MS Risk Blog

Bangladeshi Piracy Raises Concerns

In South East Asia, the vast majority of piracy incidents, and commensurately the level of law enforcement response and international attention, currently occur around the Straits of Malacca, in the numerous islands of the Indonesian archipelago and the South China Sea. However, Bangladesh has seen a continuing, and significant, level of piracy as well, though the most serious incidents are primarily targeted against local fishermen and similar. This has included two extremely serious incidents within the past month. Of particular concern is the pirate’s methodology – kidnap for ransom and a high degree of violence is extremely common.

Incidents against foreign vessels in Bangladesh take much the same form as in the rest of South East Asia. This involves opportunistic armed robbery against ships, almost always berthed in the Chittagong anchorage. Robbers, sometimes armed, board ships and attempt to steal stores, cargo and valuables. They commonly flee when confronted by crewmembers. The overall rate of piracy against foreign vessels however remains relatively low, with a small number of incidents each month, particularly when compared with Indonesia, by far the most afflicted country in the region. Rates have remained relatively stable and even seen a slight decrease in the past few years. A high degree of security awareness on behalf of law enforcement and shipping is widely credited with helping keep the situation under control.

It is attacks against local fishermen and trawlers in the Bay of Bengal that are a potentially a much more concerning phenomenon. There are numerous active pirate gangs that operate in Bangladeshi waters, particularly around the Sundarbans mangrove forest which was home to at least ten separate pirate gangs late last year. Other regions throughout the country, including along rivers far from the coast, are also plagued by pirate activity.

As opposed to the opportunistic ‘smash-and-grab’ robberies that target foreign vessels in port, piracy targeting local fishermen tends to involve kidnap for ransom as standard. The most common period for attacks is between April and August, the fishing season. The scale of this activity is also dramatic. In addition to regular demands for protection money, often from numerous different gangs, attacks are commonplace. According to the local District Fishing Trawlers Owners Association (DFTOA), between January 2011 and November 2012 over 1000 fishing trawlers were attacked, with thousands of fishermen taken hostage for various periods. This reportedly led to ransom payments totally $1.28 million. In August 2012, over 60 fishermen were taken hostage in a single incident, while the first 3 months of this year reportedly saw 90 attacks in one coastal region alone. Last month, (August, 2013) in two separate incidents over 30 fishermen were taken hostage. Attacks of this scale are standard, and occur monthly.

The law enforcement response to these activities is of varying effectiveness. Last year, a large co-ordinated operation between the Coast Guard and Navy led to the release of nearly 40 hostages, while police operations in the past weeks in response to recent incidents saw several pirates killed in shootouts and secured the release of two-thirds of the hostages. However, the long term effectiveness of this law enforcement activity remains doubtful – many locals report that the pirates simply remain dormant and re-emerge after the operations. Alternatively, they flee across the border into India, where a lack of regional co-operation makes it difficult to apprehend them. The Bangladeshi navy and coast guard are weak – the coast guard has only 11 boats, most nearly 3 decades old and several unusable during the monsoon season. The effect on the economy can be huge – with coastal fishing contributing 30% of the nation’s total catch, during 2012-2013 this had dropped from 108’000 metric tons to 39’000.

Particularly concerning is the high level of violence that occurs in these incidents. Pirates are usually armed, and beatings of captive fishermen are a common occurrence. Murder of hostages is also frequent, with many killed every year either during or after attacks. In a single incident in April of this year, 31 fishermen were tied up and tossed overboard to drown after being robbed by pirates.

While currently this activity does not commonly target international vessels, the trend is particularly concerning. With growing rates of low-level, violent hostage taking and piracy throughout the Bay of Bengal, combined with a lower level of international attention and a weaker law enforcement presence than in other regions of South East Asia, the phenomenon has the potential to evolve into one of substantially greater threat. Some analysts believe Bangladeshi pirates will become a threat to global shipping within the next two years. While currently the threat to international vessels does still remain relatively low, a high level of security awareness should be maintained by all vessels in the Bay of Bengal.

