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March 13, 2012
Pirates vs. Congress - And Why Congress Is More DangerousOkay this is a little old – from August of last year – but it’s still well worth reading and still relevant. These are remarks made by Stephen M. Carmel, Senior VP of Maersk Line, Limited at the Commander Second Fleet Intelligence Symposium where he explains why piracy (especially Somalian piracy) isn't quite as bad as it’s made out and why the shipping industries worry far more about what Congress is up to than pirate attacks. He goes into detail on the economics of shipping (shorter distance is not always cheaper) and provides some insight on how shipping companies view piracy and why they haven’t done all the ‘obvious’ things that people call for. So what is the true cost of piracy? From personal experience hiring highly trained (in fact all ex- US SOF folks) as security on our ships I can back of the envelope it for you. ...A team sufficient to protect the ship costs about $5000 per day all inclusive, for a total of $70,000. On a 2 Million BBL VLCC that means security to get it to the US costs about 3.5 cents per bbl. While it varies a little by grade of crude, a rule of thumb is that each BBL of crude will produce about 20 gallons of gas. That means piracy adds a little less than 2 tenths of a cent to the cost of a gallon of gas, or a nickel or so to a 25 gallon fill up. This as opposed to the approximately 43 cents per gallon or $10.75 in taxes you pay on a 25 gallon fill up. On why they haven’t armed all their ships and just killed the pirates… Lastly I would note there is no internationally agree framework for dealing with liability issues, where if we shoot a pirate off a US flag ship there is nothing to prevent that aggrieved pirate from suing us in a Pakistani court and having our ship arrested next time it shows up in Karachi. Unlike you folks, our ships do not enjoy sovereign immunity and port state authorities are free to board, search, and arrest our ships and crew at their discretion and/or whim. There has been some legislation passed in the US providing such liability protection, which of course is very helpful for piracy off the coast of New Jersey, but does nothing to help us where it actually matters. At this point the single most helpful thing regarding piracy (aside of course from solving Somalia) the worlds governments can do would be to push through IMO a rule set that standardizes training and certification of shooters, a standard weapon set, and international protocols for entry and clearance of armed merchant ships in ports and a standard framework for liability cover. Read the rest to find out what he's really afraid of. And on what his main fears are: But, while worrying about pirates I also worry about the effect of MARPOL Annex VI and the cost of complying with increasingly harsh emissions control requirements, something that will cost our industry roughly $6 Billion a year to comply with now and that figure will go up as tighter standards kick in in the 2014 time frame. I worry about the requirement to cold iron in LA, something that is very expensive and disruptive. And since while common for Navy ships to go on shore power, commercial ships never do it and are not fitted with a system to do so, a modification is required that will cost the equivalent of one ransom for each ship it is done on. So compared to all that pirates are a minor and ultimately more manageable threat since at least you can get insurance against their attacks and/or just shoot them. Not so much with Congress. | Recent Comments
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The Morning Report — 12/6/24
Daily Tech News 6 December 2024 Overnight Open Thread - 12/05/2024 [Roger Ball] 1950s Cafe Acting Secret Service Director Ron Rowe -- The Man Responsible for the Near-Assassination of Donald Trump -- Explodes With Feigned Self-Righteous Rage When He's Asked Why He Displaced the Actual Head of Biden's Security Detail to Stand Next to Him at a Pu Leftwingers Praise Murder of CEO, Call for Assassination of Elon Musk; The "Defending Democracy" Media Has No Comment, Sees No Reason to Condemn Oh No, Joe Biden Loses Ultimate Democrat Fangirl Chuck Todd Corrupt Gangster Moll "Super-Mayor" Kicked Off Ballot for Reelection Catherine Herridge: I Had the Support of CBS's Owner, Shari Redstone, To Pursue the Hunter Biden Laptop/Corruption Story. But Liberal Executives at CBS Told Me They "Weren't Interested" in the Story The French Super-Minority Government Collapses In No-Confidence Vote; PM Will Resign Search
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