Centre Number: IN015
Candidate Name: Sadhana S
How has piracy on the seas impacted global trade
dynamics and influenced international naval
safeguarding strategies?
Introduction
As children, we assumed pirates to be fictional villains, wielding swords and
carrying a map to hidden treasure. However, that is far from the truth.
Maritime Piracy is a real issue, not talked about enough. Defined as ‘the act of
attacking ships in order to steal from them’, it is flourishing in the Straits of
Singapore and off the coast of Peru. The technology we use to advance
ourselves, is utilized by modern pirates to hear news outside of the seas and
obtain access to ship systems and gain useful information for an advantage or
two.
By creating this report, I intend to spread awareness on the global issues we
underestimate, elaborating on the issues we continue to face from piracy and
how the economy of nations have been affected by pirates, It’s time we stop
romanticizing them as a child’s favourite storybook character and wake up to
the serious crimes they have committed.
How has piracy affected international trade?
Piracy creates an unstable economy. When ships carrying valuable cargo to
another country are seized, the crew is vulnerable to violence, and is held for
ransom. This creates an unpredictable economic situation, causing delay to
different aspects of a country. According to the International Maritime Bureau
(IMB), 25 billion dollars is lost annually due to theft, ransoms and the increased
insurance costs, all of which come under piracy. Pirates can stop foreign
investments in coastal countries due to the instability. These threats can
discourage future generations from working in the marine sector, leading to a
shortage of seafarers soon. We depend on naval transport for carrying
packaged items in bulk, materials for construction, machinery, important
documents and other cargo. Resorting to other methods of transport such as
air transport is not environmentally beneficial due to carbon emissions.
The International Maritime Organisation (IMO) has noted 229 piracy incidents
in 2020. 100+ people were held hostage and cargo was damaged. So far, in
2024, there has been 33 reports of piracy and armed robbery along the west of
Africa, Arabian Sea and Straits of Singapore.
Piracy creates changes in shipping routes, costs, and troubles in the
international trade sector. Long-term effects include a decreasing shipment
frequency due to focus on security and exposure of low-value goods, as
products that are considered to have higher value tend to have more
protection. Ships may also tend to travel at higher speeds when passing close
to regions with high piracy attacks. Although not seeming as much, a slight loss
of control of the wheel may lead to devastating consequences for all on board.
Marine Safeguarding Strategies
With the evolution of piracy, countries have come up with innovative ideas to
safeguard their waters and protect commercial shipping routes. The most
obvious form of protection at seas is to increase the naval forces. From
experiences, many governments have recognised that a visible navy has
deterred numerous pirate attacks, thus immediate assistance can be provided
to the ships under threat. During the Somali piracy crisis, this strategy is
commonly used, even to this day. Countries have also implemented anti-piracy
protocols, where a shipping route is carefully analysed from past data and
current intelligence to ensure there are no potential piracy threats.
Ship operators nowadays follow a set of guidelines while entering a region with
high risk of pirate attacks, which includes maintaining a safe distance from
shorelines known for piracy and using water cannons and barbed wires in case
of attack. Defensive strategies are also used, where armed personnel are
deployed and the crew on board are trained and prepared in case of a pirate
attack, thus repelling pirates.
Multiple countries have signed international treaties and agreements to
protect and cooperate with one another when an attack occurs at sea. One
prime example includes the United Nations Convention on the Law of the Sea
(UNCLOS), which allows for joint assistance and operations against piracy
suspects, simplifying arrests, and going through other legal procedures.
Global Perspective
In terms of piracy, countries stand as one to tackle this issue, for it is a war
between the men of land and sea. As mentioned earlier in this report, pirates
has caused serious damage all around the world, affecting global trade,
security, and economies. During 2005 and 2012, it was suggested that Somali
pirates received $400 million in ransom alone. Additionally. Piracy has cost the
shipping industry an estimate of $7 billion in 2013 worldwide.
International Organisations
Global organisations have invested in the prevention of piracy, with NATO
spending millions on Operation Ocean Shield (2009), which protected the ships
of Operation Allied Provider, which transported relief supplies. This initiative
strengthened the navies to help oppose pirate attacks. A few East Asian
countries like China, Japan and South Korea, had also sent warships to help.
Operation Ocean Shield had been a huge success, drastically reducing piracy
attacks from 236 in 2011, to 2 unsuccessful attempts in 2014. Until Operation
Ocean Shield ended in December 2016, there had been no successful hijacks
since May 2012.
