Sea piracy in the first half of 2022 is at its lowest level since 1994, the International Maritime Bureau (IMB) says, with 58 incidents, down from 68 for the same period last year. However, the organization warns against flattery.
For the entire year 2020, the IMB listed 195 actual and attempted attacks, up from 162 in 2019. The Covid-19 pandemic may have played a role in increasing pirate activity – as it is linked to underlying social, political and economic problems. – and 2022 could represent the beginning of a downward trend reversal.
Many people outside the maritime and insurance industries do not realize that piracy remains a costly risk in the 21st century.St Century Global Insurance Company Zurich estimates the annual cost of piracy to the global economy at $12 billion per year. In its 2022 Safety and Shipping Review, global insurer Allianz reported that piracy is behind machinery damage or failure, collision and contact in terms of the number of damaging incidents globally – and that total losses have fallen by 57 percent over the past decade.
However, the shipping industry is vulnerable to disruptions and, as Allianz points out, Russia’s invasion of Ukraine has had an impact on multiple fronts: from casualties and loss of ships in the Black Sea and disruption to trade to challenges in day-to-day operations. That affects crew, cost and fuel availability and increases cyber risk.
“So far, the biggest impact has been on vessels operating in the Black Sea and/or trading with Russia,” Allianz says. "At the beginning of the conflict, about 2,000 sailors were stranded on ships in Ukrainian ports. The stranded crews faced constant threat of attack, had little food or medical supplies, and many were killed.
According to a recent industry survey, Allianz says, 44 percent of maritime professionals report that their organization has been the subject of a cyber-attack in the past three years. Cargo exposure at mega ports is increasing – and, as ports become increasingly dependent on technology, an outage or cyber-attack can effectively shut down a port.
In February 2022, India’s busiest container port suffered a ransomware attack, following incidents at US and South African ports in recent years.
A third of organizations surveyed by Allianz said they do not conduct regular cybersecurity training or have a cyber-response plan.