Feral Jundi

Monday, April 19, 2010

Somalia: Pirate Training, Swarm Tactics, And the Expansion Of Piracy Operations

     “I came here with my friends. They had a gun and were immediately recruited and joined companies. But I’ve never had a gun so, after a fairly long process, I was told to take part in training for a month and now I can join,” he told Reuters by phone from the coastal, pirate haven of Haradheere.

     The new 20-year-old recruit is just one of hundreds of youths in Haradheere desperate to sign up in the hope of earning a tiny slice of hijack ransoms worth millions of dollars.

     The steady stream of new recruits suggests that patrols by European Union warships since December 2008 to deter hijackings and arrest the seaborne gunmen have done little to dent the enthusiasm for piracy in the failed Horn of Africa nation.

*****

   Pirate training?  So now pirate training companies have popped up in order to help job seekers to get a position with the pirate companies? Boy, something has to be done in order to make this less attractive.  We can start by making it illegal to pay ransoms and we can also mandate that companies use security on their boats. This should be a start, but we have to do a lot more than that in order to destroy this industry.  Or at least make it highly unprofitable and risky for these clowns.

   As to the pirates themselves, the only thing I can come up with that makes sense is that you must create an industry to fight this industry.  The money from ransoms is what is driving the pirate industry, and the counter industry would be one that takes the pirate’s assets or one that bounties are given for each pirate that is captured or killed. But you need a legal system set up to prosecute these guys. As it stands now, all we have is a catch and release program or kill the bastards during their assault on the boat.  Pffft.

   Now we could continue with these massive naval shows of force, but if you remember, the new rules of war are now being exhibited quite well by the Somali pirates. Here they are:

Rule 1: “Many and Small” Beats “Few and Large.”–Pirates armed with AK’s and RPG’s, cruising in small motor boats versus destroyers, jets and aircraft carriers?

Rule 2: Finding Matters More Than Flanking. –Pirates hiding in captured friendly vessels, blending in with other civilian craft, in the massive expanse of the ocean.

Rule 3: Swarming Is the New Surging. –1000’s of pirates swarming on vessels, gambling that one or two will make it in for the take down.

   Not to mention that even a top admiral is saying that today’s navies cannot continue their operations indefinitely and that shipping should consider armed guards.  What happened to the Master and Commander music? lol

   Perhaps it is time to reconsider another strategy.  A hybrid strategy that involves private industry, and aggressive legal system to prosecute pirates, and the good work of professional navies.  If we did go down that path, the Letter of Marque will be an essential tool for governments.  I will end this with a quote below from the last LoM paper I posted.  Something to think about.-Matt

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This “Golden Age of Piracy” peaked around 1720 and reached an abrupt end in 1725. More than anyone else, the man responsible for bringing this age of piracy to an end was Woodes Rogers.

  In an early example of the “revolving door” between the private and public sector employment, Rogers was a privateer before being appointed  as the Governor of Bahamas, then the pirate capital of the Americas. In order to reform this territory, Rogers dispersed the pirates of the Caribbean with privateers.

  The piracy problem during this era was solved through a combination of tactics:

(1) the British Parliament passed legislation allowing overseas piracy trials, rather than requiring suspected pirates to be brought to England;

(2) captured pirates were publicly tried and executed;

(3) pirates who turned themselves in were pardoned;

(4) naval patrols were increased;

(5) rewards or bounties were promised for the capture of pirates; and

(6) private ships were licensed to attack and capture pirates.

  Of these methods, the last is the most relevant here.

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Somali pirate reach

Somalia pirates undaunted by navy patrols

By Mohamed AhmedFriday, April 16, 2010

MOGDISHU (Reuters) – Adam Shine waited months for the chance to join one of Somalia’s growth industries. He has now completed his training and is ready to use his boat-handling and global-positioning skills to hijack ships.

“I came here with my friends. They had a gun and were immediately recruited and joined companies. But I’ve never had a gun so, after a fairly long process, I was told to take part in training for a month and now I can join,” he told Reuters by phone from the coastal, pirate haven of Haradheere.

The new 20-year-old recruit is just one of hundreds of youths in Haradheere desperate to sign up in the hope of earning a tiny slice of hijack ransoms worth millions of dollars.

The steady stream of new recruits suggests that patrols by European Union warships since December 2008 to deter hijackings and arrest the seaborne gunmen have done little to dent the enthusiasm for piracy in the failed Horn of Africa nation.

(more…)

Sunday, April 18, 2010

Letter Of Marque: Reconsidering The Letter Of Marque–Utilizing Private Security Providers Against Piracy

   A big thanks to Cannoneer #4 for posting this in the comments of yesterday’s post on piracy. Other folks sent me the same link to this publication and I was very interested in what Theodore Richard had to say.  To say the least, I was impressed and this paper was well researched and footnoted. (as a good legal type paper should be)

   This was also published in a contract law journal, which tells me that the guy writing this believed it could survive the scrutiny of his peers.  This should be of particular interest to any legal specialists in other countries who would like a source to draw from for exploring how the LoM could help your nation.

