In the library at my home is a large document written in four languages. It was carried by the captain of the schooner Fox and declared that his was an unarmed merchant ship that should not be attacked. It was signed in 1805 (the same year that Master and Commander told of treachery on the high seas) by Thomas Jefferson as President and James Madison as Secretary of State. If you thought those days were gone, think again.
It used to be that the word “pirate” was so removed from our daily lives that it conjured in our imaginations men with eye patches, peg legs, and parrots on their shoulders searching for treasure chests filled with gold and precious stones. Avarice served as the motivation for their actions (some things never change).
There are, of course, all kinds of piracy, ranging from copyright infringement to digital theft. However, the one that stands out in our minds today, especially in light of the rescue this week of the American cargo ship captain being held hostage by well-armed Somali teenagers, is the maritime piracy from days of yore updated to include modern weaponry and global positioning technology.
For more than a decade, ships at sea around the world have been facing unusual dangers from marauding bandits who have been lured into their scandalous actions by the desire for riches. The vast majority of global trade depends on transportation by ship, and almost half of all trade routes go through or near the pirate-infested waters around parts of Asia.
The growing maritime piracy problem has forced numerous nations into a pact to patrol certain waterways in hopes of preventing new attacks. This flotilla of ships has undoubtedly prevented some issues, but the size of the area being patrolled is so massive that it’s highly unlikely that all the navies of the world could oversee it sufficiently to successfully thwart all piracy. As a result, trade ships remain vulnerable to determined individuals seeking riches at the expense of others.
Maritime piracy has become an important international security matter and is posing danger to personnel and trade routes. Furthermore, it is becoming a growing thorn in the side of the global economy and causing an increase in the cost of numerous products and services. Next week in Berlin, a special conference is scheduled to discuss the economics of maritime piracy. Topics of presentations will focus in large part on the law and legal peculiarities of piracy, security measures, and the costs and consequences for commercial shipping.
The cost of piracy continues to grow in proportion to the ongoing daring bandit raids. The success the captors have had in forcing commercial vessel owners to pay ransom has encouraged an ever growing number of people to engage in this practice in an effort to improve their economic conditions.
The threats that piracy poses to global trade are considerable. Within 24 hours of the rescue of Captain Richard Phillips and subsequent warning by President Obama that the US would be doing more to eliminate piracy, Somali pirates brazenly attacked four other ships in the Gulf of Aden, including two major cargo carriers. So far this year, there have been about 77 pirate attacks with 18 ships hijacked. Two have been released after ransom payments were made, and the other 16 ships and their 285 crew members await results of continuing negotiations for money.
If the piracy problem near Somalia and other Southeast Asian trade routes continues to grow (and from all indications it certainly isn’t slowing down), higher insurance payments will probably result. If shipowners are unable to meet those rising costs or find insurance carriers willing to provide coverage, an even greater detrimental effect could occur as ships will have to travel further distances to reach their ports to deliver goods, thereby causing prices of those products to escalate.
Economics is the driving force behind pirates who take to the seas for the purpose of hijacking. Denying pirates the financial gain achieved from their illicit activities is vital to securing global trade routes. Stabilizing the weak Somali government and providing options beyond paying the ransom of cargo ships and their crews will probably go a long way toward reaching that objective.
Eliminating piracy, especially that emanating from the area around Somalia, will require a variety of approaches, ranging from military to political, as well as humanitarian endeavors to improve the lives of the people of that war-torn country. Stopping pirates who are operating in other waters around the world will also require a combination of efforts.
Many of these measures are undoubtedly now on the agendas of various government study groups in numerous nations. The degree of success achieved in the implementation of their adopted recommendations can make a significant difference in helping to end the threat of piracy and play an important role in strengthening the global economy, which today is so dependant on freedom of the seas.