Sean Woollerson, a senior partner with JLT, told The Independent: “We are looking at setting up a private navy to escort vessels through the danger zones. We would have armed personnel with fast boats escorting ships and make it very clear to any Somali vessels in the vicinity that they are entering a protected area.
“At the moment there is a disconnect between the private security sector and the international naval force. We think we can help remedy that and place this force under the control of the multi-national force. We look after about 5,000 ships and have had 10 vessels taken in total, including a seizure where one crew member was shot and killed. Piracy is a serious problem, these are criminals basically extorting funds, so why not do something more proactive?”
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Jardine Lloyd Thompson Group (JLT), which insures 14 per cent of the world’s commercial shipping fleet, said the unprecedented “private navy” would work under the direct control of the military with clear rules of engagement valid under international law. Early discussions have also been held with the Ministry of Defence, the Department of Transport and the Foreign Office.
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I posted an article back in April that hinted at this private navy concept, and I had no idea that it would get to this level. This is fantastic news and I totally support such a thing. Mr. Woollerson is right and companies must do something more proactive.
Now on to the control mechanism for this force. Perhaps now would be a time for Britain to re-evaluate their position on the Letter of Marque and Reprisal? The Declaration of Paris might have been a nice concept at the time of ratification, but it removed a tool of the British government for dealing with non-state actors like pirates? They could actually license this private navy to do what it is doing.
Within the terms of the license, that is where they can define who the companies answer too and what legal mechanisms they are to abide by. They can also put fail safe measures on this private navy, like an expiration date or something similar. Because if this private navy ‘would work under the direct control of the military with clear rules of engagement valid under international law’, then you guys might as well go all the way and issue the LoM?
Another thing that I was thinking about here is that if JLT is successful with this insurance/private navy model, then will other insurance companies get the hint and be ‘proactive’ as well? I guess time will tell and if the action does equate to a cost savings and safer voyages for the shipping industry, I am sure it will catch on.
Finally, there is the cost factor. It is extremely costly for the navies of the world to continue these anti-piracy operations using these large vessels/expensive air assets to go after pirates armed with AK’s in little motor boats. How is this sustainable economically? Eventually, the work load would have to be shared in order for it to continue, and perhaps private industry is looking into the future here. They are also looking at the fact that boats are still being taken, and all these fancy high tech navies are not able to stop these pirates. Nor is there anything being done on land, and the profitable piracy industry has no where to go but up. Being proactive makes sense given the current state of things.
Interesting stuff and I would like to know what company JLT will go through for raising this private navy? If any readers, or even JLT can answer that one, that would be very cool. Hell, I will even post the recruitment ad for this ‘private navy’, and I will guarantee that JLT’s contractor will get a huge response. –Matt
Edit: 10/01/2010 -Be sure to check this show out in regards to the story. They discuss how the LoM could be used as a legal mechanism for this private navy.
Insurance firms plan private navy to take on Somali pirates
Somali Pirate Attacks Sink Premiums as Insurers Leap Aboard
Jardine Lloyd Thompson Group Plc
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Insurance firms plan private navy to take on Somali pirates
By Cahal Milmo
September 28, 2010
Patrol boats crewed by armed guards to protect valuable ships in Gulf of Aden
Insurers have drawn up plans for the world’s first private navy to try to turn the tide against Somali pirates who continue to plague the global shipping industry by hijacking vessels for ransoms of more than £100m a year, The Independent has learnt.
The new navy, which has the agreement in principle of several shipping groups and is being considered by the British Government, is the latest attempt to counter the increasingly sophisticated and aggressive piracy gangs who operate up to 1,200 miles from their bases in the Horn of Africa and are about to launch a new wave of seaborne attacks following the monsoon season.
A multi-national naval force, including an EU fleet currently commanded by a British officer, has dramatically reduced the number of assaults in the Gulf of Aden in recent months. But seizures continue with 16 ships and 354 sailors currently being held hostage. The Independent has seen Nato documents which show both ransom payments and the period that pirates are holding vessels have doubled in the last 12 months to an average $4m and 117 days respectively.
In response, a leading London insurer is pushing ahead with radical proposals to create a private fleet of about 20 patrol boats crewed by armed guards to bolster the international military presence off the Somali coast. They would act as escorts and fast-response vessels for shipping passing through the Suez Canal and the Indian Ocean.