Syrian Crisis Dominates the G20 Summit in Russia, Where World Leaders Remained Divided

World leaders meeting at the G20 Summit in Russia remained divided over military action in Syria.  The Syrian crisis, and prospect of military action, has overshadowed the official agenda of the summit, which was intended to focus on the world’s top economies and emerging markets in order to stimulate growth and battle tax avoidance.  While talks on Syria dominated the first day of the summit, it was not immediately clear if the leaders would have another chance to discuss the issue on the summit’s second day or if the main session would focus on purely economic issues.  What does remain clear is that tensions between the United States and Russia have reached a new low.

Despite not being on the original agenda of the summit, which is hosted by Russian President Vladimir Putin in Saint Petersburg, global leaders discussed the Syria crisis over a working dinner on Thursday, which lasted into the early morning hours.  However there was no breakthrough during the dinner as leaders, including US President Barack Obama, presented their positions on the Syria crisis.  The discussions, which failed to bridge the divisions over US plans which are seeking military action against the Syrian regime, also confirmed the extent of global divisions on the issue.  A Kremlin spokesman was quoted as saying that “some states were defending the view the rushed measures should be taken, overlooking legitimate international institutions.  Other states appealed not to devalue international law and not to forget that only the UN Security Council has the right to decide on using force.”  While a high-ranking source close to the talks indicated that there was a disappointing lack of ambition at the dinner on the Syria issue, noting that Putin as host was keen not to aggravate tensions further, a French diplomatic source highlighted that while discussions indicated a sharp divide amongst the leaders, the overall objective of the dinner “was an exchange between the top world leaders and not to come to an agreement.”  Outside of the summit, several Western states share Mr. Putin’s opposition to military action, and after last week’s vote in the British parliament, which resulted in the UK government voting against strikes, France is the only power to have vowed that it will join American intervention if US officials go ahead with military action.

Mr. Putin has emerged as one of the most inflexible critics of military action against Syrian President Bashar al-Assad’s regime, which has been accused of allegedly using chemical weapons in an attack that was carried out on 21 August.  Putin’s comments that any move without the UN’s blessing would be an aggression, remained unchanged throughout the Summit.  China also insists that any action without the UN would be illegal.

Meanwhile on Friday, UN Secretary General Ban Ki-moon warned that military strikes could spark further sectarian violence in the country which he said is suffering from a humanitarian crisis “unprecedented” in recent history, adding that “I must warn that ill-considered military action could cause serious and tragic consequences, and with an increased threat of further sectarian violence.”  The UN is also appealing for more aid for the estimated two million Syrians who have fled their country, in which another 4.25 million are internally displaced.  UK Prime Minister David Cameron announced on Friday that the UK would provide an additional £52 million (US $80 million) in aid for Syrian, in which much of it will go towards medical training and equipment in order to help those civilians who have been targeted by chemical attacks.

Update on the Suez Canal, Egypt

In continuing efforts to maintain the protection of the Suez Canal Zone, Egyptian authorities issued unprecedented increases to security. Egyptian armed forces have erected checkpoint every 20 kilometres, and have deployed army helicopters to monitor the Canal Zone. In addition, there are increased mobile security patrols, and the military has installed more security cameras in and around the waterway. The government has also been working with local tribes in the Sinai Peninsula to ensure cooperation in the region’s security.

Analysts surmise that hitting and sinking a vessel in the Canal Zone would be extremely difficult; such an endeavour would require a suicide boat attack, floating mines, or missiles. While the former two options would be almost inconceivable to get through Suez security, the option that remains is to build a small battery in a deserted area, capable of delivering a missile to attack a ship. However, the development of such a system would likely be detected by electronic or satellite surveillance, or one of the many military battalions stationed in the Suez region.

