Feral Jundi

Monday, September 12, 2011

Maritime Security: The Global Shipping Industry Wants The UN To Provide Guards–Oh Really?

This is cheapskate move if I have ever seen one. Instead of accepting the costs of security, the global shipping industry has cooked up a scheme to get the UN to provide these guards? We are talking about the same UN that effectively stood by while places like Rwanda burned, or the same UN that sent forces into the Ivory Coast, that traded food for sex with starving people. Oh yeah, the UN is a great bargain and idea. There are so many examples of how pathetic the UN really is, and yet these shipping companies want to go this route? Amazing.

But what really kills me is who do you think will pay for such a service? Well the US  contributes 22% to the UN budget and is the top contributor of funding, so that gives you an idea of where a good chunk of that money will come from. And of course the cheapest most corrupt country will provide the troops, and that government will swindle most of the money used to pay for that force. The end result will be what you see with most of the UN’s deployments, and that is a under-funded crap military force lead by greedy and corrupt leaders.

How about this. Those companies that cannot afford PSC’s, yet can afford to buy a multi-million dollar vessel and transport millions of dollars worth of cargo, can own up to the idea that contracting with PSC’s is the cost of doing business. Just like banks hire their own guards, or shopping malls hire their own security–the shipping companies can do the same. And like-wise, you don’t see banks or shopping malls calling on the UN to provide guards? Pfffft.

Either way, I don’t see it happening. I also think that the cost of security should be a personal responsibility of these shipping companies and not on the UN. Then those costs can be passed onto their clients that choose to use those services. That is how this is done, and that is the way it should be. –Matt

 

Global Shipping Industry calls for UN armed force against Somali pirates
September 9, 2011
The global shipping industry (represented by the Round Table of international shipping associations) has called for the establishment of a United Nations force of armed military guards to tackle the piracy crisis in the Indian Ocean, which it says is spiralling out of control.
In a hard hitting letter to UN Secretary-General Ban Ki-Moon, the International Chamber of Shipping (ICS), BIMCO, INTERTANKO and INTERCARGO demand a “bold new strategy” to curb rising levels of piracy which have resulted in the Indian Ocean resembling “the wild west”.

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Wednesday, July 6, 2011

Maritime Security: UN Reports That Piracy Ransoms Are Being Funnelled To Islamist Militants

C-level Maritime’s Frodl said the U.S. Treasury’s Office of Foreign Assets Control (OFAC) carried out reviews of all potential ransom payments to determine if the pirate group in question had ever handed over part of a ransom to al Shabaab.
“Most times OFAC has authorized payment because it has found no link,” Frodl said. “But if there is indeed a 20% ’tax’ being applied by Shabaab against pirate ransoms in Haradhere, a major pirate hub it now controls, then things could change.”

Boy, this is very interesting if true. The consequences could mean that the payment of ransoms would be illegal, because that money would be funding terrorism. Although I have already talked about the jihadist privateer concept awhile back, so it does not surprise me that there would be a connection between Al Shabab and pirates.

It is just one way to fund their jihad, and it also helps the pirates be effective by supplying weapons and safe haven. 20 % is also a pretty sizable chunk.  Eventually I would imagine that the pirates would port somewhere else to avoid this jihad tax, or that Al Shabab would get into the business to cut out the non-affiliated pirate middle men. Interesting stuff. –Matt

Piracy ransoms funnelled to Islamist militants: U.N.

Jul 6, 2011
By Richard Lough funnelled
Ransoms paid to Somali pirates to free merchant vessels are ending up in the hands of Islamist militants, laying shipping groups open to accusations of breaching international sanctions, U.N. officials told Reuters.
John Steed, the principal military adviser to the U.N. special envoy to Somalia and head of the envoy’s counter-piracy unit, said links between armed pirate gangs and Somalia’s al Qaeda-affiliated rebels were gradually firming.
“The payment of ransoms just like any other funding activity, illegal or otherwise, is technically in breach of the Somalia sanctions regime if it makes the security situation in Somalia worse,” said Steed.
“Especially if it is ending up in the hands of terrorists or militia leaders — and we believe it is, some directly, some more indirectly,” said Steed, a retired military officer.

