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Somali pirates hurting Canadian shipping businesses

Canada may be half a world away from Somalia and the Indian Ocean, but the crisis of piracy and hostage-takings there is affecting businesses here in B.C. Canadian shipping companies like Vancouver’s Fairmont Shipping (Canada) Ltd.

Canada may be half a world away from Somalia and the Indian Ocean, but the crisis of piracy and hostage-takings there is affecting businesses here in B.C.

Canadian shipping companies like Vancouver’s Fairmont Shipping (Canada) Ltd. are joining a group of the world’s largest maritime organizations in a campaign launched yesterday.

The SOS Save Our Seafarers campaign aims to put pressure on governments to take a firmer stance against piracy. The campaign is headed by groups such as the Baltic and International Maritime Council (BIMCO), the International Chamber of Shipping (ICS), the International Shipping Federation (ISF), Intercargo, INTERTANKO and the International Transport Workers’ Federation (ITF).

Stephen Brown, president of the Chamber of Shipping of British Columbia, said, “Piracy is claiming innocent lives and threatening global trade every day. I don’t think governments are aware just how bad it has become.”

While the company has never had a ship hijacked by pirates, the risk alone means Fairmont Shipping refuses to sail any of its 22 ships in the vicinity of the Somali coast.

Samuel Tang, vice-president, chartering and operations for Fairmont Shipping, notes that because the risk is just too great, the Suez Canal – one of the busiest and most profitable shipping routes – is off-limits.

“We’ve decided the potential profit doesn’t warrant the risk to our vessels and to our crews. Piracy has forced us to decline certain charter contracts, it forces us to take longer, less-profitable routes and it’s costing us revenue every day,” said Tang.

Brown said, “Right now, more than 720 sailors are being held hostage on 34 ships in the Indian Ocean. It’s a staggering situation and it’s costing global economies up to $12 billion a year.”

While Brown acknowledges and appreciates Canada’s naval presence in the region, he insists governments need to do much more to eradicate piracy at sea.

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