UNIVERSITI MALAYSIA TERENGGANU

SESSION I 2021/2022

MOM 3102: MARITIME TRANSPORTATION OPERATION

PIRACY THREAT IN MARITIME TRANSPORTATION OPERATION

Prepared by:
UMI SYAHIRAH BINTI MOHAMED FAZLEE (S58574)
NUR AIN FARHANI BINTI MOHAMAD YAZID (S60370)

Prepared for:
DR. RUDIAH MOHAMAD HANAFIAH
1.0. Executive summary

In recent years, the threat of maritime piracy has grown dramatically. Every day, the
news stations have a fresh instance to report about pirates assaulting a crew and robbing the
vessel or seizing a ship, and even harming the crew when the authorities do not meet their
ransom demands. The purpose of this case study is to discuss the issue of the piracy threat to
the maritime industry which include the challenges, impacts and appropriate solutions. The
challenges being faced in the maritime sector are the governments recognise that maritime
terrorism can only be managed if our seas are effectively policed, the discrepancies and
consistency in international law regarding the definition of piracy, enforcement issues,
intelligence sharing, and logistical obstacles. Because of the piracy threat, it has the potential
to cause a significant environmental disaster and a human cost, as it disrupts or delays the
movement of goods along trade routes where piracy is a problem. Piracy also has the
potential to cause a major human cost, as it immediately threatens the crew's life and
property. This case study finds that the suitable approach to solve this issue is using one of
the greatest ship security systems, Watch Keeping and Enhanced Vigilance, and installing
ShipLoc, a ship tracking and recording system. This solution completely complies with IMO
regulations for Ship Security Alert Systems (SSAS). Ships also can be equipped with anti-
pirate water hoses to hinder the pirate's boat, and electric barriers with a 9,000 Volt fence can
be installed to guard against pirate attacks. As a result, every country must take armed
robbery and piracy against ships very seriously and make it a top priority on any security
agenda. Preventing pirate attacks can be accomplished in several ways.
2.0. Introduction

Maritime transportation is essential to global trade and the economy. It is hard to

underestimate the importance of maritime transportation because the sea transports about
90% of the volume and 70% of the value of all products moved worldwide. Many countries'
growth, cohesiveness, and economies are dependent on ships and ports. Many other countries'
international competitiveness is influenced by them. However, the maritime transportation
sector is loaded with difficult concerns and problems. Maritime piracy is an issue that
resurfaces every several years, particularly when vessels and weapons become more
advanced. Piracy has recently resurfaced in the eyes of the international community as stated
in Maritime Executive (2021), during the pirate incident in the New Gulf of Guinea, one crew
member was murdered and up to six others were taken from what may have been an
opportunistic target.

Maritime piracy is a violent, organised crime that has occurred for as long as the seas
have been used for commerce. As per the United Nations Convention on the Law of the Sea
(UNCLOS 1982), piracy has been described just like somewhat crime violent act, detention,
as well as depredation directed upon that open sea against another vessels, planes, or persons
as well as assets on board vessels or plane for personal profit through the staff or customers
of a private ship or planes (UNCLOS 1982). (Khondaker, Rahman, & Khan, 2013). Piracy
usually takes two forms. Piracy is defined in one version as the hijacking of ships, in which
Vessels were held prisoner and discharged once money or a negotiation agreement.
Weaponed assault and stealing in the other version. A blend of both kinds can be seen in
some cases.

This study emphasises the impact of piracy to the maritime transportation operation. It
also discusses counter-piracy solutions and prevention where pirate assaults are critical for
sea transit, which serves as the backbone of international trade and the global economy.
3.0. Literature Review

The past literature has highlighted several challenges and impact of piracy to the
maritime industry. Maritime piracy is a maritime transport issue that impacts ships, cargo,
and seafarers on a fundamental level. The issue of maritime piracy has evolved into a
comprehensive transnational security dilemma that affects lives, livelihoods, and global
welfare as pirate operations have grown more extensive and complicated.

