Piracy
The dramatic increase in incidents of piracy in recent years is a major problem for Governments, international shipping authorities and shipowners. With 469 incidents reported in 2000 and 335 in 2001. It would be unwise to think that the problem has peaked. The diversity of locations has increased as have the severity of the attacks.
The piracy hot spots are the South China Seas, particularly the area around Malaysia and Indonesia, plus the Philippines, but an increase in cases have been reported off the East and West coasts of Africa and South America. The pirates are not opportunist thieves but highly organized criminals targeting high value Cargoes, cash carried on vessels and the personal belongings of passengers and crew.
Having obtained the goods the pirates will often leave the crew wounded, sometimes fatally, drugged or bound and the vessel and its remaining Cargo vulnerable to the weather, winds and waves.
In recent years an increasing number of vessels and their Cargoes have literally been hi-jacked, often whilst in port. The vessel, with its cargo is then taken to a port other than the original destination where the Cargo is discharged and sold . At this point the vessel is renamed and often repainted. Not content with their work thus far the thieves use the vessel in a second scam.
Further cargoes owners are duped into parting with their Cargo and paying freight for the privilege. This Cargo is taken and sold before the vessel is also sold usually for as scrap or to some unsuspecting buyer. The "Phantom Ships" (as these renamed vessels are known) are becoming a major problem and may well have links with terrorist groups who acquire Cargoes for violent activities. There is a real fear that such stolen vessels could be used as floating bombs.
Norwich Union Cargo provides cover in respect of loss or damage to cargo resulting from piracy as part of the standard cover for All Risks under their Policy.