Piracy’s hidden cost
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.”
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