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UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENTM ENT MARITIME PIRACY PART I AN OVERVIEW OF TRENDS, COSTS AND TRADE-RELATED IMPLICATIONS UNITEDNATIONSCONFERENCEONTRADEANDDEVELOPMENT MARITIMEPIRACY PARTI:ANOVERVIEWOFTRENDS,COSTSAND TRADEͲRELATEDIMPLICATIONS StudiesinTransportLawandPolicy–2014No.1 NewYorkandGeneva,2014 NOTE Thedesignationsemployedandthepresentationofthematerialdonotimplytheexpression ofanyopiniononthepartoftheUnitedNationsconcerningthelegalstatusofanycountry, territory, city or area, or of authorities or concerning the delimitation of its frontiers or boundaries. Material in this publication may be freely quoted or reprinted, but acknowledgement is requested,togetherwithacopyofthepublicationcontainingthequotationorreprinttobe senttotheUNCTADsecretariatatthefollowingaddress:PalaisdesNations,CHͲ1211Geneva 10,Switzerland. Thispublicationhasnotbeenformallyedited. Theinformationprovidedinthisreportisaccurateasat10December2013. UNCTAD/DTL/TLB/2013/1 Copyright©UnitedNations,2014 Allrightsreserved Acknowledgements This is part I of a twoͲpart report on maritime piracy, prepared by Regina Asariotis, Hassiba Benamara, Anila Premti and Jennifer Lavelle, Policy and Legislation Section, Division on Technology and Logistics, UNCTAD. Part II of the report, entitled Maritime Piracy, Part II: An Overview of the International Legal Framework and of Multilateral Cooperation to Combat Piracy, has been published separately as document UNCTAD/DTL/TLB/2013/3. The useful and considered clarifications, information, data and maps provided by Sacha Pristrom from the International Maritime Organization (IMO), Cyrus Mody from the International Chamber of Commerce (ICC) International Maritime Bureau (IMB) and Clarkson Research Services, are gratefully acknowledged, as are the comments provided by colleagues in the UNCTAD Trade Logistics Branch, in particular José María Rubiato, Head of the Branch. For further information, please contact the Policy and Legislation Section of the Division on Technology and Logistics of UNCTAD at [email protected] or visit the UNCTAD website at http://unctad.org/ttl/legal. iii ABBREVIATIONSANDACRONYMS AFRICOM UnitedStatesAfricaCommand AMISOM AfricanUnionMissioninSomalia AMSSAAfricanMaritimeSafetyandSecurityAgency APS AfricaPartnershipStation ASF AsianShipowners’Forum BIMCO BalticandInternationalMaritimeCouncil BMP BestManagementPractices CGPCS ContactGrouponPiracyofftheCoastofSomalia CMI ComitéMaritimeInternational CSDP CommonSecurityandDefencePolicy CTFͲ150 CombinedTaskForce150 DCoC DjiboutiCodeofConduct ECHR EuropeanConventiononHumanRights,1950 EEZ ExclusiveEconomicZone EUCAPNESTOR European Union Regional Maritime CapacityͲBuilding for the Horn of AfricaandtheWesternIndianOcean EUͲNAVFOR EuropeanUnionNavalForce EUTM EuropeanUnionTrainingMissionforSomalia FAC Foreign Affairs Committee (United Kingdom of Great Britain and NorthernIreland) FAO FoodandAgricultureOrganizationoftheUnitedNations FATF FinancialActionTaskForce GISIS GlobalIntegratedShippingInformationSystem IBF InternationalBargainingForum ICC InternationalCriminalCourt ICC InternationalChamberofCommerce ICG InternationalContactGrouponSomalia ICS InternationalChamberofShipping ICOC InternationalCodeofConduct IGAD IntergovernmentalAuthorityonDevelopment IMB InternationalMaritimeBureau IMBPRC InternationalMaritimeBureauPiracyReportingCentre IMO InternationalMaritimeOrganization IMOFAL InternationalMaritimeOrganizationFacilitationCommittee IMOLEG InternationalMaritimeOrganizationLegalCommittee IMOMSC InternationalMaritimeOrganizationMaritimeSafetyCommittee IMSA IndependentMaritimeSecurityAssociates INTERPOL InternationalCriminalPoliceOrganization(alsoICPO) INTERTANKO InternationalAssociationofIndependentTankOwners IOC IndianOceanCommission ISAN InternationalSeafarersAssistanceNetwork ISF InternationalShippingFederation ISO InternationalOrganizationforStandardization ISPS InternationalShipandPortFacilitySecurityCode iv ITF InternationalTransportWorkers’Federation ITLOS InternationalTribunalfortheLawoftheSea IUMI InternationalUnionofMarineInsurance LMA Lloyd’sMarketAssociation MLC MaritimeLabourConvention MMSS MultiͲModeSensorSeeker MOWCA MaritimeOrganizationofWestandCentralAfrica MPHRP MaritimePiracyHumanitarianResponseProgramme MSCͲHOA MaritimeSecurityCentre–HornofAfrica MSPWG IntersessionalMaritimeSecurityandPiracyWorkingGroup NATO NorthAtlanticTreatyOrganization NGO NonͲgovernmentalorganization NSC NATOShippingCentre OEF OneEarthFoundation OGTCL OpenGeneralTradeControlLicence PCASP PrivatelyContractedArmedSecurityPersonnel PMPF PuntlandMaritimePoliceForce PMSC PrivateMaritimeSecurityCompanies RAPPICC RegionalAntiͲPiracyProsecutionandIntelligenceCoordinationCentre