Somali Pirates Re-Emerge as Shipping Threat as $18 Billion Damage Risk Returns
Updated
Updated · POLITICO · Aug 20
Somali Pirates Re-Emerge as Shipping Threat as $18 Billion Damage Risk Returns
3 articles · Updated · POLITICO · Aug 20
Summary
Windward said Somali piracy is again an active operational threat in the Western Indian Ocean and southern Gulf of Aden, adding pressure on shippers already strained by attacks near Hormuz and Bab el-Mandeb.
Higher oil prices, tighter markets and military resources tied up in Middle East conflicts have made hijackings more lucrative and potentially less risky, maritime consultant Brett Erickson said.
Few ships have been seized so far, but the renewed threat is hitting an alternate route that had helped relieve pressure on global oil flows outside the Strait of Hormuz.
The White House rejected linking the attacks to the Iran conflict and said U.S. and partner maritime forces remain capable of protecting critical shipping lanes.
Between 2005 and 2011, Somali pirates attacked hundreds of ships and caused an estimated $18 billion in annual damage; a broader resurgence could lift freight, insurance and private-security costs again.