London (Platts)--9Jan2012/707 am EST/1207 GMT

Global pirate activity declined in December to the lowest level in 2011, shipping and marine services company GAC reported Monday, attributing the fall in part to bad weather.

Incidents of piracy in December dropped to 17 from 22 in November, mainly because of a fall in the number of attacks off East Africa and in the Indian Ocean, according to GAC's monthly piracy intelligence report.

Currently, at least 16 ships and 294 crew members are being held following incidences of piracy, GAC said.

Attacks in the East Africa region dropped from 10 in November to just five during December.

GAC attributed the drop in attacks to weather conditions being caused by the northeast monsoon, which was creating "a difficult operating environment in which skiffs struggle to launch."

But the report added that the risk of piracy remains high and that the continuing northeast monsoon could push attacks closer to shore into the traditionally sheltered areas in the Gulf of Aden and southern Red Sea.

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"A slight increase in attacks may occur as pirates are emboldened by high reported ransom payments and the first successful hijacking of a merchant vessel in eight weeks in December," the report said.

Italy-flagged chemical tanker Enrico Ievoli was successfully hijacked off the southern Omani coast on December 27. The vessel was carrying a crew of 18, and was transiting from Fujairah to join a naval convoy towards the Mediterranean.

"The attack should serve as a reminder that pirate tactics are expected to evolve to take advantage of unprepared vessels outside traditional hot spots, including those on their way to join convoys or pick up or drop off security detachment teams," the report added.

In West Africa, total piracy incidents fell again by two from November to just two in December.

The joint naval patrols being carried out by the Nigerian and Beninese governments, dubbed Operation Prosperity, have helped reduce some attacks, the report said.

Also the majority of ship-to-ship transfer operations have moved from the high risk Nigerian waters to the areas off Togo under the control of the Togolese navy, causing a reduction in tanker hijackings.

But GAC said it is unlikely that the official statistics provide an accurate representation of the security situation due to the under-reporting of many attacks.

GAC also added that the "removal of the Nigerian fuel subsidy at the end of January may result in an increase in piracy if traffic increases to and from Nigerian ports as new entrants join the market, which may be exacerbated depending on the scarcity of refined products."

--Eklavya Gupte, eklavya_gupte@platts.com

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