NORTH AMERICAN PANEL OCTOBER 7, 2009

1. NORTH AMERICAN PANELOCTOBER 7, 2009 UPDATE ON PIRACY JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

2. PIRACY - Somalia • 2008 Statistics - 111 reported piracy incidents - 69 attacks - 42 hijackings • 2009 Statistics - 155 reported piracy incidents - 122 attacks (80 fired upon) - 1 boarding - 32 hijackings

3. PIRACY • Eliminating piracy is a SHARED RESPONSIBILITY between the maritime industry and governments, BUT, • Establishment of LAW AND ORDER on the high seas is the responsibility of governments

4. GOVERNMENT ROLE • Provide and maintain sufficient assets in the region • Establish and ensure a coordinated approach • Establish and ensure a single, or at least compatible, rules of engagement • Develop necessary legal authorities to prosecute pirates • Develop a long term solution to the Somalia problem on land

5. GOVERNMENT ROLE Sufficient Assets • Prior to FAINA hijacking, there were woefully inadequate assets in the region • Since then the situation has improved (more than 30 assets) - European Union established an EU Naval Force (EUNAVFOR) Operation Atalanta - Combined Maritime Force established CTF 151 - China, India, Malaysia, Rep of Korea, Russia and Japan join US, UK, France, Denmark and other Europeans - Standing NATO Maritime Group 1 (SNMG1) • How long will the assets remain???

6. GOVERNMENT ROLE Coordinated approach • SHaDe – Share awareness and (seek) deconfliction - Monthly meeting in Bahrain of representatives of all countries involved - Enhanced cooperation efforts • Mercury – secure internet system which allows the different nationalities involved to coordinate action

7. GOVERNMENT ROLE Legal Authorities to Prosecute • Governments have lacked legal authorities to prosecute captured pirates • Recent action by UK, Denmark and US/Kenya agreement are positive steps • EU agreement with Kenya on legal framework to prosecute • IMO sponsored Djibouti Conference adopted Code of Conduct (Jan 29) also positive

8. UN ACTION • United Nations Security Council Resolution 1851 - Contact Group on Piracy of the coast of Somalia (Jan 2009) • Four Working Groups – - WG1, Military and operational coordination - WG2, Legal aspects, including arrest, detention and prosecution - WG3, Industry awareness and lessons learned - WG4, Diplomatic and public information

9. IMO ACTION IMO Maritime Safety Committee updated guidance to governments and industry • MSC.1/Circ.1333 - PIRACY AND ARMED ROBBERY AGAINST SHIPS, “Recommendations to Governments for preventing and suppressing piracy and armed robbery against ships” • MSC.1/Circ.1334 - PIRACY AND ARMED ROBBERY AGAINST SHIPS “Guidance to shipowners and ship operators, shipmasters and crews on preventing and suppressing acts of piracy and armed robbery against ships”

10. INDUSTRY ROLE • Remind all ship owners/operators of IMO guidance and industry best practices (www.intertanko.com, go to piracy) • Encourage full use of all possible passive defensive measures • Encourage all companies to register for access to the MSCHOA web site (http://www.mschoa.org) • Encourage all ships to register their movements with the MSCHOA web site • Encourage all ships transiting the area to follow the Group Transit system via the Internationally Recommended Transit Corridor (IRTC) • Encourage all ships to report attacks to UK MTO (ukmto@eim.ae) • Provide regular, verified security updates to shipping companies and their ships • Share lessons learned and update best practices

11. INDUSTRY ROLE Best Practices • Advance planning prior to transit • Conduct passage within Internationally Recommended Transit Corridor (IRTC) • Transit high risk areas at night • Minimize external communications • Increase lookouts and bridge manning • If attacked: - activate all alerts and alarm systems - increase speed and alter course with continuous zig-zag maneuvers - activate fire pump defensive measures • If boarded, offer no resistance

12. INTERTANKO ACTIONS • At the request of the US Maritime Administrator, coordinated industry association feedback on Best Management Practices • Developed model Charter Party Piracy Clauses (voyage and time charter) • Provide Merchant Navy Liaison Officer (MNLO) to Marine Safety Center Horn of Africa (MSCHOA) team at Northwood, UK • Issued piracy booklet with OCIMF, lMB, Intercargo and SIGGTO • Provide input to UN contact group working groups 1&3 military/operational coordination and on industry best practices • Provide input to IMO on the development of MSC.Circs 1333 and 1334

13. ARMING SHIPS Armed guards or arming ships’ crews is NOT an INTERTANKO advocated approach • Legality for flag states and port states • Serious potential safety concerns • Major liability and insurance issues in the event of death or injury • Risk of collateral damage • Potential to provoke an escalation of fire power by the pirates

14. ARMING SHIPS INTERTANKO believes that the use of armed guards, security forces or mercenaries onboard merchant ships has to be a matter for each individual owner or manager to assess as part of their own risk assessment, and as a consequence is unable to endorse any of those companies or individuals offering such services.

15. OTHER ISSUES • China - CNMRCC@MSA.GOV.CNIndia - Dgships@Dgshipping.comJapan - Info-piracy@mlit.go.jpRussia - smb@msecurity.ru offering escorted group transits through area • To report for a group transit through the area report to MSCHOA at postmaster@mschoa.org • NATO Operation Ocean Shield – continued at sea counter-piracy operations combined with counter-piracy capacity building for regional states • US plans to deploy unmanned, unarmed drones from the Seychelles to monitor piracy around the western Indian Ocean

16. SUMMARY • Both industry and governments recognize that eliminating piracy is a shared responsibility and each is doing their part • Significant progress has been made by both • BUT, more must be done to eradicate piracy and we must work together to do it

17. THANK YOU!! WWW.INTERTANKO.COM