News24

Somali piracy cost $7bn in 2011

2012-02-08 14:49

Washington - Somali piracy cost the world about $7bn in 2011, including more than $2bn for military operations, armed guards and equipment to protect ships, a monitoring group said on Wednesday.

The US-based Oceans Beyond Piracy said 80% of the cost is borne by the shipping industry with the remainder covered by governments.

It said the most notable cost was $2.7bn in fuel to allow ships to travel at higher speeds through high-risk areas, followed by $1.3bn for military operations and $1.1bn for armed guards and security equipment.

Another $635m are attributed to insurance, $486-680m are spent on re-routing vessels along the west coast of India, and $195m on increased labour costs and danger pay for seafarers, it said.

The average ransom paid climbed to $5m in 2011 from $4m in 2010, but total ransoms amounted to just $160m in 2011, accounting for just 2% of the total cost of piracy, according to the group.

Pirates operating from Somalia - which has been without a central government for two decades - carried out 237 attacks in 2011, more than half the world total, the London-based IMB Piracy Reporting Centre said last month.

Comments
  • Olivia - 2012-02-08 15:08

    These stats are alarming, unbelievable! what is this world coming to.

  • Comrade - 2012-02-08 15:22

    ONE NUCLEAR BOMB - $ 10 Million. ..DO THE MATH!!

  • thinga - 2012-02-08 15:26

    I thought Pompey the Great vanquished them!

  • wmutahi - 2012-02-08 15:34

    Isn't it more like, it created jobs worth $7bn?

      Nosiphom - 2012-02-08 16:35

      that as well, and inspired security companies to motivate, so it is not altogether a terrible thing! $1.1bn for security personnel and equipment ...

  • braamc - 2012-02-08 17:43

    Africa a fine place with fine people

  • stefan.vanderspuy - 2012-02-22 11:42

    If the Somali's are only responsible for about half the attacks in 2011, and that amounted to 237, where the f*** are the other 237 attacks taking place?

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