NATO presence calms Somali piracy fears - brokers

16 October 2008 12:17  [Source: ICIS news]

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LONDON (ICIS news)--Chemical shipping brokers greeted the arrival of NATO warships to protect vessels in the Gulf of Aden with enthusiasm on Thursday, after the hijacking of more than 30 ships by Somali pirates off the east coast of Africa this year.

  

“It’s great news for the shipping industry that the international community has finally reacted to the situation, providing a major deterrent to Somali pirates for whom there were never any consequences,” said a source, after the seven NATO vessels sailed into the Suez on Wednesday.   

 

The news came as a huge relief, especially as traffic flow along the Asia-Pacific to Europe route, which went via west Africa, was so buoyant, said another broker.

 

“The route has been very active over the last six months and charterers will now feel a lot more confident doing business,” added the broker.

 

“All the ships coming from the Far East to Europe and vice versa have to engage the Gulf of Aden and Suez Canal and as a result vessels have no other choice but to approach the Somali coast. The only option would be to sail via South Africa at extra cost and inconvenience,” said a North Sea broker.

 

Last week the UN Security Council called for a joint naval operation against the pirates, who have reaped millions of dollars in ransoms and pushed up insurance costs.

 

Pirates still hold 11 ships and more than 200 crewmen hostage, according to the Malaysia-based piracy reporting centre of the International Maritime Bureau (IMB).

 

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By: Dan Horlock
44 20 8652 3214

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