Experts have ensured that Egyptian authorities were fully capable of securing the Suez Canal and preventing potential terrorist attacks, however there is the possibility of “minor” limited attacks in the near future. Military expert Ahmed Ragae said, “I expect to see limited and ineffective attacks that aim only to raise doubts about the canal among western countries.”

Western countries are already keeping a close eye on the turmoil in Egypt. Earlier today in Nile Valley Egypt, a car bomb targeted the convoy of Egypt’s Interior Minister Mohammed Ibrahim in a suspected assassination attempt. The bomb did not harm Ibrahim; however, as many as 10 people have been injured in the blast. The bombing occurred in Nasr City near the home of the Minister, and in a stronghold region of the Muslim Brotherhood. No party has claimed responsibility for the attack. Egyptian police have reportedly killed two of the attackers.

Ibrahim is the head of the country’s police force, which worked with other security forces to clear out two Muslim Brotherhood protest camps last month, resulting in a deadly crackdown that left hundreds dead and thousands injured. The protesters are seeking the return of deposed president Mohamed Morsi, who was removed from office on 3 July.

Congress To Vote On Syria Ahead of Russian G20 Summit

Amidst ongoing debates in the United States pertaining to possible military action against Syria, Russian President Vladimir Putin has warned America and its allies against taking one-sided action in Syria.  Ahead of the G20 Summit, which is set to begin in Saint Petersburg on Thursday, the Russian President also indicated that he would not exclude Russia from agreeing to a possible US-led military strike on Syria, as long as it was proven that Syria’s regime had carried out the August 21 attack.  While the G20 summit is suppose to concentrate on the global economy, it is highly likely that the Syrian crisis will dominate the discussions amongst global leaders.

Speaking during a wide-ranging interview with The Associated Press and Russia’s state Channel 1 television, Putin’s remarks come just one day after members of the Senate Foreign Relations Committee agreed on a draft resolution backing the use of US military force.  According to the draft resolution, the operation would be restricted to a “limited and tailored use of the United States Armed Forces against Syria,” and ban the use of any ground forces.  The measure, which will be voted on next week, sets a time limit of sixty days on any operation.

While US President Barack Obama has called for punitive action in response to an alleged chemical attack that was carried out on the outskirts of Damascus on 21 August, President Putin stated on Wednesday that any military strikes without the approval of the United Nations would be a form of “an agreession.”  The Russian President further noted that while his country had not ruled out supporting a UN Security Council resolution that would authorize the use of force, it would have to be proved “beyond doubt” that the Syrian goverment used chemical weapons before such a mission would be launched.  In relation to the Syrian regime’s use of chemical weapons, Putin noted that it was “ludicrous” that Syrian President Bashar al-Assad, an ally of Russia, would use chemical weapons at a time when it was gaining ground against the rebels.  However the Russian President did specify that “if there is evidence that chemical weapons were used, and by the regular army…then this evidence must be presented to the UN Security Council.  And it must be convincing,” adding that Russia would “be ready to act in the most decisive and serious way” if there was clear proof of what weapons were used and who used them but that at the moment, it is “too early” to discuss what Russia would do if America took action without a UN resolution.  During the interview, Putin also confirmed that Russia has currently suspended delivering further components of S-300 air defence missile systems to Syria, adding that “if we see steps are taken that violate the existing international norms, we shall think how we should act in the future, in particular regarding supplies of such sensitive weapons to certain regions of the world.

