New Piracy Threatens Shipping

dangerRemember the famous tagline from Jaws 2: “Just when you thought it was safe to go back in the water…”

Following a decline in Somali pirate attacks, most shippers think that it is safer for ocean transportation of freight. But CNBC reports that pirate attacks in 2014 are vibrant near the Far East nations of Malaysia and Indonesia. Some logistics experts are coining this area the most dangerous for shipping attacks. The reports say that there are at least three times as many pirate attacks in recent years. This is the area around the Singapore Strait and the Strait of Malacca. It should also be noted than 1/3 of all global trade moves through this area, which means that this greatly impacts all shipping.

Overall, pirate attacks costs the shipping industry over $4 Billion annually. This cost results from the lost freight, increased shipping time, higher insurance costs and even lawsuits. And all of these increased expenses are passed onto the shipper in the form of higher ocean freight shipping rates. The only way to stop the pirates might be the crew defending themselves with weapons.

These pirates in the Far East are different from the pirates in Africa. Unlike the Somali pirates, these pirates do not take hostages. These pirates use intelligence from espionage, detailed planning and even have their own tankers to steal from the vessels. And these pirates are aggressively targeting liquid fuel. If you are concerned that these pirate attacks could impact your shipment, then it would be wise to speak to your trusted freight forwarder.

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