This thesis addresses the issues concerning modern day piracy attacks in international waters. The purpose of this thesis is to construct a proactive legal and economic risk model. This will allow ship-owners to use legal instruments, in order to minimize the risk of a pirate hijacking. International maritime law determines, that flag states holds exclusive jurisdiction over vessels flying their flag. The main focus of the risk model is therefore, the ship-owners choice of flag state. The thesis uses a legal and game theoretic analysis to give a comparative perspective on Danish and American law on to main issues, payment of ransom and use of armed civilian guards. Furthermore the thesis analyzes various international conventions, guidelines and soft-law with influences on these issues. Analysis of the current legal status of ransom payments shows variations between American and Danish law. While Danish law contains no provisions banning ransom payments, US regulation contains a partial ban, with an option to ban ransom payments in general. The economic analysis shows that a ransom ban may burden the ship owner with additional cost and may not be able to deter pirate attacks. The terms and conditions for the use of armed guards, onboard Danish and American vessels, have been analyzed. The conditions for the use of armed guards on American vessels are found to be well defined and rely on government control. Deadly force can be used only as self-defense either by the guards own choice, or as commanded by the ships master. Under Danish law, regulation concerning armed guards is more flexible and rely on the ship-owners due diligences. Generally deadly force can only be used as self-defense and only if decided by the individual guard. International organizations, such as IMO and BIMCO, have drafted guidelines and contract drafts in order to assist ship-owners when contracting with security companies. Many of these recommendations have been adapted into American and Danish regulation. The various analyses applied in the thesis can be conducted in other flag states, enabling the ship-owner to further proactively, minimize his risk of piracy. A comparative, proactive, legal and economic risk model has therefore been created.
|Educations||MSc in Commercial Law, (Graduate Programme) Final Thesis|
|Number of pages||140|