Ahead of next week’s vote in Congress, on whether to back President Obama’s push for military strikes in Syria, Secretary of State John Kerry appeared on Tuesday before the Senate Foreign Relations Committee in order to promote the Obama administration’s case.  During his discussions, Kerry indicated that there was evidence “beyond any reasonable doubt” that the forces of President Bashar al-Assad’s regime prepared for a chemical weapons attack near Damascus on 21 August.  He further indicated to senators that while the President was not requesting that America go to war, “he is asking only for the power to make clear, to make certain, that the United States means what we say.”  US Defense Secretary Chuck Hagel and top US military officers Gen. Martin Dempsey also appeared before the Senate panel.  While a number of high profile officials, including Republican Speaker of the House of Representatives John Boehner, and former Secretary of State Henry Kissinger support Obama’s call for military action in Syria, the latest opinion polls in the US indicate that public opposition with respect to US involvement in the conflict is growing, with six out of ten Americans opposed to missile strikes.

Internationally, France, which is due to debate the issue on Wednesday in Parliament, has also strongly back the US plan for military action.  On Tuesday, French President Francois Hollande stated that “when a chemical massacre takes place, when the world is informed of it, when the evidence is delivered, when the guilty parties are known, then there must be an answer.”  While Hollande is under no obligation to obtain parliamentary approval for action, with public opinion deeply sceptical of military strikes, many lawmakers have called for a vote on the matter.  While UK Prime Minister David Cameron had also backed the military action, the British parliament had voted against a resolution on military action.  With the UK against the military action, the US is seeking other allies.

While the world debates possible military action in Syria, the conflict, which began in March 2011, has resulted in more than 100,000 people thought to have died since the uprising aginast President Assad.  On Tuesday, the UN refugee agency indicated that more than two million Syrians were now registered as refugees, indicating that a further 4.25 million have been displaced within the country.

Russia – US Relations

After returning to the Kremlin for a third term as president last year, relations between Russia and the US have dramatically deteriorated as the two nations have disagreed over a number of issues which have included the Syrian crisis and human rights.  Tensions  peaked this summer after Moscow gave asylum to US intelligence leaker Edward Snowden, which prompted President Obama to cancel his planned bilateral visit to Moscow ahead of the G20 summit.  While Putin did admit that he was disappointed by Obama’s decision, he did note that the move was not a “catastrophe” and that he understood that some of Moscow’s decisions did not sit well within the US administration.

Although no official bilateral meeting is planned to take place between Obama and Putin at the G20 Summit, a White House official indicated on Wednesday that the two presidents are expected “to have an opportunity to speak on the margins of the various meetings of the G20.”

Update on the Suez Canal

Following the failed attack on the Panama-flagged shipping vessel COSCO ASIA in the Suez Canal, Egyptian authorities have bolstered security along the waterway.

Suez Canal Authority Chairman Mohab Mamish said in a statement that the military dealt “decisively” with the 31 August attempt, but gave no further details. It is known that three gunmen were arrested for opening fire on the ship, and investigations are ongoing. Sources within the Suez Canal Authority indicated that a rocket-propelled grenade had been used in the attempt; there was no damage to the ship or its cargo. It is believed that the attack was most likely conducted by foreigners, or Egyptians working with foreigners, from bases in the North Sinai.

Egyptian authorities, meanwhile, have elevated security along the Canal Zone. Commander of the Third Field Army has announced that the waterway and the ships transiting the canal are completely secure.  While Egypt is under national curfew until 31 August, authorities stress that traffic through the Suez Canal remains unaffected. The Canal Zone is secured by the military, including land, sea and air patrols.

The Egyptian military and interim government are determined to keep traffic in the Suez flowing normally. Authorities have highlighted high-risk areas of threat to the canal and its land-based facilities, and are increasing security. But it is likely that such an incident could happen again. While there is intense security along the canal zone, residential areas could become trading areas for light weapons, free from the scrutiny of authorities.

Ships transiting the region are advised to pay attention to updates and recommendations from local authorities, and maintain a constant security watch.

The Joint War Committee, which is comprised of representatives from the Lloyd’s and IUA company markets, are reviewing the situation to identify whether this attack is indicative of a trend, and whether it was carried out by individuals rather than a group. They have not placed Egypt or the Suez Canal on their list of high-risk areas.

Traffic is currently uninterrupted in the Canal.