Probability of Pirates
What is the likelihood apparel importers encounter pirates on the high seas? We checked in with the NRF to find out.
News of the high-seas hijacking of the Maersk Alabama, an American freighter, and the dramatic rescue of its abducted captain has brought piracy to the forefront of national news.
In the wake of the hijacking, Secretary of State Hillary Clinton released a four-point plan to fight piracy in the Gulf of Aden, located off the coast of Somalia. Clinton said a meeting between an American diplomatic team and Somali leaders from the transitional federal government and Puntland will be arranged to discuss the problem. “Because it is clear that defending against piracy must be the joint responsibility of governments and the shipping industry, I have directed our team to work with shippers and the insurance industry to address gaps in their self-defense measures,” she said at an April 15 press conference. “So we will be working on these actions, as well as continuing to develop a long-term strategy to restore maritime security to the Horn of Africa.”
While apparel imports generally don’t traverse the treacherous waters off of the Somali coast, California Apparel News Manufacturing Editor Erin Barajas caught up with Jonathan Gold, a shipping expert, to discuss what threat, if any, apparel manufacturers face when shipping their goods across oceans. Gold, vice president of supply chain and customs policy with the National Retail Federation, specializes in representing the NRF before Congress and the administration of supply chain and customs issues that impact the retail industry.How prevalent is piracy on the high seas?
We’ve heard about piracy for years around the Horn of Africa, but it has garnered more and more attention with the recent episodes with the oil tanker a couple of months ago and the Maersk vessel last week. This seems to be an ongoing phenomenon that is becoming more public.What areas are hot spots for piracy?
Besides the Horn of Africa, I haven’t heard of other hotspots for piracy. Does/has piracy affect apparel shipments?
I’m not sure that piracy has affected apparel shipments to date. Retailers and shippers take many issues into consideration when placing orders for apparel, as well as other products, and the eventual shipping of those products to the U.S. This all goes into the risk analysis that companies conduct when determining where to source from. Piracy might become a bigger issue now that retailers look at, but again, not sure.
Many carriers and shippers participate in a program known as the Customs-Trade Partnership Against Terrorism (C-TPAT), which is a public-private partnership with U.S. Customs and Border Protection and the business community. The program was started after 9/11 and focuses on preventing the introduction of terrorist weapons into a container and the supply chain. As a result of participation in the program, many companies have increased their security throughout the supply chain, starting with the actual stuffing of the box itself.The carriers have security requirements through this program as well as the International Ship and Port Facility Security (ISPS) Code.Unfortunately, neither program addresses the issue of piracy.
