Introduction
Pirate attacks on merchant vessels are still an increasing
problem. The total annual cost to the shipping and trading
industries is substantial. Traders have to respond to the reality
of the piracy threat by taking appropriate steps to protect
themselves and their cargoes, and some suggestions will be made
below as to how to do so. Other
Reed Smith Alerts have looked at the piracy issue from
a shipping and chartering perspective.
Background
The numerous incidents of piracy during the past few years have
caused headaches for the shipping industry, and also for global
trade. Commodity traders doing business in piracy-risk areas, such
as the Indian Ocean and the Gulf of Aden, see their cargoes
arriving many months late at their intended destination or having
deteriorated or even being at risk of loss as a result of the
carrying vessel being captured by pirates. The costs of doing
business in these areas are becoming exorbitant. The traders should
be
