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Somalia: Piracy in Gulf of Aden cost shippers $ 18-30 mln in 2008- British think-tank
Fri. October 03, 2008 02:02 am.- By Bonny Apunyu. -
(SomaliNet) British think-tank Chatham House said on Thursday that piracy in the Gulf of Aden has cost shippers between $18-30 million so far this year in ransoms and is threatening global business.
This year, pirates have hijacked more than 30 ships off Somalia, making the country's 3,300 km (2,060 mile) coastline one of the most dangerous in the world and threatening an important shipping lane between Europe and Asia.
"Total ransom payments for 2008 probably lie in the range of $18-30 million. Inflation of ransom demands makes this an ever more lucrative business," a Chantam House report said.
According to the report titled: Threatening Global Trade, Feeding Local Wars, The gangs have received ransoms between $500,000 and $2 million for each ship taken this year.
Chatham House says the piracy was likely to divert shipping away from the major global sea artery used by about 20,000 vessels each year, increasing operating costs and end prices.
The report said, risk insurance premiums have risen tenfold this year.
Shippers are considering avoiding the Gulf of Aden for a longer route to Europe and North America around the Cape of Good Hope, Chatham House said.
"Extra weeks of travel and fuel consumption would add considerably to the cost of transporting goods.
At a time when the price of oil is a major concern, anything that could contribute to a further rise in prices must be considered very serious indeed."
The pirates are getting more sophisticated and brazen as little is done to counter their activity, the report said.
In the latest hijacking, Somali pirates captured a Ukrainian ship carrying 33 tanks and have demanded a $20 million ransom.-Reuters
News Category: Somalia
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