Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Boris Johnson Hits Coronavirus Panic Button Again, UK Accelertoing Covid-19 Second Wave - 25th Sep 20
Precious Metals Trading Range Doing It’s Job to Confound Bulls and Bears Alike - 25th Sep 20
Gold and Silver Are Still Locked and Loaded… Don't be Out of Ammo - 25th Sep 20
Throwing the golden baby out with the covid bath water - Gold Wins - 25th Sep 20
A Look at the Perilous Psychology of Financial Market Bubbles - 25th Sep 20
Corona Strikes Back In Europe. Will It Boost Gold? - 25th Sep 20
How to Boost the Value of Your Home - 25th Sep 20
Key Time For Stock Markets: Bears Step Up or V-Shaped Bounce - 24th Sep 20
Five ways to recover the day after a good workout - 24th Sep 20
Global Stock Markets Break Hard To The Downside – Watch Support Levels - 23rd Sep 20
Beware of These Faulty “Inflation Protected” Investments - 23rd Sep 20
What’s Behind Dollar USDX Breakout? - 23rd Sep 20
Still More Room To Stock Market Downside In The Coming Weeks - 23rd Sep 20
Platinum And Palladium Set To Surge As Gold Breaks Higher - 23rd Sep 20
Key Gold Ratios to Other Markets - 23rd Sep 20
Watch Before Upgrading / Buying RTX 3000, RDNA2 - CPU vs GPU Bottlenecks - 23rd Sep 20
Online Elliott Wave Markets Trading Course Worth $129 for FREE! - 22nd Sep 20
Gold Price Overboughtness Risk - 22nd Sep 20
Central Banking Cartel Promises ZIRP Until at Least 2023 - 22nd Sep 20
Stock Market Correction Approaching Initial Objective - 22nd Sep 20
Silver Bulls Will Be Handsomely Rewarded - 21st Sep 20
Fed Will Not Hike Rates For Years. Gold Should Like It - 21st Sep 20
US Financial Market Forecasts and Elliott Wave Analysis Resources - 21st Sep 20
How to Avoid Currency Exchange Risk during COVID - 21st Sep 20
Crude Oil – A Slight Move Higher Has Not Reversed The Bearish Trend - 20th Sep 20
Do This Instead Of Trying To Find The “Next Amazon” - 20th Sep 20
5 Significant Benefits of the MT4 Trading Platform for Forex Traders - 20th Sep 20
A Warning of Economic Collapse - 20th Sep 20
The Connection Between Stocks and the Economy is not What Most Investors Think - 19th Sep 20
A Virus So Deadly, The Government Has to Test You to See If You Have It - 19th Sep 20
Will Lagarde and Mnuchin Push Gold Higher? - 19th Sep 20
RTX 3080 Mania, Ebay Scalpers Crazy Prices £62,000 Trollers Insane Bids for a £649 GPU! - 19th Sep 20
A Greater Economic Depression For The 21st Century - 19th Sep 20
The United Floor in Stocks - 19th Sep 20
Mobile Gaming Market Trends And The Expected Future Developments - 19th Sep 20
The S&P 500 appears ready to correct, and that is a good thing - 18th Sep 20
It’s Go Time for Gold Price! Next Stop $2,250 - 18th Sep 20
Forget AMD RDNA2 and Buy Nvidia RTX 3080 FE GPU's NOW Before Price - 18th Sep 20
Best Back to School / University Black Face Masks Quick and Easy from Amazon - 18th Sep 20
3 Types of Loans to Buy an Existing Business - 18th Sep 20
How to tell Budgie Gender, Male or Female Sex for Young and Mature Parakeets - 18th Sep 20
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Dot.com Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Piracy: A Growing Global Menace

Politics / Global Economy Jul 08, 2011 - 02:39 AM GMT

By: OilPrice_Com

Politics

Over the last few years, thanks largely to Hollywood's "pirates of the Caribbean" franchise, maritime buccaneers have acquired a highly romantic image.

The reality of modern piracy is far removed from the images peddled by Tinseltown. In the most recent nautical attack, Somali pirates on 6 July attacked the 900-foot Brillante Virtuoso, which was carrying over 141,000 tons of fuel oil from Ukraine to Qingdao, China, 20 miles off the Yemeni port of Aden. The vessel's 26 crew members abandoned ship after the attackers fired an RPG round into their sleeping quarters.


