Black Sea, Hormuz attacks on merchant ships ‘a breakdown of the international order’ – MMF Chair

The Chairman of the Malta Maritime Forum, Godwin Xerri, has described the attacks taking place on commercial ships as a “breakdown of the international order.”

He spoke to MaltaCeos.mt after a Maltese-flagged vessel was struck by drones in the Black Sea. “Commercial ships in the Black Sea, the Strait of Hormuz and elsewhere have nothing to do with the issues between nations,” he said. “The seamen onboard even more so.”

Malta’s Foreign Affairs Minister Chris Fearne said that on 12th October, Malta Flagged vessel M/V Chelsea-3 was struck by three drones whilst sailing in the Black Sea. Reports read that it was around 18 miles from the Bulgarian coast. All crew were rescued, the minister said, however four crew members sustained minor injuries requiring medical care. The crew included seven Ukrainian citizens and eight Azerbaijan citizens. “Malta strongly condemns this attack and reiterates the necessity to ensure safe maritime passage according to the principles of UNCLOS,” the minister said.

The Maltese-flagged vessel was one of two ships hit, with the other ship being sunk. The Associated Press reports that while authorities do not possess clear evidence on who was responsible for the drone strikes, Bulgarian Prime Minister Rumen Radev said “logic, as I have already stated, indicates that the result is in favour of the Russian Federation.”

Contacted by this newsroom, Mr Xerri said that the drone strike occurring on a Maltese-flagged ship bring it closer to home.

He stressed that seafarers lives should come first and foremost, before commercial considerations, warning of the dangers that vessels face when choosing to operate near danger zones. “Whereas the flag cannot impose on a ship owner where to trade, there is a dire need for a level of humanity,” he said, noting the risks. He noted with regret that diplomatic efforts in the Strait of Hormuz, the Black Sea, to leave commercial ships out of the line of fire has not yet yielded results.

“Let’s not forget that in the Strait of Hormuz there were more than 8,000 seamen tied on vessels which could not leave the straits for fear of being fired upon.”

The Black Sea situation brings a new dimension to the international situation, he explains. “It isn’t a canal between Ukraine and Russia,” he said, but noted that ship targeting has become indiscriminate.

Mr Xerri also believes that this attack, when taken together with wider geopolitical issues, will have an impact on international trade. “Last Sunday the Pope made an appeal, saying that blocking the exportation of grain from Ukraine is impacting not only Ukraine itself, but many countries that depend on the grain.” He also questioned whether, on the other end of the stick, logistics carriers that will transport diesel from Russia to the USA under a new deal will be targeted.

As for whether the drone strike on a Maltese-flagged vessel could impact trust in the flag jurisdiction, he does not believe so. “There have been ships targeted in dangerous areas regardless of what flag they have,” he notes.

The incident could have further impacts, including on vessel insurance premiums, he explains. Insurance premiums for ships trading in warzones is sky high, “but with more ship losses, insurance companies will hike up prices for everyone, not just those trading there,” he said.

Lawyer Cedric Mifsud, a Founding Partner of Mifsud and Mifsud Advocates who specialises in commercial law, adds that insurance prices have already been rising, and will continue to climb globally with instability. “Insurance companies will closely monitor what is going on, so situations such as this don’t help vessel operators,” he said.

Asked what would happen next from a Maltese perspective, he said that the flag jurisdiction, in this case through Transport Malta, could investigate to ascertain the facts, such as to ensure that the reason given for the damage is what the vessel declares, how the vessel has been affected, whether the vessel is still seaworthy etc.