3.1. Challenges

The first challenges mentioned is the governments recognise that maritime

terrorism can only be controlled if our oceans are efficiently policed. The necessity
for a mechanism to handle marine security capacity building that includes both
regional and extra regional countries is well known, though not yet implemented. And
while the various navies of the region have been able to prevent acts of piracy or other
crime on the high seas, they lack a coordinating mechanism that can deal with
capacity building. (Siti, Anati, Subasny Sevanathan, & Nasir, 2020)

Next, the lack of domestic maritime piracy laws and States' reluctance to
prosecute pirates, as well as inconsistencies and uniformity in international law
regarding the piracy’s definition and the imposition of penalties or punishment for
such acts, have all contributed to the emergence and growth of such acts. As a result,
there are obstacles to prosecuting captured marine pirates, including forming
accusations against the criminals, jurisdictional difficulties, political concerns, and
technological hurdles, all of which might lead to a State rejecting the charges and
freeing the offenders. Despite this, several countries that lack particular piracy
legislation, such as Malaysia, have successfully tried and convicted marine pirates
under their local criminal laws. (Siti & et al., 2020)

To be added, the maritime nations are likewise confronted with enforcement

challenges. Law enforcement authorities require a sufficient quantity of swift
counterstrike ships capable of undertaking forcible boardings in any weather. The
ability of the enforcement is partly reliant on regional countries' technical
improvement. Pirates appear to be technologically advanced. They use speedier
speedboats that are heavily armed and outfitted with cutting-edge communications
technology. Automation, on the other hand, has allowed commerce ships to operate
with fewer people, exposing them to a higher risk of pirate assault. It's also crucial for
potential victims to have a suitable communication system onboard. It would be
difficult for them to contact law enforcement authorities and vice versa without this.
(Abdullah & Kadir, 2020)

In addition, the sharing of intelligence is the next issue. To resist piracy and
armed robbery, intelligence is a must-have countermeasure. It would provide both law
enforcement and the maritime community early notice. The exchange of intelligence
between competent authorities with unique understanding in the sector must be
developed within an international framework. In addition to the current diplomatic
route, it might be accomplished by establishing and leveraging operational points of
contacts inside respective authorities. A late report would be ineffective and would
simply complicate the investigation and rescue operation. It's worth contemplating
using fake boats to acquire intelligence. (Abdullah & Kadir, 2020)

Finally, maritime countries are confronted with logistical challenges. As a

result, more modern and complex logistical assistance, such as communication sets,
portable Global Positioning System (GPS), satellite telephone, and night vision
binoculars, is required. (Abdullah & Kadir, 2020) Ships are increasingly outfitted with
security apparatus, logistic assistance, and guards to safeguard their crews from pirate
assaults. In 2010, the maritime industry's overall cost of deterrent equipment and
guards was expected to be between US$363 million and US$2.5 billion. (UNCTAD,
2014)

3.2. Impact

Piracy has a negative impact on the global economy. The loss to national
economies caused by piracy is difficult to assess. The entire loss attributed to piracy
appears to be fairly minor in comparison to the total value of products moved by sea.
According to some commentators, the sum is small. In actuality, the ship will not be
able to reach its destination on time owing to the attack, and the corporation will lose
money in addition to the expense of paying ransoms. It might result in a rise in
insurance prices for a certain route, affecting many other businesses. It might have a
slew of additional ramifications for the global economy. (Khondaker, Rahman, &
Khan, 2013)
 According to IMB estimates, piracy costs the world $ 13-15 billion each year.
International trade and travel are both threatened because of this. If a well-known
country engages in pirated shipping, it will have a bad influence on its trade, and
shipping will shun the country. According to estimates from 2008-2009, global piracy
climbed by 11%, with Somali pirates accounting for half of the rise. And, according
to many analysts, piracy will continue to occur in today's flat globe, particularly in
hotspots like Somalia and the South China Sea. (Tiến & Nguyen, 2019)

Next, the movement of merchandise in the trade routes where piracy is an

issue is disrupted or delayed. If a ship is kidnapped and kept for an extended length of
time, the owner or charterer may face lost revenue and increased charter costs. Cargo
that is delivered late, if it can be delivered at all, may lose value. Perishables and
commodities like crude oil, whose value swings on a regular basis, are particularly
difficult to manage. Repair parts, medications, and luxury vehicles are among the
high-value, time-sensitive cargoes that incur significant extra in-transit inventory
carrying expenses for their owners. (Helmick, 2014)

