Around the time you meet Gneetaugh, rumors begin to spread that the Scaled Nation has been completely destroyed. Millions are believed dead or missing and the ruins will soon be occupied by the kingdom's forces.
Within days Phiam is flooded with adventurers and mercenaries of all sorts looking to book passage to Portet, Port Pinceer or Cape Tolya. However, there is a general pronouncement that the naval blockade remains in effect except for ships carrying food and supplies, leaving the fortune seekers stranded in Phiam. As you would expect this leads to lots of work for the constabulary.