Shipping at the spotlight of terrorism


Shipping at the spotlight of terrorism

in Piracy and Security News,Shipping Law News 13/07/2019

Is terrorism the new norm for shipping?


On the 13/06/2019, two oil tankers were victim to what has been described as “sabotage” attacks in the Gulf of Oman, leaving one ablaze and both adrift. Following, a similar incident involving four tankers, which took place one month ago, on the 12th of May, 2019.

Japan’s trade ministry reported, that the two oil tankers carried “Japan-related” cargo. The timing of the attacks, was thus especially sensitive, occurring while discussions were being held between the Japanese prime minister and Iranian leadership in Tehran, in an effort to find a basis for negotiations between the US and Iran.


While the facts surrounding the incident might not be fully known at this stage, most likely the incidents would be classed as acts of terrorism.

If you believe that this issue only concerns tanker operators and charterer’s, think again!

A terrorist attack along one of the world’s busiest oil routes, affects not only nearby vessels but also port operations, charter party terms, spot fixtures, as well as other forms of shipping related contracts, including ship sale and purchase, contracts of affreightment and brokerage agreements. Furthermore, followed by the imposition of new sanctions by Trump against Iran, this should be noted as a red alert for the industry.

The impact of the attacks, as well as the new sanctions, invite serious risks. Advice should be sought before any calls to the area are undertaken, in order to understand the extent of exposure on your business, strengthen preventative measures, assess contractual rights and obligations and manage any resulting risks and reputational damage.


It is important to understand your contracts and have them re-assessed to reflect the new norm. With terrorism being excluded from standard P & I Cover and war risk underwriters charging additional premiums for calls to the Gulf of Oman area, BICMO strongly recommends the incorporation of the latest available edition of their Standard War Risk clauses, in charter parties. It is also important to widen sanction clauses, shifting from location specific to cover wider risk zones. With the US using sanctions as a political negotiation tool, contract clauses should ideally allow for the necessary flexibility required to adhere to unpredictability in this respect.


Adjusting to this new norm, also includes protecting your company’s reputation. Media response strategies should be comprehensive and updated, becoming an inseparable part of the Emergency Response plan. While staff, must be trained to effectively deal with media pressure during such times, mitigating the company’s legal exposure.


When dealing with the protection of human element, the environment and business operations, industry stakeholders should be alarmed in light of terrorism becoming a recurring threat. Risk assessments should be conducted on ship security plans, communication strategies and contractual relations.

Through these challenging times, safeguarding your business requires extensive due diligence on cargo carried, political risk of chosen trade routes and of contractual commitments. Summarizing, to tackle the new norm, it is vital to make these processes your businesses’ new norm!


Michael Kyprianou & Co. LLC is equipped to become your expert advisor on re-assessment of your contracts, update of your communications and media policies and facilitate your business in minimizing and mitigating legal exposure and vulnerability.
Source: Michael Kyprianou

Leave a Reply

SSCP   CAS-002   9L0-066   350-050   642-999   220-801   74-678   642-732   400-051   ICGB   c2010-652   70-413   101-400   220-902   350-080   210-260   70-246   1Z0-144   3002   AWS-SYSOPS   70-347   PEGACPBA71V1   220-901   70-534   LX0-104   070-461   HP0-S42   1Z0-061   000-105   70-486   70-177   N10-006   500-260   640-692   70-980   CISM   VCP550   70-532   200-101   000-080   PR000041   2V0-621   70-411   352-001   70-480   70-461   ICBB   000-089   70-410   350-029   1Z0-060   2V0-620   210-065   70-463   70-483   CRISC   MB6-703   1z0-808   220-802   ITILFND   1Z0-804   LX0-103   MB2-704   210-060   101   200-310   640-911   200-120   EX300   300-209   1Z0-803   350-001   400-201   9L0-012   70-488   JN0-102   640-916   70-270   100-101   MB5-705   JK0-022   350-060   300-320   1z0-434   350-018   400-101   350-030   000-106   ADM-201   300-135   300-208   EX200   PMP   NSE4   1Z0-051   c2010-657   C_TFIN52_66   300-115   70-417   9A0-385   70-243   300-075   70-487   NS0-157   MB2-707   70-533   CAP   OG0-093   M70-101   300-070   102-400   JN0-360   SY0-401   000-017   300-206   CCA-500   70-412   2V0-621D   70-178   810-403   70-462   OG0-091   1V0-601   200-355   000-104   700-501   70-346   CISSP   300-101   1Y0-201   200-125  , 200-125  , 100-105  , 100-105  , CISM   NS0-157   350-018  , NS0-157   ICBB  , N10-006 test  , 350-050   70-534   70-178   220-802   102-400   000-106   70-411  , 400-101   100-101  , NS0-157   1Z0-803   200-125  , 210-060   400-201   350-050   C_TFIN52_66  , JN0-102  , 200-355   JN0-360   70-411   350-018  , 70-412   350-030   640-916   000-105   100-105  , 70-270  , 70-462   300-070  , 300-070   642-999   101-400   PR000041   200-101  , 350-030   300-070  , 70-270  , 400-051   200-120   70-178   9L0-012   70-487   LX0-103   100-105  ,