Subscribe to our free, weekly email newsletter!



Piracy’s hidden cost

By Patrick Burnson, Executive Editor
January 27, 2011

If the on-going plight of the world’s victimized seafarers doesn’t arouse decisive action against piracy, perhaps this news will: shipping is becoming more expensive.

According to the Oceans Beyond Piracy (OBP) http://oceansbeyondpiracy.org/obp/ project, the insurance premiums covering kidnap and ransom (K&R), are being raised significantly – particularly in the Gulf of Aden. The cost? OBP reckons it’s $460 million and $3.2 billion annually.

The cost in human suffering is immeasurable, however, and as this column has many times before, that alone is why OBP’s mission should be championed and supported.

The Colorado-based One Earth Future Foundation http://www.oneearthfuture.org/ established the OBP to develop a robust and global system for managing piracy through collaboration with stakeholders from industry and governments.

The Cost of Piracy Project estimates the total cost of piracy in 2010 to be between $7 and $12 billion. This figure is not a definitive result, but an approximation.

“We welcome collaboration from interested parties in continuing this study into future years, as well as further developing the project,” state spokesmen. “We also note that like all economic assessments, these estimates reflect the current economic environment. It is worth remember- ing that as the international economy rebounds from the present economic recession, these numbers could be expected to change substantially.”

For more on this subject, check out:

http://oceansbeyondpiracy.org/documents/The_Economic_Cost_of_Piracy_Summary.pdf

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

While shippers ready themselves for the long Labor Day weekend, we’d like to remind them that new security and compliance regulations are - as always – looming ahead.

United States Class I carloads were down 56,104 carloads–or 4.6 percent annually–at 1,115,957 in August, and intermodal containers and trailers were up 3.6 percent--or 38,617 units- at 1,114,370.

A new report from Chicago-based freight transportation and logistics consultancy CarrierDirect released this week examines current freight market conditions and what logistics and supply chain stakeholders need to do and know in order to stay one step ahead of the competition.

You’ve heard the old saying, it was the best of times, it was the worst of times. Rob Handfield sees this as the best of times for procurement professionals, who have an opportunity to deliver real value to their organizations

While core metrics were down from a very impressive July, the August edition of the Non-Manufacturing Report on Business from the Institute of Supply Management (ISM) was still very strong.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA