17 April 2012

[170412.EN.SEA] Pirate Ransoms Inevitable, Seizing Booty Risks More Than It Gains: Lawyer


PREVENTING pirate ransom money from being invested is like refusing to pay ransoms, thus making seafarers less willing to put to sea along the world's busiest trade lane that needs them so badly, argues Rhys Clift, marine insurance partner with the London law firm, Hill Dickinson.

"Who would wish to go to sea if ransom for detainment at sea were to be prohibited, or if shipowners and operators were threatened with prosecution? Few, one imagines. And if they did, one can imagine the consequences," warned Mr Clift, who was short listed as Lloyd's List 2009 Lawyer of the Year. .

"It is a short step from tracking the illicit funds to prohibiting the payment of ransoms. Realistically there is no real, safe alternative to the payment of ransom and indeed such payments have been made for decades. Is maritime piracy to be the exception? And if so why?" he said.

An estimated 2,700 seafarers have been held by pirates off Somalia or in the Indian Ocean, 70 per cent of whom vowed not to go back to sea. "One would think that the percentage of those willing to go back to sea will decline as the average duration of detention lengthens and the risk of physical abuse increases," Mr Clift said in an article posted on his firm's website.

"This is the major hidden cost of piracy, and many in the industry are utterly baffled that the appalling plight of seafarers on the one hand is relatively invisible in the press in contrast say to the plight of the Chilean miners trapped underground, which featured daily at the top of news bulletins until their release," he said.

"Contrast their experience with the seafarers. They were not held in terror for months, in fear for their lives, their families were not to suffer the psychological ordeal of wondering if their father, their husband or brother would be killed or injured on whim," Mr Clift said.

International naval patrols of the Internationally Recognised Transit Corridor and the increasing deployment of "best management practices" have reduced the success of pirate attacks, he said.

"This much seems to be borne out by information on takings since last August. There also appears to be an emerging consensus that certain vessels should engage armed guards. No vessel with armed guards has been taken, it is said - a fairly compelling statistic," he said.

"Some vessels will still be taken. Navies simply cannot police the entire area. What then of vessels that are taken, and most particularly their officers and crew? How should they be recovered? Special forces have demonstrated courage and willingness to engage, but the catalogue of casualties is there to see," he said.

Source : HKSG, 17.04.12.

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