Feral Jundi

Monday, April 18, 2016

Maritime Security: SAMI Announces Voluntary Liquidation

The CEO of SAMI, Peter Cook said, “There has not been a successful hijacking of a commercial vessel in the High Risk Area since May 2012 and this is principally due to the increasing competence and professionalism of the private maritime security industry. This is the task SAMI set out to achieve and we have done it.”

Big news in the MarSec industry. SAMI or the Security Association for the Maritime Industry is liquidating. Like the article mentioned below, it is because of a huge decline in membership.

Although, there are some grumblings out there about SAMI being ineffective. Like for example, for the Seaman Guard Ohio incident, SAMI has not been able to do much for those men and the company, and you hear that amongst the community out there.

Either way, I still think SAMI has been pretty useful for getting everyone together and figuring out what needs to happen for regulating this industry. I mean the maritime security industry was the first PMSC group to have an ISO, so that is pretty cool.

Five years ago, piracy was pretty bad and numerous companies came onto the scene to answer the call. Some were good, and some were bad, and others had no business being involved with this stuff. But at the end of the day, PMSC’s saved the day out on the high seas.

It was groups like SAMI who decided to get organized and point the industry in the right direction with their voice, backed up by a membership of companies and insurance groups interested in the same thing. So for that, I thank SAMI and Peter Cook for putting in the effort.

As the readership knows, I actually dedicated a page to SAMI companies, just so folks had a resource to go to for finding MarSec companies. I will keep the page up until the SAMI website is gone. The companies that continue to provide MarSec will still be around. –Matt

 

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Peter Cook, CEO of SAMI.

SAMI Voluntary Liquidation
APRIL 18, 2016

“The Security Association for the Maritime Industry Ltd Announcement of Voluntary Liquidation”
After 5 distinguished years of representing the private maritime security industry the Directors of the Security Association for the Maritime Industry Ltd (SAMI) have made the decision to put the company into voluntary liquidation.
SAMI was formed when piracy and hijackings off the coast of Somalia prevailed, but since the first members joined in April 2011 much has changed. The CEO of SAMI, Peter Cook said, “There has not been a successful hijacking of a commercial vessel in the High Risk Area since May 2012 and this is principally due to the increasing competence and professionalism of the private maritime security industry. This is the task SAMI set out to achieve and we have done it.”
The industry has also evolved and consolidated significantly; our membership has fallen from its peak of 180 to less than half that figure. Consequently the Association is no longer financially sustainable in its current configuration.
The SAMI Secretariat has worked tirelessly, on behalf of its membership, to represent them in as many influential forums as possible around the world and to establish an effective regulatory structure for the use of armed guards on board ships in the pirate-infested waters of the Indian Ocean.
It is globally recognised that SAMI has had a very positive influence on the development of the use of armed guards on board ships in the North-West IndianOcean. As noted by a former commander of the naval task force EUNAVFOR, the private maritime security industry “has a 100% rate of success”, thereby, protecting many thousands of seafarers from pirate attacks and the horrors and deprivations of being held hostage. SAMI has also reassured ship owners, charterers and marine insurers of a high standard of professionalism from the Privately Contracted Armed Security Personnel (PCASP) providing a measured and proportionate response to deter pirates from attacking ships transiting the High Risk Area.

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Thursday, May 10, 2012

Maritime Security: Ships Slow Down To Save Fuel In Pirate Waters

The shipping companies have switched to relying on guards, rather than speed, for protection because a single day at lower speeds can save $50,000 in fuel at current prices – enough to pay the guards for the whole journey…..Peter Cook, director of the Security Association for the Maritime Industry, said estimates earlier this year had put the total fuel cost to shipping companies of running faster through the high-risk area in 2011 at $2.7bn.

There are a couple of points with this trend that needs to be mentioned. Armed security is giving these ship owners a way to save money. Instead of going as fast as they can and burning up expensive fuel, there are some opting to slow down and depend upon security to protect their vessels.

Which is great, but these shipping companies should be on notice that when you slow down the vessel, pirates will factor that in for their attacks. I mentioned before that pirates will eventually turn to attacking vessels that are armed, just because so many vessels are switching to armed security and the easy prey will soon be gone. The key factor here is that slow vessels will make it easier to board, or swarm. Which leads to my next point, and that is a discussion about the appropriate force size, weapons, and rules for the use of force to meet this demand.

