BIMCO Underlines Piracy Ransom As Major 2020 Maritime Security Risk!

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The future maritime security agenda at sea is likely to be dominated by the same three major issues as in 2019: Nigerian piracy, conflict around the Persian Gulf and large-scale drug smuggling. Resolution of any in 2020 seems unlikely, writes Jakob P. Larsen, BIMCO’s Head of Security in an article published on their website.

Turn-around in Nigeria?

In 2020, BIMCO will continue to press Nigeria and the international community to act decisively against piracy in the Gulf of Guinea. The problem could – in my view – easily be solved if Nigeria and international partners could agree to make a serious effort.

BIMCO took the discussion about the issue to a new level in 2019. We urged the creation of international navies and, during interviews, meetings and conferences (for example, at the
International Maritime Organization in London) we criticised Nigeria for doing little to solve the problem.

Piracy has been a problem in Nigeria for decades. It affects seafarers and shipowners from all over the world, as well as the local population. It is estimated that 60-70% of all piracy
incidents in the Gulf of Guinea originate from the country.

The No1 trouble spot is off the Niger Delta, where the offshore support industry and traffic in and out of the strategic waterway of Bonny River generates an environment full of
potential targets. In the delta, poverty and massive environmental problems give plenty of incentive for the local population to seek its fortune in piracy, employed by pirate kingpins.
The peculiar governance practices around law enforcement are something that should be changed.

In Nigeria, protection services at sea are offered for sale by businessmen in joint ventures with the country’s Navy. While there is no publicly available evidence to suggest that profits generated by selling protection services are preventing effective law enforcement, it is counterproductive; the poorer the security situation, the higher demand for protection services, the better the profits.

A positive step is that piracy has finally been made a punishable crime in Nigeria. Furthermore, the country is in the process of ramping-up a wide range of maritime security capabilities through a project called “Deep Blue”. High-ranking Nigerian officials have
expressed a hope that implementation of the scheme will see the end to piracy off Nigeria during 2020. There are doubts how effective this will be but we can hope it results in a definite drop in attacks. The project will only be a success if the security situation improves significantly.

US and Iran on collision course

Since the US withdrawal from the nuclear agreement and implementation of maximum pressure policies on Iran, international shipping has faced the
threat of attack in the Strait of Hormuz and Gulf of Oman.

Following incidents in May and June, the US has built a coalition to maintain a presence and carry out surveillance in the area off Iran and in the Southern Red Sea (where Iran-backed Houthi rebels operate from Yemen). The sole mandate of the International Maritime
Security Construct (IMSC) is selfdefence. In the event of a security incident, IMSC partners can defend shipping under the concept of extended self-defence.

It is apparent there is no intention of defending ships flying flags of non-IMSC participants, although it is assumed that such vessels operating with IMSC-participating countries’ nationals on board will also enjoy protection.

The IMSC now consists of seven countries (US, UK, AUS, Saudi Arabia, UAE, Bahrain, Albania). Major naval powers including France, Spain, Italy and Germany have refused to join the coalition because of disagreements over the US withdrawal from the nuclear
deal with Iran and subsequent maximum pressure policy.

During 2019, BIMCO has advised shipping passing through the area to continue following the long-standing reporting regime established by UK Maritime Trade Operations in
connection with Somali piracy. It is in the interests of international shipping
that the IMSC has the best possible picture of maritime activities in the area.
The better its knowledge, the better chance it has of preventing further attacks.

Drugs smuggling risk to shipowners

Cocaine production is reported by analysts to be on the rise, and 2019 saw some spectacular drug seizures by US Customs and Border Protection (CBP), all of which have put it back on the shipping agenda.

In Philadelphia, a cargo of around 17 tons of the drug was discovered. The incident was yet another example of how the smuggling of narcotics is increasingly having an impact on the
the shipping industry, bringing with it the risk of arrest, detention and prolonged customs procedures.

Back in the 1980s, when drug smuggling was also a big issue, US Customs ran several so-called Carrier Initiative Programs – voluntary drug smuggling prevention schemes for shipowners; one such was the Sea Carrier Initiative Agreement (SCIA).

BIMCO had a special version of this agreement with US Customs, whereby BIMCO could sign up members who would, in exchange, receive mitigation of smuggling-related fines, if they had taken the required measures to prevent drugs from being smuggled on board.

After the terrorist attacks of 9-11, focus shifted to terrorism, and CBP began the supply chain security initiative, the Customs-Trade Partnership Against Terrorism (C-TPAT).

As a result, the SCIA was gradually depleted, and in December 2019 BIMCO received confirmation that it was no longer being funded. At the same time, CBP expressed an ambition to strengthen cooperation with BIMCO with the aim of developing further guidelines for how to protect against drug smuggling and carry out security vetting of crew members.

While prospects are good for further cooperation with CBP, it remains a concern that the only security initiative in place is C-TPAT, because it is designed mainly for large companies
and requires an office in the UnitedStates.

In 2020, BIMCO has an ambition to develop a solution with CBP to allow firms without a US office to become C-TPAT members and enjoy some of the same benefits such as mitigation
of drug- related fines and priority treatment by customs.

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Source: BIMCO