Piracy risks off Indonesia pose new risks for Australian business: Allianz

March 14, 2014

SYDNEY - A new report by Allianz Global Corporate & Specialty (AGCS) – the Safety and Shipping Review 2014 highlights a shift in the number of piracy incidents from the Gulf of Aden to Indonesia and West Africa, with piracy attacks in Indonesian waters up by of some 700% in the past five years.

Ron Johnson, Regional Marine Manager for the Pacific at Allianz Global Corporate & Specialty, said “the shift of the piracy focus from the Gulf of Aden to a new hotspot in Indonesia should be of concern to all businesses in the Pacific region involved in international trade as all shipping between the region and Asia has to transverse these waters”.

The report also highlights an emerging shipping industry risk from ‘mega ships’ because events involving serious casualties in remote locations could involve unprecedented and complex salvage operations.

“Given Australia’s large coastline, and limited ports of refuge and repair facilities to handle such vessels, the arrival of these mega ships could heighten the risk to cargo owners, Johnson said. Further details at www.agcs.allianz.com/insights (ATI).