Piracy’s hidden cost

By Patrick Burnson, Executive Editor
January 27, 2011 - LM Editorial

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

A number of key topics impacting the freight transportation and logistics marketplace were front and center at a panel at the Council of Supply Chain Management Annual Conference in San Antonio last week.

The relationships between third-party logistics (3PL) service providers and shippers are seeing ongoing developments due in large part to the continuing emergence and sophistication of omni-channel retailing. That was one of the key findings of The 19th Annual Third-Party Logistics Study, which was released by consultancy Capgemini Group, Penn State University, and Korn/Ferry International, a global talent advisory firm.

Optimism in the form of increasing profits was a key takeaway in the Annual Survey of Third-Party Logistics (3PL) CEOs, released earlier this week at the Council of Supply Chain Management Professionals (CSCMP) Annual Conference in San Antonio.

Seasonally-adjusted (SA) for-hire truck tonnage in August saw a 1.6 percent increase in August on the heels of a 1.5 percent increase in July. The August SA index––at 132.6 (2000=100)––stands as a new SA high, with November 2013’s 131.0 now the second best month recorded.

Carload volumes saw a 5 percent jump compared to the same week a year ago at 302,178, and intermodal volumes hit a new weekly U.S. record at 279,777 trailers and containers.

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers 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. Contact Patrick Burnson

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA