Somali pirates threaten use of Suez Canal: analysis
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There is growing concern that the free passage of the Suez Canal, one of the great breakthroughs in international trade, is under threat from the spread of piracy off the coast of Somalia. The flow of millions of pounds, derived from ransom payments, into groups linked to fundamentalist Islamic movements in Somalia has triggered warnings that seaborne terrorism poses a serious future risk to flow of consumer goods and oil from East to West. A leading London think tank will this week issue a siren call for a worldwide effort to tackle the problem. Otherwise it says that international shipping could be forced to take the old route to Europe, a 20-day detour around Cape Horn. The development would add a significant premium to the shelf price of most consumer goods.
Modern pirates are far from the wild men of the Caribbean stereotype. With plenty of resources the gangs are able to acquire the fastest boarding craft, use global positioning system technology to track their victims and satellite-capable laptops to hold negotiations with owners. Negotiators demand shipping companies despatch envoys to marble-clad five star hotels in the Gulf to hand over vast quantities of cash.
Most worryingly the pirates possess an arsenal of weaponry includes heavy weapons, rocket-propelled grenades and sniper rifles.
Among shipowners a reassessment about the gateway to the Suez Canal has taken on urgent tones. "Enquiries are being made into how to do smart transit, can we go in convoy, can we get security people on board, can we shoot people," said one City of London insurance broker.
At root the problem of piracy in the area stems from chaos in Somalia where an al-Qaeda-allied insurgency, spearheaded by the Taliban-style Islamic Courts, has kept the country ungovernable despite a US-backed military intervention by Ethiopian troops. There are been more than 30 hijackings, and overall 50 attempts recorded so far this year. Lloyd's insurers put transit through the area on a war footing in the summer and the extra premiums ship owners must make, shot up from zero last year to 0.25 per cent of the vessels worth for each journey.
Despite the international attention attracted by the cargo of tanks and heavy weapons in the current crisis, shipowners fear the problem will only grow. "Because no one wants casualties and the rules of engagement means different responses from different parts of the coalition, the Somalis are confident they won't be attacked," said Neil Roberts, secretary of Lloyd's Joint War Committee. "The international response is limited because no governments are interested but the truth is the only ships that can't be attacked is those with Navy escorts."
Modern pirates are far from the wild men of the Caribbean stereotype. With plenty of resources the gangs are able to acquire the fastest boarding craft, use global positioning system technology to track their victims and satellite-capable laptops to hold negotiations with owners. Negotiators demand shipping companies despatch envoys to marble-clad five star hotels in the Gulf to hand over vast quantities of cash.
Most worryingly the pirates possess an arsenal of weaponry includes heavy weapons, rocket-propelled grenades and sniper rifles.
Among shipowners a reassessment about the gateway to the Suez Canal has taken on urgent tones. "Enquiries are being made into how to do smart transit, can we go in convoy, can we get security people on board, can we shoot people," said one City of London insurance broker.
At root the problem of piracy in the area stems from chaos in Somalia where an al-Qaeda-allied insurgency, spearheaded by the Taliban-style Islamic Courts, has kept the country ungovernable despite a US-backed military intervention by Ethiopian troops. There are been more than 30 hijackings, and overall 50 attempts recorded so far this year. Lloyd's insurers put transit through the area on a war footing in the summer and the extra premiums ship owners must make, shot up from zero last year to 0.25 per cent of the vessels worth for each journey.
Despite the international attention attracted by the cargo of tanks and heavy weapons in the current crisis, shipowners fear the problem will only grow. "Because no one wants casualties and the rules of engagement means different responses from different parts of the coalition, the Somalis are confident they won't be attacked," said Neil Roberts, secretary of Lloyd's Joint War Committee. "The international response is limited because no governments are interested but the truth is the only ships that can't be attacked is those with Navy escorts."