have been known to bribe

local officials to allow them to sell the cargo and leave the

port".

Such a ship is often "recycled" a few times. It earns its

operators an average of $40-50 million per "cycle",

according to "The Economist". The pirates contract with

sellers or shipping agents to load it with a legitimate

consignment of goods or commodities. The sellers and

agents are unaware of the true identity of the ship, or of its

unsavory "owners/managers".

The pirates invariably produce an authentic vessel

registration certificate that they acquired from crooked

officials - and provide the sellers or agents with a bill of

lading. The payload is then sold to networks of traders in

stolen merchandise or to gullible buyers in a different port

of destination - and the ship is ready for yet another

round.

In January 2002, the Indonesian Navy has permanently

stationed six battleships in the Malacca Straits, three of

them off the coast of the secessionist region of Aceh. A

further 20-30 ships and 10 aircraft conduct daily patrols of

the treacherous traffic lane. Some 200-600 ships cross the

Straits daily. A mere 50 ships or so are boarded and

searched every month.

The Greek government has gunboats patrolling the 2

miles wide Corfu Channel, where yachts frequently fall

prey to Albanian pirates. Brazil has imposed an unpopular

anti-piracy inspection fee on berthing vessels and used the

proceeds to finance a SWAT team to protect ships and

their crews while in port. Both India and Thailand have

similar units.

International cooperation is also on the rise. About one

third of the world's shipping traffic goes through the

South China Sea. A conference convened by Japan in

March 2000 - Japanese vessels have become favored

targets of piracy in the last few years - pushed for the

ratification of the International Maritime Organisation's

(IMO) 1988 Rome Convention on the Suppression of

Unlawful Acts against the Safety of Maritime Navigation

by Asian and ASEAN countries.

The Convention makes piracy an extraterritorial crime

and, thus, removes the thorny issue of jurisdiction in cases

of piracy carried in another country's territorial waters or

out on the high seas. The Comite Maritime International -

the umbrella organization of national maritime law

associations - promulgated a model anti-piracy law last

year.

Though it rejected Japan's offer for collaboration, in a

sharp reversal of its previous policy, China started

handing down death sentences against murderous pirates.

The 13 marauders who seized the Cheung Son and

massacred its 23 Chinese sailors were executed five years

ago in the southern city of Shanwei. Another 25 people

received long prison sentences. The - declared - booty

amounted to a mere $300,000.

India and Iran - two emerging "pirates safe harbor"

destinations - have also tightened up sentencing and port

inspections. In the Alondra Rainbow hijacking, the Indian

Navy captured the Indonesian culprits in a cinematic

chase off Goa. They were later sentenced severely under

both the Indian Penal Code and international law. Even

the junta in Myanmar has taken tentative steps against

compatriots with piratical predilections.

Law enforcement does not tolerate a vacuum. "The

Economist" reports about two private military companies

- Marine Risk Management and Satellite Protection

Services (SPS) - which deploy airborne mercenaries to

deal with piracy. SPS has even suggested to station 2500

former Dutch marines in Subic Bay in the Philippines -

for a mere $2500 per day per combatant.

Shipowners are desperate. Quoted by "The Economist",

they "suggest that the region's governments negotiate the

right for navies to chase pirates across national

boundaries: the so-called 'right of hot pursuit'. So far, only

Singapore and Indonesia have negotiated limited rights.

Some suggest that the American navy should be invited

into territorial waters to combat piracy, a 'live' exercise it

might relish. At the very least, countries such as Indonesia

should advertise which bits of their territorial waters at

any time are patrolled and safe from pirates. No countries

currently do this".

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