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Monday, May 23, 2011

Maritime Security: The UN Endorses Armed Guards On Ships

This is a stunner from the folks that brought you The UN Working Group on the use of Mercenaries. What’s next, the UN issuing Letters of Marque and Reprisal to companies? lol You know, I am starting to see a pattern of hypocrisy here. They bash private industry with this working group, but then turn around and declare that private armed guards on boats is a good and necessary thing. Or they bash the use of armed guards in places like Iraq, Afghanistan, or Africa, when at the same time they contract with private armed guards to protect them.

And it was private armed guards that laid down their lives for UN workers in Afghanistan. Oh, and don’t forget that one of the Working Group’s members was a Libyan, which if anyone has been paying attention, Ghaddafi has certainly made good use of contract soldiers in his war. (might I add that the west is using contract soldiers in Libya as well, like with Secopex for example)

So hey, this is a great move by the UN to actually support the shipping industry’s right to use armed guards. It is the right thing to do, and it supports the idea that a shipping company has the right to defend their vessels and crew. It also signifies how desperate things really are. In the second article posted below, this is the quote that blew me away.  Basically, the navies of the world have not been able to stop this scourge, and in fact, it has gotten worse!

The number of acts of piracy and armed robbery against ships reported to the  Organization and which occurred in 2010 was 489, against 406 during the previous year, an increase of 20.4% from the figure for 2009. The areas most affected (i.e. five incidents reported or more) in 2010 were East Africa and the Indian Ocean followed by the Far East and, in particular, the South China Sea, West Africa, South America and the Caribbean. During the year, it was reported that two crew members were killed and 30 crew members were reportedly injured/assaulted, while 1,027 crew members were reportedly taken hostage or kidnapped. Fifty-seven vessels were reportedly hijacked, with one vessel reportedly still unaccounted for.
In the first four months of 2011, 214 incidents were reported to the Organization.

I now feel somewhat justified in the promotion of armed guards on boats, and I really think that we are seeing the tipping point of thought when it comes to maritime security. From all of my sources and research, I believe that the maritime security industry will be a thriving market.  At this time, 1 in 10 boats have security on them off the coast of Somalia. I believe we will see that number change significantly, and hopefully trade groups like Security Association for the Maritime Industry (SAMI), can keep track of this and report it correctly. (Which by the way, this is a crew to follow if you want another source for maritime security information and industry news–so definitely put them on your RSS reader.)

With that said, I wanted to cover a new angle on this scourge.  At this time, guards on boats will not make the problem go away. If anything, what is being created here is a ‘Defense Industry’ and not an ‘Offense Industry’. In the past, I have talked about these two types of industries and the results of each.  Defense Industries profits from the continuation of conflict, and there is no incentive to destroy the enemy. Armed guards on boats is a defense industry.

The definition of  an Offense Industry is one in which industry profits from the destruction of enemy combatants. It is an industry that works itself out of a job, because there are only so many enemy combatants out there for that industry to destroy.  At this time, we do not have anything that resembles this kind of an industry, and nor will you see any company that provides security services promoting such a thing. Offense Industry is definitely not a long term deal if done properly, and that is why serious companies will never promote such a thing. Why would they?  Providing defense services can continue indefinitely and be extremely profitable, just as long as government sponsored forces do a poor job of eradicating pirates on water or on land.

The other thing to point out is that how does the UN get away with promoting policies that certainly conflict with the Hague? Armed guards on boats, armed with weaponry that can not only kill pirates but sink and/or disable boats, could easily classify a vessel as a warship.  And yet that vessel is a merchant ship.  You can see where I am going with this, and I have talked about this moral hazard and legal hurdle in the past. So does the UN trump the Hague, or do we continue to follow a treaty that is outdated and certainly does not help things when it comes to armed guards on boats.(or bringing back the LoM as a tool of Offense Industry)

I also think that the idea of creating a hybrid Defense/Offense Industry might be in order here. If guards are licensed to protect vessels and are authorized to shoot pirates, then that brings up all types of ‘what if’ scenarios. What if the pirate or pirates surrender to the vessel after being fired upon, or their boat sinks after being fired upon and they plea to be rescued?  Do the armed guards of a vessel have ‘interest’ in detaining those pirates? Do they have the legal authority to do so, do they have the funds and proper detention facilities to hold captives, do they have the necessary protocols to help in the future prosecution of pirates, and most of all, do they have the financial incentive to put forth the risk and effort to capture and detain pirates. Because as it stands now, there isn’t anything out there that provides guidelines or the legality for such a thing. There isn’t even funds to help subsidize the act of detaining pirates.