Also, Piracy has the potential to devastate the environment, particularly if an

assaulted vessel is allowed to float in a busy marine corridor. A mid-sea collision with
a heavily laden oil tanker is the "horror" scenario. Allowing the oil to float would
affect offshore resources and marine life in the long run, as well as devastate wide
swathes of rich coastal lowlands. Any country that relies heavily on the oceans for
food, whether for home consumption or regional/international commerce, would face
considerable challenges. (Chalk, 2009)

Piracy's human cost is also a serious problem. In 2010, eight sailors were
slain, 1,181 were abducted and held for ransom, and 20 were kidnapped. Between
1995 and 2010, 389 sailors were reported to have died as a result of pirate assaults,
according to the International Maritime Bureau. Understanding the numerous losses
caused by piracy will aid in effectively tackling the issue.

Piracy immediately threatens the crew's life and possessions. Piracy weaponry
such as submachine guns, grenade launchers, and ammo are commonly used in recent
piracy. As a result, there has been an increase in maritime violence. When crew
members wish to protest, they are piracy-ready if they are willing to use their firearms
to repress the crew and murder people without fear. In addition to the risk of injury,
 robbed crew members are more likely to acquire mental illnesses, many of which are
permanent, and many fear being fired, causing a labour shortage in the maritime
industry. (Tiến & Nguyen, 2019)

4.0. Conclusions

Shipping industry is threatened by more advanced piracy, which has a substantial influence
on the nation's marine security. It is important to highlight that modern piracy encompasses
crimes of murder, robbery, pillage, rape, and other heinous actions committed at sea, all of
which are considered cruelty against humanity. Piracy even has a significant economic
impact on a maritime state's trade capabilities in terms of fraud, stolen cargos, and postponed
voyages. As a result, it is critical that every government take piracy and weaponed assault
targeting vessels seriously as well as make it a high priority in any security agenda.
Preventing pirate assaults can be done in a variety of ways.

4.1. Solution

The appropriate solution that can be used is firstly by installing ShipLoc, a

ship tracking and recording system. The piracy prevention centre worked with a
satellite tracing company to install the ShipLoc system, that allows vessels to be
tracked. By tracking the ship's position, this technique shows the ship's trip as well as
port movement. Worldwide alert delivered by the ShipLoc and the ship voyage
control to ship owners and managers, and completely complies with the IMO
regulations for Ship Security Alert Systems (SSAS) (Tiến & Nguyen, 2019). In the
case of piracy or a terrorist assault on the ship, the system will deliver alert messages
from the ship to the shore. If a ship is hijacked or abducted, the ShipLoc system will
be incredibly beneficial. It may also use it as a management method for monitoring
ship voyages across the world.

One of the most effective forms of ship security is Watch Keeping and
Enhanced Vigilance. Watch Keeping and Enhanced Vigilance is a technique for
keeping check or watching radar signals for oncoming pirate ships which allows for
the early detection of suspicious movements or attacks, allowing defence to be
launched. Early recognition of a suspicious boat and the possibility of an assault
allows for a faster action and the execution of additional ship safety procedures,
which could also dissuade pirates from attacking and boarding the ship (Bryant,
Townsley & Leclerc, 2013)

Implementing ship's electric barriers with a 9,000 Volts fence could help to
secure ships and fight piracy. The pirates may be unable to sneak onto the vessel
because it would be stunned with electrical shocks. When it gets close enough to the
fence, the light turns on and the whistle goes off. The crew member can simply and
rapidly fold and lower the barriers, as well as remove and reinstall them. The crew
can assemble the barrier in only a few hours when the ship enters the active pirate
region. Without the use of cables, the remote-control system can control all of the
system's functionalities (Tiến & Nguyen, 2019). This security system serves multiple
functions which prevents those who chose to break into the ship, prevents and avoids
pirate assaults, avoids those who abandon the platform, it protects the crew and
passengers and monitors boarding and delivers information to the Piracy Centre
secretly.

Lastly, ships can be supplied with anti-pirate water hoses to obstruct the
pirate's boat to protect against pirate attacks. Any attempt to illegally board a ship can
be deterred or delayed using anti-pirate water. The usage of water makes it much
harder for an unregistered sailboat to stay nearby and get aboard. High-pressure cold
sea water regulates anti-pirate water hoses that stay active till the ship is secure as
well as the pumps are switched off.
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