   What surprised me is the listing of all the companies that were involved with maritime security in Somalia.  I learned a bunch, and he started out with Hart’s operations there.  Theodore talked about the various politics and financing issues that either contributed to the success or failure of these companies, and I found that to be very informative.

   The author also went over how a modern day LoM would look, and all the various uses for the LoM.  He does a great job in calling upon historical reference to support his modern day applications, and what kind of tweaking it would take to make it work.

   Probably my favorite part of the paper is the way he was able to confront the Max Weber argument, and define exactly how the LoM fits into that discussion.

   The other part of this paper that he goes over, that I continue to forget to talk about in my discussions about the LoM, is the license and bonding aspect of modern day privateering. The author uses the example of America’s modern day bail enforcement officers or ‘bounty hunters’, and discusses how this could be a model.  The point of a license is to ensure you know what you are doing, and bonding puts your money where your mouth is. In this case, a surety bond industry for privateers would be needed if the start up company did not have it’s own financing for such a thing. It would also depend upon what the congress wants, because they are the ones who issue the LoM, pay the bounties and run the Prize Courts.      Let me know what you guys think and check it out. –Matt

Edit: 5/31/2010 -David Isenberg posted a deal that discussed this paper and how the LoM could be used for today’s issues with piracy.  Check it out here.

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Reconsidering the Letter of Marque: Utilizing Private Security Providers Against Piracy

Theodore Richard

Public Contract Law Journal, Vol. 39, No. 3, pp. 411-464, Spring 2010

Abstract:

This article examines how letters of marque could be revived to effectively empower the private sector to assist governments in dealing with modern piracy. It examines Somali piracy, the development and different uses of letters of marque and privateers, the current legal framework relating to piracy, Somalia’s decade-long experience with maritime security contractors, the use of maritime contractors outside of Somalia, and addresses concerns involving private maritime security. The article concludes that unless governments provide security everywhere and all the time, the market will demand private security. Governments can effectively manage and control this security in the maritime environment without inventing a new legal scheme out of whole cloth: letters of marque can provide authorization, regulation, and accountability.

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(From the paper)

As privateering matured, privateers faced signi?cant regulations, including highly detailed and precise requirements for legal captures that were, in turn, subject to rigid enforcement in specialized prize courts.  Serious transgressions, like murder, rape, or mutiny, could result in imprisonment or death.

For example, a British privateer captain was executed for robbery constituting piracy in 1759. Improper privateer conduct resulted in the loss of the commission, the bond, and, if applicable, the prize. Thus most British and American privateers in the eighteen and nineteenth centuries were neither dishonorable nor piratical. Importantly privateers played a signi?cant role in ending piracy.

*****

 The western world’s “Golden Age of Piracy” began in 1715, following the 1713 Peace of Utrecht, which brought an end to a decade of European warfare involving all the continent’s major powers. The upsurge in piracy was caused by the unemployment of signi?cant numbers of sailors: the English navy alone discharged 54,000 sailors and privateers could no longer obtain commissions to attack European commerce. This “Golden Age of Piracy” peaked around 1720 and reached an abrupt end in 1725. More than anyone else, the man responsible for bringing this age of piracy to an end was Woodes Rogers.

  In an early example of the “revolving door” between the private and public sector employment, Rogers was a privateer before being appointed  as the Governor of Bahamas, then the pirate capital of the Americas. In order to reform this territory, Rogers dispersed the pirates of the Caribbean with privateers.

  The piracy problem during this era was solved through a combination of tactics:

(1) the British Parliament passed legislation allowing overseas piracy trials, rather than requiring suspected pirates to be brought to England;

(2) captured pirates were publicly tried and executed;

(3) pirates who turned themselves in were pardoned;

(4) naval patrols were increased;

(5) rewards or bounties were promised for the capture of pirates; and

(6) private ships were licensed to attack and capture pirates.

  Of these methods, the last is the most relevant here.

Link to paper here.

Saturday, April 17, 2010

Maritime Security: The Catch And Release Saga Continues–Kenya Falters On Prisoner Deal

   Thanks to Gary for sending me this.  I read this and laughed, and then I wanted to pull my hair out.  How incredibly frustrating this must be for the navies out there that continue to capture these pirates, and then let them go?  At this point, the only real options available are either to kill these pirates, or let them go back home with a full tank of gas and some food so they can come back and do it all over again.  It is the ultimate criminal venture, because there is no punishment.

    All you have to do is survive the assault on your target, and collect your pirates salary in the form of a ransom.  If the Obama administration wanted to provide some leadership in an area of this issue, squaring away the legal mechanism for dealing with these thugs would have been an excellent move. –Matt

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Diplomatic eruption over piracy aid

April 17, 2010

Kenya’s U-turn over a deal to try Somali pirate suspects is based on Nairobi’s conviction that the European Union has been slow to hand over cash promised months ago, according to people close to the situation.

Diplomatic row erupts over piracy aid payments

Kenya’s U-turn over a deal to try Somali pirate suspects is based on Nairobi”s conviction that the European Union has been slow to hand over cash promised months ago, according to people close to the situation.