NATO had also implemented direct confrontations. Majorly, the Spanish frigate
Navarra and US Navy vessels had intervened and prevented pirate attacks with
this method. This often leads to the capture of these pirates and ensuring the
safety of hostages.
The European Union had also launched an operation in 2008 known as
EUNAVFOR Operation Atlanta, aiming to deter pirate attacks off the coast of
Somalia and protect ships carrying humanitarian aid, especially food for the
World Food Programme (WFP). The EU had a 100% success rate in protecting
the WFP ships while combatting pirates near the coast was much more
challenging. The EU deployed marine patrol aircraft, ensuring the seas were
under surveillance. They collaborated with other international forces such as
the Combined Maritime Forces (CMF), making use of both their advantages.
National Perspective
India has contributed to the marine industry significantly, with 9.35% of
seafarers beings Indians, along with inheriting the effects of piracy too. With
piracy resurfacing in the Arabian Sea, India has invested in naval security and
other precautions, leading to an increase in shipping costs. In addition,
shipping routes changed to avoid the Arabian Sea, thus taking a longer route
instead of the usual shortcut, the Red Sea. Due to this change, the Red Sea
suffered a 60% drop in trade, and fuel has gotten more expensive for ships.
Rerouting has also led to maritime traffic. Piracy also threatens the marine
field, as according to the Maritime Union of India (MUI), 200000 Indian
seafarers have expressed their fear due to multiple kidnappings of Indian
seafarers.
With regard to piracy, India has deployed 12 ships, focussing on anti-piracy
operations. India intends to improvise its strategies, ensuring their role as an
important security provider in the India Ocean, along with protecting their
people.
Another major country that influenced, and was influenced by piracy is
Somalia. Somalia’s unstable economy had led to many Somalis turning to
piracy for a way of living. In 2009, they gained $177 million just in ransom and
$238 million in 2010. This criminal behaviour has been so normalised in
Somalia, that locals consider pirates to be their almighty. The money stolen is
distributed among the community, thus making piracy an appealing ‘job’ for
them.
Somalia’s government has been unstable since the 1990s. This allows pirates to
operate freely, attacking passing ships carrying cargo to other nations without
the fear of being caught. This had continued until the situation got out of
control, where other countries decided to get involved, holding operations to
dim down the situation. Fixing this issue begins with acknowledging the root
cause, establishing a proper government in Somalia and enforcing strict laws.
Lastly, Indonesia is another country majorly affected by piracy. Being close to
the Strait of Malacca, a busy shipping route, it is a popular target for pirates.
This has led to many shipping companies specifically avoided Indonesian ports,
tampering with its trade sector and impacting local businesses. Thus, it gets
costlier to travel these waters, preventing the growth of the economy. 40% of
piracy attacks during January and September of 2014 were accounted by
Indonesia.
Less than 1% of Indonesia’s GDP goes to its security, and additionally, 60% of
Indonesians living by the sea face poverty. Some, like a couple Somali locals,
also choose piracy as a form of living or choose to illegally fish, although the
short-term effects may not be bad, there will be food scarcity in the future.
Courses Of Action
From previous data, it is understood that starting operations to combat piracy
has significantly decreased the rate. Piracy has also significantly decreased
from countries collaborating through international organisations to coordinate
and prevent piracy. In addition, patrol aircraft should be deployed around
regions with many pirate attacks just as the EU had done. Countries should
invest in naval security and find new strategies to combat them. Additionally, it
is advisable for countries to provide job opportunities for the people in poverty
to prevent them from becoming pirates for a source of income.
Personal Perspective and Conclusion
Going into detail on how piracy has affected global trade and influenced
safeguarding techniques has made me realise how much people tend to
underestimate them. As a form of research, I had decided to interview
everyone in my school about their knowledge on piracy. Much to my surprise,
most, if not all, had answered that they were harmless villains in some
storybooks and shows. It is frightening to see that so little of our population
live to understand and realise how dangerous they are. I was one of them until
I decided to do this report, feeling fascinated by the rarity of this topic.
Examining the global and national consequences of piracy had me in shock. It
was unbelievable that Somali locals considered pirates to be their saviours, all
because the government was not functioning properly and none seemed to try
fixing it for 30+ years. The root of piracy is a sad beginning, but must end,
before it keeps hurting everyone in a cycle.
To conclude, piracy can be prevented in numerous ways if everyone joins
hands to take precautionary measures, which can drastically reduce the rates.
Many lives have been lost due to piracy, just to make a sustainable living. I
believe that aside from combatting piracy directly, the root cause for each
country should be fixed first. It is important we tackle this issue to provide a
safer and enjoyable future for the next generations.