The advanced business model of Indonesian pirates
When commenting on the sophisticated, and highly successful, business model of the Indonesian pirates Mr. Hans Tino Hansen, CEO of Risk Intelligence, highlights that the Indonesian pirates are far more effective than its African counterparts if measured in yields per day. The business model of hijacking tankers and siphoning their oil, have been refined to the point where the pirates can earn a $2 million profit for only a few days’ work.
Mr. Hansen further points out that the lack of international media attention is not coincident, but rather resulting from deliberate calculations made by the Indonesian pirates. By mainly attacking regional ships, rather than the international merchant fleet, the pirates have remained below the radar of international attention - hence able to keep with the momentum of their lucrative business model in Southeast Asia.
For the full article in Danish, see the link below (subscription needed):
Higher gas prices caused increased threat of tanker hijackings in Southeast Asia
A record number of hijackings have been reported in Southeast Asia during 2014 – a sharp increase from previous year where only three hijackings were reported. This increase is likely to be further escalated by the announced price increase of petrol and diesel in Indonesia which, all things being equal, is likely to cause a spike in the number hijackings according to Mr. Hans Tino Hansen, CEO at Risk Intelligence.
The Indonesian orchestrated tanker hijackings typically follow a refined business model in which the fuel is stolen from the hijacked tanker through a quick STS operation and then sold for about 60-80 percent of market price. A 30 percent increase in the petrol price will thus present an even stronger incentive for the pirates.
That the targeted ships so far have been smaller, locally owned, product tankers at low speed is not a result of lacking abilities, but rather due to a lack of inside information as well as an aversion to attack international vessels that can cause greater media attention. This picture may drastically change if the syndicates were to gain information on other targets in the fairway while also choosing to ignore the accompanying international interest – a development which have been seen in Nigeria after the first tanker hijacking in 2010.
For the full article in Danish, see the link below (Subscription needed):
BBC World Service
Risk Intelligence Director of Maritime Security, Mr. Dirk Steffen, contributed and advised Ms. Mary Harper, on behalf of BBC World Service, in the production of the documentary “Chasing West Africa’s Pirates”.
While piracy in Somalia have taken a plunge in recent years, piracy in the Gulf of Guinea have extended its reach and become increasingly deadly. Piracy in the Gulf of Guinea has now been termed one of the world’s worst, and most violent, piracy hot spot by the International Maritime Bureau and the documentary tells the story of seafarers’ being caught up in violent piracy attacks and former militants committing acts of piracy. The lack of governmental resources in preventing piracy in Nigeria have caused a surge in governmentally employed private security companies in the region – a lucrative market that is not without its quandaries. The documentary concludes by examining the economic cost of piracy, both to communities depending on maritime trade and to the maritime industry itself and Ms. Harper concludes that “all of us are paying the price [of piracy] but the highest price of all is paid by the seafarers.”
The one hour BBC radio documentary Chasing West Africa’s Pirates was broadcasted 15-16 November on the BBC World Service. The documentary, and the following podcast, can be found on the below links:
Risk Intelligence CEO Hans Tino Hansen presented on the situation of maritime security in East and West Africa on Tuesday 7 October 2014 at the "Maritime Crime and the Effects on Growth and Development in the African Region" at
Clipper House, Copenhagen, Denmark.
The main message was that West African maritime security challenges are much more complicated than in East Africa. Furthermore, that 71% of all-piracy related incidents are directly related to Nigerian crime, while even more are originating in Nigeria. Up to the elections in February 2015 there is a risk of a relatively high level of kidnap & ransom cases.
In the Horn of Africa it was believed that 2015 will look a lot like 2014 with a very low level of pirate activity, but beyond 2015 it is not known if the decrease in naval operations combined with a reduction of measures implemented by the shipping industry may result in higher levels of piracy again as the capability, intent and opportunity is still in place.
Please find the presentation in PDF below:
Risk Intelligence has produced a briefing on the situation regarding Ebola in West Africa with a focus on shipping and maritime operations. It is available for download on this webpage.
The fact file examines the current Ebola virus disease (EVD) situation regionally and nationally in the greater West Africa region. It also examines the latest guidelines by international bodies and highlights any potential challenges. The coastal states spanning from Senegal to Angola are addressed in this report totalling 19 countries and updates will be conducted on a fortnightly basis. The contact number and emails are provided with the World Health Organization (WHO) liaison facility in each respective country below, as well as any collaborative focal point centres specifically dealing with EVD. The collaborative centres are testing facilities and research centres that are addressing containment and other specific medical issues.
Conference: Maritime Crime and the Effects on Growth and Development in the African Region 7 October 2014
Throughout the last decade, maritime crime and not least piracy, armed robbery and hijackings have imposed substantial cost and used up a vast amount of resources in the maritime industry. Furthermore, these criminals are a constant threat to the crew and vessels essential to the world trade.
The potential growth in the maritime industry have been reduced by ingenuous villains with limited technical knowledge, limited seamanship skills and limited resources. Mitigation efforts are often reactive to the crimes committed and periodically the pirates and criminals have held the initiative. However, as some opportunities fade, new possibilities and growth markets arise.
To challenge the criminals of today and tomorrow and to seek new approaches to maritime security challenges we will host a seminar titled: ‘Maritime Crime and the Effects on Growth and Development in the African Region’
Risk Intelligence, together with the Danish Shipowner’s Association and Oceans Beyond Piracy, supported by Danish shipowner Clipper, will host the seminar in Copenhagen during Danish Maritime Days on 7 October 2014.
This seminar will focus on how the shipping industry, the international community and African countries can work together to foster maritime security and economic growth and development.
Please visit the seminar’s webpage for an up-to-date agenda here Danish Maritime Days. Please remind that confirmation of your participation should be send no later than 26 September 2014 to the following address: email@example.com. If you have any questions regarding this event, please do not hesitate to contact us.
About Danish Maritime Days:
Danish Maritime Days is a major new event for the global maritime industry. It will bring together a broad spectrum of leaders from across the industry with the objective to find new solutions to the most important challenges facing the industry today and in the future. With many events – including conferences, briefings, exhibitions, symposia, company visits, receptions and dinners – planned throughout the week of 6-10 October 2014 – Danish Maritime Days will be an opportunity to meet peers from around the world, to make new connections, to be inspired and to pave the way for new partnerships. More information at: http://www.danishmaritimedays.com/