Ship owners should review piracy coverage

With the end of the monsoon season, piracy has surged in the Gulf of Aden and the East Coast of Somalia, warned a Lloyd’s broker.

Since the start of 2009, 189 vessels have been attacked, of which 42 have occurred since October, 10 of which have been hijacked

The increase in scale and intensity of piracy has focused attention on how insurance coverage is structured, said Jardine Lloyd Thompson (JLT).

JLT has participated in the release of four vessels over the past year.

JLT has participated in the release of four vessels over the past year. In a new report the broker analysed the key risk factors and how best to prepare for Gulf of Aden and the East Coast of Somalia transits.

The most likely time of attack in the Gulf of Aden is sunrise and on average vessels are held for 60 days, according to the paper. In addition, ransom payments average between US$2-3m and are not related to the value of the ship and cargo.

Sean Woollerson, Partner, Marine Oil and Gas Division, JLT, said: “A state of preparedness is crucial for vessels navigating the Gulf of Aden and the East Coast of Somalia. We are also encouraging owners and operators to stress test their response to this peril. Our report today is a useful guide to understanding the risks posed and how best to protect against them.”