Tracking Global Piracy Trends
Piracy has existed since the conception of shipping, and pirate attacks on vessels continue to disrupt trade, raising vessel security concerns and impacting the operation and insurance costs for ships, says Clarkson Research Services.
The drivers behind piracy are wide but primarily economic and clearly, geography is also key. This month, we take a closer look at recent shifts in the regional distribution of piracy ‘hot spots’.
Piracy remains a prevalent concern within the shipping industry, raising issues around vessel security, disrupting trade routes and increasing ship operation costs. In the year to date, 85 piracy attacks have been reported globally compared to 142 in the same period of 2015.
While the overall incidence of piracy has fallen since 2012 when nearly 350 attacks were reported, the number of incidents remains significant (and is likely underestimated). In 2016 so far, six ships have been reported captured by pirates, this compares to 10 vessels in full year 2015, down from nearly 30 ships in 2011.
The regional distribution of piracy incidents has varied over time. In 2016 so far, piracy attacks have been most prevalent in West Africa with the region accounting for 35% of reported incidents (30 ships).
Piracy in the Gulf of Guinea has increased as Nigerian militants seek alternative sources of funding. Further, lower oil prices have made the theft of oil cargoes less financially attractive and pirates appear to be focussing on kidnap for ransom activities. Four of the six ships reported captured in the year to date were sailing in West Africa.
In contrast, no vessels have been reported captured in East Africa or the Gulf of Aden in 2016 so far. 25 ships were reported captured in this region in 2010, close to 90% of all vessels captured, largely as a result of Somali piracy.
Concerted naval efforts in these waters have led to a dramatic decline in the number of piracy incidents and the average number of attacks reported between 2013 and 2015 totals 17 ships p.a. compared to an average of 105 attacks p.a. between 2010 and 2012.
Piracy attacks in South East Asia meanwhile account for 26% of incidents reported in the year to date (22 ships). The Strait of Malacca is a key trade route and piracy attacks in the region tend to focus on the theft of cargo.
However, reported attacks in the year to date have declined 75% year-on-year with an average of 163 ships attacked by pirates in South East Asia p.a. 2012-15. Lower commodity prices have made the economics of siphoning oil and gas to sell on less attractive and with piracy in this region generally less violent, only two vessels have been reported captured in 2016 so far. Further, regional initiatives such as ReCAAP have also helped deter piracy.
So, piracy attacks are reported to be declining though ‘hot spots’ remain. Lower oil prices have fuelled more aggressive incidents of piracy and vessel captures in West Africa.
At the same time, they have weakened the economic incentive for piracy in South East Asia, reducing attacks on ships. However, in the longer-term, piracy is still an important issue and regional counter piracy efforts including stronger governance and law enforcement systems remain key.