ReCAAP Regional Cooperation Agreement on Combating Piracy and Armed RobberyagainstShipsinAsia ReCAAPISC ReCAAPInformationSharingCentre SAMI SecurityAssociationfortheMaritimeIndustry SCEG SecurityinComplexEnvironmentsGroup SOLAS InternationalConventionfortheSafetyofLifeatSea1974,asamended STCW International Convention on Standards of Training, Certification and WatchkeepingforSeafarers SUA Conventionfor the SuppressionofUnlawful Actsagainst the Safety of MaritimeNavigation,1988 TFG TransitionalFederalGovernmentofSomalia UDHR UniversalDeclarationonHumanRights UKMTO UnitedKingdomMarineTradeOperations UNCLOS UnitedNationsConventionontheLawoftheSea,1982 UNCTAD UnitedNationsConferenceonTradeandDevelopment UNͲDOALOS UnitedNationsDivisionforOceanAffairsandtheLawoftheSea UNDP UnitedNationsDevelopmentProgramme UNICRI UnitedNationsInterregionalCrimeandJusticeResearchInstitute UNODC UnitedNationsOfficeonDrugsandCrime UNODCCPP UnitedNationsOfficeonDrugsandCrimeCounterͲPiracyProgramme UNPOS UnitedNationsPoliticalOfficeforSomalia WFP WorldFoodProgramme v TABLEOFCONTENTS Pages Note............................................................................................................................... ......ii Acknowledgements............................................................................................................ iii Abbreviationsandacronyms............................................................................................. ivͲv Listofboxes,tablesandfigures.......................................................................................... viii Paragraphs I. Introductionandbackground................................................................................. 1–6 II. Maritimepiracyinfigures....................................................................................... 7–16 III. CostsandtradeͲrelatedimplicationsofmaritimepiracy…....................................17–77 1. Assessingoveralleconomiccosts...........................................................................18–21 2. Firstordercosts...................................................................................................... 22–38 2.1 Ransoms....................................................................................................... 23–25 2.2 Insurancecosts.............................................................................................. 26–27 2.3 Shippingnetworksandreroutingoffleet.....................................................28–31 2.4 Thecostofdeterrentsecurityequipmentandarmedguards.....................32 2.5 Additionallabourcosts................................................................................. 33 2.6 Costsassociatedwithincreasedspeed........................................................34 2.7 Lossofearnings............................................................................................. 35 2.8 Thecostofnavalforces................................................................................ 36 2.9 Thecostofpiracyprosecutions....................................................................37 2.10 ThecostofpiracyͲdeterrenceorganizations................................................38 3. SecondordercostsandtradeͲrelatedimplications...............................................39–77 3.1 Portsinregionsaffectedbypiracy...............................................................41–42 3.2 Transportandtransitcostsofgeographicallydisadvantagedcountries......43–46 3.3 Globalandregionaltrade.............................................................................47–55 3.4 Energyproduction,pricesandsecurity........................................................56–61 3.5 Fisheries........................................................................................................ 62–64 3.6 Foodsecurityandfoodpriceinflation..........................................................65–66 3.7 Tourism......................................................................................................... 67–69 3.8 Environmentalpollution............................................................................... 70–75 3.9 Submarineinstallations................................................................................ 76 3.10 WeatherandclimateͲrelateddatacollection...............................................77 IV. Summaryandconcludingremarks….......................................................................78–86 vii Pages LISTOFBOXES,TABLESANDFIGURES Box1. Trackingtheillicitfinancialflowsfrompirateactivitiesoff theHornofAfrica....................................................................................... 17 Table1.
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