Piracy – The Human Element

1. Piracy – The Human Element Seafarers’ Welfare Seminar 14 April 2011 by Per Gullestrup, CEO & Partner, Clipper Group A/S

2. Piracy off the Horn of Africa in 2010 • Total number of incidents = 273 • Total number of hijacks = 79 • Total number of hijacks-for-ransom = 41 • Total number of victims = 1,000+ • Ransom demands = US$7-20m • Ransom settlements = US$1.8-9.5m • Average ransom demand = US$13m • Average ransom settlement = US$4.1m • Total ransom payments = US$90m+ • Average duration of captivity = 156 days Source: Control Risks

3. CEC Future – The Release Photo

4. The Hijacking of CEC Future • On voyage from Antwerp – Batam • ”Low and Slow” vessel • Bahamas flag • RS-EST-GEO crew • Crew/vessel held hostages 71 days • Nobody killed/injured • A ransom of 1,7 mill. USD • Reception of crew/vessel

5. The Hijacking • Hijacking • Realise the situation • “The Crew are stuck - but we can do everything for the relatives” • Overall aim - Generate co-players instead of opponents • Initial information to Relatives • All relatives was informed prior the news reached the media. • Executive team was sent to brief, answer questions and show commitment to the relatives and to meet with local unions. (Archangelsk, St. Petersburg & Tallinn) • Phone hotline via crew manager Pirate Negotiator Clipper Negotiator Pirate team Clipper Emergency team Clipper Crewing CEC Future Crew 3rd party Crew Manager Relatives

6. The Hijacking • Information to Unions • Meet with the unions - common goal to get the crew out • Meet with the executives • Union Complexity: • Vessel signed under Latvian ITF union • Russian, Estonian & Gregorian ITF crew members • Estonian Crew manager • ITF agreement made with ITF London

7. The Hijacking • Information to Embassies • Embassies was informed within the first day • Media • Protect the names of the crew as long as possible. • Tricked by Russian ”yellow tabloid paper” to handout the names

8. Manage Information Flow The relatives - The prime objective was to support the families and minimise the risk to the negotiations • Daily status updates in English and Russian – Mail from Clipper • Daily phone contact with crew managers • Homepage – forum, news, sound clips, etc. • Counselling offered • Feedback from relatives when crew called home • Preparation of the relatives about what they can expect as the next move from the pirates • Ensure that the relatives had funds – Clipper paid double salary as per contract to all the crew - the vessel was within 12 nm of Somalia • Flowers or gifts for relatives on birthdays and special occasions • Embassies • Daily status updates and frequent meetings • Union • Weekly status updates at a minimum

9. Plan the Relief • Actions taken in order to plan the relief: • Full relief crew ready to travel immediately • Psychologists, medical staff and translators ready to meet the crew at arrival • Coordination of logistical tasks • Flight bookings (relief team, joiners, leavers and family) • Rebooking – rebooking – rebooking ....... • Visa ready (relief team, joiners, leavers and family) • Reissue – reissue – reissue ....... • Location availability

10. The Relief • Phase 1 • Psychologists, medical staff and translators ready to meet the crew at arrival • First two days without family (in Oman) • group debriefing • mental evaluation • medical examination

11. The Relief • Phase 2 • Third day in St. Petersburg • reunion with family • Group debriefing with family • Ad hoc counselling

12. Post Relief • Phase 3 • Ad hoc counselling • Home for 60 days on full pay • Mental evaluation after 60 days (PTSD) • Debriefing after 60 days • Close the book ”party” after 60 days • Open invitation to ask for assistance • All was guaranteed job at Clipper after vacation

13. Summary • Be ahead of the ”game” – try to foresee what relatives, unions, embassies media and pirates will do in any given situation • Plan, alter plans and do re-planning The facts: • 13 of 13 came back to sea • 11 of 13 is still sailing with Clipper • 11 has passed Gulf of Aden • No Clipper Project crew has ever requested to sign off prior a Gulf of Aden transit • Realise the cultural differences in the world • Clipper has managed to have one pirate prosecuted in US and has filed a lawsuit in DK

14. Summary • Russian ITF Union still uses CEC Future as the good example • Quote from ”Russian trade union of seafarers” home-page : “It remains only to wish that the example from Denmark are followed by other shipowners.” • Now armed guards

15. Human Cost of Piracy Study Project Reasoning: • While the economic costs are important, the true cost of piracy is the abuse and trauma inflicted on seafarers and their families • One Earth Future and Oceans Beyond Piracy are conducting a study on the hundreds of seafarers attacked and taken hostage by Somali pirates, as requested by the Oceans Beyond Piracy Working Group Project Goal: • Increase public awareness about the risks of piracy to seafarers • Develop a reporting framework that more comprehensively reflects the wide range of crimes perpetuated by pirates against seafarers • Improve coordination and information-sharing between counter-piracy organizations

16. Human Cost of Piracy (Attacks) • In 2010, 119 vessels carrying 2,750 seafarers were shot at by Somali pirates with AK-47s and RPGs • Of these, 73 of the vessels were boarded by armed pirates, putting 1,454 seafarers in direct contact with pirates • 19 of the boarded vessels were rescued within hours of attack while the 342 crewmembers hid in a safe-room or citadel • 54 of the boarded vessels were hijacked by Somali pirates and the 1,112 seafarers were held hostages for an average of 5 months 73 ships (1,454 seafarers) Boarded 119 ships (2,750 seafarers) FiredUpon 54 ships (1,112 seafarers) Hijacked

17. Human Cost of Piracy (Captivity) • Hostages taken in 2010, some of which are still in captivity, were held for an average of 5 months; while it is not documented, it appears that violence increases when negotiations last for longer periods of time • Of the 54 ships hijacked, at least 23 were or are used as mother ships putting 516 seafarers at risk: • Seafarers forced to assist in attacks on other ships – forced labor or slavery • Seafarers used as human shields • There are reports of significant abuse or torture aboard 20 of the hijacked vessels, placing 461 seafarers at risk

18. Human Cost of Piracy (the Hostages) • Of the 1,116 people taken hostage in 2010 by Somali pirates, only 6% came from OECD countries • The seafarers come from 59 different countries; the Philippines, India, and China are the top three suppliers of global seafarers

19. Human Cost of Piracy – Call for Help • Challenges • “Sensitivity” of information means that information about the abuse against hostages is not widely distributed • The majority of the crew members taken hostage come from developing countries, and this does not attract international public outcry • 500+ seafarers are currently held by pirates, which limits the negotiation power of ship owners and governments http://oceansbeyondpiracy.org/obp/

20. Many thanks for your attention

21. Tactic/Threats from the Pirates • To ground the vessel • To take the crew ashore • To drop the cargo into the sea • To drop the bridge equipment into the sea • To force the shipping company by means of the crew • To force the shipping company indirect by means of the relatives • To send info to the press, which puts the shipping company in a bad light • A sick crew member