I say this, because there are those in the industry that have different ideas about armed security or that everyone follows the same rule book for armed security. Which is fine, but pirates can pick up on these rules and various differences and exploit them.  For example, the policy for warning shots is something pirates can game.

They can find out at what distances warning shots occur, and then they can assemble attack formations that will account for that. I talked about Uboat tactics awhile back, and as long as pirates do not show weapons and are able to find that distance they can hang out at, they could potentially set up for a swarm attack. One example is that in the Bab el Mandeb Strait, up to 10 skiffs attempted to swarm a vessel in April.

A maritime security alert has been issued for the Bab el Mandeb Strait after 10 skiffs approached a Panama-flagged oil tanker on Sunday, April 29. Four skiffs initially approached, followed by a group of two, then four further skiffs. The suspected pirates abandoned the attack after an onboard security team fired flares and displayed weapons, according to GAC Protective Solutions. Such “swarming” has been previously reported in and around the Bab el Mandeb Strait.

Now imagine if this pirate force actually applied some concentrated firepower and coordination to this type of attack?  Will today’s standard guard force be able to counter that?  If we see more killer PAG’s like what Trident Group was up against, along with slower vessels and less unarmed vessels making transits, then yes, I think we will see an armed vessel taken down by force. I hope it doesn’t happen, and all we can do is to ensure all security forces have the tools and rules necessary to counter such things.

I have talked about weapons in the past, and having a couple of PKM’s or rifles chambered in 7.62 or higher would be good. Optics on weapons would be awesome so that security can observe and shoot if need be, or precisely put rounds where they need them. I am also a fan of the larger caliber weapons, like the M-2 HB .50 cal. A heavy caliber, belt fed machine gun can maintain good stand off distances, or can bring on a decent volume of fire as vessels make the charge. Especially for swarms.

M-240’s and PKM’s would be good for this as well. Having the ability to shoot an engine at distance would be excellent, and a large caliber sniper rifle would work for that. Something like a Barrett M-82 is what I am thinking of. And with the small size of guard forces on vessels, giving them weapons that would increase their lethality and range would be a force multiplier. In other words, an armed guard force must have weapons that out match the enemy’s weapons–in range, accuracy and lethality. That’s if you want your guard to force to have advantage? Your force already has the high ground, but don’t skimp on the weapons, and especially if you are only contracting a small force. (of course this is just my opinion, and everyone has their own ideas of what works out there)

Also, having a smart defensive plan and plenty of obstacles set up on the ship is key. It was mentioned on prior posts that concertina wire is selling like hotcakes out there.  Security should also apply Kaizen to their plan, and always look for advantage or ways to deal with all and any types of scenarios. Also, make sure you have sound communications, and other key support equipment to do the job. Especially night equipment, like NVG’s or thermals, or binoculars and spotting scopes for the day time.

Finally, and this is pointed towards ship owners. If slowing down to save money is something you want to do, then you have to know that you are giving pirates an advantage. As they take this advantage and attack vessels, you must also realize that armed security will be more important than ever before. They will engage in combat with pirates, and shipping companies should not be surprised or shocked if this happens. If anything, these companies should be highly supportive and thankful that men and women like this are willing to put themselves at risk to do this job. That is what you pay them to do, and if all other preventative measures fail then combat will occur.

By taking away speed, you are taking away a pretty effective measure and only increasing the odds of confrontation. So definitely make sure you have properly armed professional security if slowing down to save money is your goal.-Matt

 

Image: Nexus Consulting

 

Ships Slow Down to Save Fuel in Pirate Waters
Tuesday, 8 May 2012
By Robert Wright
Violent confrontations between Somali pirates and merchant ships’ armed guards could become more common as some shipping companies have reduced ship speeds through the highest-risk area to save on fuel, maritime experts have warned.
The shipping companies have switched to relying on guards, rather than speed, for protection because a single day at lower speeds can save $50,000 in fuel at current prices – enough to pay the guards for the whole journey.
The speed reductions contravene published advice that ships should use their maximum speed in the highest-risk areas. Pirates have never managed to board a vessel traveling at 18 knots or more and container ships and other faster vessels have traditionally crossed the high risk area up to 1,500 miles off Somalia’s coast at up to 24 knots.
Ron Widdows, chief executive of Germany’s Rickmers Holding, a major shipowner, said several maritime security companies had suggested his company employ their guards and slow ships down. Rickmers’ current security company opposed reducing speeds because pirates were more likely to attack slow ships, Mr Widdows added.

