Industry seeks political solution to piracy threat

Piracy is a major issue for shipping companies

The CEO of a major shipping company has called for a long term political solution to stop the threat of piracy in the Gulf of Aden.

“As a sustainable long-term approach we are strongly supporting a political solution,” said Beluga Shipping CEO and president Niels Stolberg.

“For example, the aid programme Somalia against Piracy with UN soldiers bringing freedom to Somalia, building up a fishing fleet and installation of a protected zone for Somali fishermen to allow for adequate legal employment, set up of an effective education system,” he added.

The situation in Somalia has increased insurance rates by 10-50%, according to Stolberg. “In regions with the danger of war, rates rise accordingly; in this respect Somalia has to be regarded as a war zone. Since [the insurance policies] Hull & Machinery or Protection & Indemnity have not sufficiently covered the problem, there is fairly new insurance policy about to be set up: Kidnap & Ransom,” he said.

The most recent case of piracy in the region involved a Spanish trawler being captured, and a US $3.3 million ransom being paid. It is thought Somali pirates currently hold a dozen ships and more than 200 crew members.
 

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