What I am really getting at here, is that with each engagement with pirates that these armed guards are having, there is an opportunity for a capture or killing of a pirate.  It is odd to me that everyone that promotes the use of armed guards (whom have the potential to kill) has yet to really grapple with the capture of pirates by these armed guards. There is an opportunity here to create an offense industry, and I believe there is enough modern legal tools and technologies to support that kind of mechanism. The US alone has the concept of Letter of Marque and Reprisal built within it’s constitution, and the congress also could stipulate the rules for capture.

And there is precedence of the US paying bounties for captures by privateers. Back during the War of 1812, we had plenty of privateers seizing British prizes, but there was no incentive for privateers to take prisoners. Although the British Navy certainly took American privateers as prisoners, and their prisons were filled with these captives. So our congress back then authorized the payment of 100 dollars per prisoner captured by American privateers. What cost $100 in 1812 would cost $1265.89 in 2010, according to an inflation calculator. Of course I would probably increase that bounty to truly make it profitable for shipping companies and the security forces they hire. I would also provide some stipulation that if a pirate was imprisoned, and they actually had some assets that could be seized by the courts, that the licensed company that made the effort to capture and detain that prisoner should get a cut.

Just some ideas for the readership, and I am sure there are folks out there reading this right now just wanting to rip these ideas apart. I would imagine those who continue to rely on government to solve all the conflicts and problems of the world would be one class of individual that would despise Offense Industry. I am sure there are those in the military or navy that would brush off such ideas. But for those of you looking for another way, I think this is an idea worth thinking about.

What I want to leave the readership with is the idea that Offense Industries could be a way to Expulsis Piratus/Restituta Commerica.( Woodes Roger’s latin slogan for “Piracy Expelled/Commerce Restored”) There are a number of ways to create incentive for the destruction of an enemy, and I am only scratching the surface here. It takes some serious ‘Building Snowmobiles’ action to really create an effective Offense Industry, and I believe all the parts necessary to assemble such a machine is out there right now.  It is just a matter of morally, mentally, and physically putting together all of those parts and making such a machine. –Matt

Piracy: IMO guidelines on armed guards on ships
21 May 2011
The UN’s International Maritime Organization (IMO) is issuing guidelines on the use of private armed guards to protect ships from piracy.
This comes after a meeting in London which discussed the use of guards on board ships in areas of high risk, including in the Indian Ocean.
About one in 10 ships off the Somali coast already carry armed guards.
But observers say this number is now likely to rise.
The IMO says there were 489 reports of piracy and armed robbery against ships in 2010 – up more then 20% on 2009.
The areas worst affected were the Indian Ocean, East Africa and the Far East including the South China Sea, South America and the Caribbean.
So far this year more than 200 cases have been reported.
Correspondents say piracy in the Indian Ocean is getting more lucrative and more violent, despite an anti-piracy EU naval force patrolling the area.
Torture
The IMO’s new recommendations are backed by the independent trade body for security companies operating at sea, the Security Association for the Maritime Industry (SAMI), launched last year.
Peter Cook, co-founder of Sami, told the BBC: “The pirates have been killing – they have been torturing and doing fake executions and the level of violence is increasing.
“It is clear that something has got to be done in order for free trade to be able to continue and it is for that reason that the IMO have decided to go down this very unusual route.”
The IMO insists that the guidelines are not intended to institutionalise the use of armed, privately contracted security staff on ships and that they do not address all the legal issues that could be linked to their use.

(more…)

Sunday, December 5, 2010

Industry Talk: UN Official Glad About New Somali Force But Wary

    The news here is that now Pierre Prosper has identified Saracen International as the company being used, and until Bill Pelser or someone else comes up with some facts to counter this statement, then this statement will become fact in the realm of the media. This is called strategic communications folks, and if you want to get your story out and correct the record, then this is the place to do it. I have top Google Search for blogs on this subject, and people will read your statements here.

    I also think this is an interesting statement from the UN. Maybe they might actually get behind this project, because this donor–whomever they are, is definitely putting their money where their mouth is.  Speaking of which, if any reader knows who the donor is, I sure would like to hear from you. –Matt

UN official glad about new Somali force but wary

By Pauline Jelinek

12/05/2010

A senior U.N. official cautiously welcomed news that an anti-piracy force is being created in Somalia but he and U.S. officials say they’re concerned about secrecy surrounding the undertaking.