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Tuesday, September 20, 2011

Maritime Security: Marine Insurers Backing Armed Guards As Piracy Threat Grows

Frédéric Gallois, the deputy general manager at Gallice Security, a specialised security firm, said that keeping a team of four armed agents on board a vessel can cost between $4,000 and $8,000 a day.
Paul Tourret, the director of Institute Supérieur d’Économie Maritime, ISEMAR, a research institute that specialises in sea-based economic activities, estimated that the extra costs to a ship due to the risk of piracy can reach up to $50,000 a day.- Link to quote here.

That is an interesting quote up top, and I am always on the look out for cost estimates on transits. ISEMAR specializes in sea-based economics, so I tend to perk up when think tanks like this put out figures. Although on their website, I was not able to find any documents about armed security costs.  Perhaps some of my french readers could help me out here?

But the real story here is the one below.  That insurers are now getting behind the idea that armed guards on boats is a heck of good idea, compared to their other options. Or compared to the future of West’s navies.

They mentioned below about the defense cuts of Western navies, and the reduction of force size over the coming years. This is a very important point to bring up when it comes to today’s anti-piracy efforts. Eventually today’s war planners and strategists will come to the realization that using large Destroyers to take out tiny little pirate boats is not exactly cost effective. Especially when those navies still continue to falter when it comes to protecting commerce.

Cook said private firms would play an increasing role as navies face spending reviews, citing prospects of a 30 percent decline in the size of Western navies in the next 20 years. “They’re taking the policemen off the block,” he said.

The other statistic that was interesting was this one from ISEMAR. I would have thought that number would have been bigger? Especially if Peter Cook of SAMI said he has 58 member companies? I would be curious if SAMI or any other maritime groups agree with this number?

French maritime economics institute ISEMAR said there were about 1,000 private guards being employed by ships to counter Somali pirates.

Finally, with all of the increased use of armed security, the reduction in naval forces, and increase in pirate attacks and complexity, I have to think that the legal authority for how armed security is used will change. I have argued in the past that defense industries do not profit from the end of their venture. That they profit if the client they protect, continues to be attacked and threatened. But with offense industry, a different market force is set up to where companies profit from the ‘destruction of an enemy’ that threatens a client. That an offense industry work’s itself out of a job.

When countries really think about it, and try to understand what the economics are with how the pirates operate, and how private force ‘could’ operate to counter it, perhaps there might be some pragmatic choices made on the legal front? The question is, how do you reduce the numbers of pirates and attacks, and how can private industry be used to accomplish such a thing?

Specifically, I suggest to bring back the Letter of Marque and Reprisal, and create an offense industry to ‘expulsis piratis, restituta commercia’. It is the legal ‘sledge hammer’ in the tool box of states, and it is just sitting there getting rusty.  As piracy becomes better funded, more violent, more organized, and more rampant, eventually states will have to re-evaluate what is ‘inherently practical’; and change their view on what is ‘inherently governmental’ in order to stop this. –Matt

Marine Insurers Backing Armed Guards as Piracy Threat Grows
By Gus Trompiz
September 20, 2011
More ship insurers are backing the use of private armed guards on merchant vessels at sea to combat Somali piracy as attacks and the resulting costs are set to rise in coming weeks, industry officials said on Tuesday.
Pirate attacks on oil tankers and other ships are costing the world economy billions of dollars a year and navies have struggled to combat the menace, especially in the vast Indian Ocean. Seaborne gangs are set to ramp up attacks in the area after the monsoon season ends.
A famine crisis in Somalia could also draw more people into piracy, marine insurers said.
“Piracy is clogging the arteries of globalization,” said Emma Russell with underwriter Watkins, a member of the Lloyd’s of London insurance market. “No vessel with armed guards has yet been taken,” she added.
Industry delegates at the annual conference of the International Union of Maritime Insurance (IUMI) said there were more than 20,000 transits a year in the Gulf of Aden and the Indian Ocean.
Speakers at the conference said the hiring of private armed guards to accompany ships is increasingly seen as an effective deterrent against pirates and as a complement to overstretched navies, many of whom face budget cuts.
Ship owners and insurers have until recently been reluctant to accept the use of armed private contractors. They have hesitated partly due to legal liabilities and risks, including the problem of bringing weapons into some territorial waters and due to the fear of escalating violence.

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Friday, October 1, 2010

Letter Of Marque: LoM Discussed On Show About Insurance Company’s Private Navy

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