News / Africa

Study: Piracy Costs World Up to $12 Billion Annually

In this image provided by the U.S. Navy, the guided missile frigate USS Nicholas steams through the Atlantic Ocean, 7 May 2006 (file photo)
In this image provided by the U.S. Navy, the guided missile frigate USS Nicholas steams through the Atlantic Ocean, 7 May 2006 (file photo)
TEXT SIZE - +
Michael Onyiego

As attacks in the Indian Ocean continue, a new study estimates Somali Piracy to cost the international community billions of dollars every year.

With piracy on the rise worldwide, a United States think tank is attempting to measure the toll it is taking on the international economy. Colorado-based think tank One Earth Future has released a report which estimates the cost of piracy in 2010 to be between $7 and $12 billion worldwide.

While available data from areas such as West Africa and the Malacca Strait in southeast Asia have been included in the groups accounting, the bulk of the cost of international piracy stems from hijacking committed by Somali pirates.

The Associated Press has reported that at least 28 ships and 660 crewmembers are currently being held in Somalia. 2010 saw a spike in ransom prices, with some ships, including the South Korean Samho Dream being released for a reported $9.5 million ransom.

But according to report author Anna Bowden, ransoms are only one of the many costs created by Somalia’s pirates.

"A number of ships will not go through piracy zones right now," said Bowden.  "They’ll actually reroute around the coast of Africa, via the Cape of Good Hope. Costs there are about $2.4 to $3 billion per year. Other costs are security equipment, insurance premiums and so on. There are also costs to government that we need to remember.  There are costs of naval forces.  There are also costs of prosecution, as well as anti-piracy organizations."

A cost of $12 billion per year may seem low, but Bowden emphasized the figure was a conservative estimate which could potentially increase. The analyst told VOA the number was likely deflated by the worldwide economic crisis; Bowden expects that figure to increase as international shipping rebounds.

Bowden’s report is more than just a calculation. The study is part of One Earth Future’s Oceans Beyond Piracy Project. The system used to estimate the cost of piracy was developed as an open-source model which will allow the international community to contribute data and more accurately estimate the crime’s global impact.

Meanwhile it has been reported that six crewmembers of the Danish vessel M/V Leopard have been kidnapped while transporting weapons in the Gulf of Aden Thursday. The Leopard was found floating empty by NATO forces and it is believed the crew is being held aboard a Taiwanese ship also captured by Somali hijackers.

You May Like

Multimedia Anti-Keystone XL Protests Continue

Demonstrators are worried about pipeline's effect on climate change, their traditional way of life, health and safety More

Thailand's Political Power Struggle Continues

Court gave Prime Minister Yingluck Shinawatra until May 2 to prepare her defense over abuse of power charges but uncertainty remains over election timing More

Malaysia Plane Search Tests Limits of Ocean Mapping Technology

Expert tells VOA existing equipment’s maximum operating depth is around 6 kilometers as operation continues on ocean bed for any trace of MH370 More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Pet Kangaroo Helps Spread Environmental Messagei
X
Penelope Poulou
April 22, 2014 5:53 PM
Children’s author Julia Heckathorn travels the world to learn about different ecosystems and endangered animals. She pours her knowledge into children’s books, hoping the next generation will right the environmental wrongs of our times. As in many children's books, the main character in Heckathorn's stories is an animal. Unlike those other characters, though, this one is real - a kangaroo, that lives in the author’s backyard. VOA’s Penelope Poulou has more.
Video

Video Pet Kangaroo Helps Spread Environmental Message

Children’s author Julia Heckathorn travels the world to learn about different ecosystems and endangered animals. She pours her knowledge into children’s books, hoping the next generation will right the environmental wrongs of our times. As in many children's books, the main character in Heckathorn's stories is an animal. Unlike those other characters, though, this one is real - a kangaroo, that lives in the author’s backyard. VOA’s Penelope Poulou has more.
Video

Video Pro-Russian Separatists Plan 'Federalization Referendum' in Eastern Ukraine

Pro-Russian separatists in eastern Ukraine say they plan to move forward next month with a referendum vote for greater autonomy, despite the Geneva agreement reached with Russia, the U.S. and Ukraine to end the political conflict. VOA's Brian Padden reports from the city of Donetsk in Eastern Ukraine.
Video

Video Pope Francis Hopes Dual Canonizations Will Reconcile Church

On April 27, two popes - John the XXIII and John Paul II - will be made saints in a ceremony at St. Peter’s Square. VOA religion correspondent Jerome Socolovsky says the dual canonization is part of the current pope’s program to reconcile liberals and conservatives in the Roman Catholic Church.
Video

Video In Capturing Nature's Majesty, Film Makes Case for Its Survival

French filmmaker Luc Jacquet won worldwide acclaim for his 2005 Academy Award-winning documentary "March of the Penguins". Now Jacquet is back with a new film that takes movie-goers deep into the heart of a tropical rainforest - not only to celebrate its grandeur, but to make the case for its survival. VOA's Rosanne Skirble reports.
Video

Video Boston Marathon Bittersweet for Many Runners

Monday's running of the Boston Marathon was bittersweet for many of the 36,000 participants as they finished the run that was interrupted by a double bombing last year. Many gathered along the route paid respect to the four people killed as a result of two bombings near the finish line. VOA's Carolyn Presutti returned to Boston this year to follow two runners, forever changed because of the crimes.
Video

Video International Students Learn Film Production in World's Movie Capital

Hollywood - which is part of Los Angeles - is the movie capital of the world, and many aspiring filmmakers go there in hopes of breaking into the movie business. Mike O'Sullivan reports that regional universities are also a magnet for students who hope to become producers or directors.
Video

Video Pacific Rim Trade Deal Proves Elusive

With the U.S.-led war in Iraq ended and American military involvement in Afghanistan winding down, President Barack Obama has sought to pivot the country's foreign policy focus towards Asia. One aspect of that pivot is the negotiation of a free-trade agreement among 12 Pacific Rim nations. But as Obama leaves this week on a trip to four Asian countries he has found it very difficult to complete the trade pact. VOA's Ken Bredemeier has more from Washington.
Video

Video Autistic Adults Face Housing, Job Challenges

Many parents of children with disabilities fear for the future of their adult child. It can be difficult to find services to help adults with disabilities - physical, mental or emotional - find work or live on their own. The mother of an autistic boy set up a foundation to advocate for the estimated 1.2 million American adults with autism, a developmental disorder that causes communication difficulties and often social difficulties. VOA's Faiza Elmasry reports.
AppleAndroid