53
contemporary piracy: tho who, the why and the where
risks are becoming unacceptably high; when that has happened in the past
it has been insurers who have pressed hardest for action. however, the
regularly repeated assertion that piracy leads directly to higher insurance
premiums appears to be unsupportable.
146
Although the industry does rec-
ognise that piracy is a problem it does not regard it as serious; in fact it does
not even account for piracy claims separately. Maritime disorder generally,
however, it does see as a serious issue.
147
Other, less tangible, costs result from the diversion of investment into
security and away from more productive activity. ere can be diversion
into active measures such as electric fences around ships’ rails and even
armed escorts, or more passive measures such as improved communica-
tions and alarms. Looking even more broadly, it is necessary to take into
account the disruption to the efficient operation of the economy and the
disincentive effect that pirate activity can have on the business community
to continue or expand their activities, or for new entrants to come into the
market.
148
Once again, all these considerations are largely hypothetical.
One cost that is far from hypothetical is the human cost in terms of
numbers killed and traumatised.
149
It must never be forgotten although
all too often this appears to be the case.
150
Seafarers even on large ships
are apprehensive and even afraid when they pass through pirate-prone
areas. ose that have suffered attacks are often unwilling to return to
sea.
151
Security is primarily the responsibility of shipping companies but
146 Ibid., p. 175.
147 See M.J. peterson, ‘An historical perspective on the incidence of piracy’, in El-
len, Piracy at Sea, pp. 42-3; also Martin N. Murphy, ‘Slow alarm: e response
of the marine insurance industry to piracy and maritime terrorism’, Maritime
Studies, no. 148, May/June 2006, pp. 1-14.
148 Anderson, ‘piracy and world history’, p. 85.
149 Gottschalk and Flanagan, Jolly Roger with an Uzi, pp. 20-1; Eric Ellen, ‘Bring-
ing piracy to Account’, Jane’s NI, April 1997, p. 29. Margaret Ryan, ‘Captain
counts the cost of piracy’, BBC News, 2 Feb. 2006. e IMB is reluctant to put
a price on piracy because, in its view, it detracts from the real cost—the danger
to crews: pottengal Mukundan, interview with author, April 2004.
150 Interview with Captain John Swain, Dec. 2007. Douglas Stevenson, a director
of the Seamen’s Church Institute of New York and New Jersey, makes the point
that crew members who have been the victims of piracy are compensated for
the loss of their belongings but never for the long-term effects of the physical
and mental trauma, which although the precise numbers are unknown, can be
so severe that they leave the industry: Michael Grey, ‘Stevenson says victims of
piracy must be offered structured support regime’, Lloyd’s List, 25 May 2007.
151 ‘Captain tells of fear and loathing on the high sea’, Lloyd’s List, 13 Oct. 2005.