Cost Of Piracy

Piracy costs global economy $7-12 bln a year

Peter Apps, Political Risk Correspondent for Reuters, covered the presentation of the Economic Costs of Maritime Piracy report today at London foreign policy think tank Chatham House.

The report — researched and published by the Colorado-based think tank Earth Future Foundation — revealed that since 2006 there have been over 1,600 reported acts of piracy since 2006, causing the death of over 50 people.

The report reveals that the cost of piracy to the global economy is calculated at being between $7 and $12 billion a year. Around 95% of the increase in the cost of shippping through the Indian Ocean can attributed the activities of Somali pirates.

The project team behind the working paper researched the cost of ransoms, the increases in insurance premiums, rerouting costs, naval patrols, security equipment, prosecution of individuals accused of acts of piracy and a series of other indirect costs such as the increase in food prices in East Africa due to the higher costs of delivery.
To read Peter’s article for Reuters click here: Piracy costs global economy $7-12 bln a year

To read or download the full report click here: The Economic Costs of Maritime Piracy