According to ship manager Central Mare Inc., the vessel and its cargo were recovered, despite the fact that the rocket-propelled grenade started a fire on board.

While piracy is a worldwide annoyance, its epicenter is now the failed nation state of Somalia, where brazen hijacking of vessels in the Indian Ocean as far away as the Seychelles have in the past decade netted the maritime miscreants billions of dollars.
Though little noticed, tankers have been targets of opportunity for both pirates and terrorists for some time.

While media attention has focused on Somalia, the problem is global. On 16 January 1999 the 131,654 DWT-ton French-flag tanker Chaumont was attacked by pirates while transiting the Malacca Straits' Phillip Channel in Indonesian waters near Singapore. The attackers tied up the crew and the fully loaded tanker sailed at full speed through one of the world's busiest shipping lanes for 70 minutes without anyone at the helm.

In waters nearby the site of today's attack, in October 2002 the 299,364 DWT-ton French tanker Limburg was rammed by an explosives-laden boat off the port of Ash Shihr at Mukallah, 353 miles east of Aden. A crewman was killed and the double-hulled tanker was breached. The impact on the Yemeni economy was immediate, as maritime insurers tripled their rates. Al-Qaida later claimed the attack.

On 15 November 2008 the Somali pirates captured their biggest prize yet, the VLCC (very large crude carrier) 162,252- ton Sirius Star, 500 nautical miles southeast of Mombasa, the farthest out to sea Somali pirates had struck up to then. With a capacity of two million barrels, the Sirius Star carried the equivalent of more than a quarter of Saudi Arabia's daily production, a cargo worth more than worth $100 million at the time. On 9 January 2009 the vessel was freed in exchange for a discreet $3 million ransom.

The International Maritime Organization, the U.N.'s 162 nation maritime counterpart, is notorious for the plodding nature of its legislative process. Under current IMO regulations, merchantmen are forbidden to carry firearms for self-protection, charmingly archaic legislation that signally fails to address the realities of the post 9-11 world. The IMO estimates that maritime traffic now accounts for 80 percent of the world's commerce.
Cutthroat competition to reduce profits, flags of convenience, miserable wages - all are problems bedeviling the maritime community while creating a nightmare for security specialists.

It is not as if seafaring nations have not been trying to cope. On 22 August 2008 the multinational naval coalition Combined Task Force 150 (CTF 150), set up after the 11 September attacks to patrol the Arabian Sea and the coast of Africa to combat terrorism, established an eight-mile-wide, 550 mile-long nautical corridor - the Maritime Safety Protection Area (MSPA) - in the Gulf of Aden in which patrols would be conducted to provide safe passage to merchantmen. CTF 150 aircraft also monitored the channel.
Needless to say, today the CTF 150 was reactive, not proactive.

The issue of how to cope with East Africa's pirates has been the topic of heated debate for several years, from bleeding heart liberals advocating attempting to rebuild Somalia's shattered economy to the more muscular response of CTF 150 members, who advocate more of a "Dirty Harry" approach, i.e., kill them if at all possible and avoid the nasty legal issues of tussling with maritime law niceties, which dates back centuries and is the most convoluted legal corpus on the planet.

Given the realities of modern commercial shipping, a sensible compromise might be for the IMO to revisit its prohibition on small arms onboard merchantmen. While sailors, alcohol and firearms have traditionally proven a volatile mix, one of the reasons for the current IMO restrictions, creative solutions might be found, something on the order of nuclear submarines' dual launch controls, whereby two responsible officers have to unlock the missilery in tandem.

What is clear at this point is that water hoses don't work and that the CTF can't be everywhere. As an old Afghan proverb puts it, a people who do know something about firearms, "Five of them would run from the bang of one empty gun." It's worth considering how many would retreat form a half-dozen weapons fully locked and loaded.

Source: http://oilprice.com/Energy/Energy-General/Piracy-A-Growing-Global-Menace.html

This article was written by Dr. John CK Daly for Oilprice.com who offer detailed analysis on Crude Oil, Geopolitics, Gold and most other commodities. They also provide free political and economic intelligence to help investors gain a greater understanding of world events and the impact they have on certain regions and sectors. Visit: http://www.oilprice.com

© 2011 Copyright OilPrice.com- All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules