http://www.heraldsun.com.au/ipad/shipping-giant-battles-pirates/story-fn6s85
0w-1226052227556

Shipping giant battles pirates

From: NewsCore May 09, 2011 5:36AM

Pirate problems: A Kenyan police officer patrols near the Maersk Alabama.
Pirates seized the ship in 2009, taking the crew hostage and sparking a
battle with US Navy Seals. Picture: Sayyid Azim AP

THE world's largest shipping company is stepping up efforts to battle piracy
off the coast of Somalia.

A.P. Moller-Maersk A/S, says the problem is becoming ever bigger and
increasingly costly.

Maersk's container freight division has raised the emergency risk surcharge
on each 12 metre container shipped through risky waters to $200-$500 from
$100-$400 in a move to pass on some of the rising costs to its customers,
the unit's head of daily operations, Erik Rabjerg Nielsen, said.

The risk surcharge hike reflected on one hand a spike in the number of
piracy-related incidents in the first quarter of 2011 and on the other, a
massive increase in Maersk Line's cost burden related to piracy.

The volume of Maersk Line's antipiracy-related costs was set to rise to an
estimated $200 million this year, from $100 million in 2010, as its ships
are forced to sail faster and longer to prevent hijackings, and its crews
receive doubled salaries as compensation for the added work, Rabjerg Nielsen
said.

According to the latest global piracy report from the maritime watchdog, the
International Maritime Bureau, worldwide pirate attacks in the first three
months of 2011 reached the highest quarterly number ever at 142.

The sharp rise was driven by a surge in piracy off the coast of Somalia,
where 97 attacks were recorded in the first quarter of 2011, up from 35 in
the same period last year.

Worldwide, 18 vessels were hijacked, 344 crew members were taken hostage and
six were kidnapped in the first quarter of 2011, the International Maritime
Bureau recently reported. A further 45 vessels were boarded and 45 more
reported being fired upon, it said.

Maersk has now hired a former army major as anti-pirate chief, a first of
his kind, who was to help develop a more firm strategy and lobby lawmakers
and shipping peers for a tougher international stance on piracy.





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