JULY 6, 2010 CIRCULAR NO. 19/10 TO MEMBERS OF THE ASSOCIATION Dear Member: PIRACY OFF THE COAST OF SOMALIA AND THE ARABIAN SEA AREA: BEST MANAGEMENT PRACTICE FOR THE PURPOSE OF DETERRING PIRACY The third edition of best management practice to deter piracy off the coast of Somalia and the Arabian Sea area has recently been published under the auspices of several shipping industry associations including BIMCO, Intertanko, Intercargo, the ICS and the International Group of P&I Clubs. Also known as BMP3, this latest guide has been produced in consultation with EUNAVFOR, the NATO Shipping Center, and UKMTO, and updates the guidance provided in BMP2 which was published in August 2009 and was the subject of Club Circular No. 21/09 of August 27, 2009. (The first BMP guide was the subject of Circular No. 8/09 of March 10, 2009). The booklet should also be read with reference to the Maritime Security Centre - Horn of Africa (MSCHOA) website (www.mschoa.org or www.mschoa.eu) which provides additional, updated information. The most salient revisions found in BMP3 include the expansion of the High Risk Area just beyond the Gulf of Aden to an area bounded by Suez to the North, 10 degrees South and 78 degrees East. This larger application of the BMP is the obvious result of piracy attacks which have occurred during the past year in areas several hundreds of miles beyond the Somali coast. It is recommended that BMP3 be applied throughout this revised High Risk Area, and it is hoped that such increased awareness and preparedness of vessels and their crews will deter future incidents. Additionally, BMP3 contains updated advice on ship protection measures, a copy of the UKMTO vessel position reporting form, and fishing industry guidance. BMP3 also encourages post-incident reporting and debriefing to MSCHOA and the relevant flag state. For a PDF version of BMP3, please click here. As emphasized in Club Circular No. 21/09, your Managers urge strict adherence to this latest BMP guide in order to minimize both the physical risks of transiting the areas in question and the possibility of subsequent allegations of unseaworthiness and/or breach of duty which might be raised by charterers, cargo owners or other third parties in the event of an attempted, or successful, incident of piracy. Should anything further be required by Members by way of explanation of the foregoing, or generally, your Managers will be happy to respond. Yours faithfully, Joseph E.M. Hughes, Chairman & CEO Shipowners Claims Bureau, Inc., Managers for THE AMERICAN CLUB