Somali Piracy and Its Threat to Japanese Economy and Daily Lives

Lessons from the Great East Japan Earthquake include crucial importance of conducting rigid risk managements, maintaining a reliable supply chain and securing energy resources. Based on the lessons, the piracy off Somalia could have devastating effects onto Japan, because Japan imports most of its food and resources, and 99 percent of its trade tonnage is carried by ship.

The northeastern African state of Somalia has been in anarchy due to a series of civil wars for 30 years. Pirates who are under influence of a terrorist organization, Al-Shabaab, routinely attack merchant vessels passing in the Gulf of Aden to/from the Suez Canal. (20,000 vessels annually, 2,000 vessels of which are affiliated with Japan.) Pirates, often armed with RPGs, hold crews, cargoes and ships for ransom during their negotiations that can last for several months. In response to a series of the UN Security Council resolutions concerning the threat to Asia-Europe trade, some 20 different countries have sent a total of about 30 military escort warships to the area to help provide protection. In fact, Japan has contributed two escort ships and two patrol aircraft and been praised for its contribution to the security of trade through the Gulf of Aden.

However, Somali piracy has since expanded from the Gulf of Aden into the lightly patrolled Indian Ocean. In fact, 219 ships traversing the Indian Ocean were attacked in 2010, and so far this year, this number is 1.5 times what it was last year. In fact, at the beginning of September, 23 ships and 349 seafarers were being held by pirates. This year, more than 10 Japanese vessels, including tankers, car carriers, and containerships, have been attacked in the Indian Ocean. Note that 90 percent of the total petroleum import to Japan and 30 percent of the total car export from Japan are traversed there. Service has been disrupted and seafarers are fearful of being on vessels that cannot adequately assure safety. This issue could quickly expand into a full-blown ‘no oil / no ship’ crisis for Japan.

Because of the tremendous dangers to the Japanese economy and lives of Japanese people caused by Somali piracy, Keidanren has announced its proposal to strengthen anti-piracy measures, including enhancing security by increasing the Japanese Maritime Self-Defense Force fleet, allowing onboard guards onto Japan-flag vessels by JSDF and/or Japan Coast Guard officers, enhancing aid support to Somalia and neighboring coast counties, and encouraging the enforcement of internationally recognized rules of conduct against the pirates.

For the security of the supply chains that allow Japan and its people to maintain their prosperity, I ask for the immediate action of the Japanese government.