Says GPCA’s report
The Middle East supply chains are facing increased risk from piracy as the alternatives to by-pass the dangerous waters zone are limited, a new report warned.
A joint Gulf Petrochemicals and Chemicals Association (GPCA) and A.T. Kearney report, “Managing Supply Chain Risk: Understanding Piracy Threat”, presented three potential outcomes over the next decade: a new piracy wave, lethal force escalation and a permanent solution.
This year marks a turning point in piracy activities. The number of vessels captured in 2011 compared to 2010 reduced by over 50% and further reductions are expected in the coming years, it says.
However, as the success rate for capturing ships decreases, ransom requests are getting higher and Somali pirates are becoming more aggressive and strategic. Pirates are acting further off the coast of Somalia, and are now in the Gulf of Oman, positioning themselves closer to traffic lanes in search of vessels of opportunity, according to the report.
This prompts industry stakeholders to identify how best to prevent and mitigate piracy impact. Understanding piracy in a wider context enables industry stakeholders to interpret the impact on their supply chains, assisting supply chain managers to better prepare flexible, long-term plans.
“In the short term, Gulf petrochemical companies and the international shipping community are advised to protect their investments through proper planning, adopt preventative measures, and engage with prudent ship-owners supporting governmental actions,” said Dr. Abdulwahab Al-Sadoun Secretary General, GPCA.
Source: SaveOurSeafarers
