Suspected pirates holding a Chinese vessel with 18 crew members have turned down $300,000 ransom offer, signalling an imminent increase in marine insurance premiums.
According to sources familiar with the negotiations, the vessel is being used by the attackers as a mothership to assail other vessels. The pirates rejected the offer, which was made through elders in Somalia and an intricate network of international security organisations.
Ali Warsame, a local elder familiar with the case, told local media that a Somali company acting on behalf of the ship had offered to pay a $300,000 ransom. But the offer was rejected.
Last week, the European Union's anti-piracy naval force, Eunavfor Atalanta, confirmed that the Chinese fishing vessel had been seized in an incident classified as 'armed robbery at sea'.
The latest piracy incidents have raised concerns among international security agents and marks a resurgence of pirate activities in the area, which had been dormant since 2018.
Local fishermen said the boat came close to Eyl in Puntland State this week, but the pirates pushed it back into the deep sea for fear of being cornered by the Puntland coastguard.
Maritime expert Andrew Mwangura, who is aware of the negotiations, said the recent piracy cases could lead to the route being listed as a High-Risk Area (HRA).
Mr Mwangura said the Chinese fishing vessel Liaoning Daping 578 was now at sea, acting as a mother ship for piracy activities in the Indian Ocean.
There are Chinese crew members on board. The hijacking comes barely nine months after an Iranian dhow was seized by Somali pirates off Jifle, some 32 nautical miles south-west of the Somali mainland.
“This is the 22nd fishing vessel hijacked by Somali pirates since November 2023. The incidents have been occasioned by laxity of security forces to operate along the Indian Ocean after increased attacks by Houthis in the Red sea,” said Mr Mwangura.
An upsurge in piracy in the Indian Ocean over the past year is now adding to the cost of importing goods into East African ports.
Transporters may have to pay higher insurance premiums on the route, which is also under threat in the Red Sea, where Houthi militants in Yemen have attacked some vessels to settle an old score against Israel.
In August 2022, the International Maritime Organisation, the UN agency responsible for maritime safety, formally notified member states of the removal of the Indian Ocean from the HRA list. This followed a decline in piracy incidents, which put East African ports in a better position to attract more business in the region.
The development has saved businesses billions of shillings in insurance fees, ultimately lowering the price of goods in Kenya and the wider eastern African region. The new trend could reverse this and bring back the costs.
The Maritime Organisation for Eastern, Southern, and Northern Africa (Moesna) said since November 2023, 133 incidents, including hijackings and vessel attacks, have been reported, significantly driving up shipping costs and insurance premiums.
Moesna, formerly the Intergovernmental Standing Committee on Shipping (Iscos), an organisation mandated to promote, protect, and coordinate their shipping and maritime interests in the region, said the region’s shared maritime bodies, facilities, multinational service providers, and overseas trading partners underscore the need for greater collaboration among regional states in this complex and capital-intensive sector that faces numerous challenges.
“The maritime industry continues to face evolving challenges that demand coordinated action. Recent attacks on shipping vessels in the Red Sea by Yemen’s Houthi militia and piracy have underscored the urgent need for stronger maritime security.
“In response, Moesna is committed to enhancing security through a collective regional approach to safeguarding international trade routes and ensuring the safe and efficient movement of goods,” said Moesna Secretary General Daniel Kiange.
Subscribe to continue reading this premium articleSubscribe to continue reading this premium article