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Friday, November 12, 2010

Maritime Security: Somali Piracy Getting Worse Despite The Efforts Of Worldwide Navies

     Man, this is not a very good report card about the effectiveness of the current strategy. It also shows to me that the pirates are getting better at what they are doing, and they are also increasing their reach.

     Not to mention the scalability of the whole thing. If an operation costs $ 30,000, and a pirate has fetched millions of dollars in ransom in the past, then with each ransom, they can dramatically scale up the amount of operations. This increases the odds of success. The numbers below speak for themselves.

     Now on to the solutions. There are two things that have to happen that the world community just does not have the will to do, or the spine to promote, in order to stop this. They have to effectively deal with the problems in Somalia on land, and shipping must have a viable means to protect itself on the high seas. In my book, ‘viable means’ is defined as armed security on every boat.

     Along with those armed security professionals, must also come the legal mechanism necessary to allow this force to do what it needs to do.  Here on the blog I continue to promote how countries could provide such a legal mechanism through the granting of the Letter of Marque (LoM). I have also posted numerous legal treatments on the subject here on the blog with the hopes that folks will start thinking about the concept.

     The other area of interest for me is that as pirates become more asset rich, the possibilities of seizing their assets on the high seas or somehow taking what they stole, increases. With a LoM system right now, there is nothing of value that the pirates have because they have such low operating costs.  So the LoM would only serve as a legal framework for PSC’s to protect vessels.

     But as ship owners continue to pay ransoms and pirates begin to upgrade to more valuable ships and hardware, I could see a day where a privateer might benefit from the seizure of a prize like this.

     A privateer might also be able to benefit by retrieving that ransom money somehow. Either on the high seas right after the exchange, or if they were able to get on land and take it from the pirate. My thoughts on the matter is that if there is any mechanism at all for allowing companies to legally take from the pirates, then now you would have a competitive strategy to counter the current piracy business model. Pirates profit by taking from the weak, and privateers would profit by taking from the pirates.

     I estimate that a system such as this would eradicate piracy pretty effectively. Just think of the size and scope of such a thing? The entire world and all of it’s private naval industries, armed with licenses to take from pirates, versus a few hundred Somali pirates off the coast of Africa or where ever they want to exist. Out of that process we would see some really innovative and effective pirate hunters, and that is the kind of thing that would put the fear of god into these thugs. I would imagine that some of the best pirate hunters, would be former Somali pirates themselves. Or who knows who would rise to the top in such an environment?

     And if a value was assigned to Somali pirates in the form of bounties, then that would really create the profit motive needed to fuel such an anti-pirate industry. Call it a clash of industries or privateers versus pirates. And get this, today’s shipping companies are creating an asset rich pirate by continuing to pay these ransoms. Until then though, an LoM would probably be most effective as a legal mechanism used to help defend private shipping. –Matt

Somalia Pirates’ Success Rate Rises, Stunting East Africa Economies

By Bill Varner

Nov 2, 2010

The international naval presence off the coast of Somalia is failing to reduce the success rate of pirates whose attacks on commercial ships are stunting the economies of East Africa, the United Nations said.

UN Secretary-General Ban Ki-moon reported to the Security Council that 37 of 164 attacks on ships operating off the coast of Somalia succeeded in the first nine months of this year. That 22.6 percent rate of successful hijackings compares with 17.1 percent, of 193 attempts, for the same period in 2009.

“Piracy in the region has had an immense impact on the economies of East Africa and also the wider world,” Ban said in his report. “International trade routes are threatened and goods in the region as well as Somalia are becoming more expensive. This is made worst by the bleak state of the global economy.”

The pirates concentrate on the Gulf of Aden, a chokepoint leading to the Suez Canal that is used by 30,000 ships a year carrying about one-tenth of world trade. Attacks have spread to the Indian Ocean, as much as 1,000 miles from shore.

The rate of successful hijackings increased even with the presence of warships from the European Union, North Atlantic Treaty Organization and 25 other nations including the U.S., China, India, Iran and Japan. Commercial ships are using defensive measures such as netting, wire, electric fences and fire hoses to prevent boarding.

More Sophisticated Weapons

Ban said the pirates have countered with more sophisticated weaponry and use of “action groups” consisting of a large command boat towing attack skiffs.

“I am afraid that the problem will not only be with us for a long time to come, but also has the potential to become worse unless both Somalis and the international community address its root causes,” Ban said. “There is an urgent need to combine vital sea-based and judicial counter-piracy initiatives.”

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