Shippers breathe sigh of relief as pirates kept at bay

Stormy weather has reduced piracy attacks on Kenyan vessels, giving shipping lines and importers a temporary relief from the vice that is stripping them of billions of shillings each year.

Attacks on vessels plying the international waters off the Gulf of Aden are expected to remain low in the next three months due to strong winds, experts say.

Full force in November

“These attacks will slow down as the sea is very rough, but they (pirates) are expected to come back in full force from November when things turn to normal,” said Gilbert Lang’at, CEO of the Kenya Shippers Council

Stormy waters mean the light vessels that Somali pirates use cannot withstand strong Indian Ocean currents, making it impossible to pursue cargo ships in the deep waters, said Mr Lang’at who is also a member of Oceans Beyond Piracy (OBP).

Kenya’s economy lost a total of Sh35.2 billion ($414 million) in handling the rising incidents of piracy on the shores of Indian Ocean, a new study says.

A large portion of the money went into paying ransom, with the increased insurance premium following use of longer routes and fighting the vice also claiming a sizeable portion, says a study by OBP, a global organisation fighting piracy.

“The ransoms paid to Somali pirates over the past five years have increased from an average of Sh12.7 million in 2005 to Sh459 million in 2010,” says the OBP study.

The study sponsored by One Earth Foundation says Somali pirates attacked more than 4,000 seafarers with firearms or rocket propelled grenades last year and almost 500 seafarers suffered abuse or torture.

More than 1,000 seafarers were taken hostage, about 500 were deployed as human shields, and more than 300 had to be rescued from citadels.

To Kenyan economy, these extra costs either mean that consumers are buying basic goods at increased prices as importers pass on piracy-related costs or that exports from the region get to international markets at relatively higher prices, making them less competitive.

Transport costs

“The cost of transporting avocado, mangoes, pineapples, or vegetables to Europe has risen by at least Sh187,500 per container due to increased shipping and insurance,” Stephen Mbithi, CEO of Fresh Produce Exports Association of Kenya told the Business Daily in an earlier interview.

Mr Mbithi called for the sharing of resources and intelligence among the Inter Governmental Authority on Development (IGAD) countries to counter the activities of pirates in the region.

The a part of direct cost of handling piracy, 11 IGAD countries also have to fund piracy fighting institutions, re-routing of ships from piracy prone waters, installation of security equipment by ships to deter pirates.