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

Getting items ordered online to your home on a same-day basis is as important or relevant as it needs to be, and it depends on things like the type of products being ordered and its relative urgency as well. This was put into better perspective for me during a recent conversation I had with Dr. Victor Allis, CEO of Quintiq, a supply chain vendor specializing in a single optimization and planning platform.

Diesel prices dropped for the third straight week, with the average price per gallon seeing a 2.5 percent decline to $3.869 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

Seasonally-adjusted (SA) for-hire truck tonnage in June dropped 0.8 percent on the heels of a revised 0.9 percent (from 1.0 percent) increase in May and was up 2.3 percent annually.

Even as Congress was putting the finishing touches on a 10-month short-term funding extension to the federal aid highway bill that temporarily averts a funding crisis, Transportation Secretary Anthony Foxx was ripping the measure as a short-term “gimmick” that once again fails to adequately fund U.S. infrastructure needs in the long run.

ISI is comprised of Integrated Services, ISI Logistics and ISI Logistics South and is focused on the warehousing and transportation needs of automotive shippers. RRTS said that in 2013, Integrated Services generated revenues of approximately $21 million adding that Integrated Services is expected to be accretive to Roadrunner’s earnings in 2014.

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