Amidst pragmatic opportunities in the shipping sector, Alphard Martime, a firm that is engaged in shipping security, highlights the key facets of maritime security. Alok Kumar, founder and chairman, Alphard Maritime Group, provides an elaborate prognosis of the nature of maritime security.
01.What are the key regions around where the maritime industry faces security threats? Do provide statistics if possible. Maritime security issues are not limited to a single geographic region and pirate attacks have shown skewed geographical patterns. As per the industry sources, the areas most prone to maritime security risks are Indian Ocean – Gulf of Aden- Somalia region, South East Asia – south China Sea and Gulf of Guinea /West Africa. Statistics show that vessels with armed guards on board were very seldom attacked (negligible). However, if shipping companies no longer use armed guards, piracy may again increase. Given the mobile nature of security threats and the ever-growing issue of port security, the maritime transportation industries remain on high alert to identify, mitigate, and address appropriate protective strategies that include ship hardening, armed personnel, crew training, and technology.
02.How vulnerable is Asia to security threats for container ships? Container vessels alone accounted for over 17 percent of total pirate attacks in 2014, almost twice less than in 2013 and one fourth lesser in 2012. However the consistency of attacks on container ships continues. This is in spite that the container vessels are considered to be at lower risk for hijackings because of their higher operating speeds and freeboard (height above the water), container vessels have been time and again targeted by Somali pirates.
03.What are the economic costs of security threats? Economic costs in maritime security include the money spent on insurance of ship and cargo, labor costs, ransoms paid in case of hijacks and release of hostages. Somali pirates principally operate a capture-to-ransom model, with ransoms collected up to $5.5 million per incident. Strangely, as per an industry statistic, insurance companies make ten times more money out of piracy than pirates do. Other economic costs include operating costs, and maintenance costs of international task forces and finally, the costs of armed guards and equipment. In last few years, on-board security equipment and armed guards spends has increased by twice from about $1 billion to $2 billion. At the same time, the average annual spend on maritime security reduced to half to $6 billion from $16 billion. Economic cost of security threat attached per ship per transit without armed guards is estimated at $134,000. Other economic costs include additional travel days as a consequence of re-routing of ships; increased insurance costs of as much as $20,000 per trip; increased charter rates, as longer time at sea reduces the availability of tankers; the cost of faster steaming through pirate-affected seas; and greater inventory financing costs for cargoes that remain longer at sea. Few other costs are incurred when longer routes are taken to avoid pirate waters or when ships are made to travel at increased speeds.
04.Could you provide insights into how your systems help circumvent maritime security threats? Alphard Maritime protects ships through its comprehensive security management services such as armed security teams, risk assessments and analysis and security surveys among others. Our 24/7 emergency response acts as watchdog throughout the transit from embarkation to disembarkation enabling all our clients to enjoy smooth voyages and greater peace of mind. Our teams, unique techniques and intelligent systems are fully attuned with the IMO standards and are accredited by major Flag states like Panama, Greece, Cyprus, Croatia and most others. Moreover, our training centre in Sri Lanka follows stringent recruitment and training procedures to ensure only the best guards come forward and join our teams that protects ships in HRA. Last but not the least, our 300 plus maritime security operatives onboard empowers us to preserve few security teams on standby so we can secure any client vessel at short notice.