Shippers avoid new "pirate hotspot" in waters west of the Philippines

U-Ming Marine Transport

20/01/2017 08:13

* Piracy has surged in Sulu, Celebes Seas 
    * Has scared off shippers, forced detours 
    * Waters part of route carrying iron ore to Asia 
 
    By Keith Wallis 
    SINGAPORE, Jan 20 (Reuters) - A surge in piracy to the west 
of the Philippines is forcing shipowners to divert vessels 
through other waters, stoking their costs and extending the time 
it takes to transport goods such as Australian iron ore to key 
Asian destinations. 
    There have been 16 attacks since last March on ships in the 
Sulu and Celebes Seas, through which about $40 billion worth of 
cargo passes each year, according to the Regional Cooperation 
Agreement on Combating Piracy and Armed Robbery against Ships in 
Asia (ReCAAP).  
    That government-backed anti-piracy organisation says over a 
dozen crew are currently being held hostage by Filipino Abu 
Sayyaf militants, all from ships sailing through the Sulu and 
Celebes Seas. 
    "The Sulu/Celebes area is the world's fastest growing piracy 
hotspot, with violent attacks on commercial vessels and their 
crews, and an increasingly successful kidnap and ransom business 
model," said Gerry Northwood, chief operating officer at armed 
guard company Maritime Asset Security and Training (MAST). 
    The International Maritime Bureau's piracy reporting centre 
in Kuala Lumpur has also warned of the rising threat of armed 
pirates in these waters, with shipping companies starting to shy 
away.  urn:newsml:reuters.com:*:nL4N1F331I 
    "Increasing piracy particularly in the Sulu Sea has been a 
rising concern for us," said Benedikt Brueggermann, chartering 
manager at shipper Oskar Wehr Asia in Singapore. 
    "We are doing our best to avoid the area both on empty and 
laden voyages. We'd rather do that than put the ship and crew's 
lives at risk. It's very sad to see this happening in this 
region." 
    Shipping data in Thomson Reuters Eikon shows several large 
vessels carrying iron ore from Australia to northern Asia, which 
used to take the route through the Sulu Sea, are now sailing 
east of the Philippines, through the open Pacific Ocean. 
    At least six shipping companies are diverting vessels via 
this route, according to shipping executives. 
    One is U-Ming Marine Transport  2606.TW , Taiwan's largest 
dry-cargo shipowner, which said 10 of its large capesize-class 
ships have taken this detour since the end of 2016. 
    "All our ships sailing from Australia to China and North 
Asia are now sailing via east of Philippines - it is a proactive 
action to prevent pirate attacks," said U-Ming's president, Ong 
Choo Kiat. 
    Other firms avoiding the Sulu and Celebes seas are Eastern 
Pacific Shipping, Diana Shipping  DSX.N , and Anglo-Eastern Ship 
Management. 
    Sailing east to avoid the Sulu Sea adds about half-a-day to 
a 14-day voyage from Port Hedland, Western Australia's main iron 
ore export terminal, to northern Asia. 
    Shippers said that while the extra costs of around $300 per 
day for fuel on each journey were not huge, the added costs 
would mount up over time - another blow to an industry already 
grappling with a period of extremely low profit margins. 
 
    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 
GRAPHIC on ships sailing from Australia to North Asia via 
Philippines    http://tmsnrt.rs/2jFqitc 
Interactive map    reuters://REALTIME/verb=Interactive%20Map/context=%3CNavigation%3E%3CEntities%3E%3CEntity%20type= 
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 (Reporting by Keith Wallis; Editing by Henning Gloystein and 
Joseph Radford) 
 ((henning.gloystein@thomsonreuters.com; +65 6870 3263; Reuters 
Messaging: henning.gloystein.reuters.com@reuters.net)) 
 
Keywords: SHIPPING PIRACY/ASIA