Rising piracy revives old headache, could hike prices

A vessel of the Japan Maritime Self-Defense Force (front) guards a Japanese cargo ship in the Gulf of Aden off the coast of Somalia against piracy.

Photo credit: Pool

The rise in piracy in Somali waters is reviving an old threat to security in the region, and potentially increasing the cost of transporting cargo.

Official records show there have been 22 attacks on vessels since November last year, raising concerns among security experts.

The latest attack was on a Chinese fishing vessel. These incidents could reverse achievements made in the last decade, where piracy had been somewhat eliminated.

Due to that success, the Indian Ocean waters, once considered a risky navigation area, were recategorised and removed from the list of high risk areas.

In August 2022, the International Maritime Organisation (IMO), the UN agency responsible for the safety and security of shipping issued formal notification of member states on the removal of Indian Ocean from the list after decline of piracy, which placed East African ports in better position to attract more business in the region.

The removal of the HRA was due to the region's improved security.

And countries including Kenya and Somalia have been marketing the blue economy as an area worth investing in. Somalia values its fisheries at about $2 billion.

Yet, last week, pirates holding a Chinese-owned fishing vessel Liaoning Daping 578 off Somalia’s northeastern coast increased their ransom demand to $10 million, even as European Union's anti-piracy naval force confirmed the 18 crew members on board were safe.

In a statement, the European Union (EU) anti-piracy team Eunavfor Atalanta; confirmed the vessel was still in the hands of pirates but that the crew had not been harmed.

“In relation to the Chinese fishing vessel involved in a case of 'armed robbery at sea' off the northeast coast of Puntland, Somalia, Operation Atlanta continues surveillance of the event. The Chinese fishing vessel remains under the control of the alleged pirates and in Somali territorial waters," read the statement on Monday.

The EU anti-piracy team said the Atalanta ship has been monitoring the fishing vessel and gathering valuable information, including conditions of the crew on board, as well as on the suspected pirates.

In addition, Eunavfor Atalanta is in contact and coordination with the Chinese Navy as well as the appropriate Somali and Chinese authorities.

The vessel was captured in late November. But there have been other notable incidents recently. They include the three-month captivity of the M/V Ruen, which ended in an Indian Navy rescue operation, and the M/V Abdullah, which was released following a reported $4 million ransom payment.

Increasing insecurity as a result of attacks on shipping vessels in the Red Sea by Yemen’s Houthi militia and now in the Indian Ocean from piracy remains a key concern in the maritime sector.

Ships were already avoiding the Red Sea, choosing longer routes at a cost to consumers. Piracy may raise the insurance premiums further.

Somalia, which joined the East African Community (EAC) last year, has been keen to capitalise on the blue economy’s potential, while addressing long-standing challenges such as illegal fishing and inadequate infrastructure.

In the past, pirates ventured into sea to attack ships ostensibly to avenge for looted fish from Somali waters. Experts have not yet analysed the motivation for the new incidents.

Somalia’s strategic coastline, stretching over 3,333 kilometres along the Indian Ocean, boasts one of the richest fishery zones in the world.

With an Exclusive Economic Zone (EEZ) that covers an area 131 percent the size of the country’s landmass, Somalia has the capacity to generate at least $2 billion annually from its fisheries, according to expert Dr Abdiaziz Hussein Hassan of Somali National University.

Richest reserves

The EEZ includes some of the world’s richest tuna reserves, which the Indian Ocean’s tuna upwelling system recognised as a hotspot for artisanal and deep-sea fishing activities

Maritime expert Andrew Mwangura said the Chinese fishing vessel Liaoning Daping 578 is now at sea operating as a mother ship for piracy activities in the Indian Ocean.

The recent incident happened nine months after an Iranian dhow was hijacked by Somali pirates off Jifle approximately 32 nautical miles southwest of Somalia.

“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.

Maritime Organisation for Eastern, Southern, and Northern Africa (MOESNA) said security at sea should be a common challenge for the region as it hurts even the landlocked.