The EU is now seeking a meeting with the Kenyan government to find out where it stands, and is actively looking for other countries in the region willing to undertake prosecutions. EU sources insist that Kenya has not made any formal complaints over the issue.

(more…)

Friday, April 16, 2010

Legal News: ‘To Deny Hostage Takers The Benefits Of Ransom’–W.H. Somali Piracy Policy

    U.S. government policy is “to deny hostage takers the benefits of ransom, prisoner releases, policy changes, or other acts of concession,” the White House said in a statement today.

***** 

   This is the only article I could find that listed the administration’s follow up statement on the matter.  This quote was also added as an update to this article. I have not seen a lot of stuff written on this, primarily because it is still kind of new and vague.  A reporter needs to nail down the White House on this, because I am sure there are shipping companies out there just scratching their head.  Does this new order expressly prohibit paying ransoms to pirates or not?

   If a lawyer (in the article below) states that this is vague and could be interpreted one way or the other, I tend to think that the American shipping industry is pretty confused right now.

   It could also mean that this is a hint that the administration is dropping on the US shipping industry.  A hint that says ‘you guys should probably think about doing something other than paying the salaries of Somali pirates with 3 to 5 million dollar ransoms’. Who knows, and we will see how this turns out. –Matt

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Obama Order May Block Ransoms Paid to Somali Pirates

April 15, 2010 (updated)

More From Businessweek

(Adds White House comment in fifth paragraph.)

By Gregory Viscusi

President Barack Obama signed an executive order freezing the assets of Somali militias that could also make it illegal for U.S. ship owners to pay ransoms to pirates.

The executive order signed late yesterday bars any U.S. citizens and companies, as well as their overseas branches, from having financial dealings with a list of 11 militia leaders and the Islamic guerrilla group al-Shabaab, as well anyone that has “engaged in acts that directly or indirectly threaten the peace, security, or stability of Somalia.”

While never using the word “ransom,” the order includes “acts of piracy and armed robbery at sea” among those acts.

“The wording could definitely be construed to make payments of ransoms illegal,” Bruce Paulsen, a partner at Seward & Kissel in New York, who negotiated a ransom payment with Somali pirates for a U.S. owned ship hijacked in 2008, said in a telephone interview.

(more…)

Wednesday, April 7, 2010

Kidnap And Ransom: Piracy Premiums Take A Breather But Menace Remains

   This is a first.  I want to thank the insurance company Maritime and Underwater Security Consultants who sent me this excellent article, and here is a link to their website.  Their intent was to promote that their company has the most extensive insurance plans for kidnap and ransom, and that other companies fall short in their coverage.  If you are a shipping company owner or yacht owner and you are reading this right now, feel free to check these guys out–but still, buyer beware. This is not an FJ endorsement, but I will definitely provide a link for your research.

   The real story here though, is that with all of this competition between insurance companies in providing K and R insurance driving down cost, as well as the increase in protective measures on the boats, premiums are dropping.  Now of course Reuters and the authors won’t say it, but I think armed security contractors on the boats are what really give them a better rating. That, and all these navies floating around and hunting pirates have got to help as well. But what happens when these navies burn out, and their governments call them back because of the cost?

   For one, if you read further down the report, there is already some buzz in the industry about starting up a private navy to help supplement today’s naval operations.  I personally think this is a move to provide a back up plan, if a navy or two decides to bow out. Piracy is not going away anytime soon, and I wonder how long countries can keep up their deployments–both politically, and economically.

   I also took interest in this Automated Voyage Risk Assessment system, designed to analyze a boat’s protective capabilities in dangerous waters.  AVRA I hope is a complete assessment system, that includes lethal and non-lethal factors in protecting a boat. If this is one of those mechanisms developed by the Juicebox Commandoes I keep talking about, who continue to promote non-lethal as the only suitable protection for ships, then I have no respect for AVRA. –Matt

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Piracy premiums take a breather but menace remains

Thu Apr 1, 2010

By Myles Neligan and Lorraine Turner

LONDON (Reuters) – Stiff competition and moves by owners to protect ships better has taken the edge out of insurance costs after pirate attacks off Africa’s east coast created a two-year boom for specialist cover.

But analysts say the menace of piracy is far from contained, and unchecked growth in the rest of Africa, possible attacks in other key shipping channels and higher ransom demands will keep insurers interested in the long term.

While official estimates are not available, brokers reckon sales of so-called marine kidnap and ransom (K&R) insurance have soared to about $100 million (66 million pounds) a year since 2008, when the product was first developed in response to an upsurge of vessel seizures and ransom demands by Somali gangs.

But the cover now costs less than it did two years ago, reflecting mounting competitive pressure as more insurers enter the fast-growing market.

The marine K&R market is currently dominated by six players, led by Bermuda-based Hiscox (HSX.L) and Travelers (TRV.N) of the U.S., up from just three when the product first became available, and more are expected to join.

“There’s an increase in supply and the price is going down,” said Sean Woollerson of insurance broker Jardine Lloyd Thompson (JLT.L).

(more…)

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