The economic cost of maritime piracy is increasing once again as Somali pirate networks resume attacks on ships, while kidnapping for ransom becomes a more popular tactic, according to a new report.
The State of Maritime Piracy 2016, a new report released Wednesday from NGO group Oceans Beyond Piracy (OBP), claims the economic cost of piracy caused by groups in Somalia increased to $1.7 billion in 2016, from $1.3 billion in 2015. This total includes costs paid by shipping operators for increased insurance, labor, armed guards and other protection measures, as well as ransoms paid by insurers and the costs of naval deployments.
The cost had been trending downwards from $7 billion since 2010 due to counter-piracy measures, but the report claims that decreased vigilance by the shipping community, such as hiring smaller private security teams, may have encouraged pirate groups.
Source: CNBC
