The Study of Risk Management for Merchant Ship against Somalia Pirates
Date Issued
2015
Date
2015
Author(s)
Wang, Ta-Yu
Abstract
The transport of goods by sea has been the most common use by humans and convenient shipping, especially with a transport capacity, low tariffs, endurance and the wide range of services etc., so it is difficult to replace by other modes of transport. However, there are sharp rise in pirate attacks and the increase amount of ransom in recent years. The phenomenon has been serious threaten to the ship, cargo, personnel safety and the shipping industry, therefore how to prevent merchant ships from pirates and the use of risk management strategies are indispensible. The purpose of this study is to make the connection between the possibility of the risk of merchant ships in high-risk areas of the Somalia pirates and insurance. Firstly, literature review and analysis under the concept of risk management and the definition of piracy. Then do the comparative study of the merchant shipping control strategy. The book ""Best Management Practice 4, BMP4 "" which is published by the Witherby Publishing Group Ltd. in August 2011 suggests very practical ways to avoid, deter or delay piracy attack in order to reduce the loss to minimum. Also, choosing fiscal strategy to buy ""Kidnap & Ransom, K&R"" in order to transfer, reduce or avoid the loss caused by the pirate’s hijack. Finally, an empirical analysis will take deep look of the difficulties within the actual operation and the way of handling in order to making the research more effectively combine theory and practice to improve the problems caused by merchant ships implement risk management operation. The thesis found merchant ships can install an alarm system, additional physical barriers to strengthen and improve the vigilance, etc., Besides, if possible, to maintain a minimum height of the freeboard above 8 meters, and moving with more than 18 knots of the speed. If the merchant ships navigate in other high-risk waters, it is recommended that management measures can still be security practices, effective implementation report program, joining the International Recommended Transit Corridor, hiring Vessel Protection Detachment or Private Maritime Security Company is also the effective way to assist the crew to guard the ships. Finally, through the content of the K&R which is covered by the thesis provide a clear understanding of insurance against shipowners and exclusions, and other disputes that may arise in subsequent compensation section such as to negotiate with the insurance underwriter for expanding the coverage issue under the extra increase fee . Hoping the lowest ""risk cost"" can both reach the goal of protection and the security of their own business.
Subjects
Pirates
Somalia Pirates
Risk Management
BMP4
K&R
Type
thesis