Piracy and different aspect of piracy clause in the Charter Party Essay

Piracy and different aspect of piracy clause in the Charter Party contract - Essay Example Reported cases of these terroristic activities run across the globe. From the shores of Africa and South Asia to the waters of North and Latin Americas, piracy remains one of the critical concerns of most nations and still present an extreme endangerment and precariousness to travelers, especially those engaged in business. The internationally-recognized governing body for matters relating to the law and order of the sea, the United Nations Convention on the Law of the Sea defined piracy as the illegal acts of violence committed towards the crew or passengers of a private ship (United Nations Convention on the Law of the Sea, 1982). These acts include but not limited to boarding, extortion, hostage-taking, kidnap-for-ransom, robbery and murder. This undeniable risk prompted a certain initiative, for both ship owners and merchants to craft an insurance coverage that would guarantee them peace of mind and ultimately, protection. â€Å"Attack by pirates or any attempt of theft is covered by this policy that works around the gravity of damage to the aggrieved party† (Global Marine Practice, 2010). This agreement is subscribed in the charter party, in the form of a clause specific about piracy. A written contract shall be entered upon by both the ship owner and the merchant (charterer) signifying their commitment to responsibility when piracy occurs. Theoretically, however, charter clauses on piracy are generally centered on preventing and minimizing the hazards that ships may encounter when at sea. The Baltic and International Maritime Council (BIMCO), the world-renowned shipping organization, instituted two widely-accepted supplementary charter clauses concerning piracy: the War Risks Clause for Voyage Chartering of 2004 or simply, the VoyWar 2004 and the Piracy Clause for Time Charter Parties of 2009. These governing rules are the ones implemented in almost all members of the shipping industry. The War Risks Clause for